4 mins
Public service provision is essential in developing a better and sustainable economic model for Europe
The development of a region is first and foremost linked to its demography and the human capital it contains. Regions that cannot retain or attract an active population and harness and develop its skills are bound to decline economically and socially. This situation deeply concerns all regional authorities, particularly those finding themselves in the economic and/or geographical periphery.
Amongst the important elements that affect the attractiveness of regions are the public services for citizens. However, these services suffer from a "chicken and egg dilemma". Many public services are provided based on demand and are scaled down or discontinued when demand falls, especially when public funding is scarce. The result is a vicious circle of decline during a crisis, which fuels migration out of regions in difficulties, which, in turn, triggers a cut in Loïg Chesnais-Girard services, leading to further out-migration. The use of public services counter-cyclically to cushion the impacts in times of fiscal constraints is difficult.
We also need to value the political importance of providing public services that protect citizens to fight extremism and Euroscepticism, ensuring the single market is a source of reassurance and opportunities for citizens, and not a threat.
The possibility for citizens to move within the single market to better opportunities is an important right and cannot be questioned. However, there is a problem if migration is fuelled not by better opportunities, but the lack of local ones and services. Is the migration due to a pull effect from other opportunities elsewhere, or is it a necessity due to the lack of opportunities and services in their own region? This question is tackled by the Letta report on the single market, which presents the need to develop a right to stay or not to be forced to leave.
For a right to stay to be operational, basic services need to be sustained with more proactive policies to retain and attract population. ESPON studies show evidence that a lack of good governance fuels depopulation and decline. Where the risk of depopulation exists, the public sector becomes an essential player in determining the outcome, bearing in mind that the public sector is also negatively affected by the trends. If we want a balanced development where basic services are guaranteed, with migration driven by opportunities and not decline, there is a need for a different approach to public services, taking into account the negative impacts and costs of agglomeration, especially if there are no good employment opportunities. We also need to value the political importance of providing public services that protect citizens to fight extremism and Euroscepticism, ensuring the single market is a source of reassurance and opportunities for citizens, and not a threat.
Regional authorities need to be supported to provide basic services and implement a number of proactive actions to improve the attractiveness of regions and increase the quality of life and opportunities for the citizens. To do so, the authorities actively seek to address the needs of citizens, their families and their businesses. Good infrastructure and services can make regions good places to live and work in, but it is important that the development plans are designed with the objective to ensure an economic viability based on endogenous potential.
Cohesion policy exists because of the understanding that the internal market left to itself will lead to an increase in regional disparities and agglomeration.
Furthermore, we cannot leave local and regional authorities alone to develop and implement such strategies. Cohesion policy exists because of the understanding that the internal market left to itself will lead to an increase in regional disparities and agglomeration. However, cohesion policy alone cannot address the centrifugal strength of market forces; other EU and national policies also play a central role. Balanced territorial development is a political choice requiring a conscious alignment of policies to such an objective. If territorial cohesion is not mainstreamed across policies, cohesion policy will not be able to offer sufficient support to develop resilience and adaptability to negative impacts.
This struggle with an economic model that clashes with territorial cohesion is felt by many regions, particularly those peripheral and maritime that CPMR represents. My region, Bretagne, is fortunate to currently count itself amongst those managing to attract and retain population, but it also feels the precariousness of every success. Demographic pressures, rapid technological change, and impacts of climate change on the sea level, marine environment, health, and agriculture are destabilising all our regions.
This situation could be improved with a coherent model of territorial development in Europe, ensuring that all policies are "cohesion proof" and in line with the "doing no harm to cohesion" principle. In fact, many national and EU policies actively promote the agglomeration of activities in core centres. Regions need the right environment and policy tools to develop and reach their potential. Failing to do so, we also fail our citizens as they are left exposed to large socio-economic changes which they see as being fuelled by the single market, leading them to question the value of the European Union.
Loïg Chesnais-Girard, President of the Brittany Region, President of the Conference of Peripheral Maritime Regions
(CPMR)
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Saint Malo, France //image from