EUROPEAN UNION ISSN 1681-3235 Committee of the Regions News from the EU’s assembly of regional and local representatives representa Special Feature Boosting Jobs and Growth Michel Lebrun Jean-Claude Juncker Laimdota Straujuma Nº 90 – JANUARY-FEBRUARY 2015 Investment Plan for Europe TABLE OF CONTENTS 1 15 4 Editorial Michel Lebrun European Year for Development 2015: The European Year for Development Special feature Investment Plan for Europe 2 17 13 Our guest Jean-Claude Juncker 18 23 Interview with Markus Töns Latvian Presidency of the Council of the EU Ukraine has started out on its long road to Europe Brief News and Events www.cor.europa.eu Regions & Cities of Europe — N° 90 Tel. +32 222822211 Director of Publication: Laurent Thieule Editor-in-Chief: Branislav Stanicek www.cor.europa.eu Committee of the Regions Communication, Press and Events Directorate Rue Belliard/Belliardstraat 99–101 1040 Bruxelles/Brussel BELGIQUE/BELGIË Reactions/comments: Regions & Cities of Europe is a magazine of the Committee of the Regions, published by the Communication, Press and Events Directorate. The content of this magazine does not necessarily reflect the opinions of the European Union institutions. Neither the institutions/bodies of the European Union, nor any person acting on their behalf, can be held responsible for any misuse of the information provided here. regionsandcities@cor.europa.eu @EU_CoR © European Union, 2015 Printed in Belgium www.facebook.com/committee.of.the.regions Nº 90 – JANUARY-FEBRUARY 2015 EDITORIAL We need to boost investment without creating additional debt Michel Lebrun (BE/EPP), President of the Committee of the Regions 2 014 proved to be a crucial yet difficult year for the European Union and its citizens. The crisis and persistently high levels of unemployment, compounded by fears related immigration, terrorism and instability to the East, has caused an understandable sense of political mistrust among many citizens. But as the new European Commission and Parliament entered into force in November last year, 2014 should be considered a turning point for Europe offering some level of hope and expectation. The appointment of Jean-Claude Juncker as President of the European Commission marked a new step in the EU construction having been the first to ever take the role following the European elections. The reaction to the heinous terrorist attacks on Charlie Hebdo in Paris saw a show of force and unity in defence of European values in Paris as I joined the march of solidarity alongside many citizens and EU leaders. The Commission has published its blueprint for its term in office. The key measures, such as the EUR 315 billion Investment Plan are discussed in this issue. Firstly, we need to boost investment without creating additional public debt. This is the new Commission’s commitment for re-launching Europe, and this will also be our commitment, the challenge facing the cities and regions in 2015. The Structural Funds for 2014-2020 are a key instrument for moving forward and investing in viable projects. In some Member States, in particular in Southern Europe and in Central and Eastern Europe, European funds represent between 80-90% of all public investment. Local and regional authorities are directly involved in managing these funds and today one of our main concerns is the question of co-financing. We can only welcome the agreement that investment in our future should not be counted as part of the debt, and more flexibility under the Stability and Growth Pact, while keeping in mind importance of fiscal responsibility. Of late, there has been a huge increase in projects suitable to be co-financed by the Investment Plan. By the end of 2014 Member States had presented around 2000 projects worth over EUR 1300 billion. Awash with new Investment Plan finances, one can ask: which projects offer the best value for the public? The winners will be projects with clear European added value and those which represent long-term viable investments with a degree of economic sustainability. A danger that we should avoid is that the new Fund will support a patchwork of projects with too many political, regulatory or economic risks. As stated by President Juncker himself, “The Fund will finance riskier investments that would not have happened otherwise”. In other words, with EUR 21 billion guaranteed and financed from the EU budget and the European Investment Bank, public money will be financing high-risk projects that, on purely economic criteria, would probably never be realised, by means of a scheme with a high leverage ratio of 1:15. In this way, the new Fund shouldn’t repeat the original sin that lay behind the financial crisis: too much leverage and over-investment in economically unsustainable projects, thus delaying the process of restoring public finances and deleveraging which started in 2007-2008. “The lesson of fiscal responsibility is one of the key lessons learnt from the current crisis. How we can reconcile this requirement with the need for investment and economic growth? The critical factor is the efficiency of spending – to ensure that public ‘spending’ is a real ‘investment’, to get more for each euro spent.” With this in mind, we shall continue to promote fiscal responsibility. What does this mean for our cities and regions? The crisis started not only with financial leveraging within private sector, in particular banking and construction, but also with the leveraging of budgets at national, local and regional levels. But debt remains debt, and somebody has to pay the bill. The lesson of fiscal responsibility is one of the key lessons learnt from the current crisis. How we can reconcile this requirement with the need for investment and economic growth? The critical factor is the efficiency of spending – to ensure that public “spending” is a real “investment”, to get more for each euro spent. The responsible way is to keep budgets and fiscal policies in balance so as not to penalise the needs of future generations. This is why we need to respect the philosophy of the Stability and Growth Pact. With slow demographic growth and GDP advancing at an annual rate of around 1%-plus, additional debt could create too heavy a burden for our children and jeopardise our future. Furthermore, it will increase internal political and social instability, as we can observe today, mainly in Greece, but also in Italy and Spain, the UK and some countries of Central Europe, where new populist and eurosceptic political movements are emerging. There is clearly a need to accelerate structural reforms. As stressed recently by the European Parliament’s paper on “Mapping the Cost of Non-Europe, 2014-19”, Europe is locked into real inefficiencies which penalise both companies and citizens. We have to unlock our full potential, the economic growth that will be a basis for our social cohesion. For example, we do not yet have a real internal digital market, and people are penalised by additional telephone costs when travelling abroad. The answer is to work harder in the direction announced by President Juncker for 2015. Beyond the challenging environment, I believe we will succeed and maintain the pace of progress in European integration. This is the way to cut the ground away from social unrest and stagnation and fight euro scepticism and populism. I hope that, in collaboration with all members of the Committee, our new ideas and fresh energy will help us to emerge from the crisis stronger and more resilient. To this end, we will continue to improve our communication with citizens; our last Citizens’ Dialogue “Europe in my City”, held on 23 January in Santander, Spain, was a great success. From our debate it was clear that people expect from the Union more concrete actions and measures to improve living standards and wellbeing, in particular social and family policies that improve education, healthcare and decrease inequalities. In 2015, with the new term of office of the European Committee of the Regions for the next five years, we will work harder, together with other European institutions, Member States, regions and cities, to improve the living standards of our populations. REGIONS AND CITIES OF EUROPE 1 OUR GUEST Interview with Jean-Claude Juncker, President of the European Commission Europe must boost investment, promote fiscal responsibility and accelerate structural reforms J ean-Claude Juncker, former Prime Minister of Luxembourg, became the new President of the European Commission on 1 November 2014. We met him shortly after he presented his new EUR 315 billion Investment Plan that aims to boost the European economy over the next three years. Here he gives his views on the future cooperation with European regions and cities and offers insight about the Commission’s Work Programme for 2015. He argues that “reforms, both at European and national level, and fiscal responsibility are needed to unlock investment, growth and job creation”. Interview by Branislav Stanicek You have presented a new investment plan and 28 Member States have proposed 2000 projects worth over EUR 1300 billion. However, we are still in a time where sovereign states, local and regional authorities, the private sector and households, are struggling to balance their budgets. How would you reconcile this need for fiscal responsibility and the need for additional investments? There is no contradiction between these. Remember the virtuous triangle I presented when tabling the EUR 315 billion Investment Plan: we need to boost investment, promote fiscal responsibility and accelerate structural reforms. We need these three pillars. Reforms, both at European and national level, and fiscal responsibility are needed to unlock investment, growth and job creation. We needed to act fast because our public resources are stretched. We also needed a solution that attracts investment without creating public debt – this is what I had committed to. What we need is not more public money, but the smart use of it, geared to unlocking investment. The Commission has put up EUR 8 billion from the EU budget. This backs up a EUR 16 billion guarantee given to the Fund from the EU budget which will be topped up by another EUR 5 billion from the EIB. With this EUR 21 billion reserve, the EIB can give out fresh financing loans of EUR 63 billion. And 2 News from the EU’s assembly of regional and local representatives the EIB will not be acting alone: with its Triple A rating, it will be financing the riskier parts of projects worth 315 billion, meaning private investors will be pitching in the remaining EUR 252 billion. Thanks to the European Council on 18 December which endorsed all elements and the timing of the Investment Offensive we can now get started on setting up the Fund swiftly. Importantly, it will finance riskier investments, that would not have “The new Investment Plan will finance riskier investments, that would not have happened otherwise, and this is why it will particularly benefit countries that have been most hit by the crisis.’” happened otherwise, and this is why it will particularly benefit countries that have been most hit by the crisis. Public expenditure should be used for what it is best at doing: funding our schools and welfare systems, not servicing our debt. The list of potential funding projects published by the Task force on Investments contains over 2000 examples. Obviously, not all of these are new, strategic and economically viable. Nevertheless, there are many interesting examples – like infrastructure for energy connections in Finland, Poland and the Baltic States, reform of school infrastructure in Italy or modernisation of regional hospitals in Belgium, to mention just a few examples. In terms of financing, Commissioner Corina Creţu said that cohesion policy will make a significant contribution to the plan. What role will European cohesion policy and the already agreed Multiannual Financial Framework (MFF) play? Some suggest that the MFF will need to be reviewed to implement the plan. Do you share this view? The investment plan comes on top of existing financing programmes at EU and national level. It is about increasing investments in our common future. The necessary re-allocated appropriations will come not from cohesion policy but from the Connecting Europe Facility (EUR 3.3bn) and Horizon 2020 (EUR 2.7bn) as well as from the EU budget reserve (EUR 2bn). Of course, this does not mean that the money is lost. On the contrary, the European Fund for Strategic Investment offers significantly increased possibilities to invest in Europe’s infrastructure, as well as for research and innovation purposes. The impact of investments through the European Fund for Strategic Investment will be more significant than under the current programmes. To be clear: in cohesion policy, national allocations and the EUR 10 billion earmarked from the Cohesion Fund for the Connecting Europe Facility will not be touched. But as a complement to the new Fund and on top of the EUR 315 billion being mobilised, Member States are encouraged to increase the use of innovative financial instruments in the form of loans, equity and guarantees, instead of traditional grants in the context of the European Structural and Investment Funds. The Commission would like to see the overall amount doubled compared to the 2007-2013 period. Just by doubling the current use of innovative financial instruments, you can significantly increase the impact on the ground in terms of mobilisation of additional investments available at national and regional levels. Overall, the reformed cohesion policy will be an important complement to the investment offensive. The increased focus of cohesion policy in the period 2014-2020 on key areas will maximise investment in SME support, research, innovation, digital and low-carbon economy. And as the increased use of financial instruments in the form of loans, equity and guarantees, instead of traditional grants, is already allowed for in the reformed cohesion policy 