European Union

Von der Leyen backtracks: European funds for Catalonia will not depend solely on Madrid

The President of the European Commission is now toning down a centralization of regional funding in state capitals to appease the European Parliament.

BrusselsThe almost unanimous outcry from European regions against further centralizing European funds It has had an effect. After initially proposing that the funding destined for regional governments be delivered to the state capitals so they could distribute it as they saw fit within their territories, Ursula von der Leyen's European Commission has reversed course and will maintain, at least in part, the decision-making power of the regions regarding the disbursement of one of the European Union's largest funds. One of the administrations most interested in preventing this money from passing through and depending entirely on, for example, Madrid, is Catalonia, which has consistently lobbied against the centralization advocated by Brussels.

"The governance of cohesion remains the same, with the full commitment of the regions. Of course, they will continue to negotiate directly with the European Commission; there should be no doubt about that," the President of the European Commission promised in an appearance this Tuesday before the European Parliament, where the issue was discussed. They will remain in effect until 2034. In fact, Von der Leyen's speech this Wednesday confirms the letter she sent to the European Parliament on Monday, in which she sought to quell criticism from MEPs and regional governments and ruled out the centralization of regional funds.

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It remains to be seen how Von der Leyen's proposals will be implemented. However, for now, she has proposed that, among other things, the financing plans for member states include a "regional review" that would allow regional administrations to negotiate and validate European funds directly with Brussels. Ten percent of state financing plans must also be allocated to rural areas, and Brussels promises that it will not eliminate the Cohesion Fund and the Common Agricultural Policy (CAP), two of the programs that most directly fund the regions.

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Beyond regional governments, such as the Generalitat of Catalonia, a very large majority in the European Parliament—including the European People's Party (EPP), the party of the European Commission President—also asked Von der Leyen to avoid eliminating the various European funds, many of which are received directly by regional administrations. This way, Brussels would not end up reducing all the hundreds of European funds and programs to 27 national plans: that is, one for each central government, which would be responsible for negotiating with the EU and then distributing them throughout its territory. However, the MEP groups have expressed skepticism about the changes in Von der Leyen's proposal. The Social Democrats have dismissed it as "cosmetic" and urged her to implement further reforms in this area, while the Liberals and the Greens, although welcoming that it is moving closer to their positions, see it simply as a starting point for negotiating the European budget. The party of the President of the European Commission was the most optimistic and applauded the "progress" of a proposal that is moving towards approval of the general accounts.