Cohesion: MEPs call for just transition for automotive-dependent EU regions
- Just transition mechanism to help regions with industries under transformation
- New cohesion criteria after 2027 for targeted approach, less red-tape
- Tailored support to workers and companies
Parliament wants the cohesion policy after 2027 to focus on regions dependent on sectors undergoing major transformation such as the automotive industry.
On Tuesday, MEPs approved with 548 votes for, 33 against and 18 abstentions an own-initiative report on the need for updated cohesion policy post-2027 ready to support regions most affected by green and digital transition.
Cohesion to support changing industries
Automotive-dependent regions deserve the same targeted help as the cohesion policy provided to coal regions, say MEPs. They insist that just transition fund needs to be enhanced and better funded to support regions dependent on the automotive and parts-supply industry and services after 2027. Cohesion policy needs to be updated to include specific policy objectives related to industrial transition and be prepared to help with targeted measures all regions dependent on sectors undergoing major transformation as a result of twin green and digital transition. MEPs want the Commission to enlarge the ExchangeEU and TARGET providing technical assistance for a green energy transition programmes to the automotive to promote the exchange of experiences and results.
Targeted aid for workers and SMEs
MEPs believe that decarbonisation of road transport requires transformation of the whole value chain of the automotive industry. Mobility transition strategy must contain a plan for re-skilling and upskilling, considering the expected employment loss in the automotive sector, to ensure a smooth and socially acceptable transition. MEPs put special emphasis on the need to help regions suffering from depopulation, brain drain and economic stagnation and call on the Commission to simplify related reporting using the simplified cost option. Cutting red tape is also necessary to ensure fair treatment of micro, small and medium-sized enterprises (MSMEs) and small mid-caps, representing majority of the companies in the automotive sector, which will be particularly affected by the transformation.
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Following the plenary vote, the European Parliament rapporteur Susana Solís Pérez (Renew, ES) said: “We cannot set ambitious climate objectives such as the end of the combustion engine car by 2035 without giving the regions affected support via European funds. The text we have adopted sends a clear message: our automotive regions need and deserve the same support we have given to coal regions through the Just Transition Fund. We need to invest where it is needed most: in reskilling our workforce, ensuring SMEs across the automotive value chain adapt to the transition and avoiding industrial relocation!”
Background
The EU is among the world's biggest producers of motor vehicles. Automotive industry generates a turnover of over 7 % of EU GDP, while in certain regions it represents up to 25 % of the GDP in the region. It accounts for more than 6% of European employment providing direct and indirect jobs to 13.8 million Europeans and being the largest private investor in research and development in the EU. Out of around 3000 companies in the automotive sector, 2500 are small and medium-sized enterprises.
By adopting this report, MEPs are responding to citizens' expectations concerning European energy security, just transition, strong industry and innovation, digital cohesion, cross-border cooperation and transition support for vulnerable as expressed in proposals 3(8); 12(5), 14, 15 and 18(3) of the Conclusions of the Conference on the Future of Europe.
Contacts:
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Martina VASS
Press Officer -
Clara CORSETTI
Intern