Genuine simplification of rules is needed to unlock the potential of private-public cooperation in addressing territorial disparities

The European Union's regions and cities have called for a stronger and more strategic cooperation between public and private authorities to reduce territorial and economic disparities in Europe.

In an opinion unanimously adopted at the plenary session on 4 March, members of the European Committee of the Regions (CoR) said that, despite remarkable progress that has been made over the past 20 years, significant gaps remain to fully unlock the potential of Cohesion Policy to attract private investments and ensure lasting growth across all regions.

Bureaucratic inefficiencies, weak procurement systems, overlapping controls, lack of local adaptation and political instability are among the main obstacles identified by regional and local leaders that hinder cooperation between public and private entities.

In an opinion drafted by Kristoffer Tamsons (SE/EPP), member of the County Council of Stockholm, the CoR called for exploration of a greater role for the private sector in strengthening Cohesion Policy.

With negotiations underway regarding the next EU long-term budget for 2028-2034, regions and cities have emphasised the significant contribution of small and medium-sized enterprises (SMEs) to Cohesion Policy, highlighting their role as key drivers of local economic development. During the previous programming period 2014-20, Cohesion Policy supported around five million SMEs with 118 billion of euro and contributed to the creation of 370 000 new direct jobs.

Technical support on the ground to ensure fair distribution of funds

CoR members highlighted that the public and private sectors need to work together to ensure that every euro of EU funding is matched by know-how, investment, and accountability - whether from public or private actors - to deliver meaningful results for EU citizens.

They warned of an increasing gap between regions that are innovation leaders and less-developed regions that do not have the same experience or institutional capacity to benefit from new funds and financial instruments. The new EU budget proposal should therefore include sufficient advisory and technical support for less-experienced regions to ensure a fair distribution of funds, they argued.

Among the proposals to simplify the rules for final beneficiaries and public entities, local and regional leaders suggested to allow light-touch audit procedures for small projects (below 100,000 euros) if their outcome is clearly demonstrated. They also suggested the introduction of a rapid review mechanism to identify and address disproportionate national requirements and improve alignment between EU and national rules, specifically state-aid rules and the possibility of national co-financing for projects funded by Cohesion Policy funds.

Quote

Kristoffer Tamsons (SE/EPP), Member of the County Council of Stockholm: "Private sector engagement is not optional - it is essential for the long-term resilience and impact of cohesion investments."

Background

· Video and photos of the CoR plenary session.

· The CoR is working on 20 opinions to assess specific aspects and regulations of the future EU long-term budget 2028-34 (check the opinions' roadmap). This encompasses an opinion adopted on 4 March, which outlines requests and concerns regarding the overall architecture of the budget. More information.