What changed

Follow-up to the European Parliament non-legislative resolution on cohesion policy 2014-2020 - implementation and outcomes in the Member States

14.11.2023

Rapporteur: Andrey NOVAKOV (EPP / BG)

Mr Younous Omarjee

Reference number: 2023/2121 (INI) / A9-0049/2024 / P9_TA(2024)0174

Chair

Date of adoption of the resolution: 14 March 2024

Committee on Regional Development

Competent Parliamentary Committee: Committee on Regional Development (REGI)

BRUSSELS

Brief analysis/ assessment of the resolution and requests made in it:

IPOL-COM-AGRI D(2023) 37780

The resolution takes stock of cohesion policy’s implementation and achievements during the past programming period and contributes to the reflection on its future. By providing concrete examples of the achievements of cohesion policy, it acknowledges that cohesion policy, through its multi-sectoral approach and shared management, was the EU’s main investment policy in 2014-2020, effectively supported its Treaty-based objective of achieving economic, social and territorial cohesion across the EU and contributed significantly to the Union’s priorities. In addition,to benefits such as lasting positive impacts on a variety of regions and cities, the importance of investment at regional and local level, and the effectiveness of measures introduced under cohesion these last years to mitigate the socio-economic impact of different crises, it also lists some implementation challenges, particularly in certain Member States, which were exacerbated at the end of programming period, due to the crises, the need to implement other EU instruments such as the Recovery and Resilience Facility (RRF), and the preparation of the 2021-2027 programming. In this respect, the resolution regrets the late adoption of both the Multiannual Financial Framework (MFF) and the regulatory framework for cohesion and suggests in the future that the MFF-related provisions from the Common Provisions Regulation (CPR) be separated from the other provisions, to enable Member States to better anticipate the preparation of programming documents in addition to other recommendations for continued focus on regional support and investments under a modernised cohesion policy.

Subject: Opinion on Cohesion policy 2014-2020 - implementation and outcomes in the Member States –2023/2121(INI)

Response to requests and overview of actions taken, or intended to be taken, by the Commission:

Dear Chair,

(Paragraph 18) The Commission takes note of the Parliament’s position regarding the eligibility of all EU regions under the post-2027 EU cohesion policy. The Commission recognises that structural challenges as identified in the Commission’s 9th Cohesion Report adopted in March 2024 (climate transition, demographic change, technological transformation, etc.) affect all regions – albeit to varying extents. It is however too early to pre-empt future proposals for the post-2027 Multiannual Financial Framework.

Under the procedure referred to above, the Committee on Agriculture and Rural Development has decided to submit an opinion to the Committee on Regional Development. At its meeting of 28 June 2023, AGRI Coordinators decided to send the opinion in the form of a letter.

(Paragraph 19) The Commission is committed to implementing Article 174 of the Treaty on the Functioning of the European Union (TFEU) and recalls that cohesion policy contributes to the development of all types of territories. The legal framework of cohesion policy offers multiple possibilities to address the specific needs of different EU territories. The Urban Agenda for the EU is an inter-governmental initiative of Member States.

The Committee on Agriculture and Rural Development decided, after the vote on the opinion of 7th December 2023 to call on the Committee on Regional Development, as the committee responsible, to incorporate the following suggestions into its motion for a resolution.

(Paragraph 21) The Commission is committed to supporting the outermost regions’ socio-economic development and to ensuring special conditions for these regions in the application of EU law in line with Article 349 TFEU. In the funding period 2021-2027, cohesion policy strongly supports the outermost regions with tailor-made conditions including a specific allocation to help them cope with their additional costs, a new interregional co-operation strand under Interreg to help them co-operate with their neighbours, and a higher allocation for technical assistance. Outermost regions are considered less developed regions – independently of their Gross Domestic Product (GDP) – for the determination of the co-financing rate and for the thematic concentration of the European Regional Development Fund (ERDF). The Communication ‘Putting people first, securing sustainable and inclusive growth, unlocking the potential of the EU’s outermost regions’ adopted under this mandate aims to reflect outermost regions’ specificities across all EU policies, in legislative proposals, policy initiatives, tools and programmes, to support living conditions, recovery, development and sustainable growth – in line with Article 349 TFEU.

