Brussels, 28 October 2016 Draft speech for M. Karl-Heinz Lambertz First Vice-President European Committee of the Regions 3rd EUSDR Danube Participation Day "European Regions active in building resilient Sustainable Development" 3 November 2016, Bratislava Dear ladies and gentlemen, Thank you for inviting me to Bratislava to speak at the 3rd EUSDR Danube Participation Day. I am very pleased to have the opportunity to present the stance of the Committee of the Regions on the challenges and perspectives of European Regions active in building Sustainable Development. 1
The Committee of the Regions is a political body that shares your commitment to democracy and sustainable development, and we are convinced that the huge transnational challenges we are facing today can only be solved through cooperation. This cooperation implies per se a macro-regional approach. Cooperation is needed on a national level, but of course, and even most importantly, between regions and cities and with the participation of civil society. The European Committee of the Regions has been a strong believer in EU macro-regional strategies since the very beginning, and we have issued opinions on all four macroregional strategies, also on the Danube Strategy. We have highlighted the fact that macro-regions are not a simple EU 'invention'. They are entities which have historically developed and grown together. Therefore there should be an inherent interest in cooperation. However this cooperation can only work through participation on a local and regional level, involving all regions, not only the strong ones. No macro-region should just be set up by the European Union and Member States without a clear local and regional commitment and involvement. Top-down approaches cannot work. Therefore the main issue for all macro regions is the question of multilevel governance. 2
Local and regional authorities need to be part of the decisionmaking process and must be involved in the agenda-setting for macro-regions; they should not only be left to carry out what has been decided on at national and European level. Of course, there should be cooperation not only between regions, but also between different players in the regions. State and non-state players have to cooperate; for example municipalities with civil society and the culture and business sectors, etc. We need to bring a participatory framework to the macro-regional strategy. The EU Strategy for the Danube Region, with its 14 participating countries, is of particular interest and importance. Some Danube Region countries lag behind in the up-take of EU funds. This is mainly due to administrative capacity challenges, such as project planning and execution and frequent changes in legislation. The framework of the macro-regional strategy can help improve the performance of EU regional policy by bringing together stakeholders for capacity building. Thereby it can foster sustainable economic and social development and territorial cohesion in the Danube Region. 3
The Danube strategy is also a way to create links with neighbouring countries, since its cross-border cooperation goes beyond the European Union. Even though external action lies almost exclusively within the remit of national governments, local authorities and civil society can also bring added value. The CoR is active in developing and encouraging such initiatives, particularly in the field of development, respect for fundamental rights, freedom and democratisation. We set up the Conference of Regional and Local Authorities for the Eastern Partnership (CORLEAP), which serves as an institutional platform for regular dialogue and cooperation between local and regional authorities in the EU and in Eastern partner countries. The CoR also cooperates through Working Groups and Joint Consultative Committees (JCCs), aiming at political dialogue and cooperation between local and regional authorities from the EU and from the candidate countries for EU accession. Their meetings constitute an important political platform for the exchange of experience and good practice and for the transfer of know-how between CoR members and the participants from the neighbourhood countries. 4
As stated previously, challenges we are facing today, such as climate change, question traditional models of development and growth. This is why we need to discuss how to embed the topic of resilient sustainable development in macroregional strategies. The CoR calls for intelligent, sustainable and inclusive growth in Europe. - intelligent, because we need innovative solutions to cope with social and economic change such as youth unemployment, social exclusion and demographic change; - sustainable, because we have to achieve an energy and environmental transition. The CoR is, for example, very active in the Covenant of Mayors, an initiative bringing together thousands of local and regional authorities voluntarily committed to implementing EU climate and energy objectives on their territory; and - inclusive, because we need to associate all levels of government and all players in society. Macro-regional strategies are not a programme in itself. They work in the framework of cohesion policy and other EU financial instruments. 5
Improving access to the relevant financing is of high importance for both business activities and non-profit activities. Often financial support is inadequate, since projects on a local level are mostly small-scale projects. We need a continued but re-dimensioned cohesion policy. The CoR has therefore repeatedly called for the establishment of stronger synergies between EU macroregional strategies and EU programmes directly managed by the European Commission, like the Juncker Plan or European Structural and Investment Funds. We need to be careful that programmes stay complementary to one another and are not being merged. Let me give you one example: more than 92% of the projects financed to date by the Juncker Plan come from the richest Member States. Prioritising financial instruments, which focus on financial profitability and not general interest, can therefore become a threat for territorial cohesion. Moreover, I would like to highlight that the biggest part of public investment actually comes from local and regional authorities in Europe. In 2013, they were responsible for 55% of total public investment in the EU. Therefore it is essential to defend the investment capacity of local and regional public authorities and to find solutions linked to restrictive budgetary norms. 6
On the other hand, we also need to be innovative regarding financial instruments. The Danube Strategy is already creating new projects through combined and participative funding. These alternative means of financing should be further developed, and be complementary to public funding, not replace it. The Participation Days are an opportunity to continue discussions on how to create a more sustainable and participatory Danube Region with a multi-level governance policy aimed at stable political, economic and social development. I am looking forward to hearing your views. Thank you for your attention. 7