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Panel 2: Links between cohesion policy and European economic governance

Discussing the intersection of EU cohesion policy and economic governance, exploring recommendations for EU budget priorities, flexibility, and implementation of country-specific recommendations. Highlights the importance of European public goods provision and the need for Common Agricultural Policy reforms.

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Panel 2: Links between cohesion policy and European economic governance

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  1. Panel 2: Links between cohesion policy and European economic governance Dirk H. Kranen Head of Division Federal Ministry of FinanceGermany EU CohesionPolicy Conference, Bratislava 15 – 16 September 2016

  2. Financial Contributions in 2015

  3. New Priorities in European SpendingHow to shape the EU-Budget of the Future- • Conference in Berlin • 12 July 2016 • organized by the Federal Ministry of Finance of Germany • brought together scientists, delegates of member states and the Commission and the German Parliament • Four sessions – four recommendations

  4. RecommendationHow to achieve EU-wide benefits from EU spending? A large fraction of EU-spending is rooted in past negotiations and acted as side payments to achieve consent by member states. This political rationalization notwithstanding the budget is characterized by a lack of provision of European public goods. It is crucial for the European Union to put these goods into their focus and thereby adhere to the principle of subsidiarity.

  5. RecommendationDoes the Common Agricultural Policy still comply with the spirit of the European treaties? Given its substantial share of EU-spending the Common Agricultural Policy is still a field of key importance for the EU. Yet like all other policy fields the Common Agriculture Policy has to prove its significance for spending priorities in the future. Given concerns that this policy does not comply with the main objectives and is vastly inefficient, this part of the budget offers substantial scope for reforms.

  6. RecommendationHow to improve the flexibility of the EU budget? EU should be able to react effectively and quickly to unforeseen events like the current migration challenge. Increasing the flexibility should be done in a way that does not harm the function of the budget.

  7. RecommendationHow EU Cohesion Policy might contribute to the implementation of countryspecificrecommendations The cohesion policy should be linked with the country-specific recommendations. This would strengthen the effectiveness of cohesion policy and the overall consistency of the fiscal and economic policy of the European Union.

  8. Existing links betweencohesionpolicy and European Semester Fosters European addedvalue of EU expenditures Ex ante conditionality Macro-economicconditionality => correctapproach (in principle)

  9. How to improve the link? • Weakpoints in construction: • toomanyobjectives • toomuchdiscretion • Berlin recommendations (12 July 2016): • strenghtening the link: lessobjectivesand strictapplication of macro-economicconditionality • harmonization of csr and use of cohesionmoney

  10. ThankYou!

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