While the EU Heads of State and Governments are meeting in Brussels to review the state of play of the economic recovery, the results of a new study commissioned by the European Committee of the Regions (CoR) unveil the lack of involvement of local and regional authorities in the preparation and implementation of National Recovery and Resilience Plans (NRRPs). The study was presented during the meeting of the CoR's commission for economic policy (ECON). ECON Members have also voiced serious concern that the inadequate attention to territorial disparities displayed by the plans and the insufficient coordination with cohesion policy targets bear the risk of overlapping funds.
According to the study, which analyses eight of the NRRPs submitted to the European Commission by the end of May, the national recovery plans generally foresee very limited opportunities for regions to provide democratic input. Most of the regional and local actors were only consulted in formal and unilateral ways while currently they will mainly be tasked with execution and the administrative delivery of the plans' reform and investment policies. Their ideas were, again overwhelmingly, rarely transposed into the plans. However, granting more political leeway over the use of investment resources to cities and regions would foster local communities' ownership over policies and boost capacity building at the local level. The lack of involvement of regional and local authorities, which are crucial to delivering investments and services as well as to implementing reforms, could undermine the impact and efficiency of NRRPs. This is a point EPP members emphasised needs to be corrected in the next – implementation – phase.
Michael Murphy, member of Tipperary County Council and ECON Chair said: "The study presented today confirms what our earlier work had suggested: there is a broad diversity of situations across the EU but many Member States treat consultations with regional and local actors not as meaningful exchanges, but rather as unilateral processes – as 'box-ticking' exercises. Regions' and towns' wealth of knowledge and experience rarely make it into the recovery plans, which is a missed opportunity and simply does not constitute good governance. Local and regional authorities are crucial to delivering investments and public services, as well as implementing reforms, and it is a mistake to attempt to build the EU's recovery without them."
ECON members expressed their regret that the investments proposed in the NRRPs don't consider potential synergies between the Recovery and Resilience facility (RRF) and EU cohesion policy funds. Overlaps between the two financial instruments could undermine cohesion policy's effectiveness with the novelty of a simplified performance-based tool, such as the RRF. The study also comes to the conclusion that the role which NRRPs intend for local and regional authorities in driving forward the green and digital transitions and SDGs varies heavily and is ill-defined.
Eddy Van Hijum, member of the Council of the Province of Overijssel, stressed the importance of the regional and local authorities' role in building programmes in the Recovery and Resilience national plans."It is a matter of priority and taking partnerships seriously. Local and regional athorities must be properly consulted in this matter. It is not just about spending but acting in partnership - in green and digital transition especially."
Ricardo Rio, Mayor of Braga emphasised that "we as regional and local leaders rely on the highest level of people's trust so that we can solve local problems with European solutions in fields such as transport, energy, climate change, digitalization. We think European and act local." Outlining what post-pandemic recovery policies he is implementing in Braga including ones with long-lasting impact including a rapid transport system, he asked the European Commission Recovery and Resilience Task Force representative that to achieve impact, where the partnership principle featured the assessment criteria and the appreciation for place-based policies.
In his intervention, Mariusz Frankowski, Warsaw City Councillor spoke about the needs, assets and the role of cities and bigger metropolitan regions in implementation of the national plans. "As local and regional authorities we could be important partners in the implementation of reforms and investments. In this regard, we should be appropriately consulted and involved, in accordance with the national legal framework." He raised specific points going forward on monitoring the implementation; the burden on local and regional authorities in the health crisis and the question of transparent disbursement of the funds.
Protecting Industrial and Craft Geographical Indications
Besides the debate about the EU's Recovery Fund, the ECON commission adopted the draft opinion "Protecting Industrial and Craft Geographical Indications (ICGIs) in the European Union" which calls for a harmonised EU regulatory framework for ICGIs to replace the patchwork of national legal instruments and thereby safeguard an important part of Europe's cultural heritage, improve consumer rights, increase producers' incomes and contribute to the development of the regions concerned.
Thomas Schmidt, Saxony Regional Development minister stated that "We have long been familiar with the protection of geographical indications for agricultural and food products in the European Union. It is high time for also protecting industrial and handicraft geographical indications. With this opinion, we are calling on the EU Commission to submit a draft regulation. It is not only about protecting the geographical indication, but also about attention and appreciation for the regional richness and variety of products throughout Europe.“
In her intervention Deirdre Forde, Councillor of Cork City Council spoke about how geographical indications protect the fabric of communities "Geographical Indication protection for non-agricultural products will help safeguard our craft products which have huge economic, cultural, artisan, place making and tourism value not only in Ireland but through the EU.”
Industrial Strategy for Europe: Building a stronger Single Market for Europe’s recovery
Following the COVID-19 outbreak, the Single Market suffered supply restrictions, border closures and fragmentation. Also strategic dependencies and the vulnerabilities of the supply chains became clear.
Eddy Van Hijum, member of the Council of the Province of Overijssel, drew attention at the role of Vanguard and how important it is to connect European specialized clusters and build programs together. "We need to take into account lessons learned from pandemic and reduce strategic dependencies, for instance of crucial medical devices and medicine, critical raw materials and key enabling technologies. We also have to protect European industry from unfair competition and an unleveled playing field, think of intellectual property, state support and diverging standards when it comes to climate or protecting human rights."
Better regulation: Joining forces to make better laws
Presenting his opinion on Better regulation, Piero Mauro Zanin, President of the Regional Council of Friuli-Venezia Giulia and vice-President of CIVEX , highlighted that "we need to put in place a constructive dialogue between the European Institutions. We are all trying to shape the future of Europe and this gives us the opportunity to have our voices heard in the legislative process. As LRA's, we should do everything we can to produce better legislation and be involved in the process. The opinion on Better Regulation is an opportunity for European regions to participate, through the Committee of the Regions, in the European Commission’s initiative for legislative simplification and quality legislation to reflect the aspirations of citizens and reduce burden from businesses. Good legislation is an engine for economic and social growth. The pandemic has made this objective more urgent than ever. It is essential to implement better regulation, at all levels and with all the useful tools, to re-establish the leading role of citizens and businesses in responding to the common challenges they face."