2014-2020, we do not even need to reopen the Multiannual Financial Framework. Reopening the Multiannual Financial Framework would lead to significant delays in implementing the Investment Plan. Europe has no time to lose. Some people have voiced the need for more flexibility in the application of the Stability and Growth Plan, particularly as regards cofinancing of the Structural Funds and also in relation to your plan. What do you think about these proposals? The Commission has already stated its intention to take a favourable position towards capital contributions to the European Fund for Strategic Investments when it comes to assessing public finances under the Stability and Growth Pact. The European Council of 18 December took note of this approach. We will come forward with detailed guidance on this in January. What progress has been made as regards rolling out the new investment plan? You have announced that you intend to start projects in 2015... The plan has been designed with urgency in mind. To set up the Fund we need one legal act, to be adopted in co-decision. The Commission will put forward a proposal on 13 January 2015 and we count on the support of the Parliament and the Council for a swift adoption so that the Fund is fully operational by the middle of next year. In order to start delivering on the ground as rapidly as possible, the European Investment Bank has con- “Local and regional authorities will be instrumental in the implementation and the success of the plan.” firmed that it will start certain activities using its own funds in early 2015. How would you like to involve local and regional authorities in the implementation of your plan? Local and regional authorities will be instrumental in the implementation and the success of the plan. In fact, the Commission has proposed a number of implementation options for local and regional authorities in order to encourage and optimise their use of financial instruments under cohesion policy. We are ready to support regional and local authorities and to guide their choice. In many cases the lack of private investment – especially in less developed areas – is due to factors that are not strictly financial, such as public procurements rules, limited transparency, corruption or weakness in government. How do you hope to ensure that these areas benefit from the plan? This is very true. There is much liquidity in the financial system that is currently underutilised. For this reason the Investment Plan is not only about mobilising funding but also about creating the right investment conditions through the right regulatory conditions. While there will be no sectoral or geographic pre-allocations or ‘quotas’, technical assistance will be stepped up so that project promoters and relevant authorities in all countries are able to present viable projects. These efforts will be accompanied by practical proposals to improve the investment environment by removing regulatory barriers in our single market. In addition my colleague Corina Creţu, the EU’s regional policy commissioner has set out to look at the underlying dynamics of very poor regions and regions with consistently low growth rates in order to find ways to reverse this trend. It has not gone unnoticed that social and economic develop- ments in a number of less developed countries and regions appear to be going in the wrong direction. One of Ms Creţu’s first acts as Commissioner for regional policy was to instruct DG Regional and Urban Policy to set up an internal task force to look at the issue of low absorption of European Regional Development Fund and Cohesion Fund monies in certain Member States for the 20072013 programmes. Finally, in addition to the investment plan, what are your key policy initiatives for 2015 to tackle challenges related to the internal market, especially the integration of Europe’s energy and digital markets? Only a few weeks ago, the Commission adopted its Work Programme for 2015 which sets out the 18 initiatives that we will tackle as a matter of priority in the New Year. We will table an ambitious Digital Single Market package to create the conditions for a vibrant digital economy and society. We will also take steps towards a European Energy Union to ensure energy security, integrate national energy markets, reduce energy demand in Europe and promote green technology. We also plan to deepen our economic integration which is very important for the stability of the eurozone. This will be matched by plans to create a Capital Markets Union, diversify sources of financing for the economy, reduce fragmentation in capital markets and make Europe more attractive for investors from third countries. A fairer approach to taxation is something citizens rightly feel strongly about. At the December European Council, European leaders agreed that there is an urgent need to step up the fight against tax avoidance and aggressive tax planning, both at the global and EU levels. The European Commission will therefore present a proposal on the automatic exchange of information on tax rulings in the EU in the first half of 2015. And we will kickstart work on the Common Consolidated Cooperate Tax Base. REGIONS AND CITIES OF EUROPE 3 SPECIAL FEATURE Investment Plan for Europe Boosting Jobs and Growth 4 News from the EU’s assembly of regional and local representatives Nº 90 – JANUARY-FEBRUARY 2015 T he Investment Plan will unlock public and private investments in the real economy of at least EUR 315 billion over the next three years (2015-2017). The challenge is to break the vicious circle of under-confidence and under-investment at a time when public resources are scarce even though liquidity exists in financial institutions and on the bank accounts of individuals and corporations, ready to be used. The Investment Plan foresees a smart mobilisation of public and private sources of finance − where every euro of public money is used to generate additional private investment, without creating new debt. To provide this additional financing and to target projects of strategic and societal importance, a new European Fund for Strategic Investments is being set up based on a proposal by the European Commission on 13 January 2015. The EFSI is a major step toward job creation and growth in the European economy. REGIONS AND CITIES OF EUROPE 5 SPECIAL FEATURE Juncker 315bn Plan: We need to act fast L ast December, the 28 countries of the EU submitted 2000 investment proposals worth a total of EUR 1300 billion. This is a first step of the European investment offensive. According to the Commission task force, the projects achievable within three years would amount to EUR 500 billion. O n 9 December, for the first time in more than five years, finance ministers meeting in Brussels did not discuss savings measures, bailouts or painful reforms, but investments and the future: a novelty, and the first merit of the Juncker investment plan presented by the European Commission president on 26 November. He has proposed that a European Fund for Strategic Investments (EFSI) be set up with EUR 21 billion in funding from the Commission and the European Investment Bank (EIB), with a view to raising a total of EUR 315 billion in public and private investment. Asked to comment on the initiative, ministers said that “old Europe” still had a few ideas. In as little as two months, the task force instructed by ministers to identify potential investments has identified no fewer than 2 000 projects worth some EUR 1 300 billion in the medium term, including new airport terminals, renovation of secondary schools, flood management systems, renovation of buildings’ energy systems, internet infrastructure, support for research clusters and high-speed rail links. Italy targeting EUR 81 billion Obviously, the proposals will need to be sorted, checked and assessed. Brussels has proposed three key criteria: the projects should have a chance of profitability, be useful, and reflect European priorities (energy, digital, research, etc.). Above all, they must be capable of being implemented quickly in order to have an impact on the economic recovery. The task force estimates that the projects submitted to it could be worth EUR 500 billion in investment over the next three years (the duration of the Juncker plan). Added to this are some EUR 200 billion in projects long promoted by the European Commission, which are the “missing links” in Europe’s infrastructure. 6 News from the EU’s assembly of regional and local representatives Looking towards 2017, Italy has submitted EUR 81 billion in projects, the United Kingdom EUR 63 billion, Spain EUR 52 billion, France EUR 48 billion and Germany EUR 28 billion. The list is not final but is a starting point for the pipeline of “Brussels would like to see the first selected projects get under way in June 2015. But the Member States must give the green light, and the opinion of ministers is a first test.” projects that the Commission and the European Investment Bank would like to create. The projects would be organised with the support of EIB experts and listed on a website that all private investors could consult. Brussels would like to see the first selected projects get under way in June 2015. But first the Member States must give the green light, and the opinion of ministers is a first test. The French finance minister, Michel Sapin, underlined in Brussels yesterday that the project was a good idea but that the initial funding should be increased. However, France is not yet ready to respond to Jean-Claude Juncker’s call for states to contribute to the EFSI, with the promise that this would not be taken into account when calculating their budget deficit. “This is not a definitive ‘no’, but, like Germany, we believe that the focus should be on the projects – if they are sound, the funding will follow”. If necessary, France could always raise money to boost the fund, he said. Conference on the Investment Plan for Europe On 15 April 2015 the Committee of the Regions will bring together EU policy makers and regional and local representatives to assess the Investment Plan from a local and regional perspective. Political leaders and investment experts will discuss in Brussels three main questions: • Is the Investment Plan for Europe an answer to the needs at local and regional level? What is its potential to support growth and jobs in Europe’s regions and cities? • What role can regions and cities play in the roll-out of the Investment Plan? • How to guarantee and improve the own investment capacity of regional and local authorities in times of austerity? Backbone of the Investment Plan is a joint strategy of the European Commission and the European Investment Bank to mobilise EUR 315 billion for additional investments in 20152017. The Investment Plan explicitly mentions the role regional authorities should play, not only in identifying, supporting or managing the investment projects, but also in the two other strands of the Plan: making finance reach the real economy and improving the investment environment. A preliminary conference programme and online registration form will be available by mid-February on the CoR website www.cor.europa.eu Nº 90 – JANUARY-FEBRUARY 2015 France: focusing on innovation and digital By Fréderic Schaeffer W hile 40% relate to innovation and digitalisation, Paris is also counting on Europe to modernise its rail network and finance a plan for the suburbs. M uch less than the United Kingdom and Italy but much more than Germany and almost as much as Spain, the list sent to Brussels by the French government in preparation for the Juncker plan comprises 32 projects that could amount to some EUR 48 billion in investment between 2015 and 2017. Digitalisation, innovation, transport, energy and education – the five priorities set in advance by the task force – are all addressed. But France stands out in its emphasis on innovation and digital: these two priorities account for 40% of the total value of France’s projects, compared with an average of 20% of all contributions from the 28 Member States, Paris points out. It includes support for investment in new generation pilot plants (at an estimated cost of EUR 15 billion) and the project for “largescale” digitalisation “in Europe of terminals and educational content” (EUR 6 billion). The French list also highlights a number of crosscutting programmes rather than a multitude of specific projects. It includes, for example, energyefficiency improvements to buildings and loan schemes for SMEs that invest in robotics (EUR 1 billion). The final principle highlighted is that the selected projects should be shovel-ready. Many of the projects listed by Paris could begin in 2015. “While France has put greater emphasis on support for business investment, infrastructure projects are not ignored.” While France has put greater emphasis on support for business investment, infrastructure projects are not ignored. Other projects include the Val de Saône gas pipeline (estimated investment of EUR 700 million for 2015-2017), the Charles de Gaulle express rail link (EUR 300 million over three years starting now), the express Grand Paris Express metro upgrade, and the extension of RER line E to la Défense (Eole project). France also seeks to use the Juncker plan to finance the renovation of its railway network linking northern Europe with Spain, and the upgrading of the Serqueux-Gisors freight line to create an alternative freight route serving the port at Le Havre. In terms of maritime infrastructure, the extension of the port of Calais is included on the list. Furthermore, Paris wants Europe to finance a broad urban regeneration programme totalling an estimated EUR 5 billion in investment between now and 2017 (EUR 25 billion over ten years). “25% of the projects are ready but cannot be financed immediately”, the government in Paris explains. The aim of the project is to “regenerate 200 of the most run-down working-class areas”, according to the document. However, it should