The European Commission has defended the EU’s cohesion policy after an investigation by journalists found that only a tenth of available funds has been spent, even though the programming period is now at its halfway point. 

A joint investigation by the Financial Times and the Bureau of Investigative Journalism found that the EU has spent only 10% of the €347 billion allocated for cohesion policy for 2007-13.

Cohesion policy provides funding for selected infrastructure projects and training and employment schemes to help reduce the gaps in economic development among the countries and regions of the EU.

Johannes Hahn (pictured), the European commissioner for regional policy, said on Tuesday (30 November): “It is normal that the take-up of funds is slower at the beginning of a programming period than at the end.”

He said that until the end of 2009, the period covered by the investigation, member states were still spending money from the previous period, covering 2000-06.

Cohesion policy helped regions that are lagging behind to take part in the internal market, so it “brings significant benefits to the poorer regions of the EU but is also benefiting the whole of Europe”, Hahn said. Economic output in the EU was 0.7% higher in 2009 thanks to cohesion policy and one million new jobs had been created, he claimed.

Growth and job creation

Commenting on reports that multinationals, such as IBM and Nokia, had received tens of millions of euros from cohesion policy funds, a spokesman for Hahn said that programmes existed to increase growth and jobs. “Jobs can be created in small and medium-sized enterprises but also in bigger companies,” he said, adding that it was important to prevent “de-industrialisation” in the EU as a result of companies deciding to create new jobs beyond the EU’s borders.

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The level of spending on cohesion policy will be a major issue in the negotiations for the EU’s post-2014 multi-annual financial framework. The UK is expected to push for a major cut in cohesion policy funding as part of efforts to limit the size of the budget.