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THAT BUDGET REVIEW Iain Begg European Institute, London School of Economics.

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Presentation on theme: "THAT BUDGET REVIEW Iain Begg European Institute, London School of Economics."— Presentation transcript:

1 THAT BUDGET REVIEW Iain Begg European Institute, London School of Economics

2 OVERALL IMPRESSIONS Raises most relevant points –Principles for funding –Worthwhile discussion of added value Filling gaps; economies of scale; critical mass etc Mentions leverage; weaker on fiscal shortfall –Financing side may be … over-ambitious But lacks decisive orientations for change –So many spending areas deemed valid –Difficult to ascertain priorities Hence does it avoid hard choices?

3 Cohesion policy should become a standard bearer for the objectives of smart, inclusive and sustainable growth of the Europe 2020 strategy in all regions. EU Budget Review Oct. 2010

4 SIGNALS FROM THE REVIEW Greater concentration –In terms of Europe 2020 priorities, not regions Top-down approach –Menu of thematic priorities Linked to 2020 ‘flagship initiatives’ Fewer to be addressed in richer regions –Innovation as cross-cutting theme Strong link to National Reform Programmes Possibly some competition for funding?

5 TERRITORIAL BALANCE PROMOTING CONVERGENCE RISKING DIVERGENCE Traditiona l cohesion policy EU ‘2020’ cohesion policy RTD & I focused on excellence Selectively, the CAP Cohesion in richer regions Likely winning policy domains  =  Probable losing policy areas Rural develop- ment

6 “Solidarity is one of the foundation stones of the European Union, a core principle and source of strength”

7 IN THE NAME OF PRINCIPLES.. Solidarity: risk of multiple interpretations –Implies spatial concentration –But susceptible to other factors Environmental; natural disasters Results-driven: move away from input –Probably desirable… –…but introduces possible new concerns –Especially around the nature of conditionality Implications for predictability of funding

8 SOME DIFFICULT ISSUES Is cohesion best equated with the ‘inclusive growth’ component of Europe 2020? –May pay too little attention to regions & feedback Concerns about too much ‘top-down’ How will priority-setting on other policies impinge on territorial issues? –Effects from full range of policies And possibly even from revenue side of budget The risk of over-loading Cohesion policy –Expected to contribute to too many EU priorities –Optimising cohesion’s governance role

9 If we want things to stay as they are, things will have to change [tutto deve cambiare perché tutto resti uguale] Giuseppe de Lampedusa, “il Gattopardo”


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