Regional Policy

Keeping the economic area internationally competitive, with the capacity to face increasing global economic challenges is one of the highest priorities of the European Union. One of the tools for achieving this goal is regional or cohesion policy; which serves to promote harmonic economic development in the EU as a whole, and to close the backlog of less developed regions. Greater internal unification helps Europe radiate strength externally, and asserts itself globally. The Hungarian Presidency seeks to improve the visibility of cohesion policy and to formulate, by the end of its term, the contents that Member States intend to incorporate for the post-2013 budget period.

BACKGROUND

The European Union’s cohesion policy has set the fundamental goals of strengthening the whole Union’s economic and social cohesion as well as harmonic development, while reducing developmental disparities among regions. The means to achieve these goals, include a set of support tools (e.g. the Structural Funds and the Cohesion Fund), which have played an instrumental role in the process of European integration since the 1970s. Regional or cohesion policy has become a more popular term for convergence policy.

The EU spends a total of EUR 347.4 billion on regional policy during the 2007-2013 budget period. This amount corresponds to approximately 35 percent of the total EU budget. The amount allocated to this purpose during the history of EU budget cycles has never been so high.

2011 is a milestone in regional policy, and the future of cohesion policy in many respects. The end of January saw the end of the social consultation on the 5th Cohesion Report; and the beginning of a detailed discussion of cohesion policy for the next programming period. Known as the “Territorial Agenda”, the EU’s territorial development policy will be renewed during the Hungarian Presidency; and it is expected that the Danube Strategy, meant to promote macro-regional cooperation in Central Europe, will be adopted.

THE HUNGARIAN PRESIDENCY’S TERM

Forge interregional cohesion

Every three years, the European Commission publishes a report on the progress towards economic, social and territorial cohesion, touching on the role of community level, national and regional governments. The Commission published its 5th Cohesion Report, on 10 November 2010, which already contained an outline of the policies to be pursued during the post-2014 budget and planning period.

Relying on the Commission’s report, the Hungarian Presidency launched a set of deep-going debates with professionals and politicians, on the future of cohesion policy, promoting the dialogue between Member States, and regional policy stakeholders. The consultation period closed at the 5th Cohesion Forum in early February, with Prime Minister Viktor Orbán giving the opening address, and Tamás Fellegi, Minister of National Development, participating in the closing panel.

To increase the visibility, role and recognition of cohesion policy, the General Affairs Council adopted conclusions on the 5th Cohesion Report at its meeting on 21 February. Member States agreed that competitiveness and solidarity should not be confronted. The reduction of disparities between the development levels of various EU regions should remain the fundamental goal of development policy; but cohesion policy will also come on board to implement the Europe 2020 Strategy.

Territorial development

In addition to a high level discussion of cohesion policy, territorial and regional cohesion will also be addressed during the Hungarian Presidency. According to the Commission’s 2008 Green Paper, territorial cohesion aims to ensure a harmonious development for all places; and to enable local citizens to make the most of the inherent features of their respective areas. Specifically, diversity is converted into an advantage, which contributes to sustainable development in the entire EU. The Treaty of Lisbon defines territorial cohesion as a shared competence for Member States and the EU, to be discussed first at expert level, and then at medium level meetings during the Presidency’s term.

The goal is to prepare the Territorial Agenda 2020, a review of the EU’s 2007 Regional Agenda, for the May informal meeting of ministers for territorial development. The adoption of the Agenda will lend additional strength to the horizontal management of territorial policy and territorial approaches, in various policy fields; and in the overall development policy.

OBJECTIVES

Cohesion policy is a key objective for the Hungarian EU Presidency. The matter will be addressed by the General Affairs Council and the informal meeting of ministers, for cohesion policy and territorial development in May; along with several other thematic events. The Hungarian Presidency intends to make a valuable contribution to the efficient and effective work of the Polish Presidency, in the second half of 2011. So as to promote the earliest possible approval of EU regulations, on the post-2013 enforcement rules and the timely start of preparations for the upcoming program period.