President Tzitzikostas,

Members of the Committee of the Regions

Thank you for the invitation to debate with you today. When I addressed your plenary last time, in December 2019, I raised two main points, namely the Conference on the Future of Europe and the Multiannual Financial Framework and the EU’s own resources system. The Conference on the Future of Europe will finally be launched this week. As we all know, the MFF package has been adopted and, due to the current crisis, it has been complemented by the Next Generation EU recovery instrument. The last steps for the adoption of the MFF sectoral legislation and the last ratifications of the decision over own resources are underway.

We know that the COVID-19 pandemic has radically changed Europe and the world. European citizens have high expectations on the measures that will enable a fair and quick recovery.

Towards a greener recovery in the regions and a more social Europe

The crisis has further accentuated inequalities and thus the problems of the most vulnerable: women, young people, people with disabilities, those in precarious job situations.

It is especially in times of crisis that the European Union must prove its importance by protecting people, supporting businesses, investing in equality, in social progress and economic well-being. Meeting European citizens' needs for care, jobs, dignity, security and prosperity for their future is at the heart of the recovery. Regions, cities and towns will play an important role in the path towards recovery, economic growth and employment. The latter must, and can, show their added value in paving the way towards a fair, digital, green recovery and, last but not least, in rebuilding people's confidence.

At the Porto summit - which you discussed just now with the Portuguese Prime Minister Antonio Costa - we will bring together a strong ambition to make tomorrow’s Europe a more social Europe, capable of ensuring that everyone can benefit from strengthened social cohesion, which is essential for the vitality of our democracies.

Climate change, the pandemic and the economic crisis, inequality and the threat to social cohesion, the ecological transition, are all complex and interconnected problems that Europe is committed to tackling, through the Green Deal and the Recovery Plan, by setting ambitious targets and involving major investments.

I am convinced that by putting people back at the centre of our policies and involving citizens, we will be able to create new ways of living in a sustainable future, in our cities, towns and rural areas.

We need to modernise our economy in an alternative production model, preserving the environment and the cohesion of our societies, fighting against inequalities and ensuring the transmission of a sustainable ecosystem to future generations. This is essential to build the more sustainable society, which we all aspire to.

Seventy-five percent of Europeans live in cities, however with the health crisis, cities have changed, with many business districts becoming empty. Our urban spaces need to be rethought, with a focus on social inclusion, innovation and adaptation to severe climate risks, such as the heat waves of recent years. We should renovate and rethink our cities to improve air quality as well. The development of green areas of urban infrastructure rich in biodiversity will also be important in order to help the fight against air pollution, noise, the effects of climate change, heat waves, flooding and public health problems in European cities.

To this reflection, we must add the life situation of our elderly people and the demographic challenges, the intergenerational dimension, the inclusion of people with disabilities and reduced mobility, promoting public meeting spaces.

The European Union can be proud of its leadership in the circular economy; we must keep on with our efforts to ensure that this wave of renewal takes place using the best possible environmental standards and innovative and sustainable technologies. By increasing climate resilience and reducing energy poverty for many citizens, we can bring long-term value both for citizens and the economy.

I welcome the New European Bauhaus initiative, requested and launched by the President of the Commission, Ms. Von der Leyen, which is innovative and original, and addresses many of these issues. This initiative shows the awareness of our institutions and of our politicians regarding the need to reinvent ourselves to face the enormous challenges ahead.

We also need to revive our rural areas. With the pandemic, many production chains have been interrupted, while some agricultural producers have found more local customers.

Conference on the Future of Europe

I am delighted that we can open the Conference on the Future of Europe on Sunday 9 May. As we emerge from this pandemic, the economic, social and societal challenges are huge. Citizens, women, men, young and old, workers, businesses, industries, have all been hit by the devastating effects of the pandemic for over a year.

Europe is facing a difficult period, but only the solidarity it embodies can answer this crisis. The EU will be at the heart of the economic and social recovery, just like it will keep being at the core of the vaccine strategy. A united and mutually supportive approach is the only way forward, and the expectations of European citizens are tremendous.

We cannot go back to the status quo, we cannot go back to the world of the past, we need new models that take into account the social and environmental dimension, a new approach focused on the dignity of the individual but also on the protection of the planet.

As we rebuild on new foundations, and given the colossal resources that Europe will invest in public policies, it is even more crucial and urgent to listen to our citizens, to their needs, to their expectations, their demands and their vision of this common European future.

Democracies have also been challenged all over the world. We still have in mind the events at Capitol Hill in Washington, which sounded like a cry of alarm. Our democratic values are often denigrated by authoritarianism, by those who would have us believe that our freedoms do not protect us from the challenges we have to face.

For democracy to work, it must be defended, strengthened and legitimised even more. How? Firstly by protecting the common good, but also by ensuring citizens' participation and their involvement in the democratic life. We urgently need to renew our democratic pact by renewing the bond with our citizens. That is why the European Parliament takes this Conference very seriously.

As elected representatives at all levels of power, local, regional and European, the European Parliament and the Committee of the Regions are natural allies in promoting the engagement of citizens in this great exercise we have requested from them.