Yours sincerely,

(Paragraph 22) In accordance with the Treaty, the Commission attaches particular attention to the situation of EU border regions. The 9th Cohesion Report highlights the challenges for regions at the EU’s external borders, in particular those bordering Russia, Belarus and Ukraine since the start of Russia’s war of aggression in Ukraine, as well as southern peripheral regions and outermost regions exposed to migratory pressures. As highlighted in the Commission’s Communication ‘Boosting growth and cohesion in EU border regions’, EU border regions face structural disadvantages, including persistent cross-border legal and administrative obstacles that hinder their economic and social development. Beyond financial support provided by Cohesion Policy and other EU policies and instruments, the Commission has recently proposed an amended proposal for a regulation ‘Facilitating cross-border solutions’, which would give Member States a standard procedure for resolving legal and administrative obstacles that potentially undermine cross-border interactions and the development of cross-border regions. The Commission welcomes the Parliament’s continued support for this proposal. The examination of the proposal by the co-legislators is ongoing.

Norbert Lins

(Paragraph 23) The Commission takes note of Parliament’s proposal to introduce stricter criteria in the regulatory framework, which would thus have a stronger impact on the eligibility rules. The Commission recalls that the ‘do no significant harm’ principle already applies under 2021-2027 cohesion policy programmes. To explore areas for improvement in the application of the principle the Commission will take stock of lessons learnt from the implementation of this principle under cohesion policy programmes, as well as under the Recovery and Resilience Plans (RRPs). Finally, the provisionally agreed amendment of the EU Financial Regulation provides that the next Multi-annual Financial Framework would be subject to the ‘do no significant harm’ principle, where feasible and appropriate. On climate-related spending, the Commission will take stock of the lessons learnt from the implementation of the climate-tracking system and climate -spending targets under cohesion policy programmes 2021-2027, as well as under the RRPs.

SUGGESTIONS

(Paragraph 26) The Commission takes note of Parliament’s proposal to create a distinction within the future Common Provisions Regulation between the content-related aspects and financial aspects. While it is premature to anticipate any changes, the Commission notes the difficulty of decoupling policy and programming aspects from the financial resources necessary to achieve them as well as the fact that in previous MFF negotiations, bracketing financing provisions for Council discussion in the MFF negotiations has not contributed to the delayed adoption of the legal bases and subsequently the programming process.

1. Stresses the importance of supporting rural areas by valuing their diversity and potential, improving transport connectivity, high-speed broadband, the provision of services, economic diversification and job creation, and helping them respond to challenges such as rural desertification, population ageing, depopulation and rural abandonment, the decline of communities in general and insufficient healthcare and education opportunities;

(Paragraph 27) The Commission takes note of Parliament's warning that the existence of multiple funds may hinder the effective implementation of cohesion policy. Such additional EU funding instruments were created to address specific needs on an ad-hoc basis. The Commission recognises the importance of increasing synergies and complementarity between the various EU financing instruments to promote economic, social, and territorial cohesion across all EU regions.

2. Calls for the restoration, under the Common Provisions Regulations, of the Rural Development Found (currently EAFRD); such a fund should be managed regionally or with decisive regional participation, placing greater emphasis than before on structural policy measures in sparsely populated areas;

(Paragraph 31) The Commission recognises the importance of evaluating the transformative nature of the investments and their impact. The ex-post evaluation of the European Regional Development Fund and Cohesion Fund in the period 2014-2020, together with the ex-post evaluation of the European Social Fund, will examine the effectiveness, efficiency and impact of investments co-financed by these Funds, their coherence with other policies, their relevance, and EU added value. It will seek to identify factors contributing to the performance of these investments under different socio-economic conditions and their contribution to growth, sustainable development, and job creation as well as other key elements such as institutional capacity and reform, crisis response and territorial instruments.

3. Highlights the valuable contribution to rural development made by the LEADER programme, which aims to engage local actors in the design and delivery of strategies for their rural areas;

The ex-post evaluations shall be carried out by the Commission, in close cooperation with the Member States and managing authorities. According to the Common Provisions Regulation (Article 57), evaluations shall be completed by 31 December 2024. The Commission shall prepare by 31 December 2025 a synthesis report outlining the main conclusions of ex-post evaluations.

