Brüssel drängt zu Erneuerung der EU-Regionalpolitik[en] 

Cohesion policy was enshrined in the Treaties with the adoption of the Single European Act in 1986. It is built on the assumption that redistribution between richer and poorer regions in Europe is needed to balance out the effects of further economic integration. 

Cohesion policy for the 2007-2013 period consumes more than a third of the total EU budget. Currently, regions whose per capita GDP is less than 75% of the EU average are eligible to apply for cohesion funding. 

With the accession of ten new member states in 2004, the development gap between the bloc's regions has doubled, bringing many former recipients above the 75% threshold. As a result, most beneficiaries of the cohesion policy are now located in Central and Eastern Europe. 

An overhaul of the current policy has been mooted for several years, culminating in a 2007 agreement between the European Council and the European Parliament to focus cohesion policy on 'Convergence, competitiveness and employment, and territorial co-operation' (EurActiv 21/05/07). 

An independent report commissioned by the EU executive is now recommending further reform, claiming that current evidence shows the policy's impact to be "unsatisfactory". 

The report, written by Dr Fabrizio Barca, director-general of the Italian finance ministry, argues that while current cohesion policy structures "provide the appropriate basis," a number of reforms are required for the Union's long-term goals to succeed in the post-2013 era. The report was developed after consultation with academic experts and member-state officials throughout 2008. 

Barca's main criticism of the current policy is its lack of quantifiable targets. In particular, little is known of the policy's impact on people's well-being in European regions. 

The risk, he told journalists in Brussels, is that making "the wrong changes or no changes at all" might damage the policy's long-term viability. 

Criticism is also directed towards the EU mantra of economic "convergence", which aims to equalise the GDP of Europe's poorest regions. Barca argues that placing too much emphasis on convergence could lead to "a race to the bottom," where everywhere becomes worse-off in the name of harmonising economic output. 

Ten pillars for change 

The goal, said Barca, should be a "place-based policy", with greater local involvement in policy and funding decisions. Indeed, mobilising local knowledge could be key to making the policies work, ensuring that they are not "hijacked" by interest groups, the report argues. This should free up new thinkers and innovators to take the initiative in increasing economic and social progress in the regions. 

If existing EU money is to be spent more effectively, the focus should be on the quality of outcomes, not merely the quantity of the budget, which currently absorbs a whopping one third of combined EU spending, Barca said. 

The report recommends ten core guidelines or "pillars" for achieving these goals. Prominent among these is entrusting the European Commission with the power not only to assess targets, but to redirect priorities where necessary to ensure value for money. This recommendation may prove unpopular with national authorities, which currently have the final say on these matters. 

Barca also envisages a stronger role for the European Parliament in a so-called 'Council for Cohesion Policy', which would serve as a "checks and balances" system in monitoring the spending of regional funds. 

A high-profile political launch 

Barca would like to see prominent EU leaders coming together to present a "high-level compromise on the future of cohesion policy," similar to the one achieved by EU bigwigs Gonzalez, Kohl, Mitterand and Thatcher in 1988. 

This level of profile would be an important first step in the right direction, he argues. By spring 2012, Barca says a draft framework should be in place for the post-2013 era. 

Fabrizio Barca, the report's author, argued that "the report shows that the Union needs a policy for economic and social development tailored to the specific needs of very diverse places. It must be capable of enhancing opportunities and tackling the challenges facing EU citizens created by the unification of markets. A reformed cohesion policy can fulfil this through advanced methodologies, a strong focus on results and modern multilevel governance". 

According to EU Regional Policy Commissioner Danuta Hübner, "the Barca Report confirms that the cohesion policy is a central pillar of the European integration process. It recognises that all regions should be able to realise their potential in terms of economic development and that all citizens should benefit from the policy, wherever they live". 

The commissioner said "the report confirms that the reforms we have already introduced over the past few years are the correct ones. It also opens new, bold avenues which will widen our perspective on the renewal of the policy".