What changed

OPINION

The Committee on ForeignRegional AffairsDevelopment calls on the Committee on Budgets, as the committee responsible, to incorporate the following into its motion for a resolution:

1. Welcomes the fact that the multiannual financial framework (MFF) revision in 2024 provided for additional funding under Heading 6 and for the EUR 50 billion Ukraine Facility; deplores, however, the fact that the MFF revision fell short of the needs identified by Parliament; reiterates the urgent need to increase funding, particularly in crisis-affected regions where the needs are greatest, and to address the various challenges in the neighbourhood, invest in partnerships and strengthen the geopolitical position of the EU; underlines in particular the need for continued efforts to finance Ukraine’s immediate funding needs; emphasises that the EU should without any delay intensify its efforts to enable frozen and immobilised Russian assets to be used for Ukraine’s reconstruction, reparations and budgetary needs, in full compliance with EU and international law; underlines that the Neighbourhood, Development and International Cooperation Instrument – Global Europe (NDICI – Global Europe) and the Global Gateway are crucial instruments within the Union’s external action toolbox; stresses the importance of the EU’s humanitarian aid policies and instruments; calls in general for a more strategic and impactful approach to EU funding abroad while advancing open strategic autonomy;

A. whereas pursuant to Article 174 of the Treaty on the Functioning of the European Union (TFEU), ‘in order to promote its overall harmonious development, the Union shall develop and pursue its actions leading to the strengthening of its economic, social and territorial cohesion. In particular, the Union shall aim at reducing disparities between the levels of development of the various regions and the backwardness of the least-favoured regions’;

2. Reiterates that an increased level of funding should be allocated for the Southern Neighbourhood in 2025 to support political, economic and social reforms in the region; highlights in particular the pressing need to contribute significantly to the reconstruction of Gaza and to provide additional humanitarian aid in Gaza, Lebanon and Syria; recalls that the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNWRA) has up to now been the principal humanitarian assistance structure in Gaza and the West Bank as well as an essential service provider in the region; recalls the need to continue supporting key regional partners such as Jordan in order to foster peace in the region;

B. whereas cohesion policy is a key instrument for reducing disparities between the levels of development of the various regions within the Union and for addressing the fact that the least-favoured regions lag behind, playing a vital role in promoting sustainable development and also addressing environmental challenges, complementing national budgets and enhancing the EU’s ability to navigate global complexities;

3. Welcomes the new Reform and Growth Facility for the Western Balkans and the proposed Facility for Moldova, as well as the role of the Instrument for Pre-accession Assistance (IPA) III in financing actions in the region; underlines that the Reform Agendas, which beneficiaries need to develop, are a promising instrument to speed up transformation and compliance with EU norms; calls on the Commission, in the interests of a successful accession process, to strictly apply the conditionalities enshrined in the two facilities; calls furthermore on the Commission to accompany all 10 enlargement countries on their path to European integration and to provide tailored assistance to address their respective challenges; calls on the Commission to allocate additional funding to support civil society and independent media organisations and journalists; calls on the Commission to ensure that it retains the possibility to withhold funds, either temporarily or indefinitely, if those funds would contribute to the budgets of governments – whether at the national or sub-national level – whose actions are significantly undermining the stability of the country or its neighbours, or the country’s progress towards European integration, particularly regarding democracy, the rule of law and the protection of human rights and fundamental freedoms; calls, furthermore, on the Commission to present a proposal for an instrument for pre-accession assistance for the next MFF that incorporates the facilities to avoid overlaps and covers all 10 enlargement countries and which should ensure strong institutional and economic preparedness for EU membership; calls also on the Commission to speed up the integration of all candidate countries in the EU roaming area;

C. whereas among the regions concerned, particular attention must be paid to rural areas, areas affected by the industrial and automotive transitions, less-developed areas inside the so-called developed regions, eastern EU regions bordering on Russia, Belarus or Ukraine, regions which suffer from severe and permanent natural or demographic handicaps, as well as outermost regions, islands and Mediterranean regions facing environmental and economic vulnerabilities;

