Impact community Cohesion106

Top level decision – Local consequences
The European Semester explained

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How does the European Semester impact your local government and the public services they provide?

The European Semester, the EU’s vital mechanism for coordinating economic and social policies among Member States, is steadily growing in scope and impact. As it increasingly shapes investment and reform priorities across Europe, it’s essential for local governments to understand its direct consequences on their work.

The Council of European Municipalities and Regions (CEMR) invites you to an exclusive event on December 2nd, where we will unveil our latest publication, “Top-Level Decisions – Local Consequences: The European Semester Explained.” This breakfast session will provide an engaging platform for policymakers, local leaders, and stakeholders to explore the report’s findings and share perspectives.

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Event Programme:

8:30 – 9:00 | Welcome and networking breakfast

9:00 – 9:10 | Welcome remarks by CEMR Secretary General Fabrizio Rossi

9:10 – 9:20 | Presentation of EU Semester’s study findings by CEMR Secretariat

9:20 – 10:20 | Panel debate Moderation by Federica Bordelot, CEMR Director for Policy and Impact, on:

• How does Cohesion Policy link with the EU Semester?
• The next programming period wants to create a stronger link between investments and reforms: what does this mean for local and regional governments?
• How does the EU economic governance impact local finance and investments?
• Is the EU Semester compatible with multi-level governance? examples and reflections on needed changes.

10:20 – 10:30 | Q&A and discussion

10:30 – 10:45 | Wrap up with panel speakers and conclusions

Why attend?

• Discover Practical Insights: Gain an in-depth understanding of how the European Semester impacts local governance, from taxation and public services to territorial administration and cohesion investments.
• Hear from Experts: The event will feature detailed country case studies and commentary from CEMR members who have firsthand experience navigating these challenges.
• Engage in Forward-Looking Discussions: With the European Commission under President Ursula von der Leyen emphasizing the link between reforms and future investments, learn how local governments can advocate for principles of partnership, subsidiarity, and multi-level governance.

As we move into discussions about the EU’s next long-term budget, this event is your chance to ensure your voice is part of the conversation.

Don’t miss out on this opportunity to shape the dialogue around the European Semester and its implications for subnational governments.

CEMR calls on Executive Vice-President designate for Cohesion and Reforms Raffaele Fitto to preserve and reinforce the foundations of Cohesion policy

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Looking ahead to the Executive Vice-President Designate for Cohesion and Reforms Raffaele Fitto hearing on November 12, the Council of European Municipalities and Regions (CEMR) issues a strong call to ensure that future reforms to Cohesion Policy preserve its essential role in line with the Treaty objective of reducing economic, social and territorial disparities. 

Cohesion Policy is the EU’s main investment policy addressing and correcting economic, social and territorial inequalities. Amid mounting challenges —including Europe’s search for a competitive model— CEMR calls for a proactive approach to reinforce the policy’s original objectives.

CEMR’s expert group on territorial cohesion recently convened to discuss the next multi-annual financial framework. “We count on the European Parliament’s support,” said Michael Schmitz, Chair of the CEMR expert group on territorial cohesion, in response to centralisation concerns. “MEPs can still prevent the centralisation of EU funds and uphold the principles of shared management and partnership.”

CEMR Priorities for Cohesion Policy

Commitment to Multi-level Governance and the Partnership Principle

For EU investments to be effective, decision-making must involve all levels of governance and respond to local needs. CEMR advocates for a governance model where EU reforms are designed with local beneficiaries in mind. Cohesion Policy managed locally, brings EU funds closer to citizens, avoiding the centralisation trends observed in recent policies like the Common Agricultural Policy and the Recovery and Resilience Fund.

Support for locally driven Sustainable Growth and Competitiveness

Cohesion Policy underpins the European project, ensuring growth and competitiveness reach all territories, beyond capital cities. At the same time, Local and Regional Governments are responsible for more than half of public investments in the EU. For these reasons, CEMR urges the EU to earmark Cohesion Policy funds for local public services and essential local investments.

A Long-Term Vision with Simplified Rules

Cohesion Policy should minimize bureaucratic obstacles. To ease access for beneficiaries, CEMR calls for a streamlined set of rules for all EU funds, allowing municipalities, cities, and regions to identify their own priorities flexibly. 

Cohesion Policy at the Heart of the EU

CEMR affirms that Cohesion Policy is integral to the EU’s long-term project, essential to resilience in times of crisis, and calls on the incoming Commission to heed the High-Level Specialists Group’s recommendations and ensure that the 2028–2034 Cohesion Policy remains resilient, sustainable, and locally driven.

As a founding member of the Cohesion Alliance, CEMR stands ready to collaborate with the Executive Vice-President Designate for Cohesion and Reforms, Raffaele Fitto,  to shape a Cohesion Policy that provides equal opportunity, resilience, and sustainable growth for all European territories.

Read more in our position paper here

Is territorial dimension disappearing from Cohesion Policy?