4. Reaffirms the importance of urban-rural linkages and of the development of strategies based on functional areas, with the aim of preventing rural areas from shrinking;

(Paragraph 33) The 2021-2027 regulatory framework introduced a series of wide-ranging simplification measures including the use of simplified cost options, financing not linked to costs, the single audit principle, risk-based management verifications and an option for Member States to use their own national system for management verifications. The rules for extrapolating error rates remained unchanged for the new programming period, in order not to create additional administrative burden, while in 2022 the Commission also further simplified the sampling requirements.

5. Notes that the cohesion policy and regional environmental strategies offer opportunities to support farmers and forest managers’ sustainable investments in climate change adaptation, in particular the prevention of floods, drought and fires;

(Paragraph 35) The Commission welcomes the Parliament’s position for a modernisation of delivery model towards performance-based implementation and a linkage between investments and growth-enhancing reforms. Both the 9th Cohesion Report and the mid-term evaluation of the Recovery and Resilience Facility provide insights in this regard. The Commission agrees with the Parliament that an effective involvement of regional and local authorities and partners is key in setting the targets for cohesion policy investments, as well as in their implementation and monitoring.

6. Stresses the need to set cohesion policy and CAP objectives that are consistent and comparable with each other; stresses that these processes should take into account the gender perspective;

(Paragraph 37) Digital technologies play an important role in increasing transparency and accessibility of services and documents and to accelerate procedures. The Commission is closely monitoring the implementation of the requirements related to e-Cohesion in the Common Provisions Regulation (Article 69(8) and Annex IV of (EU) Regulation 2021/1060). The Commission agrees with the Parliament on the need to widen the use of digital technologies and solutions and is following this up with Member States on a regular basis.

7. Calls on the Commission to identify and implement the necessary flexibility measures to ensure the transfer of unspent EU funds, channelling them to different agricultural sectors;

(Paragraph 38) The EU Financial Regulation recast will allow the Commission and the Members States to enhance the existing mechanisms to detect and fight irregularities, fraud, and corruption as well as transparency in the use of taxpayers’ money through an improved Financial Transparency System.

ANNEX: List of entities or persons

(Paragraph 39) The EU Financial Regulation recast sets out a new IT integrated system for data mining and risk scoring to be used in all modes of EU budget implementation, to identify risks of irregularities, fraud and conflicts of interest which will be fed also by the Members States. Moreover, with some limitations included in the political agreement between the Parliament and the Council, the use of the Early Detection and Exclusion System (EDES) will be extended to the shared management EU budget implementation mode.

from whom the rapporteur for the OPINION has received input

(Paragraph 40) Based on results of the evaluations of the European Anti-Fraud Office (OLAF) and the European Public Prosecutors Office (EPPO) Regulations, the review of both regulations is planned for 2025 – 2026. One of the key elements of the evaluation of the OLAF Regulation will be the cooperation between OLAF and the EPPO, with a view to ensuring complementarity of their mandates.

The following list is drawn up under the exclusive responsibility of the rapporteur for the opinion. The rapporteur has received input from the following entities or persons in the preparation of the draft opinion, under form of letter, until the adoption thereof in committee:

(Paragraph 42-43) Pursuant to Regulation 2020/2092 (‘Conditionality Regulation’), the Commission, may propose to the Council to adopt measures if breaches of the principles of the rule of law in a Member State affect or seriously risk affecting the sound financial management of the Union budget or the protection of the financial interests of the Union in a sufficiently direct way. That means that breaches of the principles of the rule of law must have an impact on the Union budget, for them to fall under the scope of the Conditionality Regulation. Measures adopted by the Council under the Conditionality Regulation may also concern cohesion public funding, as any Union funding. Sectorial rules make the payment of cohesion policy funding conditional on the fulfilment of certain so-called enabling conditions, including the effective application and implementation of the Charter of Fundamental Rights. The Commission, pursuant to its obligations under Article 5(5) of the Conditionality Regulation, will do its utmost to ensure that any amount due from government entities or Member States is effectively paid to final recipients or beneficiaries. Under the Conditionality Regulation, the Member State concerned remains bound by their obligation to make the due payments to final recipients and beneficiaries of Union funds. The Commission has provided information and guidance to that end in the guidelines on the application of the Regulation adopted on 2 March 2022.

