Top level decision – Local consequences
The European Semester explained
Just as the EU Commissioners were officially starting their new mandate – which includes the responsibility to put forward by mid-2025 a proposal for the next EU long-term budget -, CEMR was releasing a timely publication in view of the “cash for reforms” debate: “Top level decision – local consequences: The European Semester explained”.
The release event organised on 2nd December attracted participants from several institutions: European Commission, European Parliament, Permanent Representations of Member States to the EU, in addition to CEMR own members and representatives of cities and regions in Brussels.
On this occasion, CEMR’s Secretariat presented the publication which aims at informing local and regional governments about the functioning and process of the European Semester, how it has evolved over the year and how it is likely to become the next overarching policy coordination framework of the EU.
The study also includes some case studies demonstrating that most of the recommendations included in the EU Semester Country Specific Recommendations have either a direct or indirect impact on local and regional governments. This impact can be on their budget and investment possibilities: the study recalls that subnational finance is included in the national government budget deficit and expenditure efforts monitored by the EU Semester. But it also reveals that some recommendations touch upon areas of competences of local and regional governments in different Member States.
For instance, in Germany, subnational public administrations are the ones targeted by the 2024 Country Specific Recommendation (CSR) to speed up the digitalisation of public administration. For Spain, the 2024 CSRs call for improving water management where water supply is a competence of local governments. In the Netherlands, urban planning and (social) housing is a shared competence between municipalities and national governments, who are therefore both concerned with the recommendation to ensure the affordability and availability of housing.
The event allowed for a multi-level discussion between Joao Nogueira, Head of Unit for Policy coordination at the DG ECFIN of the European Commission, Thomas Prorok, Managing Director at KDZ – Centre for Public Administration Research in Austria, and Michael Schmitz, Deputy Head of the Brussels Office of the German County Association (DLT) who debated on the impact and (lack of) involvement of local and regional governments in the European Semester. The speakers were all invited to react to the recommendations included in the CEMR study, which created a lively discussion and also engaged participants in the room.
This report will be an important piece for CEMR and all representatives of local and regional governments in the coming months to build the narrative on the importance of involving subnational governments in the decisions on investments and reform priorities to be financed by the EU instruments.
Advisor – Territorial Cohesion & Local Finances