4. Highlights the importance of the EU’s ensuring that EU funds do not go towards financing educational literature that romanticises martyrdom, violence or terrorism;

D. whereas the absorption rate of cohesion policy funds remains very low partly owing to delays to the start of programmes and the high level of bureaucracy and complexity required in cohesion-funded projects, which can lead to unforced errors;

5. Underlines the need for the Directorate-General for Enlargement and the Eastern Neighbourhood (DG ENEST), the Directorate-General for the Middle East, North Africa and the Gulf (DG MENA) and the European External Action Service (EEAS) to be provided with sufficient financial and human resources to promote peace, prosperity, security and EU values and interests in both the European neighbourhood and across the globe; underlines the need to provide adequate resources to both the EEAS and the Commission for strategic communication and to counter disinformation; highlights the need to maintain the current structure of the network of EU delegations around the world and to provide financing that is commensurate with the role that the Union expects all delegations to play on the ground; notes, furthermore, that the EEAS, with 145 delegations around the globe, cannot be measured according to the same logic as that applied to European institutions in Brussels and Luxembourg; calls, therefore, on the Commission and the Council not to apply the 2 % logic to the EEAS; insists on a budgetary increase for common foreign and security policy (CFSP) actions and common security and defence policy (CSDP) missions, as well as other appropriate peace, conflict and crisis response instruments; stresses the need to improve IT and security protocols within EEAS headquarters, EU Delegations and in Commission directorates-general with responsibilities in EU External Action; stresses the importance of investing in European security and defence by bolstering the Union’s strategic autonomy and collective defence capabilities;

E. whereas among the beneficiaries concerned, particular attention should be paid to vulnerable people, such as persons with disabilities;

6. Welcomes the establishment of the EU Partnership Mission in Moldova (EUPM Moldova); highlights the essential role of the EUPM Moldova and calls on the EU and its Member States to extend the mission’s mandate beyond May 2025, while increasing resources to enhance its effectiveness;

1. Considers that, as the EU’s main long-term investment instrument, cohesion policy is based on solidarity, creates sustainable growth and jobs across the Union and contributes to key Union objectives and priorities, including its climate, energy and biodiversity targets, competitiveness, as well as sustainable and socially inclusive economic growth, to tackle demographic challenges and ensure equitable access to affordable housing;

7. Reiterates the EU’s commitment to promoting gender equality and the empowerment of women globally, as enshrined in the EU Gender Action Plan III (2021–2025); calls for increased resources to support women’s rights, including efforts to eliminate gender-based violence, strengthen women’s participation in decision-making processes and promote economic empowerment; emphasises the importance of gender mainstreaming across all budgetary and policy initiatives to ensure equal opportunities and inclusivity; stresses that gender equality is not only a fundamental right but also a crucial driver of social and economic development;

2. Recalls that cohesion policy has proven to be a helpful tool in tackling challenges in various crises, such as the Russian war of aggression against Ukraine and its effects on the energy supply, the high cost of living, inflation, and the needs of refugees and displaced persons, as well as natural disasters; underlines, however, that the resulting legislative amendments to cohesion policy have repeatedly brought unexpected changes to its objectives and resources, while cohesion policy should, when needed, complement rather than replace other financial instruments designed for emergency response;

8. Calls on the Commission to collaborate with the EPLO office in Washington, D.C., and the EU delegation in the United States to identify, fund and implement initiatives aimed at strengthening the transatlantic relationship, including exchange programmes for professionals working in public institutions in both the EU and the United States;

3. Reiterates the need for coordination at budgetary level between all the financial instruments supporting cohesion policy; believes that, to make the most of NextGenerationEU funds, these should support and complement cohesion policy measures;

9. Underlines that any disbursements from the European budget must depend on the beneficiary country’s respect for the rule of law, human rights and compliance with international obligations, and with respect for international agreements;

4. Emphasises the need to ensure that the ‘do no harm to cohesion’ principle is observed across the EU budget; stresses, in this regard, that cohesion policy should not undergo any fundamental changes which could jeopardise the structural and investment funds’ ability to deliver on their goals; stresses that the setting of new priorities should entail new resources and underlines that the long-term investment objectives of cohesion policy are to reduce regional disparities and enhance competitiveness;

