The top-down management of the EU recovery plan is putting cohesion at risk

The creation of the €650 billion European recovery instrument to face the economic consequences of the COVID-19 pandemic helped the EU to limit the impact of the crisis. However, the centralised management of the recovery fund could jeopardise economic, social and territorial cohesion in Europe, and risks increasing disparities within the Member States. This is the main message of the opinion drafted by the Mayor of Coulaines Christophe Rouillon, which was adopted on 8 October at the plenary of the European Committee of the Regions (CoR).   

The lack of involvement of local and regional administration raised concerns among CoR members about the effectiveness of the post-pandemic Recovery and Resilience Facility (RRF). The contribution of the RRF to cohesion is only superficially addressed by the Commission’s mid-term evaluation of the facility, published earlier this year, local leaders said. Moreover, the CoR exposed that the centralised governance of the RRF has offered some national governments the opportunity to exclude certain cities and regions governed by elected members of opposition parties from the possibilities offered by the RRF for grants or European support. 

Call to postpone the deadline for spending RRF resources 

As highlighted by the RRF mid-term evaluation report, the significant amount of RRF funds available in addition to Cohesion Policy has put pressure on the administrative and absorption capacity of local and regional authorities. As a result, less than half of the RRF funds have been used so far. Therefore, CoR members suggested postponing the spending deadline for the instrument after 2026.  

Reforms supported by the RRF must have democratic legitimacy

According to the CoR, reforms supported by the Facility must have their own democratic legitimacy, based on consultation, dialogue and a collaborative approach, including with local and regional authorities, to ensure ownership of these reforms. 

Moreover, local leaders highlighted that the lack of a clear definition of eligible reforms within the RRF not only raises questions of additionality and transparency of funding, but also raises issues about the respect of the role of every level of governance as stated by the EU Treaties (subsidiarity principle).  

Quote 

Christophe Rouillon (FR/PES), Mayor of Coulaines: "The European recovery plan has, since 2022, helped to revive investment and address the consequences of the Covid crisis. The mid-term assessment is mixed. States have often made decisions alone without considering local priorities. The money too often goes to the wealthiest territories without reducing inequalities between regions. Local and regional leaders need to be better involved and listened to for the proper use of unspent funds and for the development of a new recovery plan, particularly aimed at housing." 

Background 

• The Recovery and Resilience Facility, which is worth nearly €650 billion, is the cornerstone of the European post-pandemic recovery plan. 

• In April, the CoR and the Council of European Municipalities and Regions published the results of a survey conducted among regional and local associations. The consultation showed that the territorial allocation of funds from the RRF is widely perceived as unbalanced and therefore could harm cohesion in Europe. Press release 

• On 7 October, the CoR published its Annual Report on the State of Regions and Cities, through which it called for an ambitious and place-based EU budget post 2027 that supports local investments, with a strong Cohesion Policy at its heart.