Europe is experiencing its worst economic shock since the Great Depression, with devastating consequences for millions of citizens and businesses, and rising territorial disparities. In this context, CEMR’s Executive Bureau held a discussion with European Commissioner for Cohesion and Reforms Elisa Ferreira on how to best use EU cohesion funds for a sustainable recovery.

The EU responded to the crisis by unblocking over 37 billion euros in unspent cohesion funds to be spent on emergency health and social support measures. “Cohesion policy was one of the EU’s very first budgetary responses to COVID,” said CEMR President Stefano Bonaccini. “This shows that cohesion is not only fit for purpose when it comes to correcting territorial disparities, but also a tool to adapt to an emerging crisis.”

Bonaccini stressed that local and regional governments are facing enormous fiscal losses as a result of the crisis (see our brand new study on COVID-19’s impact on local finances). He added that these should not prevent long-term investment in sustainable development: “We have to redesign our territories and there will be a new season of resilience.”

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