Letter

European Commission

ELISA FERREIRA Rue de la Loi, 200

MEMBER OF THE EUROPEAN COMMISSION B-1049 Brussels

COHESIQN AND REFORMS Tel. *32-2 295 10 50

Elisa.Ferreira®ec.europa.eu

Brussels, 25/06/2024

Dear Minister,

1 am pleased to share with you a printed version of the 9th Cohesion Report, which the Commission adopted and published on 27 March 2024.

As required by the Treaty on the Functioning of the EU, the 9Ui Cohesion Report presents a cornprehensive overview ofEurope’s economic, social, and territorial cohesion across regions and territories’. This Report demonstrates the rernarkablc convergence achieved in the past 20 years, notably for Mernber States having joined the EU since 2004. The average GDP per capita of these 13 Mernber States increased from 52% of the EU average in 2004 to nearly 80% in 2023, while their unernployrnent rate dropped frorn 13% to 4% over the same period. This irnpressive improvernent was enabled, arnong other factors, by the direct support to investments frorn Cohesion Pol i cy.

Moreover, the Report highlights that the support received over the 20 14-2020 and 202 1-2027 periods is expected to increase EU GDP by around 1% by 2030. Overali, in the Iong terrn, each euro invested through Cohesion Policy is expected to generate 3 euros ofadditional GDP. This dernonstrates that Cohesion Policy delivers balanced economic growth that benefits the whole Union, while fostering a level playing field in the Single Market.

The Report underlines the capacity of Cohesion Policy to mobilise resources swiffly, in conjunction with other EU initiatives and instrurnents, as shown in the context of recent crises, contributing to alleviating their social and econornic impacts and to the rebound of the EU econorny.

1 Ali the infomrntion on the 9h Cohesion Report can be found here: https:’i’ec.europa.eu!regionaipolicy/information-sources/cohesion-reporten

Mr Mart Vörklaev RahandusmlfllSteetiUm

MinisterofFinance -_

OZ’t Minist of Finance of the Republic ot Estonia

/ Suur Arneerika 1 0iL— 10122 Talliim /

Estonia

The Report also shows that the overali process of national convergence is sometimes overshadowed by sub-national disparities, notably between metropolitan areas and other regions, including those that stagnate or decline — caught in a ‘development trap’.

More broadly, the Report analyses the impact of the profound transformations taking place in our continent, including the green transition, climate change, giobalisation, innovation and technological transformation, demographic deciine and changes in the geopolitical Iandscape. Certainly, some ofthese changes bring opportunities, but they may also contribute to widening disparities in the absence of adequate poiicies. Therefore, tailor-made and place-based policy responses are crucial to address each region’s specific needs. However, Cohesion Policy alone cannot address ali the cohesion and deveiopment chaiienges ahead. This is a common responsibility and there is a need to ensure that horizontal and national policies also concur to cohesion objectives.

The Cornrnission Comrnunication accornpanying the Report identifies sorne directions for further strengthening and modemising Cohesion Poiicy. This builds on the many contributions frorn Member States, regions and stakeholders, inciuding from your country, as weII as frorn the independent report of the High-Levei Group on the Future of Cohesion Policy and the 9 Cohesion Forum.

As the mandate of this Comrnission cornes towards the end, 1 count on your continuous commitrnent to econornic, social and territorial cohesion in Europe with a strong Cohesion

Policy at its heart. Cohesion Policy objectives wiil be even more reievant in a context of widening and deepening of the Union. 1 trust you will make your voice heard.

Yours faithfuiiy,

Elisa Ferreira