be noted that the list submitted to Brussels is “indicative” and for “illustrative purposes”. “Not all the projects submitted will be financed, while finance may be requested for projects not yet on the list”. Moreover, a number of important projects are not included on the list, either because they already receive EIB funding (hospitals) or “because European funding is already being seriously considered” (The North Seine canal and Lyon-Turin rail connection). Poland: 250 projects worth EUR 130 billion By Julia Rokicka E uropean finance ministers met on 9 December 2014 in Brussels to present their national projects for the Juncker Plan, the European Commission’s investment plan. A special task force chaired by the European Investment Bank (EBI) and the European Commission (EC), set up earlier this year to identify possible investment projects, has published a list of projects that could be funded under the EC Investment Plan. T he 28 Member States submitted 2000 projects with a total value of EUR 1300 billion; however, it is expected that around EUR 500 billion will actually be allocated. “This type of list allows us to plan more carefully what is actually worth doing in Europe,” explained the Polish finance minister, Mateusz Szczurek. Poland has identified more than 250 projects with a total value of over EUR 130 billion, and investment promotion stimulating economic growth in Europe is one of Poland’s priorities. Nevertheless, “the list has not been closed because new projects could still appear; equally, this does not mean that they will all be implemented”, said Mr Szczurek. The largest group of Polish proposals entailed projects in the transport sector (EUR 63.9 billion), energy (EUR 33.5 billion), social infrastructure (EUR 16 billion) and natural resources and the environment (EUR 13.3 billion). Poland submitted projects for the digital economy and ICT amounting to EUR 6 billion. Szczurek said that “It is also an incentive for structural change, which can help attract private capital and private investment.” In addition, the European Commission has prepared its own list of proposals, with around 120 projects already submitted by Poland, for a total value of around EUR 60 billion. The vast majority of projects on this list are for the transport sector (over EUR 48 billion), along with projects in the energy sector, social infrastructure, health and education. However, the actual number of Mateusz Szczurek, Polish Finance Minister REGIONS AND CITIES OF EUROPE 7 SPECIAL FEATURE investment projects that can be implemented as well as the financing arrangements will be settled during the legislative process. It has not yet been decided whether the projects identified by the task force will be considered in the Juncker package. After verification, it will make a significant contribution to the project pipeline created by the European Commission under the Investment Plan for Europe. Moreover, the list will probably also be open for new projects. force, including economic viability, contribution to improvement in the functioning of the single market and creation of the basis for sustainable growth in Europe. Projects submitted by the Member States and the Commission could be carried out in the next few years. They have to meet the criteria set by the task Polish CoR members comment on the Juncker Plan “The Investment Plan presented by the president of the European Commission on the creation of the European Strategic Investment Fund is an important and muchneeded initiative. I welcome this proposal with interest and trust that the financial guarantees it sets out will provide for the implementation of investments in such important areas as energy, transport and broadband Internet. However, it is vital that the adopted action plan remains in line with the objectives of Cohesion Policy, whose final shape is currently being negotiated at operational programme level. While supporting the use of all the planned instruments, I would like to point out that in the case of financial instruments, any decision regarding their application should be based on the actual needs of Member States, not only on percentage values set in the past”. Marshal Witold Stępień “The Investment Plan prepared by Jean-Claude Juncker, the president of the European Commission, may be seen in a positive light, at least as far as the idea itself is concerned. It should, however, be noted that the level of resources provided for under the plan is too low given the needs identified in sectors key for increasing competitiveness. The value of the projects put forward by the Polish government for implementation under the Investment Plan alone accounts for over one third of the planned resources. Nevertheless, it should be stressed that implementing the plan in line with Juncker’s proposal could create 1.3 million new jobs in the EU’s Member States”. Marshal Adam Jarubas “All action taken to increase investment or fight unemployment is valuable in my opinion. The objectives of the Juncker package are beneficial for both Poland and the Pomorskie Voivodship; however, it is worth noting that the success of the whole plan will depend on the extent to which private enterprises can get involved. Additional funds will help to attract private capital in areas which we also consider to be a priority such as education or transport infrastructure. I hope that they will make it possible to focus action on those areas where it is most needed”. “Given the slowdown of the European economy, there is a need for new investment. Our mission – and indeed our duty – is to support the economy. We are pleased that the European Commission plan will seek to trigger private investment, rather than to burden our public finances with the whole process. Priority areas for investment: infrastructure, especially broadband and energy networks, transport infrastructure in industrial centres, education, research and innovation, renewable energy and SMEs and mid cap companies – all of these areas are of interest for Małopolska. We are now waiting for an opportunity for the regional authorities to have their say regarding the list of key projects funded under the EFIS. The aim of the programme is to give local and regional authorities the responsibility for choosing the best investments themselves. It is important that this valuable idea is properly understood and carried forward for use in all areas and levels of the EU’s activities”. Marshal Marek Sowa Marshal Mieczysław Struk Regions and cities play vital role in driving Europe’s growth agenda Michael Schneider (DE/EPP), President of the EPP Group I greatly welcome the Juncker Commission’s proposal for an Investment Plan for Europe, which recognises the key role of local and regional authorities in its implementation and which views these authorities as important partners in boosting investment for jobs and growth in Europe. It is widely understood that Europe urgently needs a stimulus geared towards economic recovery, job creation, long-term growth and competitiveness. As representatives of European regions and mu- 8 News from the EU’s assembly of regional and local representatives nicipalities, we wish to cooperate closely with the EU institutions, in particular with the European Commission and the European Investment Bank, on implementing this plan, without generating further public debt. Perhaps it could also become a model for the European Structural and Investment Funds, under which national co-financing would be exempt from the deficit calculations of the Stability and Growth Pact. We would welcome an assessment by the European Commis- sion of this possibility. We should ensure that this investment plan forms the start of a broader EU investment strategy that ties in with the revision of the Europe 2020 strategy and which is combined with removing regulatory burdens. High-quality implementation and continuation of the necessary structural reforms should also take precedence over speed when providing European funds. Only high-quality public investment can constitute a real stimulus. Nº 90 – JANUARY-FEBRUARY 2015 Financial weight of Juncker Plan may seem disappointing Karl-Heinz Lambertz (BE/PES), President of the PES Group T he Juncker plan has more than one merit. The first is that it shows that the European Commission acknowledges the current high level of under-investment at both public and private level. It remains to be seen whether this acknowledgement will also represent a shift in terms of ideology and action by the new Commission. Its second merit is that it has become President Juncker’s flagship project, to which he has attached his political credibility. Building on EUR 21 billion drawn from the EU budget and voluntary contributions from Member States, the Juncker plan may also mark the beginning of an autonomous investment policy for the EU, cleansed of the poison of the “fair return”, whereby Member States seek to recover with one hand what they paid into the EU budget with the other. Finally, the Commission’s proposal that public investment supporting projects under the European Fund for Strategic Investment (EFSI) should be excluded from deficit calculations is a step towards the CoR’s call for national cofinancing of the Structural Funds also to be “The financial weight of the Juncker plan may, however, seem disappointing, particularly in comparison with the EUR 25 billion of outstanding Commission payments for structural funds projects!” excluded from those calculations. The financial weight of the Juncker plan may, however, seem disappointing, particularly in comparison with the EUR 25 billion of outstanding Commission payments for structural funds projects! At the same time, it would be dangerous to be obsessed with the figure of EUR 315 billion and an overly quantitative approach towards the expected leverage effects. The Juncker plan should indeed avoid windfall effects, i.e. the financing of a priori profitable projects that are already in the pipeline. The EFSI should intervene where traditional financial actors would be reluctant to get involved and take a risk. It should also trigger investment in regions where the multiplier effect of investments may be below 1:15 due to a less developed private sector. What really counts in the end is not so much the amount of capital that has been mobilised, but rather the effects of the plan on the real economy in terms of jobs and sustainable growth. Limit public deficit and activate private funds Bas Verkerk (NL/ALDE), President of the ALDE Group I n order to overcome the economic crisis and to stimulate economic growth, it is clear that Europe needs investment. However, the financial resources that this entails cannot be supplied solely by the public sector, since it is necessary – and right – for public authorities to limit their deficits. It is therefore crucial that we activate private funding and put the largely dormant savings in Europe to work. The Investment Plan for Europe is a good initiative, but it is questionable whether it will have the desired impact. The entire plan is underwritten by the EU budget, with an expected leverage ratio of 1:15. Whilst this ratio has proven to be correct for small projects, it is doubtful whether the same can be guaranteed on such a large scale and throughout the EU, particularly since some regions lack a sufficiently robust private sector that could contribute additional financing. To increase the amount of funding available, ALDE is calling on each Member State to participate in the initiative and provide additional funding or guarantees. Regarding the projects to be funded, we have four priorities: first, it is important that all projects have real European added value and help to make the economy grow. This would be the case for investments in cross-border transport infrastructure, the digital economy or energy grids, as well as support to small companies. Secondly, whilst we undoubtedly need large projects, small projects that are implemented at local or regional level are just as important. Thirdly, when selecting projects we should make use of existing project lists such as the Action Plans of the macro-regional strategies. Finally, we should not forget that these investments are not grants, but loans that need to be paid back. This means that each project must be profitable in the medium and long term. If all these priorities can be taken into account, it is likely that the Investment Plan will have tangible effects in the EU, effects that most citizens will be able to feel in their daily lives. REGIONS AND CITIES OF EUROPE 9 SPECIAL FEATURE Investment package must be accessible to all local and regional authorities Uno Silberg (EE/EA), President of the EA Group T he new EUR 315 billion EU investment package is a very welcome development as it is an opportunity to create jobs, stimulate growth across the European Union. What is very important is that it does not only focuses on large scale projects but it also to examines and promotes smaller projects which would make the funds more accessible for local and regional authorities. Often investments from the private sector are focussed where the returns on investments are higher and there is a danger that most of the investment would go to centres of population and cities. There needs to be a clear focus on rural areas and in particular leveraging the financing of CAP Pillar II with loans from the European Investment Bank. There is also scope to have a clear focus on new and emerging technologies such as tidal wave “What is very important is that it does not only focuses on large scale projects but it also to examines and promotes smaller projects which would make the funds more accessible for local and regional authorities.” power which not only reduces energy dependence but can also create local sustainable jobs. The European Alliance Group members have been at the forefront of the CoR political views on investments via the opinions of Witold Krochmal’s on Long-term financing