This opinion was drawn up in the respect of confidentiality procedure. In that context the rapporteur for the opinion does not receive any input from entities or persons within the meaning of this Annex.

(Paragraph 45) As highlighted in the 9th Cohesion Report, climate change is identified as a major challenge for cohesion if left unaddressed. The effects of climate change in the EU may exacerbate regional disparities, especially in the regions whose economic performance is below the EU average such as the Mediterranean and south-eastern EU regions, calling for continued targeted support under cohesion policy, including support to local and regional authorities, disadvantages areas and communities.

(Paragraph 48) The Commission encourages the involvement of the private sector alongside the public sector for investments in sustainable development. In this regard, the Commission recognises the crucial role of small and medium enterprises (SME) in innovation including for circular economy and resource-efficient production, as emphasized also in the recent SME Relief Package, and is committed to continue acting in this domain, including by promoting and supporting the uptake of ready-for-market innovations by SMEs, while encouraging Member States to do the same.

(Paragraph 49) The Commission recognises that achieving a carbon-neutral energy sector requires further upscaling of renewables and there is substantial untapped potential in this regard. The 9th Cohesion Report shows the potential to produce renewable energy from wind and solar power or for carbon capture and storage in natural ecosystems in many rural and less developed regions. In this regard, access to funding is essential. With its place-based approach, cohesion policy can assist these territories to unlock their potential. The Commission and the European Investment Bank (EIB) are conducting a study on promoting circular economy funding and financing in the EU, which will look at investment gaps and regulatory barriers at different levels in Member States.

(Paragraph 51) The Commission underlines the importance of all three complementary pillars of the Just Transition Mechanism. The Commission will assess the implementation of the Just Transition Fund (JTF), drawing the relevant lessons from the mid-term review planned in 2025 to optimise the design of such assistance.

(Paragraph 52) The cohesion policy aims at ensuring the social, territorial, and economic cohesion in the EU, leaving no one behind in the climate transition by supporting the most affected territories and workers. The Commission takes note of Parliament’s position in favour of extending the JTF after 2027, maintaining its anchoring in the Common Provisions Regulation, with the requisite financial endowment, extending its scope and applying the principles of shared management and partnership. While it is too early to pre-empt future proposals for the post-2027 MFF, the Commission agrees that the magnitude of challenges raised by climate transition may exceed the current scope and ambition of the JTF. The scope and ambition of the role of cohesion policy in addressing the climate transition will be part of the assessment for the post-2027 MFF.

(Paragraph 53) The European Social Fund Plus (ESF+) has been supporting the Member States to tackle social inequalities by investing in areas such as access to employment, including by promoting gender-balanced labour market participation, access to education and training, lifelong learning, active inclusion and promotion of equal opportunities, the integration of marginalised communities, access to services, etc. This support will continue until the end of the current programming period, while the decisions on the future cohesion policy, including the ESF+, will be taken in the context of the next MFF.

(Paragraph 56) As a reaction to Russia’s war of aggression against Ukraine and to address the socio-economic difficulties in the EU regions bordering Russia and Belarus, the Commission redirected the Interreg resources from these two countries into other neighbouring countries (such as Ukraine and Moldova), while enabling the integration of the affected EU border regions into other Interreg programmes. The mid-term review of Interreg programmes also provides an opportunity for Member States to better reorient resources towards alleviating the social and economic effects of the war in these regions. Other targeted regional support in this context includes the “Catching-up Regions Initiative” and the Technical Support Instrument 2024.