10. Considers that more EU funds need to be allocated to joint cyber defence in order to counter the digital threats from Russia, the People’s Republic of China and others; considers that the Commission needs to secure the necessary funding for a future cyber army that can help EU institutions and Member States to defend themselves against cyberattacks from hostile states;

5. Is concerned about the state of implementation of cohesion policy programmes for 2021-2027; urges the Commission to step up monitoring efforts, ensuring respect for the rule of law, a transparent, fair and responsible use of EU resources, as well as their sound financial management; urges the Commission to strengthen its cooperation with the Member State authorities at all levels in order to reduce bureaucracy to make cohesion funds more accessible to local and regional authorities, among others, and to avoid decommitments, unfinished projects and any political manipulation of fund allocation; stresses, therefore, the need to introduce a ‘smart conditionality’ mechanism;

11. Stresses the need for the visibility and communication of EU aid, particularly in candidate countries, but also in other partner countries;

6. Notes that the Just Transition Fund needs adequate financial resources and a long-term perspective to ensure its effectiveness in supporting regions’ transition towards climate neutrality, while ensuring that the most vulnerable regions are properly supported in the transition process; emphasises the need for a realistic and balanced approach to the just transition, ensuring economic, social and environmental sustainability, with the meaningful participation of local and regional authorities, as well as economic and social partners;

12. Stresses the urgent need for the EU to invest in research and development concerning low-cost drones, not only in order to support Ukraine in its efforts to defend itself against Russia, but also to strengthen European defence; considers that the EU should cooperate with Ukraine on the development of a drone system following their successful use of drones.

7. Calls for further simplification of cohesion policy to reduce the growing administrative burden, enhance fund accessibility and ensure investments tailored to the specific needs of regions while enabling the effective management of funds in line with the needs of final beneficiaries; highlights, in this context, the importance of the newly-created EU Councillors network, which is jointly run by the European Committee of the Regions and the European Commission, as a key tool for strengthening the ability to gather evidence of how the Union operates at local level;

8. Underlines that rural areas are a core part of Europe’s identity and economic potential; welcomes cohesion policy measures that recognise the contribution of more prosperous and resilient rural areas to Europe’s overall resilience; calls for adequate funding to enhance their role in environmental protection, food production, tourism and ensuring ‘the right to stay’; calls for increased public investment to tackle demographic challenges and support young people by improving services and infrastructure, expanding access to digital education, technologies and innovations, so as to raise living standards, increase the stock of affordable housing and foster equal access for citizens and families to culture and high quality education, essential social services and other public services, while making more efficient use of resources, reducing the impact on the environment and creating new opportunities for rural SMEs;

9. Notes that the European Regional Development Fund (ERDF) and the Cohesion Fund support investments in sustainable urban development, underlining its importance as a key component of integrated territorial development, with at least 8 % of ERDF resources at the national level being allocated to urban areas through the relevant mechanisms; further notes that this should include special attention to the sustainable development of functional urban and metropolitan areas, facilitating the digital, green and industrial transitions;

10. Calls for increased investment in digitalisation and innovation to enhance the competitiveness of SMEs in less-developed regions, including rural and peripheral areas, in order to bridge the digital divide and foster inclusive economic growth;

11. Underlines that sustainable development is directly linked to having a highly skilled work force; insists, therefore, on the need for increased efforts to ensure an adequate degree of upskilling and reskilling of all relevant working age individuals, as well as initiatives to increase citizens’ acceptance of the economic, industrial and energy transitions;

12. Recalls the importance of mechanisms and strategies adapted to the diversity of the EU’s territories, and therefore calls for a full use of Article 349 TFEU to adapt cohesion policy to the specificities of the outermost regions; reiterates that the outermost regions should receive specific additional allocations to offset the extra costs incurred as a result of permanent constraints on their development; calls for an Islands Pact to be considered by the EU institutions with the participation of the principal stakeholders, along the lines of the Urban Pact and the future Rural Pact;