of the European economy and Rhodri Glyn Thomas’ on Synergies between private investment and public funding at local and regional levels. But what is needed is a vision of how this investment package can be used by local and regional government and more importantly that they have direct access to the projects so that finally we can see a ‘real’ growth in jobs across the EU. It remains unclear if the Juncker Plan can deliver Cllr Gordon Keymer (UK/ECR), President of the ECR Group T he end of last year saw the unveiling of the long-awaited EU investment plan that is aimed to boost growth and jobs. The goal is a very important one but it remains unclear if the plan can deliver. Questions remain over how we will avoid a situation of privatising the profits and nationalising the losses. Furthermore, questions also remain over how projects will be identified and how bottom-up this process will be. For effective targeting of finances and identification of 10 News from the EU’s assembly of regional and local representatives programmes, local and regional authorities must be fully consulted and involved in the process. “Questions remain over how we will avoid a situation of privatising the profits and nationalising the losses.” I would like to welcome strongly the aspect of the plan that focuses on cutting red tape. Red tape is a major bottleneck to growth and must be cut. In identifying these bottle necks, local and regional authorities must be given the opportunity to identify the burdens they see from implementing most of the decisions taken at the EU level. Nº 90 – JANUARY-FEBRUARY 2015 Will the Juncker investment package succeed? T he announcement by Jean-Claude Juncker, President of the European Commission, of his new investment package and the European Fund for Strategic Investments (EFSI) has reinvigorated the debate about the role of government in financing public services. Following the European Parliamentary elections in 2014, new politicians and commissioners taking their seats in Brussels are looking at a European landscape where the economic situation is moribund, with high levels of public and private debt and a lack of growth. E conomists will distinguish between the situations in different Member States, with some like the UK showing signs of growth in the private sector, and others like Germany continuing to see stable costs of sovereign debt. Regardless of the national circumstances, the need to get the European economy going again is of importance to all. The risk of stagnation and Eurozone deflation poses a risk to the economies of nations not in the zone, and the development of a functional single market requires a levelling up of the economic playing field. The issue of immigration, such a significant factor in the European elections, is a publicly visible symptom of this issue – a single market with free movement of people naturally leads to economic migration, but for many people, opportunities close to home would be preferable. So the question is, will the Juncker package deliver for Europe? Nationalising the debt and risk The first challenge is likely to be moving the debate to a shared understanding of what we mean by ‘investment’ after decades of left-wing politicians describing all forms of public spending as ‘investment’. By prioritising infrastructure, Juncker clearly buys the argument that putting money into public works generates private profit that can then be taxed, bringing about a real return to the taxpayer who currently faces huge levels of government debt. The practical reality of this will require a rigorous business-like approach to project funding and the decision to make the fund one that seeks to lever in private finance is helpful provided governments do not subsequently underwrite the risks associated with the projects. Nationalising the debt and risk is essentially just socialist redistribution by another name and financially disastrous, as many EU Member States’ economies are currently finding having pursued this line for financing many activities already. The second challenge is going to be ensuring that as the project pipeline develops and the assistance programme kicks in, that we do not fall into the Cllr David Simmonds (UK/ECR), David Leader of Hillingdon London Borough Council trap of seeing EFSI as an extra-national subsidy for unviable national projects. Good intentions at EU “The first challenge is likely to be moving the debate to a shared understanding of what we mean by ‘investment’ after decades of left-wing politicians describing all forms of public spending as ‘investment’.” profits are made by accountants, consultants and lawyers at the expense of taxpayers but no-one else is key. Europe remains the largest and wealthiest economic bloc in the work. The risk is that in the absence of growth, we fall to taxing diminishing wealth in order to prop up unsustainable levels of public spending. This short term solution, so favoured by the left, is inevitably doomed - as the saying goes, ‘the trouble with socialism is that eventually you run out of someone else’s money’. With the Juncker plan due to be in action by 2015, we need to ensure that it is based in sound finances. level risk being translated at national, regional or local level into seeing EFSI as simply an alternative source of borrowing that will ultimately fall to the taxpayer rather than generating a real return. Ensuring that the bureaucracy around the funds does not lead into a confusion of red tape where REGIONS AND CITIES OF EUROPE 11 POLICY ANALYSIS New opportunities under the EU’s economic governance framework I n its Strategic agenda for the Union in times of change of June 2014 the European Council warned that “public disenchantment with politics has grown”, expressed its concern about insufficient growth and stated that “unemployment is still our highest concern – especially for young people – and inequalities are on the rise”. Equipping our societies for the future and fostering confidence must therefore be “the first purpose of the Union’s work over the coming years”. F ollowing up on this assessment, the new EU legislature is putting strong emphasis on better policy coordination, increased involvement of relevant stakeholders and simplification to mobilise synergies, knowledge and ownership in relation to the Union’s fresh effort to boost growth and jobs. Unlike its predecessors, the Annual Growth Survey (AGS) for 2015 sets only three priorities, strictly linked to each other: investment, focusing on the Commission’s Investment Plan, structural reforms and fiscal consolidation. To increase effectiveness, transparency and simplification, the work programme of the European Commission for 2015 includes a list of initiatives to be dropped, a list that was drafted under the responsibility of the Commission’s First Vice-President, who presides over the review of existing legislation. In 2015, other policy processes will generate synergies in the same direction: - following the Partnership Agreements with the 28 Member States, the adoption of the Operational Programmes of the ESIF 2014-2020 will launch a new phase of EUsupported investment focused on the Europe 2020 goals and targets; - the mid-term review of the Europe 2020 strategy for smart, sustainable and inclusive growth will come to an end in FebruaryMarch, when the Commission will publish its proposals for a revised strategy in 2015-2020, before the Spring European Council endorses them at the end of March. Recommendations and proposals To ensure more effective implementation – and increased ownership – of Europe 2020, the Committee of the Regions’ Athens Declaration (March 2014) calls for the revised strategy to be given a genuine territorial dimension by: 12 News from the EU’s assembly of regional and local representatives - - building on EU regions’ and cities’ differential growth and employment potential, by setting varying regional goals and targets; involving local and regional authorities as partners in the design of the National Reform Programmes, whose implementation should be underwritten by multi-level governance agreements. To this end, the Declaration puts forward the following recommendations: 1. setting different regional objectives and targets; 2. designing and delivering National Reform Programmes in partnership between all levels of government; 3. making multi-level governance the standard approach; 4. aligning the European Semester with longerterm Europe 2020 goals and investment needs; 5. using the Europe 2020 Flagship Initiatives for enhanced policy coordination; 6. mobilising funding for long-term investment, to ensure better spending; 7. strengthening administrative capacity for more effective implementation. In December 2014, the Steering Committee of the CoR’s Europe 2020 Monitoring Platform translated these recommendations into 20 concrete proposals, included in the Blueprint for a revised Europe 2020 strategy. Making the most of the 2015 Semester The 2015 European Semester started in November 2014 with the publication of the 2015 Annual Growth Survey, which states that “national and regional authorities have a key role to play in promoting the necessary structural reforms, exercising fiscal responsibility and boosting investment in support of jobs and growth”. The AGS for 2015 proposes a streamlining and reinforcement of the European Semester. In particular, the early publication of a single economic assessment per Member State, in March, will favour broader involvement of all relevant stakeholders in providing input to the Commission before it issues the Country-Specific Recommendations. Much emphasis is also being placed on the opening up of the process, to increase the legitimacy of the Semester and ownership of the strategy. Regrettably, while praising the role of LRAs in promoting investment at regional level, the AGS still does not see local and regional authorities as partners in the design and implementation of the National Reform Programmes, and does not encourage any broadening of multi-level governance in their implementation. Moreover, while stressing the role of the ESIF 2014-2020, the AGS does not clarify how the Member States and regions most in need of public investment could avoid cutting the national co-funding of the ESIF if the latter is counted in calculating SGP-related expenditure ceilings. All in all, the Annual Growth Survey for 2015 is a step in the right direction, towards better acknowledging the key role of local and regional authorities in investment and change in the European Union, also to increase ownership of the whole Semester process. These are promising signs for shifting the Europe 2020 strategy focus from purely fiscal consolidation towards more long-term investment and greater ownership at all levels. Nº 90 – JANUARY-FEBRUARY 2015 LATVIAN PRESIDENCY OF THE COUNCIL OF THE EU A plea to work together for a better future for all I n the first half of 2015, we will assume the Presidency of the EU Council – a role that implies a high level of responsibility. During our first ten years of membership to the EU, both Latvia and the EU have undergone positive changes and overcome difficult challenges. Nevertheless, EU citizens continue to enjoy freedoms that many in the rest of the world want to replicate and are ready to give their lives for. It is true that many in Europe still experience the consequences of the crisis but the EU’s economy is gradually recovering. To sustain this momentum, the EU needs to find the best ways to promote growth, to fully exploit the potential of the emerging digital economy and engage actively in world affairs. That cannot be done without investment in crucial infrastructure and without a continued commitment to reforms aimed at reaching the Europe 2020 strategy goals. A close cooperation of all EU member states and institutions is a precondition to sustainable growth. This includes the Committee of Regions, which is the institution that brings EU affairs closer to our citizens. In doing so we want to secure that our outreach is as wide as possible when making decisions of concern to EU citizens. Furthermore, to increase growth and reduce disparities across the EU, we need public-private partnerships at both national and local levels that contribute to creation of jobs and reduce social exclusion. We cannot advance without investment in infrastructure and without sustainable and efficient energy supply, where regional and local authorities have a key role. During the Latvian Presidency, the EU Member States and institutions will be reviewing the Europe 2020 strategy for growth and jobs. The Committee of Regions that represents the EU’s local and regional authorities has always played an important role in the implementation of this important EU strategy for economic recovery and employment. The Latvian Presidency wishes to contribute to the digital single market Local and regional authorities are important not only for economic development, but for the key role they play in preserving cultural heritage, knowledge building and transfer, communication Laimdota Straujuma, Prime Minister of the Republic of Latvia and innovation. To ensure the widest possible participation in activities addressing economic and societal issues, we need to make use of digital tools in overcoming the geographic distance separating EU citizens. The Latvian Presidency wishes to contribute to the digital single market, while focusing on internet security and reliability. Ensuring the involvement of different groups of various ages is key for creating long-term competitiveness. The development of a Digital Single Market also includes measures for removing barriers to crossborder online trade and measures that focus on protecting consumer and privacy rights online. Furthermore, through the debate on the next stage for eGovernment Action Plan, we want to address easier and faster access to public administrations, the use of open processes and promotion of digital skills for all. To face