Speech of Ms Danuta Hübner Commissioner Designate responsible for regional policy Hearing in European Parliament September 28, 2004 Mr Chairman, Honourable Members, I am honoured to present myself to the European Parliament today, as a member designate of the Commission led by President, Mr José Durão Manuel Barroso. Let me first congratulate you all on being elected to this Parliament. This Parliament and the Commission are starting five year mandates at, what I consider to be, a crucial period for the Union. Today we are facing enormous challenges inside and outside the Union. I am convinced that the way we will react to them will determine our future for decades. The ratification of the Constitution will of course be one the principal tasks which we will have to face. Having been the Representative of the Polish Government in the Convention and taken part in the very intense process of arriving at the draft we now have, I am more optimistic than many on the ratification of the Constitution. But it will require hard work from all of us. But our greatest challenge, in my view, is slow economic growth in the Union. It is undermining the social cohesion which is the foundation of our societies. It puts at risk the stability of public finances increasingly burdened by our ageing populations. It undermines our efforts to become a global player. We cannot be politically strong if our economy is weak. I have been asked by the President-Designate to be responsible for the portfolio of regional policy. I am honoured by the trust that he shows in me. This is an important policy for all the Union which can and should help us to find a response to the challenges to come. I am being offered the responsibility for this policy in the middle of its reform which aims to bring in such a response. This is a reform in which, as a member of the outgoing Commission, I took part and which I fully support. I shall do all in my power, as the responsible Commissioner, to safeguard this approach and enhance the contribution of cohesion policy to the Union’s success. 1 This reform is primarily driven by the Union’s need to unleash its growth potential and to improve its competitiveness. Recent enlargement has undoubtedly opened new avenues for progress in this context. Enhanced competitiveness, however, has to follow the path of socially and environmentally sustainable development. This is the sine qua non for the continuous improvement in the opportunities for our member states, our regions, our towns and villages – the path is via quality and via sustainability. It is towards these goals that I will seek to orient cohesion policy, in line with the Commission proposals for the financial framework 2007-2013. Cohesion policy is a pillar of economic and social progress. It aims to create new wealth by creating new opportunities. And it does this by harnessing together joint efforts of Member States, regions and citizens. To this unique way of working, the Union allocates more than a third of its budget, and the policy represents one of the Union’s major contributions to a better life for all citizens. The added value of this is already well recognized in Portugal, in Greece, in Spain, and in Ireland, where the policy has contributed to a relative increase in well-being of citizens, but it is less well perceived in some other Member States. Mr Chairman, perhaps I may now go on to say in more detail how I envisage my responsibilities in relation to the policy. This, I hope, will provide a suitable introduction to the question – and – answer phase of our session. There are three priorities, overlapping in time, which I will seek to achieve during my term in office. Together with my staff, I will aim to manage the closing of the 1994-99 period, to bring the current programming period to a successful end, and to prepare smooth implementation of the cohesion policy in the framework of the period which will follow. I will seek to draw lessons from the present, in order to maximise the benefits of future cohesion policy. This will be a period of intensive dialogue with the Member States, regions, European Parliament and all other partners involved in cohesion policy. I will work towards enhancing the quality, efficiency, simplicity and transparency of cohesion policy since this is the key not only to the success of co-financed actions but also to the public understanding of them. I will continuously pay attention to ensuring that community 2 interventions maximize the Union’s value added, doing more and doing better. This is my responsibility towards European tax payers. We are currently entering the negotiations of the five legislative proposals adopted by the Commission on July 14, in the context of the financial framework 2007-2013. I believe that this package, together with the proposal for the financial framework, gives us instruments and means necessary to match the needs and ambitions of the enlarged Union. In this connection, let me pay tribute to the work of my two predecessors, Michel Barnier and Jacques Barrot. It was Michel Barnier who piloted the two-year public debate on the reform of the cohesion policy, and it was Jacques Barrot who brought the package of proposals to the Commission. I supported the proposals in the Commission and will fight for their approval. Central to our efforts is the need to anticipate economic and social restructuring in all regions, by supporting regional competitiveness and employment. The package of proposals before the Parliament and the Council will ensure that this common effort is undertaken on a permanent basis. In a fully competitive environment, we have to promote convergence between the least developed regions, including those which are subject to the statistical effect of enlargement, and the other regions of the Union. This priority will receive more than three-quarters of the cohesion policy budget, the bulk of it going to the new members. It will contribute towards making a success of the recent historical enlargement, which, I believe, sets