Economic and social inequalities are falling in the EU, according to its 9th report European Commission on cohesion, published today.
Thanks to cohesion policy, it is estimated that by 2027 an additional 1.3 million will be created jobs in the EU, with the largest proportion in sectors related to the green and digital transition. Cohesion policy also ensures that the regions’ economic development has a positive impact on the EU’s single market, thanks to trade and investment links. In 2030, EU GDP is expected to be 1% higher due to Cohesion Policy investments.
By the end of 2022, financing under cohesion policy between 2014 and 2020 it had supported more than 4.4 million businesses, created 370,000 jobs in these businesses and represented around 13% of total public investment in the EU, rising to 51% for the least developed Member States .
2024 marks 20 years after the great enlargement of the EU with the accession of ten new member states. The average GDP per capita of the Member States that joined then rose from 45% of the EU average to almost 80% in 2023. The gap with the rest of the EU has halved. The unemployment rate in these Member States fell from 13% on average to 4%.
With a budget of 392 billion 2021-2027 Cohesion Policy funding programs will continue to invest in Europe’s competitiveness, green and digital transition, human capital and social inclusion, as well as physical and digital connectivity.
Over 100 billion euros have been planned for the support green actions through projects focusing on renewable energy infrastructure, energy efficiency, sustainable transport networks and nature conservation initiatives.
Today’s report points out that climate change is exacerbating regional disparities, affecting the coastal, Mediterranean and south-eastern regions of the EU to a greater extent. Here, the cost of climate change can exceed 1% of GDP per year.
For the digital transition, cohesion policy invested €14 billion between 2014 and 2020 to address the digital divide, both social and geographical, for example by improving access to eGovernment and eHealth services and by promoting the development of broadband connections in remote and rural areas. The performance of fixed networks improved in all Member States and 7.8 million households benefited from improved broadband.
In the period 2021-2027 around €40 billion is allocated to digitization, including the development digital skills, digital technologies and access to a faster internet connection in all regions of the EU, while 45 billion euros are available for education and training.
During the COVID-19 health crisis, €23 billion was made available to fight the pandemic, notably supporting the purchase of ventilators, vaccines and medicines for hospitals, the recruitment of additional health care workers and the provision of home care services in vulnerable groups. Because of this support, all categories of regions returned to their GDP levels in 2019 only two years after the COVID-19 health crisis, unlike the 2008 financial crisis, in which some regions took more than 10 years to recover .
Cohesion policy has also made funding and flexibility available to help regions welcome people trying to escape Russia’s war of aggression against Ukraine. This funding supported emergency measures such as the construction of reception centers and shelters and investment in mobile hospitals and sanitation facilities. Support was also provided in the areas of employment, education and social inclusion, such as language courses, psychological assistance and access to childcare and health care services.
The European Commission publishes its cohesion report every three years.
Source: RES-MPE
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