economic, social and global challenges, we must become digital by default, that is, to include digital aspects and solutions in all policy areas and initiatives where it is possible. This also cannot be done without active involvement of the local and regional authorities. Responses to global challenges shall be made at the EU and national levels and also locally. Some regional and local authorities have already become active players in cross-border relations. The importance of regional cooperation is growing. Consequently, cooperation between EU countries, the EU’s strategic partners and its neighbours is unthinkable without cooperation at the regional and local level. This provides a much better exchange of information at the political, administrative, business and community levels. Because of the knowledge its members have to the challenges that the Europeans face in their daily lives, the Committee of Regions has always been very successful in ensuring a link between the EU institutions and regions. When drafting opinions on the European Commission proposals, the Committee of Regions provides feedback from the final beneficiaries, the EU citizens, to the decision makers at the EU level. This continuous dialogue has enabled decisions and adoption of laws in a way that is more efficient. The Latvian Presidency of EU Council will therefore work closely with the Committee of the Regions on our common objective, that is, increased welfare of EU citizens. REGIONS AND CITIES OF EUROPE 13 LATVIAN PRESIDENCY OF THE COUNCIL OF THE EU Priorities of the Latvian Presidency L atvia has taken over the post of the Presidency of the Council of the European Union (EU) for the first semester of 2015. In this role, it will ensure that the Council of the EU facilitates accomplishment of the ambitions set out in two strategic documents: the Strategic Agenda for the Union in Times of Change adopted at the European Council in June 2014 and the Agenda for Jobs, Growth, Fairness and Democratic Change announced by the President of the European Commission. The Presidency has chosen three priority areas to contribute to this process: Competitive Europe, Digital Europe and Engaged Europe. COMPETITIVE EUROPE The Presidency’s priority is to create more jobs and revive economic growth. Based on our own experience we know that this is possible by becoming more competitive through efficient structural reforms, which are supported by growth stimulating investment measures. Hence we commit to fast-track procedures in the Council on the Investment plan for Europe aimed at unlocking public and private investments in the real economy. We will also continue work on the reduction of administrative obstacles and continued development of the Single Market in order to increase entrepreneurial activity. This will allow us to truly benefit from the multiplication effect of investment. The Presidency will ensure implementation of the streamlined European Semester based on the goals of the renewed Europe 2020 strategy. Latvia will work towards increasing the quality of discussions in the Council, securing proper involvement of all of Member States, and urging the involvement of other stakeholders and national parliaments in the discussions on Country Specific Recommendations. The Presidency will prioritise the work on the fully functioning Single Market by moving ahead on the remaining Single Market Act II proposals. Our guiding principle will be ensuring the four freedoms. We will work towards the reduction of barriers, including administrative ones, by promoting the principle of Better Regulation and using competitiveness proofing in a wider extent. Now is the right time for the Energy Union to become a reality. We need to have an Energy policy in the EU that is built on solidarity, trust and security. The EU needs a more integrated energy infrastructure grid and better governance, where in particular regional governance has not been fully exploited across the Europe. The Presidency will enhance the competitiveness of EU industry and related service sectors. For this purpose, it will facilitate discussion on roadmap for the implementation of the Industrial Renaissance. 14 News from the EU’s assembly of regional and local representatives Latvian Presidency of the Council of the European Union DIGITAL EUROPE Another of the Presidency’s priorities is the development of a true digital Europe. In order to create new areas for growth and new jobs we should seize the opportunities provided by information and communication technologies. The Presidency, among others, will focus on building a stronger and more coherent data protection framework. Safety in digital environment will be moved to the forefront. The Presidency will devote particular attention in advancing consensus on the post-2015 activities by facilitating discussions on the Digital Single Market strategy. The Presidency will also seek an overall compromise on the Telecoms single market. We will need to find a balanced solution on roaming and work on network neutrality. Our guiding principle will be to find a balance between high quality of services and a reasonable cost for EU citizens. In order to advance the digitalisation of Europe we must become digital by default. The Presidency will highlight discussions on digital skills and the next steps regarding promotion of eGovernment. ENGAGED EUROPE Europe has the responsibility to remain engaged on global issues. With conflicts on the EU’s doorstep the situation in our neighbourhood is as challenging as ever. The European Neighbourhood Policy review and the Eastern Partnership dimension in particular should be strengthened, while maintaining a strong focus on the Southern Neighbourhood. During the Riga Eastern Partnership Summit we should send a strong signal that neighbourhood policy remains a policy priority. EU’s engagement also includes a commitment towards strengthening the transatlantic partnership, notably by advancing the Transatlantic Trade and Investment Partnership, and enhancing relations towards other strategic partners. Similarly the Presidency looks forward to conclusion of EU-Canada Comprehensive Economic and Trade Agreement, and advancement of EU- Japan negotiations. The Latvian Presidency looks forward to the review of the EU Central Asia Strategy through enhanced discussions on security, border management, energy supplies, and education exchange, while addressing also the interests of the civil society and human rights. The year 2015 is also the European Year of Development, the focus of which is the negotiations on post-2015 framework, including new Sustainable Development Goals. We will specifically highlight gender equality and women’s empowerment. In parallel to the aforementioned issues, the Presidency will remain committed to move forward with the enlargement policy as well as to tackle institutional issues where necessary and within the existing treaties. Nº 90 – JANUARY-FEBRUARY 2015 EUROPEAN YEAR FOR DEVELOPMENT 2015: The European Year for Development W ith a view to achieving the objectives adopted at Rio in 2000 and with the conclusion of United Nations discussions on development objectives for the coming fifteen years, as well as the recent international negotiations on climate change and the Conference of the Parties (COP) in Paris, 2015 is likely to be a historic year for development. It is against this background that the European Union decided to designate 2015 the European Year for Development (EY2015). Thus for the first time in its history, the EU has chosen an external policy as the theme for the European Year. By Bernard Chane Kune W ith this decision, which the Committee of the Regions has promoted and supported from the outset, the EU as one of the world’s most prosperous regions is confirming its wish to be a global player that does not forget to support the most disadvantaged. The choice of the European Year for 2015 is also a paradoxical one for the European Union as the main provider of global development aid. On the one hand, a clear majority – over two thirds – of Europe’s citizens believe that combating poverty in developing countries should be an EU priority, and even more – almost 85% – think that it is important to help people in developing countries. On the other hand, only a minority of these same citizens are aware of the objectives and thrust of policies pursued, and less than one in six has heard of the Millennium Development Goals, which have guided development policies over the past fifteen years. Our world, our dignity, our future With the catchphrase Our world, our dignity, our future, the European Year for Development 2015 has three aims: firstly to raise awareness and inform Europe’s citizens about development cooperation, secondly to encourage debate and direct participation of citizens, and thirdly to bring about a change in mentality and behaviour so that people are more aware of development policy issues. The Committee of the Regions, whose political priorities include supporting the role of local and regional authorities in external relations and development cooperation, will be taking part in the EY2015 campaign. The Committee has adopted a number of opinions on the role and place of LRAs in development policy, for instance its opinion on Local authorities: actors for development (CdR 312/2008), responding to the EU’s first reference document, which was issued in 2008 to underline the importance of local and regional authorities in the EU’s development policy, or the opinion adopted in 2013 on the European Commission communication Empowering Local Authorities in partner countries for enhanced governance and more effective development outcomes (COM(2013) 280 final). Further to a resolution adopted in April 2013, the CoR is now drawing up an opinion on the European Commission communication A decent life for all: ending poverty and giving the world a sustainable future, in conjunction with the discussions about the international post-2015 development agenda. This opinion will be presented at the plenary session during the first half of 2015. As part of the 2015 European Year for Development campaign, the CoR plans to highlight the many, diverse and often crucial contributions from LRAs on general or sectoral development policies. It wishes in particular to promote the local activities conducted by LRAs across the European Union. The CoR is therefore asking LRAs to take part in the debate on development policy, and to step up their communication, particularly addressing young people, on development policy and local initiatives. In this connection, the CoR notes that it is available to support local activities and suggests that the LRAs should promote their initiatives relating to EY2015 both on the European decentralised cooperation portal and on the official EU site of the European Year for Development 2015. Fourth Assises of Decentralised Cooperation In addition, the Committee of the Regions will be co-organising the Fourth Assises of Decentralised Cooperation for Development together with the European Commission on 1 and 2 June 2015, which will bring together in Brussels almost one thousand representatives of EU local and regional authorities and from developing countries to engage in political dialogue. The Assises will be a major contribution to the European Year for Development. REGIONS AND CITIES OF EUROPE 15 President Lebrun: Local and regional authorities can tackle global poverty by offering aid adapted to the needs of communities T he President of the European Committee of the Regions, Michel Lebrun, joined EU leaders including President of the European Commission, Jean-Claude Juncker, and the Prime Minister of Latvia, Laimdota Straujuma, for the launch of the European Year for Development in Riga, Latvia. During his speech he stressed the importance of local and regional government in not only raising awareness among citizens of the importance of development aid, but how they can share knowledge to make aid more efficient and effective. Opening ceremony of the European Year for Development (EYD) 2015. The event entitled “Our world, our dignity, our future” was hosted by the first Latvian Presidency of the Council of the EU. Laimdota Straujuma, Seamus Jeffreson, Henri Malosse, Jean-Claude Juncker, Federica Mogherini, and Michel Lebrun, President of the Committee of the Regions (CoR), observing one minute of silence as a tribute to the victims of the terrorist attack at the headquarters of the French satirical weekly newspaper “Charlie Hebdo” in Paris (from left to right). “W ith the EU committed to spending EUR 51.2 bn on development aid between 2014-2020 reaching some 150 countries worldwide, the EU is the largest provider of aid in the world. We should never forget that many European regions and cities are heavily involved using their financial, technical and human resources. There is a need to increase European public awareness and we want to make sure that regional and local authorities working on the ground get the strongest possible support”, stated President Lebrun. 