The battle over the next EU budget by European heads of state and governments risks to seriously undermine and destabilise the future of the European Union. If the EU has learnt anything from a decade of the worst crises in our post-war history, and is determined to reconnect with many citizens who have lost faith in the Union, it needs the means. Europe needs a people's budget that improves citizens' daily life, whilst being sufficient to withstand any future challenges.
During the financial crisis, local authorities payed the highest price from austerity and citizens suffered from reduced public services and support. The migration crisis showed the limits of European solidarity and many local communities were abandoned at a time when they needed Europe the most. This led to the radicalisation of Euroscepticism, and the regrettable withdrawal of the third largest country of the Union. Europe must learn its lesson, come together and now respond to the current institutional and democratic crisis which it faces today.
Brexit was not the wake-up call many expected. The disappointment and division around the EU budget negotiations have once again simply shone a torch on how two-dimensional European politics – mostly played between European institutions and national governments – is failing to address the real needs of people. Too many people today feel misunderstood and ignored.
If Europe is to learn from past mistakes and move forward, it must prove now that it can listen and change. A strong EU budget must concentrate on investing to improve people's life in cities and regions. It needs to uphold and protect those policies that bring Europe closer to citizens, and citizens closer to Europe. Negotiations cannot neglect that for the majority of Member States, EU funding for regional funds (cohesion policy), agriculture and rural development accounts for about 50% of total public investment. This is not only EU solidarity in action, but boosts sustainable growth, creates jobs and strengthens the single market, benefiting us all.
Taxpayers' money must continue to be invested in local communities, as this benefits both net payers and the net beneficiaries of the EU budget. Reducing EU funds for hospitals and schools, local transport, environment, universities and small businesses, would be a failure for people and a gift to populism.
This is not about defending 'old EU policies'. On the contrary, our citizens demand Europe – and national governments - better understand and respond to the profound transformations of the current green, digital and demographic revolutions. EU cohesion and rural development policies are designed to address these challenges on the ground, in our communities. The success or failure of the European Green deal – proposed by the European Commission to ensure Europe becomes carbon-neutral by 2050 - will be decided in regions and cities. They implement 70% of climate change reduction measures and up to 90% of climate adaptation actions. The EU strategy must be based on their experience and respond to their needs.
The digital divide in our regions is also exacerbating disparities and rural decline, whilst hampering our energy and climate ambitions. Addressing this gap and delivering shared innovation, fostering investments in start-ups and in smart technologies needs a European approach matched by European funding. Over 40% of European regions are losing population, hundreds of thousands of small and medium cities risk depopulation and decline. If we reduce EU investment to rebalance this trend we risk consolidating a "geography of discontent" where people in declining areas turn their back to the established system and to Europe.
The decision on the next EU budget will reflect what path we take. There is still time to avoid making Europe smaller, weaker and divided. Listening more to regions' and cities' voices would be a good start.
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