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By 2027, 1.3 million jobs will be created in the green and digital transition sectors in European Union countries. In the long term, every euro invested through cohesion policy will be tripled by 2043, which equates to an annual rate of return of around 4%. These are two of the main indicators that emerge from the ninth report on cohesion policy published by the European Commission which highlights how climate change exacerbates regional inequalities, hitting the coastal, Mediterranean and south-eastern regions of the EU most heavily.
«Cohesion policy means a stronger and more resilient Union, new opportunities, new prosperity and a better quality of life – underlines Elisa Ferreira, Commissioner for Cohesion and Reforms -. The recovery experience of Central and Eastern Europe over the last 20 years demonstrates this.” The Commissioner adds that we can do even better: «It is important to take stock and continue to address current challenges, such as the internal disparities that exist within Member States. While maintaining the fundamental principles of cohesion policy, such as its place-based approach and the partnership principle, we can explore a more simplified programming framework, accelerating implementation and strengthening the link with reforms.”
Over the years, many things, the document recalls, have been done and “great steps forward have been made to reduce the gaps between states and regions and strengthen the EU single market”.
Cohesion policy takes up almost a third of the Union’s common budget, as does agricultural policy. At the end of 2022, the financing relating to the period between 2014 and 2020, which is equal to approximately 13% of all public investments in the European Union, has «supported over 4.4 million businesses creating 370 thousand jobs» . In the least developed member states the impact of EU structural funds on public investments reaches 51%. Over the last 20 years, the average GDP per capita of the latest welcomed member countries has gone from 52% to almost 80% of the Union average. The gap with the rest of the EU has halved, while the unemployment rate has fallen from an average of 13% to 4% percent.
Climate change increases inequalities
Then there is the issue of climate change which aggravates regional inequalities, impacting most on the coastal, Mediterranean and south-eastern regions of the EU, with a cost of over 1% of GDP per year. It is no coincidence that it is reiterated that “the transition towards a climate neutral economy must be achieved in a fair and equitable way, as the regions have different capacities to reap the benefits it brings”. Italy is also among the Mediterranean regions affected by the effects of climate change. Between 2014 and 2020, cohesion policy allocated 69 billion euros to the green transition, thanks to which, for example, “550 thousand families benefited from greater energy performance in buildings, thus reducing energy bills”. The report also highlights its benefits in energy and climate terms, with 6,000 megawatts of renewable energy capacity generated and flood protection measures for 17 million people.