16 News from the EU’s assembly of regional and local representatives He further reminded the audience that local and regional authorities were among the first to deal with problems such as hunger, poverty, health and access to water or global environmental challenges such as climate change. European local and regional authorities, he added, can help tackle global poverty offering aid adapted to the needs of local communities and so strengthen the capacity of their counterparts in developing countries. Michel Lebrun therefore called on other EU leaders to develop a strategy that involves all levels of government, “because only if we all are working together closely we can face this challenge more effectively”. The CoR will host a number of events including the Fourth European Assises of Decentralised Co-operation , in partnership with the European Commission, in June 2015. This major event held every two years brings local and regional authorities from the EU and developing countries, as well as representatives from the EU institutions and Member States, together to promote sustainable development policy to consider the vital role of local authorities. Nº 90 – JANUARY-FEBRUARY 2015 Interview with Markus Töns, Member of the Landtag of North RhineWestphalia and rapporteur on the Transatlantic Trade and Investment Partnership (TTIP) We must get away from the idea that Europe is the ‘good cop’ and America the ‘bad cop’ What is the background to this own-initiative opinion of the CoR on the Transatlantic Trade and Investment Partnership (TTIP)? The TTIP will have major implications for cities and regions and it is now important for the CoR to discuss it. So far, the Commission has not involved the Committee of the Regions in its deliberations. This in itself gives the Committee good reason to set out its positions, expectations and any concerns in relation to the TTIP. Why is the TTIP important for cities and regions? And what are your concerns? My first question is what implications the TTIP has for individual citizens. My initial impression is that opinion on the TTIP is polarised. This is because people are very aware that Europe is more than a purely economic community. The EU sees itself as a community of values, representing shared values such as promotion of social equality, combating social exclusion and improving the quality of the environment. So people ask whether this trade and investment agreement between the EU and the United States really helps to underpin these values. I believe that many citizens have concerns. And how would you respond to those concerns? You know, I am very fond of the cinema, especially French films. But that doesn’t mean I only see things in black and white. We must get away from the idea that Europe is the “good cop” and America the “bad cop”. That is why I tend to take the position of “yes, but” on these negotiations. I say yes to deeper trade, yes to dismantling tariffs, yes to transparency. And definitely yes to a trust-based partnership with the United States. But not at any cost: not at the cost of hard-won standards and certainly not at the cost of cohesion in our societies. What would you not accept? I will name just a couple of points here, things that are relevant to the cities and regions. To begin with, the issue of maintaining the constitutional system of local authorities in the sphere of public services: we absolutely must ensure that local authorities retain their freedom to deliver, organise and finance public services. Another issue is that there should be no lowering of standards, e.g. in relation to labour law or consumer protection. And it is also important that there should not be any special arrangements for investor-state dispute settlement, or ISDS. There seems to be no point in such arrangements between two fully developed systems based on the rule of law. In short: the TTIP may open up opportunities for economic growth in Europe, but we must not on any account sacrifice our achievements in Europe on the altar of free trade. REGIONS AND CITIES OF EUROPE 17 Ukraine has started out on its long road to Europe Jacek Protas (PL/EPP), Marshal of Warmińsko-Mazurskie Voivode I n the past months we have celebrated the 10th anniversary of the 2004 EU enlargement and taken part in the European Parliament elections. For Poland this year was even more important, as we commemorated the changes of 1989, which contributed to the democratisation of public life not only in our homeland, but also in other countries in Central and Eastern Europe. The Polish experience of implementing structural reforms has proved, among other things, that local and regional authorities are influential actors who face key challenges. This knowledge can be of great value for Ukraine, which has started on its arduous road towards a united Europe. Since the involvement of regions and cities is crucial for developing democratic processes, Ukraine should start the decentralisation of power by strengthening local self-government. I believe this ambitious goal could be achieved by joint work between the EU Member and the Ukrainian authorities. Projects currently run by Warmia and Mazury (e.g. study visits of health specialists from my region and Rivne Oblast) are good examples of the importance of interregional cooperation. The ratification of the Association Agreement with the European Union and the victory of proEuropean politicians in the recent elections have shown that Ukraine is ready for change. However, in view of the current situation in Eastern Europe, Ukraine cannot be left alone in the battle for a better future. We must be particularly united and strong, otherwise the EU will lose Ukraine forever. Ukraine’s President and Prime Minister were among those who attended the rally that had as its slogan “I am Volnovakha,” in memory of the 13 passengers who died near the city of Volnovakha after their bus was hit by artillery shelling on 13 January 2015. 18 News from the EU’s assembly of regional and local representatives Nº 90 – JANUARY-FEBRUARY 2015 RAPPORTEURS HAVE THEIR SAY I n this column, members of the Committee of the Regions explain what motivates them to take on the role of as a rapporteur. The following op-eds cover a diverse range of topics from multilevel governance and fundamental rights to company restructuring. Multilevel protection of the rule of law and EU fundamental rights Luc Van den Brande (NL/EPP), former President of the CoR T he European Commission, with the support of the EP and the Council, has decided to establish A new EU Framework to strengthen the Rule of Law, and rightly, since the rule of law is one of the three pillars of any democratic system, together with democracy and human rights. The new framework is based on the premise that the rule of law is the backbone of any modern constitutional democracy and one of the founding principles stemming from the common constitutional traditions of all the Member States, and as such one of the main values upon which the Union – as an area of freedom, security and justice – is based. The aim is to deal with threats to the rule of law before TEU Article 7 comes into effect. The CoR has already published a number of opinions on key aspects of this issue. This own-initiative opinion examines the various dimensions as a whole and for the first time establishes a bridge between the principles of the rule of law on the one hand and multilevel governance on the other. This system that was developed in stages will make it possible to move from a “top-down” approach towards a more inclusive model where all levels of government are actively responsible together with players in society. Potential violations of fundamental rights must be more broadly conceived, reflecting a systematic political will to also implement the rule of law in a positive way. Local and regional authorities (LRAs) are on the front line in facing the challenges and problems that arise in many fields, and they are particularly valuable in terms of their expertise and their focus on results. Together with civil society players, LRAs are essential partners not only in protecting the modern state governed by the rule of law but also in working actively and strategically to shape it, via their own policy initiatives. This obviously concerns specific citizens’ rights, but equally intercultural relations in a pluralistic society and socio-economic development, and education, health and welfare systems. Our opinion firstly offers a number of specific policy recommendations for local and regional authorities: including the general public in the debate and raising awareness, embedding this in the activities of civil society organisations, guaranteeing training and support for those concerned, and setting up information points and an early-warning system through which information is passed on to national and EU authorities. But recommendations are also made for the Committee of the Regions itself: possible introduction of a task force and reporting point, conducting of a general European awareness-raising campaign, drawing up a covenant with cities and regions, and lastly drawing up a common strategy based on a “tripartite entente” with the Congress of Local and Regional Authorities of the Council of Europe and the Agency for Fundamental Rights. A European area of fundamental social rights will thus be created founded on multilevel governance and horizontal interconnections, with the development of a really dynamic and integrated policy. Extending geographical indication protection to non-agricultural products Marialuisa Coppola (IT/EPP), Regional Councillor and Minister, Veneto Region F ollowing discussion by the Committee of the Regions’ ECOS Commission, the CoR opinion on Extending geographical indication protection to non-agricultural products drafted by Marialuisa Coppola (regional councillor and minister, Veneto Region) is scheduled for adoption in February. The draft opinion comes in response to a European Commission Green Paper (and respective consultation). It confirms the EU’s keen interest in protecting local products and advocates the launch of a fully fledged legislative process in the field. The draft opinion highlights various reasons for supporting an extension of certification of origin. As has proven the case with foodstuffs, geographical indications are an important factor in protecting jobs and property rights, as well as an effective deterrent to relocation and anti-competitive practices. Moreover, by providing an incentive for REGIONS AND CITIES OF EUROPE 19 RAPPORTEURS HAVE THEIR SAY increasing local production, they could boost the competitiveness of regions whose development is below the EU average. The opinion also points out the potential benefits for consumers, who would have a clearer indication of product authenticity, and the positive impact on conserving the artistic and cultural heritage of the areas concerned. In contrast to the system for foodstuffs, however, the opinion advocates a simpler protection regime using easily recognisable labels in the language of origin and/or English, avoiding a proliferation of labels which could cause confusion. CoR president Michel Lebrun has already expressed his support. Given the proposal’s strong regional dimension and the competences of the Committee of the Regions, the CoR trusts that the EU’s local and regional authorities will be actively involved in subsequent steps, which should see the tabling of a full-scale legislative proposal. The future of European cultural heritage György Gémesi (HU/EPP), Mayor of Gödöllö C ultural heritage creates significant economic and social wealth, which directly benefits Europe’s regions, cities and municipalities. Despite it also being a cornerstone of local, regional, national and European identity, in an opinion for the EU Committee of the Regions entitled “Towards an integrated approach to cultural heritage for Europe”, György Gémesi, Mayor of Gödöllő (Hungary), emphasises that insufficient value is attached to cultural heritage. According to the rapporteur, “Our common task is to respond to the challenges with a strategic, ho- listic and integrated approach and as a means of achieving genuine cooperation between the different areas of Europe’s cultural heritage. The sustainable development of cultural heritage should have positive repercussions in the short, medium and long term and bring about improvements to the economic situation and quality of life in the regions concerned.” Mr Gémesi points out that cultural heritage can help shape the profiles of municipalities and regions and can contribute significantly to achieving the Europe 2020 strategy goals and strengthening social cohesion. He underlines the key role played by cross-border and town-twinning schemes in promoting a mutual, interactive and experiencebased understanding of local and regional cultural heritage and of its diversity, through the active involvement of the public. Mr Gémesi also considers it important for thematic cultural heritage cooperation schemes to be set up and implemented in urban and rural municipalities, and for all stakeholders to be encouraged to play an active part in the decision-making process, in order to promote effective participatory governance EU Strategic Framework on Health and Safety at Work 2014-2020 Mauro D’Attis (IT/EPP), Municipal Councillor of Brindisi I t is vital to continue to play a leading role in promoting high standards for working conditions both in the EU and worldwide, supporting business growth and competitiveness by ensuring health and safety at work in times of crisis. This is a primary objective of the CoR opinion on the new EU strategic framework for 2014-2020. The opinion offers practical proposals for cutting red tape and simplifying existing legislation, encouraging SMEs, risk assessment, social dialogue, and reducing variations in legislation and implementation in the EU market. It aims at a new view of European governance on health and safety at 20 News from the EU’s assembly of regional and local representatives work, strengthening strategic and operational integration between the various competent EU and national institutions. The opinion’s central proposal concerns the establishment of a European board responsible for defining, coordinating and developing health and safety at work issues, partly in order to play a more effective role as a point of reference for Member States implementing EU legislation. The new Board should take the organisational form of a network, coordinating and generating synergies between the various competences which are currently scattered across many national and European bodies (notably EU-OSHA and Eurofound), whose remits and functions need to be reconfigured. The opinion also stresses the need to develop a “culture of prevention” (with initiatives at school and during apprenticeships, occupational training and lifelong learning) alongside