More EU investment in urban areas benefits European economy, CoR reports 28-03-2007 The Committee of the Regions (CoR) published a report on the effects of EU
cohesion policy and the structural funds on European economic development. Based
on Commission estimates, every euro spent on EU cohesion policy leads to an
additional investment of one to three euros by other public authorities.
According to the CoR, this effect can be even further enhanced, by a greater
concentration of funds in priority sectors such as urban areas.
The report on the leverage effect of the structural funds was presented by
Manuel Chaves González, member of the CoR and President of the Spanish region of
Andalusia. The report was adopted at the CoRs plenary session in Rome to
celebrate the 50th anniversary of the founding treaties of the European Union
(EU). It demonstrates that EU funding can make a big difference when attracting
additional public and private investment for projects aimed at generating growth
and jobs – one of the EU's top priorities under the so-called Lisbon Strategy.
The structural funds are a vital catalyst for securing extra public and
private financial support for initiatives because they offer funding stability
over a multi-annual budgetary period and mobilise critical funding mass. "It
should also be borne in mind that their role is not purely financial: they
contribute to developing regions' intrinsic potential and stimulate their
competitiveness," said Chaves.
According to estimates by the European Commission, every euro spent at EU
level on cohesion policy leads to between one and three euros in additional
expenditure by national or regional governments. The report includes case
studies from different countries as evidence of this multiplier effect.
Among the examples highlighted is the Andalusian Innovation and Development
Agency (Agencia de Innovación y Desarrollo de Andalucía): a public body run by
the regional government. It works with universities, risk capital funds and
private investors to provide venture capital, micro-credit for young
entrepreneurs and guarantees for bank loans. Other best practice examples
featured are:
The report by CoR member Chaves, a member of the Party of European Socialists
Group, was welcomed by EU Regional Policy Commissioner Danuta Hübner. She
addressed the meeting on the same theme.
The findings by the CoR are particularly significant in light of the European
Council's request for the European Commission to carry out an in-depth review of
all EU spending, including regional policy, and report back in 2008-2009.
Among other things, the Chaves report specifically recommends that:
It also underlines the leverage effect of EU cohesion policy can also be
significantly reinforced in the 2007-2013 programming period. This could be
realised through:
The report is not yet available online. To obtain a copy, please
contact
the Committee of the Regions
Source: Committee of the Regions back |
