The contribution of regions and cities to boost European competitiveness and efforts to make Artificial Intelligence work for all citizens were the main focus of the meeting of the Commission for Economic Policy (ECON) on 10 March.
Use of AI in public administration
In efforts to improve Europe’s competitiveness, advanced technologies and AI are of vital importance. During a debate on the use of Artificial Intelligence (AI) by local and regional authorities, ECON members welcomed a multidisciplinary approach to AI adoption that is based on innovation and discussed challenges linked to AI use.
The debate, which was attended by representatives of the European Commission and the Polish Presidency of the Council of the EU, drew attention to findings from a recent study on AI use in regions and cities commissioned by the ECON commission, which shows that AI adoption is more prevalent in larger cities and regions. In territories with populations between 100,000 and 500,000, approximately 54% of respondents reported using AI, while in those with populations between 500,000 and 2 million six out of seven respondents have adopted AI solutions. While many smaller cities and regions face challenges in implementing AI due to limited human resources, financial capacity or technical expertise, major funding opportunities are available at EU level, including through regional funds and the technical support instrument. Local and regional leaders further emphasised that direct public engagement, greater transparency and continuous communication between citizens and public administrations can help to build trust in AI solutions.
European Competitiveness Compass
During a debate on the European Commission’s Competitiveness Compass, ECON members acknowledged that while the Compass provides a framework for strengthening Europe’s global position, it does not sufficiently recognise the importance of regional economic structures and specific local challenges and opportunities which could contribute to improving the competitiveness of the EU. Industries such as automotive, chemicals, steel, and cement are struggling and, in some instances, moving production abroad because of the increasing costs of energy and stricter environmental regulations and lengthy permitting procedures. Therefore, local leaders stressed the need for targeted measures to reduce the cost of energy and to cut red tape.
The role of Cohesion Policy in supporting economic balance across the EU was also discussed, with suggestions to enhance regional funding for infrastructure projects related to renewable energy, digital transformation, and the circular economy.
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Alberto Cirio (IT/EPP), chair of the ECON commission and President of Piedmont region: “Today, we had important debates in ECON that contribute to shaping the future of our cities and regions. We are contributing to key aspects on the European agenda: competitiveness, digital policy and the work of the EIB Group. The Competitiveness agenda is especially fundamental for us as the CoR, and ECON looks forward to contributing to the files within the Competitiveness Compass in due course. Economic growth with Europe as an attractive manufacturing location including for energy intensive industries, promoting clean tech and new circular business models, closing the innovation gap and reducing dependencies means having a place-based approach to take on board regional and local assets and challenges, the realities of ecosystems and clusters. Access to finance for small and medium-size businesses is a key issue and we will work with other institutions and stakeholders on this in the upcoming period.”
Also during the meeting
During the meeting, ECON members were presented the first results of the Municipalities Survey 2024-2025 published by the European Investment Bank (EIB). The full results, with new evidence on the investment needs from 1,000 cities across the EU, will be unveiled on 8 April at the CoR during a joint event with the EIB. More information and registration.
Local and regional leaders also held a debate on the long-term budget of the European Union after 2027, the so-called Multiannual Financial Framework. Similar debates are organised by every commission in the CoR to feed a plenary resolution on the topic with different inputs. The resolution is expected to be adopted in the 14-15 May CoR plenary session.
They also appointed William Eloffson (SE/EPP), Member of Gävle Municipal Council, as rapporteur on the opinion on the ‘Clean Industrial Deal’.
Background
- Rewatch the meeting.
- On 11 February, the European Commission announced the “Invest AI” initiative, aimed at mobilizing € 200 billion for investment in AI. This includes the establishment of a new European fund of € 20 billion dedicated to AI giga factories (large-scale AI computing infrastructure).
- As shown by the 2024 results of the CoR-supported LORDIMAS tool, 58% of participating local and regional administrations already actively involve users in service design of AI solutions. The LORDIMAS tool is a local digital maturity assessment instrument which gives the EU and its Member States an overview on the state of play of the digital transformation at local level.
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In response to growing global competition and new geopolitical dynamics, the European Commission unveiled the Competitiveness Compass on 29 January, with the goal of enhancing Europe’s competitiveness by leveraging its innate strengths. The Compass is designed as a practical, actionable framework to guide the Commission’s work over the next five years. It aims to position Europe as a leader in key sectors vital to tomorrow’s economy while also reaching the goal of becoming the first continent to achieve climate neutrality.
More information European Committee of the Regions.
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