the scene for reinforced integration at the political, economic and social levels. Convergence becomes more than ever important in the enlarged EU since it is in the interest of all Member States that it takes place right across the Union, thus contributing to the overall growth, employment and the deepening of our economic ties. We should remember that cohesion policy fosters trade between Member States. For example, estimates show that about a quarter of Cohesion Fund expenditure returns to the rest of the Union in the form of increased exports. And let me make clear my view that there is no conflict between cohesion and competitiveness but that both are vital ingredients in our present policy and in the policy which will follow. We do not want two 3 economic realities – a reality built on subsidies and a reality built on the market. Our reality must be one, a single reality built on our ability to achieve sustainable growth in competitive markets. Cohesion policy is necessary to accelerate this process in our worst off regions and in the worst off parts of our countryside and our towns. We propose also to substantially increase cross-border and transnational co-operation. Experience has proved that it has great added value as a policy, as a factor of integration between territories and citizens and as an excellent channel of best practices exchange. Territorial diversity is an asset for the Union and nowhere is this more clear than in the case of our seven outermost regions. They provide us with an additional view on the world and the Union is the richer for it. They face particular difficulties. This is recognized in the Treaty and in the proposals which are now being negotiated. I am aware of the extra contribution which these regions make to the Union and I am determined to ensure that their special difficulties are compensated. There are other examples of territorial diversity which will also feature in the policy after 2006. The Nordic regions with a low population density are in a similar position to the outermost regions. But there are also the regions with mountain and other natural handicaps, the deprived urban areas, the pockets of rural poverty. Each of these particular cases must be taken into account in the reformed policy. I shall seek to maintain an emphasis on helping deprived urban areas and to match this with an equal emphasis on rural development. In the July package we propose further simplification which must be translated into greater efficiency and decentralisation; the introduction of proportionality will decentralise programming, financial management, evaluation and control to states, regions and towns. We must have in mind, however, that simplification is not a one-off event. It requires our constant efforts and vigilance. Simplification is a continuous process which requires the full support of the Member States who should also, in their own national arrangements, seek greater simplicity. The greater “lisbonisation” of cohesion policy is an integral part of the development process. The enhancement of competitiveness must lie at the heart of programming work in Member States and regions. This remains true whether we are thinking about convergence or about employment or about cross border co-operation. In this way cohesion policy can help in making Lisbon process a citizens agenda. 4 We should focus more on the relation between Lisbon agenda and strategies of local and regional development. We must work on the most efficient policy mix, consolidating Lisbon objectives and flexible enough to fit the needs of different regions in the enlarged Union. Cohesion policy can play a role of the important vehicle of Lisbon strategy in this respect, making clear to our citizens that its contribution is about their life careers, more and better jobs, sustainable pension system and better education for their children. I am confident that the new legislative package will increase EU value added of cohesion policy but I will spare no effort in helping the regions to define – within the agreed framework – the approach which best fits their specificities. I will also ensure that simplification takes into account the needs of public-private-partnership thus helping the policy to leverage private capital and maximize its effects. As a great supporter of innovative approach embedded in Community Initiatives I will not only assure that the mainstreaming consolidates all their effects up to now but I will continue to follow this approach also in the future. Mr Chairman, Honourable Members, The new legislative package will provide the appropriate framework for an effective cohesion policy. I will do everything in my power to facilitate a successful conclusion of the discussions, and convince the Council to adopt the reformed policy in good time for it to come fully into force on 1 January 2007. During my mandate, I will be a determined practitioner of a constant dialogue with the European Parliament, building on good practice established by my predecessors as set out in the Interinstitutional Agreement and the Framework Agreement. The Commission needs it. The Parliament needs it. The Council needs it. Our citizens require it. As a Commission we will have to communicate better in order to explain the Union – its actions, its plans, and its doubts. Our citizens often feel distant from the Union. Only through a debate with the citizens we can help them to share the Union’s ideal and actions. In my future capacity I will bear particular responsibility in this respect, since cohesion policy is a powerful instrument for the social dialogue. It offers unique opportunities to speak directly to the Union’s citizens – in regions, towns, associations, universities, training centres, and debating chambers. Cohesion policy is there above all to serve our citizens. I want to engage 5 in a permanent dialogue, in order to carry forward the simple idea that the European Union’s value added is irreplaceable for peace, for prosperity and for solidarity. Thank you, 6