13. Reaffirms the need for close cooperation between national, regional, local and other authorities as well as their dialogue with civil society organisations and all relevant stakeholders, including economic and social partners, universities and innovation centres; recognises the importance of research and innovation policy in driving economic growth and enhancing competitiveness in order to fulfil cohesion policy objectives; highlights the need to support the commercialisation and scaling up of interregional innovation projects, underlining the importance of developing value chains, particularly in less-developed regions;

14. Reiterates the need to strengthen the administrative capabilities and capacity of local, regional and national authorities, which are key components in the effective planning and implementation of initiatives and projects at the local level; highlights the importance of stronger ownership, responsibility, partnership and decentralisation; strongly considers that increased financial resources dedicated to technical assistance are key to effective project implementation;

15. Emphasises that the implementation of cohesion policy must respect horizontal principles, including its place-based nature, multilevel governance, sustainability, the partnership principle, gender equality and non-discrimination, ensuring that all projects contribute to a more equitable and inclusive Union;

16. Stresses the need to strengthen awareness-raising among European citizens about cohesion policy achievements and calls for further information measures promoting it such as accessible data platforms, as cohesion policy is a particularly effective means of promoting strong and balanced European regions.

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The rapporteur for the opinion declares under hisher exclusive responsibility that heshe did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

INFORMATION ON ADOPTION BY COMMITTEE ASKED FOR OPINION

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Members present for the final vote

Mika Aaltola, Petras Auštrevičius, Dan Barna, Wouter Beke, Robert Biedroń, Ľuboš Blaha, Ioan-Rareş Bogdan, Marc Botenga, Helmut Brandstätter, Sebastião Bugalho, Tobias Cremer, Danilo Della Valle, Loucas Fourlas, Alberico Gambino, Giorgos Georgiou, Christophe Gomart, Rima Hassan, Rasa Juknevičienė, Sandra Kalniete, Łukasz Kohut, Ondřej Kolář, Rihards Kols, Andrey Kovatchev, Reinhold Lopatka, Antonio López-Istúriz White, Marion Maréchal, David McAllister, Vangelis Meimarakis, Sven Mikser, Francisco José Millán Mon, Hannah Neumann, Urmas Paet, Kostas Papadakis, Tonino Picula, Thijs Reuten, Nacho Sánchez Amor, Mounir Satouri, Andreas Schieder, Alexander Sell, Villy Søvndal, Davor Ivo Stier, Marie-Agnes Strack-Zimmermann, Cristian Terheş, Riho Terras, Pierre-Romain Thionnet, Reinier Van Lanschot, Nicola Zingaretti, Željana Zovko

Adrian-Dragoş Benea, Gordan Bosanac, Irmhild Boßdorf, Daniel Buda, Klára Dobrev, Klara Dostalova, Raquel García Hermida-Van Der Walle, Gabriella Gerzsenyi, Krzysztof Hetman, Ľubica Karvašová, Elsi Katainen, Isabelle Le Callennec, Elena Nevado del Campo, Andrey Novakov, Valentina Palmisano, Vladimir Prebilič, Sabrina Repp, Marcos Ros Sempere, André Rougé, Antonella Sberna, Mārtiņš Staķis, Şerban Dimitrie Sturdza, Rody Tolassy, Francesco Ventola, Marta Wcisło

Substitutes present for the final vote

Krzysztof Brejza, Jaroslav Bžoch, Engin Eroglu, Tomasz Froelich, Ilhan Kyuchyuk, Ana Catarina Mendes, Alessandra Moretti, Ana Miguel Pedro, Chloé Ridel, Şerban Dimitrie Sturdza, Marco Tarquinio

Dan Barna, Sofie Eriksson, Denis Nesci, Jacek Protas

Members under Rule 216(7) present for the final vote

Anna Bryłka, Mélissa Camara, Alexander Jungbluth, Erik Marquardt, Leire Pajín, Kristian Vigenin

Francisco Assis

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION