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OPINION (COM(2023)0692 – C90408/2023 – 2023/0397(COD))

On the proposal for a regulation of the European Parliament and of the Council on establishing the Reform and Growth Facility for the Western Balkans

REGI-AD-759038

Committee on Regional Development · Rapporteur: Stelios Kympouropoulos

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The Committee on Regional Development gives its opinion on the proposed regulation establishing the Reform and Growth Facility for the Western Balkans. It proposes amendments to put cohesion policy thinking, local and regional authorities and a place-based approach at the centre of the Facility. The amendments widen the objectives to cover social, economic and territorial cohesion, cross-border cooperation, gender equality, protection of vulnerable groups and support for women entrepreneurs in rural areas. They require the involvement of municipalities, regions, social partners, civil society, universities and industry in preparing and running the Reform Agendas, and add the 'do no harm to cohesion', subsidiarity and multilevel governance principles. They add conditions on democratic values, alignment with the Common Foreign and Security Policy, and payment reductions if preconditions are no longer met.

Committee position. The Committee on Regional Development calls on the Committee on Foreign Affairs to take into account its amendments, which stress involving local and regional authorities, a place-based approach, the 'do no harm to cohesion' principle, and broader social, territorial and gender priorities in the Facility.

Key points

  1. The opinion stresses involving local and regional authorities in implementing the Facility and promoting multilevel governance and a place-based approach.
  2. It proposes expanding potential beneficiaries using the Quadruple innovation helix framework, including universities, industry, local authorities and civil society.
  3. It calls for a bottom-up approach to national strategic plans, cross-border cooperation, structural reforms, exchange of good practices and capacity building at local and regional level.
  4. It adds promotion of gender equality and protection of vulnerable social groups as key priorities, and support for women entrepreneurs in rural areas.
  5. It aims to reduce imbalances among regions and countries and facilitate connections between the beneficiary states.
  6. Amendments add social, territorial and environmental dimensions to the Facility's objectives, including territorial cohesion and cross-border cooperation.
  7. They require measures under the Reform Agendas to follow the 'do no harm to cohesion', subsidiarity and multilevel governance principles, building on the involvement of regions and cities.
  8. They require preparation and implementation of Reform Agendas in close cooperation with civil society, industry, universities, social partners and local and regional authorities.
  9. They add that beneficiaries should show commitment to European core values, rule of law and democracy, including full alignment with the Common Foreign and Security Policy and restrictive measures against third countries.
  10. They provide that payments should be reduced or reconsidered if progress has not taken place or the preconditions are no longer met.
  11. They require the Commission to assess whether beneficiaries have met payment conditions and not violated the principles in Article 5, and may be assisted by experts.
  12. They require the Commission to rely on beneficiaries' internal control systems, including National Audit Authorities and Anti-Fraud Coordination Services, as well as local civilian oversight.

Who is affected

  • Local and regional authorities in the Western Balkans, which would be involved in designing and implementing the Facility.
  • Civil society organisations, social partners, universities and industry, which would take part in preparing and running the Reform Agendas.
  • Women and girls, vulnerable groups and women entrepreneurs in rural areas, whose rights and access to finance the Facility should promote.
  • The Commission, which would assess payment conditions, rely on national control systems and provide evaluations and recommendations.
  • Beneficiary states, which must meet preconditions on democracy, rule of law and human rights, and align with the Common Foreign and Security Policy.

Figures and deadlines

  • Convergence of Western Balkans in GDP per capita expressed in purchasing power standards remains between 30% and 50% of the Union average.
  • Coal provides approximately 70% of the region's electricity.
  • Infrastructure development in the region is about 50% lower than the EU average.
  • Climate neutrality by 2050 at the latest.

Legal basis: Article 3 of the TFEU and Articles 174 and 175 TFEU.