EU's centralization underinals scrutiny, according to Schenk's caution - EU centralization caution advised by Schenk
In the upcoming weeks, the European Commission is set to present the outline of the multi-annual financial framework (MFF) for the next budgetary period. This framework, which governs the EU's spending, will have significant implications for regions across Europe, particularly for those that have benefited greatly from EU funding, such as Saxony.
Over the past three decades, Saxony has received approximately 20 billion euros from the EU for various purposes, including infrastructure development, urban renewal, business settlements, environmental protection measures, and expanding water supply, as well as six billion euros for agriculture. This funding has contributed significantly to Saxony's economic growth, elevating its economic power from 30% of the European average in 1990 to 92-95% today.
However, the proposed centralization of competencies within the European Union can have significant effects on regional development, including in regions like Saxony. While there isn't specific information directly linking EU centralization efforts to Saxony, we can explore the broader implications.
Centralization can lead to easier coordination and more efficient decision-making processes. However, this might come at the cost of regional autonomy. If decisions are made centrally without sufficient input from regional authorities, it may lead to policies that do not fully address local needs or opportunities. Regions like Saxony might face challenges in implementing EU policies that are not tailored to their specific economic and social conditions.
Centralized policies might aim to boost competitiveness across the EU, which could benefit regions with strong industrial bases like Saxony. However, a centralized approach might also lead to a one-size-fits-all solution, potentially neglecting regional differences in industry and economy. The focus on simplifying regulations could ease administrative burdens for businesses in Saxony, potentially stimulating economic growth.
Regions may have less political influence in a more centralized system, as decisions are made at the EU level rather than being decentralized to member states or regions. This could limit Saxony's ability to shape EU policies that directly affect its development.
The EU's principle of subsidiarity, which suggests that decisions should be taken at the closest level to citizens, is crucial for regional development. Centralization might challenge this principle, potentially reducing the involvement of regional authorities in policy-making. Efforts to improve subsidiarity, such as those proposed by the Task Force on Subsidiarity, Proportionality, and 'Doing Less More Efficiently', could counterbalance these effects by ensuring that regional and local authorities are more involved in EU policymaking.
As the new MFF aims to focus more on competitiveness, defense, and securing external borders, concerns have been raised about potential disadvantages for certain sectors, such as agriculture in Saxony. Oliver Schenk, a member of the EPP group in the EU Parliament and a former head of the state chancellery in Dresden, has expressed these concerns, believing that Europe's strength lies in its regions.
In conclusion, while centralization within the EU could streamline decision-making and enhance economic competitiveness, it poses risks to regional autonomy and diverse needs. For Saxony, the key will be ensuring that EU policies are responsive to regional conditions and that local authorities are involved in the decision-making process. The EU's focus on supporting small agricultural structures could put larger, more competitive, and efficient structures at a disadvantage, a concern that needs to be addressed in the new MFF.
- The upcoming MFF, which will govern the EU's spending, may have significant effects on employment policies, as Saxony, a region that has benefited greatly from EU funding, might face challenges in implementing EU policies if they are not tailored to its specific economic and social conditions.
- The principle of subsidiarity, which suggests that decisions should be taken at the closest level to citizens, is crucial for regional employment policies, and centralization within the EU might challenge this principle, potentially reducing the involvement of regional authorities in policy-making related to employment.