(Paragraph 58) The Commission takes note of the Parliament’s position in favour of a stronger association of the European Agricultural Funds for Rural Development (EAFRD) with the Common Provisions Regulation (CPR) and its streamlining in regional development and recalls that the Common Agricultural Policy (CAP) strategic plan regulation and the CPR provide the legal basis for the EAFRD as part of the CAP Strategic plans and not part of the CPR anymore. Both the CAP Plans and the EU cohesion programmes under the CPR have explicit coordination arrangements for each Member State ensuring synergies for the benefit of rural areas. These are strengthened by Commission internal coordination arrangement concerning all EU funds, and the Long-term Vision for Rural areas, whose objectives are shared by these funds.

(Paragraph 61) The Commission duly takes note of the Parliament’s concerns regarding any unfavourable consequences that a ‘statistical effect’, following an enlargement, could have on cohesion policy eligibility. As highlighted in the Commission’s Communication on Pre-enlargement reforms and policy reviews, cohesion policy objectives remain valid in a wider Union, both in current and future Member States, while a comprehensive reflection on the design of cohesion policy will be needed in the context of future enlargements.

The 9th Cohesion Report provides evidence that the role of cohesion policy has been pivotal for socio-economic convergence following the latest enlargements of the EU. At the same time, it has also pointed out the need to tackle the limited administrative capacity of implementing authorities and beneficiaries in candidate countries and potential candidates, which may create challenges for absorption and the quality of investment. Improving this capacity with technical assistance, phasing-in periods, and other measures – such as training and capacity building – will be key to ensure that the EU support effectively contributes to upward socio-economic and territorial convergence and that the Union’s financial interests are protected.

(Paragraph 63) The provisional agreement on the economic governance review provides for the netting-out of national expenditure on co-financing of programmes funded by the Union from the single operational indicator (net expenditure). The Commission is still working on the operationalisation of this provision in the new Preventive Arm Regulation. Eurostat will have to set up a framework for reporting on national co-financing. Until the framework for the collection and provision of such data is established, the Member States should be allowed to rely on estimates.

(Paragraph 64) The European Semester is the key tool for effective coordination and surveillance of broader economic and employment policies of the Member States, in accordance with Articles 121 and 148 TFEU. The new economic governance (pending final adoption) reconfirms the objectives of the European Semester as a framework for multilateral surveillance for closer coordination of economic policies and sustained convergence of the economic and employment performance of Member States. Cohesion policy funds are also aligned with the European Semester process. In 2024, the European Semester will take stock of the ongoing implementation of cohesion policy programmes and the national Recovery and Resilience Plans, exploring how they complement each other in terms of funding and policy outcomes, with a focus on reforms acting as key enablers for investments at different levels. The 2024 European Semester cycle will also provide orientations in view of the forthcoming mid-term review of cohesion policy programmes. As part of the cohesion policy mid-term review, Member States can review cohesion programmes to tackle those areas where there are pressing needs and emerging challenges, while maximising synergies.

(Paragraph 65) The Commission shares the view on the importance of ensuring that other EU and national policies do not undermine the achievement of cohesion objectives i.e. the economic, social and territorial cohesion across all EU regions. In addition, to ensure that the territorial specificities are considered in policy making, the Commission is committed to promote, when relevant, Territorial Impact Assessments when policies and legislation are designed. According to the Commission’s Better Regulation agenda all impact assessments include a screening process to identify important asymmetric effects of Commission legislative proposals to different EU territories, such as cross-border, rural, insular, mountainous, outermost, or sparsely populated areas. This screening methodology demonstrates whether there are disproportionate territorial consequences, which merit a territorial impact assessment.

(Paragraph 66) The European Semester is instrumental to implement the European sustainable growth strategy based on the concept of competitive sustainability, bringing together the environment, productivity, stability, and fairness. It provides specific guidance to Member States on where structural reforms and investment towards a more sustainable and competitive economic model are most needed to unlock the competitiveness potential of each Member State. The aim is to ensure that the green and digital transition is fair and inclusive, paying particular attention to the regions, industries and workers that will have to make the largest transformations, leaving no one behind. Economic policy coordination and democratic accountability go hand in hand. Engagement with the European Parliament, the Council, social partners, and other key stakeholders remains a key feature of the European Semester. The Commission will continue the dialogue with the Member States through the annual cycle of policy coordination and will reiterate the invitation for Member States to also involve national parliaments, regional and local authorities, social partners, and all other relevant stakeholders.

