Albert Sorrosal: "The decentralization of European funds must be negotiated in Madrid and not in Brussels"

BrusselsAlbert Sorrosal (Barcelona, 1964) has been working for over thirty years in companies advising on and auditing European funds, particularly of a regional nature. Among other things, he is an external consultant for the Directorate-General for Regional Policy of the European Commission itself and is currently focused on European Union funding programs in Ukraine, through the German company TESIM. We interview him to discuss the European Commission's new proposal for the next European multiannual budgets (2028-2034), which affects the governance of funds allocated to regional cohesion policies.

A large majority of Catalan parties and European political families, the Government, and the European Parliament have sounded the alarm over Brussels' proposal for the next European budgets, as they fear it will lead to greater centralization of regional funds in state governments.

— The new approach to cohesion policy funds is inspired by the [post-pandemic recovery] Next Generation funds, which have been highly centralized. However, taking some elements from them does not mean that the functioning is the same, not at all. I believe there has been confusion because the terminology has changed and now each member state must draw up a single national and regional plan, but in practice I see a governance model very similar to the current one.

How does it work now?

— Each Member State signs what is known as an association agreement with Brussels, which indicates what the European Union's priorities are and what the use of these funds should pursue. Then, with these objectives in mind, the Member State proposes a whole series of operational programmes and the European Commission approves them.

And nothing will change, in practice?

— What Brussels is proposing for the new budgets is that everything be grouped into a single state and regional plan, which I understand is what has set off the alarms, but this will already be divided by chapters that will include the operational programs we have discussed. For me, it is only a matter of terminology.

Be that as it may, however, it is up to the member states...

— Exactly. Who decides which operational programs are presented in Brussels and with what amounts are already the member states. Furthermore, these operational programs have authorities that manage them and, for example, the one for the ERDF funds (European Regional Development Fund) in Catalonia is the Ministry of Finance, not the Generalitat. Therefore, at this moment we already find that it is the member state that signs the association agreement and then leads the operational programs.

What role does the Generalitat play?

— It acts as an intermediary body. Madrid is the one who decides and has the final say on how and where the money is distributed, and is the official interlocutor with the European Commission; but it also delegates functions to the Generalitat, which participates in the design of the funds and, once they are assigned and approved, is the one who manages them in practice. In addition, these programs also have a monitoring committee and, as stipulated by the European regulation itself, there must be regional and local representatives and authorities. This has not changed in the new proposal either, it remains the same.

Do you think it is feasible that Catalonia will end up managing regional funds completely with Brussels?

— Nowadays, it is unthinkable. In the European Union there are more than 200 regions and the European Commission cannot have a bilateral relationship with each one. It cannot have 200-odd regional plans because it does not have enough staff to manage it. The only way for Catalonia to have a voice and a vote would be by being a member state. The European Union is a union of states and sub-state entities have limited influence there.

But do you believe that Catalonia, within Spain, could play a more important role?

— It may seem surprising, but France or Italy, for example, are much more decentralized than Spain in fund management. In many cohesion policy programs, it is the regional authorities themselves who represent the state authority before European institutions. It is an example of two countries, of a similar size to Spain, that reserve a role more of global coordination, but that delegate management fully to the regions. It is a little surprising that Spain is the most centralized country when it was theoretically supposed to be a very decentralized country.

What can be done, then, for the governance of funds to be decentralized and for Catalonia to play a role similar to that of Italian or French regions?

— The decision depends on the State. I believe that the autonomous communities should negotiate with Madrid and not go asking for a change in regulations with Brussels. A model similar to the French or Italian one can be requested, and that the autonomous communities are truly authorities for management and auditing, and that the Spanish government only carries out coordination tasks of the regional programs. And this is already completely feasible with the new proposal from the European Commission if Madrid wants it.

What criteria are taken into account when distributing funds throughout the State?

— There is no distribution by autonomous communities, but by the level of development of the regions. Among other criteria, gross domestic product (GDP) per capita is taken into account. The least developed regions receive more funding, which is logical because the objective of the cohesion policy is to contribute to territorial and social cohesion.

Therefore, is Catalonia one of those that receives less money from cohesion policies?

— Yes, along with the other developed regions of the State, such as Madrid, Navarre or the Basque Country. There is no specific discrimination against Catalonia in this regard, but the reason is simply that it is richer. However, if you look at the European Union's programs aimed at boosting research and innovation, Catalonia is one of those that benefits most because it is strong in these areas. It is somewhat compensated.

Historically, have the changes of government in Madrid been noted in the distribution of funds and those received by Catalonia?

— No, the criteria are quite technical, and it doesn't matter if the PSOE or the PP governs. In the end, these are proposals that must end up with the approval of the European Commission.