The state of the EU’s regions and cities - and the importance of funding to address emerging and growing challenges
EU funding will become increasingly necessary for sectors, regions and businesses to tackle emerging and growing challenges. Therefore, improved access to a wider range of funding programmes will become indispensable according to the EU’s recently published Annual Report on the State of Regions and Cities. Across the European Union, regions and cities are facing a range of economic, social and environmental challenges that are demanding increasing adaptation efforts in order to ensure prosperity and productivity in the short and longer term.
It is well known that Europe’s agricultural sector is facing hybrid challenges from increasing prices for commodities and energy and external competition to an ageing workforce and climate change. While national and EU-wide policies can seek to address some of these challenges, actions taken closer to the sector and by those on the ground are likely to leave more tangible impacts. The EU’s report takes a look at the challenges faced by our regions and cities and asks citizens what needs to improve to allow our communities to face these challenges and achieve wider European goals of prosperity and sustainability.
The Annual Report address a number of key issues that directly affect the agricultural sector namely food security, climate adaptation challenges, and demographic challenges in rural areas.
With regard to food security, it is clear that support for local agriculture to make European food systems more resilient and sustainable must be bolstered. The majority of EU citizens surveyed agreed with this. The report highlights that Russia’s war against Ukraine along with parched soils, heavy rains and droughts have significantly impacted a broad range of crops across Europe, diminishing their yields by up to 20% in the case of citrus in the Mediterranean for example. Moreover, according to the EU’s latest agricultural outlook, this year’s olive oil harvest is predicted to fall by 40% and that of maize by 25%. This fall in output will obviously serve to push up food prices across the EU and make food exports less competitive. In the year following the start of Russia’s war on Ukraine, average food prices rose by 20% with European consumers now paying significantly more for basic foodstuffs such as eggs, sugar and oil.
Likewise, the report addresses the growing costs farmers are facing for energy and fertilisers and the impact these costs have on the profitability of agricultural activities. The EU’s report stresses the importance of cities and regions working to adapt to shocks and instability in the food market through an increased focus on innovation and recovery strategies. It also calls for more EU investments in sustainable local agriculture production and efforts to shorten supply chains, favour local produce, procure sustainably and move towards sustainable food systems and improved consumption practices. This in turn will help to keep food prices as stable as possible and ensure equitable access to food across Europe. In the wake of these crises, the EU has allocated extraordinary funds from the agricultural reserve for 2023 and approved national schemes to support agricultural producers’ payments of insurance premiums under State Aid rules. Promoting organic farmer is another area in which the EU seeks to boost investments with the aim of increasing the autonomy of our production, reducing dependencies on fertilisers and pesticides as much as possible and preserving soil health and ecosystems. The EU’s Farm to Fork Strategy is one key component of the EU’s efforts to promote sustainable practices in the sector.
Another challenge highlighted in the report is that of the pressing need for climate change mitigation and adaptation by local communities. Again, this is a topic close to home for the agricultural sectors who see first hand on a daily basis the growing impacts of climate change on their produce and livelihoods. According to the report, Europe needs investment for climate adaptation at an estimated rate of €40 billion per year while a multi-level governance approach must be taken to implement the green transition. Furthermore, monetary support will need to be swiftly on the table to implement the European Green Deal and the Sustainable Development Goals but questions remain as to whether the combined proposals and funds will be enough to tackle the myriad challenges we face. To this end, the report argues that the EU must capitalize on its REPowerEU initiative and provide regions and cities with additional support and investments to improve energy efficiency. Furthermore, the EU will invest €12.5 billion of its cohesion policy funding until 2027 in climate change adaptation and risk prevention. Nevertheless, whatever the approach taken, it is imperative that communities and sectors gain access to EU funds in a punctual manner in order to ensure their longevity and competitiveness and reduce inequalities in the years to come. No producer should be considered too small to benefit from them and access to information and funding should be transparent and efficient.
A third challenge highlighted by the report is that of demographic changes in rural areas. By 2033, it is estimated that 30 million people will have left Europe's rural areas, thus directly impacting much of the agriculture sector of the continent. The report is calling for future cohesion policy programmes and the Recovery and Resilience plans to boost investments and reforms to ensure an adequate labour population in rural areas and diversified economic prospects for youths there. Training, sector-specific investments and investments in infrastructure are some of the main keys to regenerating our rural areas.
The EU’s own annual analysis on the state of Europe’s regions and cities shows clearly that funding and access to development opportunities are essential for Europe to achieve equitable growth and ensure that its rural sectors in particular adapt to the challenges we face. Whether it is through the EU’s Cohesion Policy, Common Agricultural Policy or a range of other sectoral and regional funds, EU citizens and entrepreneurs need to be proactive in adapting to the world of tomorrow. Guided and dedicated assistance in navigating these funds to best address your priorities and concerns should without a doubt be considered an investment worth making.