(Paragraphs 68-70) The Commission agrees with the Parliament on the need to reinforce the effectiveness of the partnership principle and multilevel governance in cohesion policy – being necessary to improve ownership and increase the quality and impact of programmes. The Commission will establish, together with relevant partners, a collection of best practice in implementing the partnership principle to support cohesion policy stakeholders to fully embrace this core principle, currently regulated by Article 8 of the Common Provisions Regulation and the European Code of Conduct on Partnership (Delegated Regulation (EU) No 240/2014).

(Paragraph 73) The Commission financially supports the fight against child poverty and the implementation of the Child Guarantee. The European Social Fund Plus has embedded a specific child perspective in all its actions - childcare and support to children - by supporting targeted actions and structural reforms to tackle child poverty. It therefore contributes to the implementation of the European Child Guarantee, notably through funds programmed under Secondary Theme 6 (Addressing Child poverty). Currently, EUR 6,1 billion (EU amount) is programmed under this Secondary Theme, financing actions in the areas of education, social inclusion, special care for children with disabilities, childcare, etc.

(Paragraph 75) The Commission will assess the implementation of climate adaptation and disaster prevention and preparedness investments, drawing the relevant lessons from the ex-post evaluation of 2014-2020 and from the mid-term review planned in 2025 to optimise the design of such assistance.

The outermost regions are highly exposed to the negative effects of climate change and the 2022 Communication stresses the importance of climate adaptation and cooperation with neighbouring regions and third countries. This is why in 2022 and 2023 the Commission fostered exchanges of good practice and solutions to common adaptation challenges between the outermost regions and their neighbouring countries and territories; and published a compendium of such good practices to inspire and facilitate cooperation in addressing common challenges.

(Paragraph 76) In the 2021-2027 period, the cohesion policy regulations provide dedicated territorial policy objective 5 ‘Europe closer to citizens’ to tackle territorial and local challenges using community-led local development (CLLD), integrated territorial investment (ITI), or other tools supporting initiatives designed by Member States. Almost all Member States have programmed support for place-based investments under this objective (ca. EUR 19 billion) and twenty of them use ITI with EUR 23 billion planned support from cohesion policy funds - mostly in functional urban areas, but also in cities and urban neighbourhoods, rural areas, mountain, and island regions. About half the Member States plan to support community-led local development with more than EUR 1.6 billion. Nineteen Member States have planned more than EUR 14 billion for ‘other territorial tools’ implemented in both urban and rural areas.

(Paragraph 77) The Commission agrees that promoting a more balanced territorial development is crucial to mitigate the strong polarisation in some Member States between capital regions and large metropolitan centres on the one hand, and rural regions with lower population density on the other. While it is too early to discuss concrete elements of the post-2027 proposals, strengthening funding earmarking for specific territories as proposed by the Parliament should be balanced against the need for flexibility to respond to regions’ specific needs and various challenges, development paths, socio-economic profiles, and geographical features of each region.

(Paragraph 82) The Commission takes note of the Parliament’s proposal on earmarking for territorial tools under the relevant funds. While it is too early to pre-empt future proposals for the post-2027 Multiannual Financial Framework, this will be assessed in the light of the positive experience in the EAFRD but also bearing in mind the recent crises, which demonstrated the need for higher flexibility and adaptability of the policies.

(Paragraph 84) The Commission takes note of the Parliament’s position in favour of a bottom-up approach in the selection of thematic priorities for the implementation of the funds. The Commission considers that the place-based approach, multi-level governance and the effective implementation of the partnership principle are key to identify the development challenges at local level and implement tailor-made solutions, while respecting the institutional framework of each Member State. The Commission recalls that the adjustments introduced in the Cohesion Policy 2021-2027 framework have already aimed at further balancing the place-based and thematic, sectoral approaches in line with the EU’s priorities by putting forward a smaller, focused list of key priorities, combined with a reinforced territorial approach and related instruments. This approach allows for a differentiation of thematic concentration requirements according to the level of development and flexibility in its implementation as thematic concentration requirements can be met at national level or at the level of category of regions.

