At a delicate juncture for the European economy, the reform of the Multiannual Financial Framework proposed by Commission risk to weaken Cohesion Policy and reduce the role of industry and territories, which today require stability and resources in order to plan investments.

This is the message reiterated by Annalisa Sassi, Vice President of Confindustria and President of the Council of Regional Representatives, who spoke at the event “The MFF: A Tool to Unlock European Competitiveness”, organised by BusinessEurope at the European Parliament. Her participation was part of the panel dedicated to the voice of national federations in the debate on the future Multiannual Financial Framework.

Cohesion as a pillar of the EU and a lever for businesses

The invitation-only initiative brought together representatives from the European Parliament, the Council Presidencies, the Commission and European business organisations., with the aim of exploring how the next MFF can support competitiveness and ensure stable, effective and growth-oriented investments.

In his speech, Sassi pointed out that cohesion “is not just an investment policy, but a fundamental pillar of the EU”, essential for reducing territorial disparities and supporting the conditions that enable businesses to grow.

Critical issues in the Commission's proposal

The Vice-President then expressed serious concern about the Commission's proposal on the new MFF, highlighting three main critical issues:

• the consolidation of Cohesion Policy, CAP, fisheries and other strategic areas into a single Partnership Plan;
• the risk of a weakened regional role in planning;
•  the total absence of clear criteria for the allocation of resources.

Sassi emphasised that the merger of structural funds, CAP and other instruments “represents a paradigm shift that could drastically reduce the capacity of regions to support industrial policies”, while the lack of predefined allocations “creates a level of unpredictability that is incompatible with planning requirements”.

Risks for territories and businesses

The risk, he warned, is twofold: a weakening of territorial policies and a slowdown in business investment, which in many cases find cohesion to be the main driver of development.

“Uncertainty is the real enemy of businesses,” he reiterated, "and a QFP without clear rules undermines territorial rebalancing and European competitiveness.".

Confindustria's requests

While acknowledging some positive elements of the proposal, such as the introduction of a performance-based approach and a greater focus on the quality of spending, Sassi highlighted the many critical issues with the overall system.. Hence Confindustria's requests: a clear separation between Cohesion and CAP, greater clarity on the resources allocated to the territories e greater regional autonomy in defining interventions.

“European businesses must make their voices heard to ensure that cohesion remains a lever for competitiveness and not a residual variable of budgetary policy,” he concluded. Hence the call on the institutions to “correct the course” so that the next MFF ensures stable, targeted investments capable of generating growth, opportunities and confidence throughout the Union.