We want to reach all the citizens, in cities, in villages, in rural areas, on borders, minorities and majorities. It is a huge challenge but I am sure that with your commitment we will succeed. The local democracy you represent is in direct contact with citizens in their daily lives, and through this privileged access, you can play a key role in building these bridges, passing on messages, encouraging participation in the events of the Conference, in the democratic debate, online and in person. At our level, we need to strengthen our ties, to create links between elected representatives at the local, regional, national and European level, and join forces to address this challenge.

When we reach the end of this Conference, it will be essential that each of our institutions ensure a concrete follow-up of the Conference's recommendations, each at its own level of power. I am convinced that many of the recommendations will concern the daily lives of citizens, new ways of living together in a sustainable future that preserves the environment and the cohesion of our societies, in our towns, villages and rural areas.

The Conference must push us to tackle difficult issues, but above all to take concrete actions after its end and to offer a real vision of our European project. Our credibility as elected representatives and the future of our democracies are at stake.

As far as I am concerned, and without affecting the result, I am convinced that it will be necessary to equip the EU with a true European health policy. The current situation shows that we cannot simply entrust the EU with 'missions' when we are faced with inherently cross-border health challenges.

We need a European response, and not just in terms of vaccine supply. In this regard, regions and local authorities have played a key role, often being at the forefront, and this has to be stressed.

I am personally convinced that the awareness of our unity and of a common destiny is shared by the majority of citizens and politicians. Let us overcome our differences, let us work together, while respecting our diversity, to lay the foundations of a new social contract and to strengthen the territories and communities that make up Europe, so that we are no longer in a state of emergency in the event of future crises, but that we are able to provide Europe with the strategic horizons and resilience that Europeans need.

The Conference on the Future of Europe can be the forum and the process where citizens' expectations and demands are heard and discussed, in and by the institutions, to strengthen our democratic institutions.

As you know, the Commission, the Council and the European Parliament have negotiated the organisation and format of the Conference. The European Parliament wants to be a driving force in this process, which must also involve you and the local authorities you represent.

I would like to reiterate my invitation to the Committee of the Regions to take part in this debate on the future of Europe, a debate that concerns European society. It is about what kind of European society we want to be in the coming years.

Thank you for giving Europe's regions and cities a voice in the daily work of the institutions. I welcome your proposals on local dialogues with citizens and on cooperation in view of the next European elections. I am also happy to hear your views on key issues, which were presented in our Regional Policy Commission.

The competences of the European Parliament and of the Committee of the Regions are complementary, even though our roles are different and distinct.

NGEU, MFF and own resources

Europe has responded strongly to the economic and social emergency. The agreement on the package is historic: for the first time in the history of the European Union, massive budgetary transfers financed by a common loan contracted in the name of the European Union are directed towards the EU Member States; we are talking about a total of 390 billion euros in grants over three years. So, we are talking about powerful solidarity mechanisms at the European level, which are realised through this agreement, through these financial flows and in particular the RRF.

Now we need to focus on the implementation of the RRF, which will be crucial to support the recovery in Europe in the context of the Covid-19 pandemic. It offers unique opportunities to enhance the growth potential of European economies, while promoting the EU's objectives towards improving economic equality and mitigating the impact of climate change.

The MFF 2021-27 will also pave the way for an equitable and inclusive transition to a green and digital future and will allow us to support the EU's long-term strategic autonomy. It will also make Europe more resilient to possible future shocks.

According to the European Commission's estimates, Next Generation EU will contribute to increasing the EU's gross domestic product (GDP) by around 2% on average, thus creating up to 2 million additional jobs by 2024.

For the EU to be ready to take the lead in the challenge of an increasingly green world, we felt that putting the fight against climate change at the heart of our plans was essential. That is why, in both the MFF and the NGEU, at least 30% of expenditure will contribute to the fight against climate change.

To ensure that no one is left behind, a Transition Fund of €10 billion of EU funding has also been set up to support the regions and communities most exposed to the costs of the green transition.

To kick-start the recovery, the decision on the adoption of our own resources is necessary. I count on national parliaments and governments to finalise the ratification processes as soon as possible.

This year we will also start to implement the legally binding roadmap towards the introduction of the new own resources, which will allow the repayment of the NGEU funds and of the related interest rates, without increasing national contributions to the EU budget or, in the worst case, cutting future EU budgets.

We cannot leave the burden of NGEU repayments and financing costs to young people and to the next generations until 2058.

This calls for a basket of new own resources and a budget that is more effectively and sustainably financed in the future. In light of this, the introduction of new sources of revenue - such as a carbon border adjustment mechanism, a revised emissions trading system, a digital levy to ensure that web giants pay their fair share, and a tax on financial transactions - are initiatives that are, now more than ever, crucial.

The European Parliament will now invest in finalising the remaining open legislative procedures and will follow-up by monitoring and verification of the next steps in implementing the agreement.

Meeting citizens' expectations

We cannot go back to the world before the pandemic. We need more democracy, more solidarity, more Europe.

In the aftermath of the pandemic, European solidarity is needed more than ever to face the social and economic consequences of the crisis together. We are ready to play our part in the recovery so that no one is left behind. The Porto Social Summit this week will be an opportunity to recall our commitment towards to support a stronger social Europe, in particular through the implementation of an ambitious European Pillar of Social Rights.

I am sure that today's discussion will provide food for thought to fuel the debate on the Conference on the future of Europe.

Thank you.