Why David Cameron must commit to increasing the EU budget
Earlier this year, mayors from across Europe and China signed an agreement on urbanisation, committing to the creation of "harmonious societies based on sustainable and inclusive development". It was a deal borne out of a shared view that the challenges of urbanisation are common to all; if we are to find sustainable ways to manage our cities, we need to pool experiences and co-operate.
Three quarters of European citizens live in cities generating 85% of GDP, while China is experiencing unprecedented growth – the number of people living in its cities has doubled over two decades. But though the speed and rate of urbanisation may vary, the challenges and benefits it poses are often the same.
The difficulties that urbanisation brings are well documented, from the pressure on infrastructure to overcrowding and social disintegration, but it can also spark innvoation and spearhead economic growth. The meeting of Chinese and European mayors in Brussels was an opportunity to share successful urban development projects in Europe.
The Covenant of Mayors, for example, illustrates how cities can steer sustainable growth. Launched in 2008, the covenant offers local authorities in Europe the chance to voluntarily commit to meeting and exceeding the EU's objective of reducing 1990 levels of CO2 emissions by 20% by 2020. Already 34 local authorities in the UK have already signed up, representing 16 million British citizens.
With structural funding making up almost a third of the EU budget, spending on regional development is a priority for Europe. We need to maintain investment in this field. We need to continue supporting projects such as the London green fund – where €50m (£40m) was provided by the EU budget – if we are to encourage growth.
The Chinese government has no doubt about the strategic importance of urbanisation and is looking to inject €1tn into green transport that connects smaller cities, public welfare, renewable energy and projects to improve the resilience of cities, such as disaster management. It understands that adequate funding is needed not just to fund necessary infrastructure and services, but to encourage economic prosperity.
Local and regional authorities across continents are taking the initiative to co-operate, to learn and to share ideas. These partnerships brings political benefits, improves international relations and presents serious business opportunities.
Today, national leaders will sit at the negotiation table to discuss the next EU budget. The minds of many member states already been made up: if we want financial consolidation we need to also cut investment. Yet the EU-China Mayors' Forum shows there is an alternative path.
As the EU Committee of the Regions has consistently repeated, only by investing effectively in cities, sharing common goals and having meaningful and constructive dialogue, can we spur on much-needed growth. If we are to jump start the economy we need a commitment – not a disinvestment – to our regions and our cities.
Ramon Luis Valcárcel is president of the EU Committee of the Regions
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