a genuine, up-to-date “business culture” based on the belief that quality in people is a determining factor in the quality of industrial processes and products. Nº 90 – JANUARY-FEBRUARY 2015 Resource efficiency opportunities in the building sector Csaba Borboly (RO/EPP), President of Harghita County Council C saba Borboly has drawn up an opinion on sustainable buildings, having been appointed rapporteur by the Committee of the Regions’ Commission for the Environment, Climate Change and Energy (ENVE), at its meeting of 19 June in Brussels. Mr Borboly is the President of Harghita County Council (Romania) and has, since 2012, been a member of the Committee of the Regions, where he is active in both the ENVE Commission and the Commission for Education, Youth, Culture and Research (EDUC). The draft opinion was adopted by the ENVE Commission at its meeting of 11 December in Brussels and is due to be discussed in plenary during the first half of 2015. The overall aim of the Commission’s initiative on sustainable buildings is to reduce the environmen- tal impact of buildings by improving resource efficiency, thereby increasing competition between construction companies. It is therefore essential to improve the general understanding of the use of resources, to draw the public’s attention to buildings’ impact on the environment, to carry out campaigns to raise awareness and to boost demand for ecobuildings in the private sector, among designers and within public institutions. The opinion highlights the programmes based on the traditional local architecture of Harghita County, while using new technologies and approaches, and emphasises the potential for the use of conventional and renewable construction materials, particularly wood. Before drafting his opinion, the rapporteur held a number of talks, in particular with Harghita County’s architects and civil engineers, to ensure that the challenges faced at the local and regional level are taken fully into account at the EU level. Mr Borboly then continued his consultations in Brussels, firstly with the members of the European Economic and Social Committee (EESC), an EU advisory body, and subsequently with representatives of the European Commission’s DG Environment (ENV) and DG Enterprise and Industry (ENTR). László Csák, the rapporteur’s expert, also took part in these meetings. A consultation meeting on the matter was then held on 23 October at the Committee of the Regions’ building, with representatives of the EU institutions, stakeholder organisations and relevant European regions and governments and on 20 November, the rapporteur also met Eduardas Kazakevicius, representing the European Commission’s Directorate-General for Climate Action. Procurement rules can be an instrument to shape local policy Rob Jonkman (NL/ECR), Councillor of Opsterland municipality T he new ECR Group member Rob Jonkman, Councillor of Opsterland municipality in Netherlands, has a vast knowledge in the area of on state aid and public procurement. In the past couple of years Mr Jonkman represented all Dutch municipalities during the negotiations on the EU procurement directives. At the moment he is a member of the Board of Europa Decentraal, a knowledge centre for local and regional governments in the field of procurement and state aid. He combines this role with the internal market portfolio for which he is responsible in the national association of municipalities. O nce regarded as the domain of legal specialists, public procurement is of growing importance for politicians too. “Procurement rules are not merely about purchasing goods and services, but can also be an instrument to shape local policy on sustainability, innovation and social policy” notes Mr Jonkman. With the growing influence of EU policy on local politics, it is important to keep an eye on the balance of power. Mr Jonkman sees an important role for the ECR Group in this respect, especially regarding the principle of subsidiarity. “EU rules on procurement have to leave enough room for public authorities and companies to close the contracts they need and take into account local circumstances. We do not need unnecessary details on EU level that will only cause red tape” said Mr Jonkman. Simplification and reduction of administrative burdens were key messages for Mr Jonkman during the negotiations of the public procurement directives. “We tried to bring companies and municipalities back at the heart of public procurement policy, instead of lawyers. This will also remain our focus during the implementation process next year. National gold-plating in this perspective will be unacceptable”, stated Mr Jonkman. Mr Jonkman will use his experience on public procurement to participate in the ECR Group work on other internal market dossiers. Mr Jonkman concluded that “it is important to take part in the European debate at an early stage. The EU institutions do not know the reality on the ground. We are the level closest to companies and citizens and can add that dimension to the European debate.” REGIONS AND CITIES OF EUROPE 21 RAPPORTEURS HAVE THEIR SAY Macroeconomic conditionality does not work Bernard Soulage (FR/PES), Vice-President of the Rhône-Alpes region for Europe O n 30 July 2014, the Commission issued a communication setting out the rules for implementing the principle of macroeconomic conditionality for cohesion policy. The Committee of the Regions had already voiced its strong opposition to this principle, pointing out that it penalises regions which are not responsible for the national level’s macroeconomic errors and that it amounts to sanctioning regions in difficulty. In his opinion, Bernard Soulage, vice-president of the Rhône-Alpes region for Europe who, in that capacity, negotiated his region’s operational pro- grammes with the European Commission, sought to share his experience which shows that macroeconomic conditionality does not work. Firstly, it undermines the very principle of cohesion policy which is to programme long-term investments. The communication is casting doubt on regional investments, and this runs completely counter to the objectives set by this policy. Furthermore, having taken part in the negotiations with the European Commission, Mr Soulage firmly believes that renegotiating the programmes will be counterproductive, ineffective and a heavy burden on all levels of administration. Lastly, along with the COTER commission, he considers that macroeconomic conditionality is not the right answer to Europeans’ expectations: it unacceptably sidelines the European Parliament’s democratic control and weakens economic recovery and the investments which Europe sorely needs. Macroeconomic conditionality is the wrong response to the crisis: cutting public deficits has never created growth, whereas investments lay the groundwork for it. Challenges created by a company restructuring Pavel Branda (CZ/ECR), Deputy Mayor of Radlo P avel Branda, Deputy Mayor of Radlo in Czech Republic, is the Committee of the Regions rapporteur on “EU Quality Framework for anticipation of change and restructuring”, which looks at the practices for anticipating company restructuring and minimising their impact on workers and social conditions. Mr Branda underlined the importance of providing LRAs with the right resources to facilitate the transition of young people from education into employment, given that local authorities in particular often have a role as service providers in education and training. He also underlined the importance of cross-border labour mobility for jobs and growth. T he European Commission has proposed best practices to reduce the social impact of company restructuring. Specific measures include continuing mapping of jobs and skills needs and measures for individual employees, such as training, career counselling and assistance to facilitate professional transition. It also includes the involvement of external actors at an early stage, such as public authorities, universities and supply chain. Furthermore, it includes making full use of EU Structural Funds like the European Social Funds and the European Globalisation adjustment Fund in relevant regions in order to promote job creation and inclusive transitions in the period of restructuring. 22 News from the EU’s assembly of regional and local representatives The Commission will monitor the application of the Quality Framework, which is voluntary, and will report by 2016 on whether further action is necessary in this area, including a possible legislative proposal. Mr Branda underlined that “the Commission should cooperate with all interested stakeholders when evaluating the Quality Framework implementation.” “Local and regional authorities can help facilitate the right balance being achieved in the labour market between supply and demand. They can do this through education and training and making mobility easier” noted Mr Branda. On education and training, Mr Branda explained that “local and regional authorities often provide education and training service and in turn, can help ensure that the education and training system matches the needs of the labour market.” On the topic of mobility, Mr Brand explained that “mobility can help balance supply and demand. There is often a greater demand in certain regions for specific type of skills depending. Different regions often specialise in different sectors and different industries. As local and regional authorities, we must try to reduce barriers to mobility and facilitate the exchange of information on job opportunities among ourselves. True cross-border labour mobility is crucial for inclusive and sustainable growth and job creation.” Nº 90 – JANUARY-FEBRUARY 2015 BRIEF NEWS AND EVENTS Annabelle Jaeger: UN climate deal in Lima – “another missed opportunity” Annabelle Jaeger The Committee of the Regions has welcomed the international climate deal struck during the UN talks in Peru. Annabelle Jaeger, member of the Provence-Alpes-Côte d’Azur regional council and representing the Committee within the EU’s delegation in Lima, warned however that, though it was a step forward, a far greater level of ambition was needed to stop temperatures rising by more than 2°C when the major climate talks are held in Paris next year. She also described the last minute decision to delete the reference to local government as “another missed opportunity”. The five-page text agreed on 14 December 2014 – known as the Lima Call for Climate Action – was finally adopted by all negotiating parties during the UN Conference (COP 20) and for the first time commits rising economies and rich countries to take action on climate change. On behalf of the Committee – the EU’s assembly of local and regional governments – Annabelle Jaeger had taken part in a series of events and worked within the EU delegation to shape an international agreement ahead of the UN Paris climate change talks in 2015. Commenting on the outcome, Ms Jaeger said, “We are relieved that some form of agreement was reached. It does pave the way for countries to set out how they will contribute and an agreement was reached on the very basic criteria that can be deemed just about acceptable. Nevertheless, it can’t be said that it has set the bar high in terms of ambition in tackling climate change and it is not nearly enough to stop temperatures rising above the danger mark of 2°C”. The potential lack of transparency of the contributions each country will make in tackling climate change was also a cause for concern, “As an international community we must all share the burden, but that requires transparency to allow comparisons to be made, to target those needing support and to evaluate how far we have come. The UN- FCCC will publish a report evaluating country contributions just in time for the Paris talks – if the report says the numbers do not add up it will be near to impossible to persuade nations to upscale their contribution in time for an agreement to be reached by the end of next year”, Ms Jaeger remarked. Ms Jaeger also expressed disappointment as the two weeks of negotiations had watered down the text removing references to the role of local governments, “For cities and regions we began with high hopes: the initial draft explicitly stated that national governments must support us by offering the right regulatory framework and financial investment. However, the final outcome has left a bitter pill to swallow: after intense negotiations the text was removed having been rejected by some countries”. The Committee, working alongside other organisations such as Local Governments for Sustainability (ICLEI), had hoped that local governments would be formally recognised as “governmental organisations”. Following the UN Conference local governments will continue to be treated as “observers”, “non-governmental stakeholders” and now “experts”, which does not recognise their key role in democratic policy making, implementation of mitigation policies, risk reduction and resilience building. Final COTER meeting under the chairmanship of Marek Woźniak Marek Woźniak Mr Woźniak was elected Commission for Territorial Cohesion Policy’s chairman in September 2012. The commission is crucial from the point of view of regional development. He served at a critical juncture - the planning and negotiation by the European institutions of the EU budget for 20142020 and the shaping of the future cohesion policy. During the commission meeting, the chairman thanked members for their fruitful contribution, over a number of years, towards consolidating the position of cohesion policy among other EU policies. It is thanks to the active steps taken by the COTER Commission, and hence the entire Committee of the Regions, that the cohesion policy has retained a key role as an investment tool in the new programming period, supporting growth and jobs in regions and cities and strengthening the position of local and regional authorities in implementing EU funds. During the commission meeting, the chairman summarised the active