European Week of Cities and Regions shines a spotlight on cohesion policy and the role it plays in supporting regions dealing with the effects of Russia’s war on Ukraine

Today, at the press conference to launch the 21st European Week of Municipalities and Regions, Commissioner for Cohesion and Reforms, Mrs Elisa Ferreira, and President of the Committee of the Regions, Mr Vasco Alves Cordeiro, met to highlight the key role what role cohesion policy has played in mitigating the impact of the energy crisis and in helping people who have tried to escape Russia’s war of aggression against Ukraine, as well as the peoples and regions that have welcomed them.

Thanks to the Support for Affordable Energy (SAFE) initiative, Member States can now help small and medium-sized enterprises (SMEs) and vulnerable households cope with rising energy prices. More than €725 million of cohesion policy funds have already been programmed and reprogrammed for this purpose.

As projects continue to be implemented in other Member States, the total value of SAFE measures could reach up to €4 billion.

Under Cohesion Action for Refugees in Europe (CARE) funds, which amount to up to €17 billion, Member States have so far mobilized around €1.3 billion for hospitality, healthcare, housing, employment, schooling and medical, social and psychological support for refugees.

The flexibility provided by the CARE action will continue in the 2021-2027 programming period and will include, inter alia, upfront payments of 5 % for greater liquidity and EU co-financing of measures at 100 %, which will facilitate the integration of nationals third countries until 30 June 2024.

At least 30% of the costs benefiting from these measures must be allocated to actions developed by local authorities and civil society organisations.

Examples of EU solidarity towards Ukraine

In Poland, the European Regional Development Fund (ERDF) and Cohesion Action for Refugees in Europe (CARE) supported the creation of 10 separate housing units in the town of Zamosc near the Polish-Ukraine border.

A building was adapted to provide suitable accommodation for people who fled Ukraine after the Russian attack (mainly women with children).

In Germany, 15 million euros were used from the European Regional Development Fund and the European Social Fund for refugee support programs in Lower Saxony. The CARE action funded German language courses for refugees, which contributed to social integration and the preparation of participants for training opportunities, studies and work.

Examples of EU support to SMEs and vulnerable households to tackle high energy prices

Slovakia has already used more than €650 million in cohesion policy funding to supplement its national energy support scheme, which helps vulnerable households pay their energy bills.

Some parts of this scheme offset the rise in gas prices and household heating costs and include special energy price compensation for small electricity and gas customers.

Bulgaria has already allocated €24.3 million of cohesion policy funds for measures under the SAFE initiative to support vulnerable households.

Romania has transferred more than €50 million in ESF funds to help households pay their energy bills.

Citizens also believe that EU-funded projects have a positive impact!

The results of the new Eurobarometer survey, published today by the Commission, show that 39% of respondents are generally aware of EU-funded projects, up 5 percentage points compared to 12 years ago. Of those who are aware of EU-funded projects, 79% believe that the projects have a positive impact on the regions.

Record

Cohesion policy is the EU’s main investment policy and accounts for around a third of the EU budget (multiannual financial framework). The aim of the policy is to reduce economic, social and territorial inequalities in the EU.

During the COVID pandemic, the Corona Response Investment Initiative (CRII) allowed member states to redirect unspent 2014-2020 funds to emergency spending, which included temporary work schemes, digital equipment for online courses , masks and other protective equipment, respirators and even vaccines. Thanks to these measures, more than 24 billion euros were reprogrammed.

The CARE packages, worth up to €17 billion, have helped countries and regions ease the burden on national budgets through the programming and reprogramming of cohesion policy funds from the 2014-2020 programming period for supporting refugees, as well as the people and regions that welcomed them.

The flexibility provided by the CARE action will continue in the 2021-2027 programming period and will include, inter alia, 5% upfront payments for greater liquidity and 100% EU co-financing of measures, which will facilitate the integration of nationals third countries until 30 June 2024.

At least 30% of the costs benefiting from these measures must be allocated to actions developed by local authorities and civil society organisations.

The SAFE initiative allows unspent funds to be further redirected to support SMEs and vulnerable households, particularly those particularly affected by high energy prices, and to fund short-time working schemes to keep people in work.

Member States can use up to 10% of their cohesion policy funds to deal with the sharp rise in energy prices.

From October 9 to 12, Brussels will host the 21st European Week of Municipalities and Regions. More than 7,000 participants will attend the event, which will host more than 300 sessions, with more than 1,000 speakers from across the EU and beyond.

The themes of the European Week of Municipalities and Regions are removing barriers to cross-border cooperation, local changes in the energy sector to ensure security and sustainability, promoting social innovation, regions in post-industrial transition, retaining talent for regional development, as well as small and medium-sized urban centers that promote growth.

Nikos Andritsos