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New study uncovers 'serious failings' in EU regional funding

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By Martin Banks
- 17th January 2008

A new study claims to have uncovered “serious failings” in EU cohesion policy.

A report by the Assembly of European Regions (AER) says that regions' potential to contribute to the development of the policy is being "squandered".

The AER says its findings are based on the “specific experiences and views” of the 260 regions from 33 countries that it represents.

“Our study uncovered a number of key failings in the development and implementation of European cohesion policy,” said Riccardo Illy, president of the Strasbourg-based organisation.

It claims that regions are either “totally excluded” from the cohesion and funding process or, otherwise, “severely hindered” by the commission’s “enormous administrative burdens and often confusing policy guidelines.”

Indeed, one third of the regions surveyed said they were not even involved in the management of EU funds.

Launching the report today, Illy said, “Clearly, the regions’ potential to contribute a bottom-up, grass-roots approach to the development of cohesion policy is being squandered.”

AER’s study, “Regional Policy2014+”, calls for a more “integrated and collaborative” development of cohesion policy after 2013.

Currently, the EU allocates some €347 billion on regional funds, accounting for 35.7 per cent of the whole EU budget.

After 2013, regional funding will overtake the amount allocated to agriculture, which presently accounts for the biggest slice of the EU cake.

As the ‘political voice’ for Europe’s regions, its recommendations carry added weight as EU cohesion policy is mostly implemented by regions.

The recommendations focus on the need for a “new kind” of tripartite cohesion policy, whereby the regions play a key role alongside European and national decision-makers.

AER, established in 1985, also calls for greater attention to regions’ practical requirements, such as adequate financing and training.

“As I have always maintained, the authorities best equipped to develop and implement regional policy are the regions themselves,” said Illy.

“Cohesion policy is just another example of why the principle of subsidiarity should be fully respected, both by European and national decision-makers.”

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