(AGENPARL) – mer 29 novembre 2023 Press Release
CoR/23/121.en Brussels, 29 November 2023
Prolonging eased state-aid rules raises risk of territorial imbalances in Europe, local leaders warn Future state-aid rules must prioritise inclusive the green and digital transition. A prolonged relaxation of state-aid rules risks widening the disparities between and within Europe’s member states, distorting the functioning of the Single Market, regional and local leaders argue in an [opinion ] on the European Commission’s 2022 Annual Report on Competition Policy. The opinion, which was adopted by unanimity on 29 November during a plenary session of the European Committee of the Regions ( CoR), calls for measures to mitigate market distortions prior to a return to normal state-aid rules. They also want future state-aid to help struggling regions cope with the green and digital transition. Flexibility in state-aid rules has been key to mitigating the consequences of the COVID-19 pandemic, the war in Ukraine preventing many local and regional economies from collapsing, the CoR concludes. Regions and cities underlined that the temporary framework has not only sustained Europe’s productive fabric, but has also been used by Member States to deal with domestic inequalities between regions. In their recommendations, local and regional leaders underscore that public investment is needed to create opportunities to benefit from the green and digital transition, such as the rollout of broadband in remote regions and the development of a hydrogen industry. However, regions and cities fear that large-scale public investments could lead to a fragmentation of the Single Market, and that any negative effects on cohesion would be most felt in fragile regions. For example, France and Germany accounted for almost 80% of investments under the Temporary Crisis Framework, a disproportion that risks damaging cohesion in favour of wealthier Member States. Prolonging competition rules will therefore lead to rural areas or areas experiencing industrial transition missing out on public support, the CoR warns. Measures to mitigate market distortions in the short and medium-long term should therefore be taken before the return to normal competition rules.
Competition and cohesion policy must complement each other to promote an inclusive economic growth Local and regional leaders accept that state aid that supports economic development is essential to enhance regional growth to counter regional disparities within the EU, but also argue that fair competition needs to be assured across all territories in the EU. In their recommendations, they therefore call on the Commission to concentrate on reinforcing economic, social and territorial cohesion policies, so that competition and cohesion policy complement each other and promote an inclusive and balanced economic growth in European regions and cities.
[Annual Report on Competition Policy for 2022 ], which marks the 52 nd
[home ]
[Facebook ]
[Twitter ]
[LinkedIn ]
[Youtube ]
[Instagram ]
The European Committee of the Regions
The European Committee of the Regions is the EU’s assembly of regional and local representatives from all 27 Member States. Created in 1994 following the signing of the Maastricht Treaty, its mission is to involve regional and local authorities in the EU’s decision-making process and to inform them about EU policies. The European Parliament, the Council and the European Commission consult the Committee in policy areas affecting regions and cities. To sit on the European Committee of the Regions, all of its 329 members and 329 alternates must either hold an electoral mandate or be politically accountable to an elected assembly in their home regions and cities.
[Click here ] for more details
on your national delegation.
[Manage your subscription preferences ]