The 8th Cohesion Report has been published, setting out the main changes in territorial disparities over the past decade and how policies have affected these disparities. It highlights the potential of the green and digital transitions as new drivers of growth for the EU, but argues that without appropriate policy action new economic, social and territorial disparities could arise. Finally, it proposes a reflection on how cohesion policy should evolve to respond to these challenges and in particular on how to ensure that place-based, multi-level and partnership-led approaches continue to improve cohesion, exploiting synergies and integrating cohesion objectives into other instruments and policies.
Here is the full version of the Cohesion Report: cohesion in Europe in the run-up to 2050
The report shows that among the least developed regions in Europe, the eastern regions are catching up, while those in the south and south-west of the EU have suffered from stagnation and economic decline.
However, if real wages grow faster than productivity, the return on infrastructure investment will decline and the benefits in terms of low costs will be reduced, especially in the tradable goods sectors. To avoid a "development trap" in the future, less developed regions will need to promote education and training, increase investment in research and innovation and improve the quality of their institutions.
Several middle-income and less developed regions, especially in the southern EU, have experienced economic stagnation or contraction (Map 1), indicating that they are in a development trap (Map 2). Many of them were hit by the economic and financial crisis in 2008 and have been struggling to recover since then. Long-term growth will require public sector reforms, upskilling of the workforce and stronger innovation capacity.
"The 8th Cohesion Report clearly shows the importance of cohesion policy in promoting convergence and reducing inequalities between EU countries and regions," she said. Commissioner for Cohesion Elisa Ferreira -. By mapping the areas where Member States and regions need to do more and better, the report allows us to learn from the lessons of the past to be better prepared for the challenges of the future. We need to accelerate the adoption and implementation of cohesion policy programmes for 2021-2027 so that we can continue to support regions in their recovery from the pandemic, reap the full benefits of the transition to a green and digital Europe and deliver long-term growth.”
English (UK)