contribution of the COTER Commission as a whole. He underlined that during the past two and a half years, “the COTER commission has produced 26 opinions on various dossiers under its main remits: economic, social and territorial cohesion, the Structural Funds, urban policy, territorial cooperation and macroregions, and transport and trans-European transport networks”. Mr Woźniak has repeatedly set forth the position of the European local and regional authorities on this matter during inter-institutional negotiations on the Structural Funds. He has produced two crucial opinions on behalf of the Committee of the Regions. In the first of these, on the common strategic framework (adopted in late 2012), he called, among other things, for greater decentralisation at regional and local level in the management of funds. He also pointed out that the common strategic framework funds have a pivotal role to play in implementing the Europe 2020 strategy and investments to reduce differences in development between Member States and regions, and within individual regions. However, in the resolution on the legislative package on Cohesion Policy post2013, Mr Woźniak strongly opposed the planned funding cuts to this policy. He stressed that EU funds boost competitiveness across the EU, not least by eliminating territorial imbalances between and within EU regions, especially in times of crisis. Of all the Committee of the Regions’ commissions, COTER enjoys the most effective cooperation with the European Parliament, especially with MEPs sitting on the Committee on Regional Development (REGI). The initiative of holding annual joint meetings between the COTER Commission and the REGI Committee has continued, enabling views to be exchanged and consensus to be built. In recent years, the joint meeting has been chaired, on the CoR side, by Mr Woźniak and, for the European Parliament, by Danuta Huebner, and since 2014 by Iskra Mihaylowa from Bulgaria. Mr Woźniak had also met with the new CoR secretary-general, Jiří Buriánek, to discuss, among REGIONS AND CITIES OF EUROPE 23 BRIEF NEWS AND EVENTS other things, the preparations for the Committee of the Regions’ new term-of-office, and the CoR’s participation in the European regional forum to be held in Krakow in April next year. The COTER Commission will shortly draw up an opinion on the regulation on the European Fund for Strategic Investments (i.e. the central part of the “Juncker plan”), which is expected to be published by the European Commission in January. and civil justice systems make it difficult for victims to seek help and unintentionally wear them down. Victims are often required to travel from location to location to seek services and have to tell their story over and over again. senting the EPP Group in the European Parliament’s social media strategy, Lada Jurica said “We have moved away from saying to showing”. This shift was appreciated by participants who encouraged other EU institutions to learn from this example. The main conclusion of the event was that the EU needs to translate its policies and activities into stories that can be accessible for citizens. As Luc Van den Brande, the Vice-President of the Committee of the Regions said “they want to see, feel and touch the real added value of Europe at the local level.” Several speakers highlighted that EU regional, research and innovation policies contain wealth of potential stories. EPP Winter University Family Justice Centres conference YFactor Conference Joseph Daul The high-level conference organised by Family Justice Centres in Europe in partnership with the Committee of the Regions, its president Michel Lebrun, the European Commission’s DG Justice Unit “Gender Equality” and the Elisan network, took place on 14 January at the Committee of the Regions’ building in Brussels. The Family Justice Centres, funded by the European Daphne III programme, provide a combination of services and interventions from a single location to help victims and offenders break the cycle of violence and develop healthy relationships. This model has been identified as a best practice in domestic violence intervention and prevention services by the US Department of Justice and is being implemented in a number of European cities such as Warsaw, Berlin, Milan, Antwerp, Tilburg and Venlo. “This is an effective and efficient family violence prevention project, bringing together a network of public and private partnerships - a unique experience in Italy”, said Siria Trezzi, Mayor of Cinisello Balsamo in Italy. According to Sylvie Carrega, Deputy Mayor of Marseille and President of the Elisan network, “Access to help through integrated responses in a single place is often the most effective approach to tackling violence.” Each year, law enforcement agencies around the world respond to incidents of domestic violence. What is most alarming is that only 25% of cases are estimated to be reported. There are many reasons why victims fail to report, including love, fear, religious beliefs, threats, lack of resources, or simply not knowing that help is available. Most criminal 24 News from the EU’s assembly of regional and local representatives Approximately 50 journalists and media experts gathered in Brussels on 10-11 December for the ninth edition of the EPP Group in the Committee of the Regions’ Winter University. Entitled “Putting people back at the heart of EU media and communication”, the meeting focused on creating networks between the European institutions in Brussels, EU member states, cities and local and regional media. Under the slogan “Believe in People”, the meeting followed on from the EPP pre-election campaign and aimed to put people’s abilities and aspirations at the centre of political storytelling. Participants debated the communication aspects of the European election campaign and the process to appoint Jean-Claude Juncker as President of the European Commission. Welcoming the development, EPP President, Joseph Daul said “the politicization of the European campaign through the Spitzenkandidaten procedure helped. It gave a face to the different policy options and helped make the debate more interesting for citizens and the media”. This point of view was shared by the group of journalists, who were represented by Federico: “This time it was different. You could see the different candidates and the human faces behind the campaign.” Local and regional events, including the Poznan Summit, were also welcomed for bringing the campaign closer to citizens. However, President Daul and the EPP Group in the Committee of the Regions President, Michael Schneider, agreed that having the best election campaign is not enough. “Our main work must concentrate on communicating about concrete European issues that are closer to citizens and which impact on their lives every day” he said. Lambert Van Nistelrooij MEP, echoed this notion in a session dedicated to best practices in communication, putting his electoral success down to continuous “image building”, which translated into trust. Pre- Cries of ‘What is happening to Europe?’ are beginning to burst through all across Europe, as young people from Porto to Poznan contemplate their not so rosy-looking future. Some find themselves without work, whilst others question why they should even bother to vote, because they don’t feel represented or simply feel disillusioned by a system, which they may ultimately believe in, but which they feel is unravelling towards self-destruction. The Committee of the Regions aims to help unfurl some of the key questions being raised by Europe’s young people of Europe’s cities and regions and put youth back at the centre of the debate. On 5 February, young people, CoR members and EU decision makers from across Europe will congregate at the Committee of the Regions for the YFactor conference. Their goal will be to discuss the main concerns of Europe’s youth and present proposals to the new European Commission President, JeanClaude Juncker, thus putting youth firmly on the EU agenda. The participants will be divided into three main thematic groups with additional input from youth across Europe through social media channels. The groups will discuss Youth [Un]employment, EU Citizenship and Sustainable Growth and Development. Panel discussions with MEPs, academia and young leaders will prompt dialogue and World Cafés will generate proposals, which will be voted upon in a General Assembly and will then be presented to Tibor Navracsics, Europea Commissioner for Education, Culture, Youth and Sport. Young people want to be involved in a debate that concerns them and co-create with decision makers representing their interests. YFactor aims to get the ball rolling and set the record straight for President Juncker’s new mandate. Citizens’ Dialogue in Santander On 23 January, the Committee of the Regions, the city of Santander and the FEMP (Spanish Federa- tion of Municipalities and Provinces) held an event entitled Citizens’ Dialogue – “Europe in my City”, in Santander, Spain. The panel addressed a variety of questions, such as: How can European policies influence daily life at local level? How can we reconnect citizens to the European project? What is the role of local and regional authorities in boosting local economic development through EU cohesion policy and the new European investment plan? How can we work to make the best use of the EUR 28.6 billion that the European Union will invest in Spain under its Cohesion Policy? The debate, which was open to members of the public (students, local stakeholders, media), members of local government, members of the FEMP and of the Spanish Network of Smart Cities (SNSC), was attended by the President of the CoR, Michel Lebrun, the Mayor of Santander, President of FEMP and member of the CoR, Iñigo de la Serna, the Minister for Economic Affairs, Taxation and Employment of the Autonomous Community of Cantabria, and member of the CoR, Cristina Mazas, and the Vice President of the European Investment Bank (EIB), Román Escolano. Representatives from different spheres were invited to take the floor and included the Spanish Government’s Ministry of Economy and Competi- tiveness, the Region of Cantabria, the European Commission and the European Parliament. Mario Campolargo, Director of DG Connect at the European Commission led a panel focus discussion on smart urban innovation, with contributions from: Alfonso García Alonso, Mayor of Barakaldo, and Francisco Javier León de la Riva, Mayor of Valladolid and CoR member. The debate was followed by two technical sessions, which provided an opportunity to discuss EU projects for dynamic and smart urban innovation and to present the 2014-2020 programming period of the European Structural and Investment Funds in Spain, looking at concrete and tangible ambitions and results. Focus was also given to the new Juncker plan for investment. This meeting follows on from the European Commission’s adoption of the Partnership Agreement with Spain in October 2014, concerning the Structural Funds and European investment for 2014-2020. This agreement sets out the broad guidelines for the 2014-2020 programming period and establishes the intended uses of the EUR 28.6 billion which the European Union will be injecting into Spain’s economy. “My Region, My Future” schools competition The European Alliance group organised Primary Schools Art competition brought out the creative side of young children across Europe in the last few months of 2014. The theme of this competition was “My Region, My Future”, and the children’s ages ranged from 6-12 years old. Each child was also asked to describe their artwork. The full range of artworks can be seen on www.ea.cor.europa.eu Maja Biechowska (12 years), Gdynia, Poland I love my region, I love Gdynia, I love the sea. I hope that in the future my home town will be more modern, but also green and unpolluted. We will gain power from the sun and from the wind. Edita Kentošová (10 years), Vranov nad Toplou, Slovakia I live in Vranov nad Toplou in Slovakia. I’m looking at my town from above and I am happy that this is my home. I was born here, I have my parents, grandparents and friends here. I wouldn’t change it for anything! Markus Alliku (11 years), Illuka, Estonia I would like to live in a very busy place, a big city in Estonia. My future is connected with football. I do not want to change my homeland and the style of life. I love sport, I love football and I like to be a famous football player in the future. The European Entrepreneurial Region Award 2016 The European Entrepreneurial Region (EER) Award is an initiative of the Committee of the Regions promoting the implementation of the Small Business Act for Europe (SBA) at local and regional level. The EER scheme identifies and rewards EU regions which show an outstanding and innovative entrepreneurial policy strategy, irrespective of their size, wealth and competences. The regions with the most credible, forward-thinking and promising vision plan are granted the label “European Entrepreneurial Region” (EER) for a specific year. The EER label has been set up in partnership with the European Commission and is supported by EU level stakeholders such as UEAPME, Eurochambres and Social Economy Europe. Up to three territories will be awarded the EER Award label for the year 2016. The deadline for the submission of applications is 16 March 2015. More information: eer-cdr@cor.europa.eu www.facebook.com/committee.of.the.regions @EU_CoR Would you like to receive Regions & Cities of Europe? QG-AA-15-090-EN-C Regions & Cities of Europe is published by the Committee of the Regions, the EU institution representing local and regional authorities. Subscription is free of charge. To subscribe, please send your name and address, by e-mail to regionsandcities@cor.europa.eu or by post to the following address: Committee of the Regions Press Department — Subscription to Regions & Cities of Europe Rue Belliard/Belliardstraat 99–101 1040 Bruxelles/Brussel BELGIQUE/BELGIË