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The Cohesion Forum took place on 11-12 April in Brussels, organised every three years by the European Commission following the publication of its Cohesion Report, it is an important event gathering the Member States, Managing Authorities, regions, and cities involved in the implementation of the Cohesion Policy. And in this election year, the Forum was an even more important moment for the European Commission to start preparing Cohesion stakeholders for the big change ahead.
 
The proposals for the next EU long-term budget (2028-2034) are expected to be published in the first half of 2025, therefore it is no surprise that the current Commission used the Cohesion Forum to test some ideas. Increasingly DG REGIO is talking about a radical change for the Cohesion Policy, which is no longer called “Cohesion” but “Instrument for Reforms and Investments” – on the model of the Recovery and Resilience Facility. The idea of linking instruments to reform conditionality seemed to be quite consensual during the Cohesion Forum. This is presented as a major simplification together with a “performance-based model”, meaning that the funds will be delivered upon completion of activities and milestones, which is expected to reduce a significant part of the administrative burden compared to the current system of financing linked to actual costs.  
 
In this scenario, it is possible that the different Cohesion funds as we know them (ERDF, ESF+, Just Transition Fund, etc) could be merged into a single instrument. But will the fundamental objectives of Cohesion Policy remain in such architecture? Commissioner Ferreira started her opening speech of the Cohesion Forum saying “This is an important moment for economic, social and political cohesion in Europe”. It can only be deliberate that the Commissioner ignored the “Territorial” dimension of Cohesion Policy as enshrined in article 174 of the Treaty on the Functioning of the EU. And versions of the upcoming strategic agenda for Member States’ leaders also referred only to “economic and social cohesion”, forgetting the territorial dimension.
 
In this context it will be important to strongly share the messages of the CEMR position paper on future of Cohesion Policy, advocating for a place-based approach and the extension of the Partnership Principle to all EU Policies with an impact on local and regional levels, and particularly the European Semester which will guide Member States reforms agenda. Whatever the shape of the upcoming instrument(s) for investment, it is essential to ensure it will not be spatially blind, and able to answer the specific needs of the various municipalities and regions in Europe.
 
Local and Regional governments are also invited to sign and share the Cohesion Alliance joint call on a renewed Cohesion policy post-2027 that leaves no one behind.

The Cohesion Alliance Join Forces in Launching Joint Call: “A Renewed Cohesion Policy Post-2027 That Leaves No One Behind”

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The Council of European Municipalities and Regions (CEMR) is proud to announce the launch of the Joint Call of the Cohesion Alliance, “A Renewed Cohesion Policy Post-2027 That Leaves No One Behind.” This Declaration brings together elected representatives of regions and cities across Europe to advocate for a comprehensive EU agenda that prioritises social, economic, and territorial cohesion.

In a united effort, CEMR, the Committee of Regions and the organisations of the Cohesion Alliance call upon European institutions and national governments to devise an inclusive EU agenda that places the strengthening of social, economic, and territorial cohesion at its core, as stated in the CEMR position on the Future of Cohesion Policy.

Christoph Schnaudigel, Co-President of CEMR, remarked, “We need a Cohesion Policy that puts the Local and Regional public services and investments at the centre to make our territories resilient to face the next crises. This will allow citizens to see that the EU is placing them at the centre.”

Recognising that Cohesion Policy serves as the glue of European action, Fabrizio Rossi, CEMR Secretary-General, adds: “CEMR advocates for a dedicated Commissioner for Territorial Development in the upcoming EU Commission, recognising the vital interconnection between various EU policies and their tangible effects at local and regional levels. Such an appointment would support cohesive, sustainable growth that resonates across every corner of Europe.”

The joint call outlines several key principles for a renewed Cohesion Policy post-2027:

1. Inclusivity: Ensuring that all regions, cities, and municipalities have access to Cohesion Policy, regardless of their economic status or geographical location.
2. Alignment with Green Deal and Digital Agenda: Anchoring social, economic, and territorial cohesion within the EU’s Green Deal industrial policy and strategic autonomy.
3. Just Transition: Prioritising tailor-made solutions based on the principles of just transition to address the challenges of climate neutrality.
4. Place-Based Solutions: Recognising the diversity of territories and enabling local-level strategies within a stable and predictable framework.
5. Shared Management Principle: Strengthening shared management, partnership, and multi-level governance to overcome fragmentation and enhance effectiveness.
6. Culture of Trust: Fostering a new culture of trust between different layers of government in the EU to ensure Cohesion Policy’s actual impact on Europeans’ lives.
7. Territorial Cooperation: Supporting cross-border and interregional cooperation to deliver concrete improvements in people’s daily lives.
8. Do No Harm to Cohesion: Ensuring consistency across all EU policies to strengthen economic, social, and territorial cohesion.

The full Call to Action can be signed through this link: Cohesion Alliance Joint Call (europa.eu)

The Cohesion Alliance invite the general public, trade unions, businesses, and non-governmental and civil society organisations to join in their efforts to secure a just Europe that leaves no one behind.