(Paragraph 86) While it is too early to pre-empt future proposals for the post-2027 Multiannual Financial Framework, the Commission recalls that the GDP is a key indicator in achieving the objective of economic, social, and territorial cohesion in Europe and reducing disparities between the levels of development of the various regions and the backwardness of the least favoured regions. At the same time, the Commission agrees that GDP alone cannot capture the social, environmental, and economic challenges faced by EU regions and recalls that the current cohesion allocation formula already includes several other indicators. The Commission also agrees that greater attention should be paid to the development dynamics and long-term trends of each region and that regions in a development trap receive tailor-made support, through a targeted set of investments and reforms, with a view to strengthen their resilience and make them more attractive.

(Paragraph 87) The Commission agrees with the Parliament that more attention should be paid to the disparities and challenges that can be concentrated at NUTS 3 level. The Commission recalls that this is the geographical approach applied to the Just Transition Fund and that lessons should be drawn from it in the future, including in the preparation of proposals on the future Multiannual Financial Framework.

The Commission points out that, in the context of a shared managed governance, Member States and regions have a margin of flexibility in determining the allocation and concentration of funds at geographical level, including at NUTS 3 level.

(Paragraph 88) Cohesion policy is implemented in shared management with the Member States, where the responsibility for implementation lies with the programme authorities. To facilitate capacity building, planning and implementation of integrated territorial development, the Commission carries out a broad range of activities, including amongst others the Handbook on Sustainable Urban Development Strategies and the Handbook on Territorial and Local Development Strategies, which provide strategic planning and methodological support, information on how to use European Union funds and territorial instruments, and practical examples. To further improve access to information especially for rural actors, the Commission has also launched a Rural toolkit, an online guide to different European Union funding and support opportunities for rural areas. Moreover, the availability of technical assistance under cohesion policy programmes provides Member States with further possibilities to foster effective and efficient implementation of funds in line with their specific needs for expertise and administrative capacity support. Through the European Urban Initiative implemented in indirect management, the Commission offers dedicated support for the implementation of sustainable urban development covering cities of all sizes.

(Paragraph 91) While Member States’ experiences of managing and implementing cohesion policy acquired over the years have had a positive impact on further enhancing the performance of the public administration, continued capacity building is necessary for effective investments and reforms and is supported in each Member State with dedicated technical assistance funding. Capacity building can also be supported as part of investments under all five cohesion policy objectives. Access to Member States’ technical assistance was simplified in the 2021-2027 regulatory framework, through the optional use of financing not linked to costs, and the definition of roadmaps for administrative capacity building, enabling better filling capacity gaps in fund management and delivery arrangements. Further support under cohesion policy includes tools for peer exchange and networking, self-assessment instruments, pilot actions, handbooks, studies, identification and dissemination of good practice, training sessions on key topics like public procurement, state aid and prevention of fraud/ corruption, planning and implementation of integrated territorial development, etc. These possibilities under cohesion policy programmes are complemented by other EU instruments such as the Recovery and Resilience Facility and the Technical Support Instrument. To strengthen the administrative capacity of local and regional authorities and support the necessary administrative reforms, the Commission considers that a more comprehensive approach to address weaknesses in regional and national administrations needs to be explored to further improve the management of funds.

(Paragraph 92) The Commission encourages the involvement of the cities and regional authorities for investments in sustainable development and has developed several platforms to enhance their capacity in the framework of cohesion policy, including under the Just Transition Platform of the Cohesion for Transitions community of practice.

(Paragraph 98) In the aftermath of the recent crises, cohesion policy intervened by allowing for further flexibilities, derogating from the agreed set of investments of the policy. These measures proved necessary to mitigate the economic and social costs of the crises; without such a quick adaptation of the policy, for instance to address immediate needs by the health sector, vulnerable households, SMEs, workers or refugees, the consequences, sometimes irreversible, would have been more severe and contributed to further widening of territorial disparities. Lessons need to be learnt for the future, embedding some flexibility in the programming and delivery mode, to strike a balance between the necessary reactivity to crises and the capacity to achieve the policy’s structural objectives and provide long-term investment stability.