Urban force

As European Commissioner for Regional Policy, Danuta Hubner is championing the development and promotion of regions and towns, large and small, as crucial players in achieving a more competitive and progressive Europe. Writing exclusively for EU Infrastructure, Hubner speaks out on how Europe can nurture its regions and what they can give back on return.

...Why small pieces of a puzzle can change the whole picture

Naturally, there are many different factors, European and non-European, that can influence the pace of change in Europe. Our continent has been open to many influences and owes much of its current status in the world to the capability to blend those influences into its distinctive character. The EU has indeed been one of the most influential forces of modernisation focusing on sustainable development, growth, employment and solidarity among its members.

There are different layers in this process of change – the so-called supranational EU and its institutions, the member states, their regional and local authorities. Occasionally some of those players, although not always the same ones, appear to exert more influence over the process than others. At different times and circumstances other players emerge. All nevertheless play their very important role in forging our modern, competitive and innovative union.

In our modern economy, characteristics that have traditionally played a decisive role in history, such as the size of land or population, can no longer overshadow or outplay the emergence of a genuine creative and innovative force, even in a smaller town or region. In my daily work as Commissioner for regional policy, I witness plenty of examples of small towns that have first changed themselves and then contributed to the transformation of their region and even their country.

The European Commission has undoubtedly played an equally decisive part in this process by formulating, pushing forward and coordinating the agenda for change. In the new Cohesion policy 2007-2013 many additional possibilities are offered to towns and regions bringing new tools becoming available to them aim to boost competitiveness, quality employment and innovation. My part and duty in this is to make best use of the powers and limited resources the EU Member States have entrusted the Commission with, and to put my department and myself at the service of the citizens, the towns and the regions.

...The recent working paper on Cohesion Policy and cities, designed to assist towns and regions in developing their urban policy

The Commission is responding and is contributing to the debate on sustainable urban development put forward by member states at the informal ministerial council held in Bristol last December. Member states are using this working paper with their relevant partners – particularly local authorities – in the preparation of the new round of Cohesion Policy programmes. The results of this consultation ended last February, and will be integrated into the Community Strategic guidelines, which will be approved later in the year.

Integrating urban programmes into mainstream programmes means that the national strategic reference frameworks to be submitted by the member states should include priorities for sustainable urban development. The national strategic reference frameworks form the basis of the national and regional operational programmes and will have to connect to the aims of the Lisbon strategy.

The Urban audit and the URBACT network for exchange of experience and best practice, in my view, should be continued and extended. Both are valuable information tools and should serve as inputs to well-designed urban interventions.

For the coming period, we are creating innovative financial instruments such as JEREMIE (Joint European resources for micro-to-medium enterprises) and JESSICA (Joint European support for sustainable investment in city areas). JEREMIE is a joint initiative between the European Commission, the European Investment Fund and European Bank for Reconstruction and Development (EBRD) and will be a facility available to the programme authorities. JESSICA is an initiative by the Commission in cooperation with the EIB and the Council of Europe Development Bank and will provide a ready-made solution to financing projects for urban renewal and development using a combination of grants and loans.

Cities will be offered new opportunities as from 2007, such as extension of eligible measures and existing learning tools, improved governance, new financial instruments and options.

Very soon the new Structural Funds regulations and guidelines will be adopted allowing the finalisation of the National Strategic Framework Programmes (NSFP) and the Operational Programmes (OP). Our partners in the member states and the regions will hopefully from early 2007 take full advantage of these possibilities and opportunities to transform our towns, cities and metropolitan areas into motors for growth, innovation and employment.

...Working together towards shared goals
Nowadays, no single country can afford to be isolated. Cooperation among countries is necessary to tackle almost all big issues, be it investments, financial support, partnerships, exchange of information or sharing of good practices. This is even more so when it comes to a union like ours, where partnerships, mutual interest and bonds of solidarity go back many decades. A developed infrastructure across the US that will help boost innovation and production, move goods, services and capital and let people travel to seek employment, business or simply leisure, is to the benefit of more than one region in more than one country.

In this context, improving and further developing our infrastructure in Europe is indeed a joint responsibility, shared among partners and member states. When infrastructure needs improvement, that joint responsibility takes the shape of the EU stepping into the picture and co-funding the work required through the structural funds. Sometimes I come across the view that this investment [in our common future] is simply a constant, rather self-centred battle to pay less or indeed to receive more. I have repeatedly stated, and will continue to do so for as long as it takes, that EU co-funding is neither a hand-out, nor some kind of charity. On the contrary, it is a sound investment of scarce resources to projects that will benefit all partners directly or indirectly. The member states together with the Commission ensure that European tax-payers’ money is carefully used to develop our common future in prosperity and solidarity.

...Looking back, and forwards
This year marks the 30th anniversary of the entry into force of the European Regional Development Fund, the first and main financial instrument of our policy. During those three decades, regional policy has evolved considerably, reflecting but also contributing to the evolution of the EU and constantly adjusting itself to help the EU fulfil its potential and play its role in the world.

For its first few years, the ERDF represented approximately four percent of the EU’s budget. Now the Structural Funds represent around one third of the EU’s budget and as of 2007, around 40 percent. The available funds have increased steadily over time to reach €308 billion for the seven-year period, 2007-2013, or 0.37 percent of European GDP. The increasing resources have reflected needs arising as the process of closer economic and political integration gathered pace. The creation of a single market, the single currency and, more recently, enlargement have all been landmark events where regional policy has played an important role: be it in their preparation, in maximising the benefits or in reducing possible adverse effects.

We are at a very interesting point in our history, when the member states and European institutions have to put together all their energy and resources to modernise European economy, foster competitiveness and innovation, create growth, and deliver quality employment. The European Commission has been and will be one of the major driving forces in this collective effort. My fellow commissioners and I have made it our business to do everything in our power to achieve the targets set by the renewed Lisbon Strategy. This has to be done now and there is no time to waste. Cohesion and competitiveness are two sides of the same coin. In this sense, EU regional policy is evolving, as it represents one of the main instruments in delivering on the Lisbon Strategy.