​We invite you to discover the results of the consultation conducted on financial, managerial and regulatory obstacles to investment experienced by local and regional authorities from all EU Member States.

Between 22 June and 15 September 2017, the European Committee of the Regions (CoR), in co-operation with the Organisation for Economic Co-operation and Development (OECD), carried out an online consultation on Funding, management and regulatory challenges to infrastructure investment of EU cities and regions. This survey gathered 134 contributions, with many of the respondents having a significant degree of expertise in the matter, and thus the results offer a useful snapshot of the views expressed by experts regarding the challenges to infrastructure investment encountered by local and regional authorities (LRAs).

Summary of key findings

To provide background and context for the whole survey, respondents were initially asked a few questions on the general situation with regard to infrastructure investment in their respective LRAs. A large majority (81%) reported that their region/city had undertaken infrastructure investment in 2015-2016, with the most common sectors being education, culture, sport and other facilities, followed by energy and environmental infrastructure, and transport and telecommunication. Highlighting that the effects of the crisis are still being felt, almost half (47%) of respondents reported that the level of investment in infrastructure was still below pre-crisis level. However, two-thirds of respondents to the survey indicated that their local or regional government plans to increase its level of investment over the coming years.

Funding infrastructure investment was a challenge for 83% of respondents, who cited as main reason a "cut of transfers from the national government" (for 45% of these respondents); followed by "other short-term priorities" (44%); "attribution of new responsibilities by the national government without corresponding resources" (32%); and "no or limited involvement from private investors" (32%).

Turning to sources of funding and their evolution, 35% of respondents reported a decrease in "grants from international organisations, including EU funds" over the last couple of years. Such a decrease in reported funding was one of the most notable trends among all categories and sub-categories of sources of funding. Conversely, own revenues such as local taxes and user fees or tariffs were sources of funding which – according to the respondents – were the most stable over the years 2015-2016. Very few respondents indicated that own revenues were likely to decrease in the coming years (3% for local taxes and 5% for user fees and tariffs). Interestingly, about three-quarters of survey respondents deemed that own resources improve ownership of local investment in infrastructure, and make policy planning more stable (77% and 75% respectively).

Regarding specific challenges for infrastructure investment, more than half (56%) of respondents reported that the availability of skilled human resources is a challenge, with the most often cited reasons being the lack of employees with the right skills, and non-competitive remuneration packages offered. Furthermore, two-thirds of respondents reported that the infrastructure investment of their LRAs was challenged by the complexity of national laws transposing EU public procurement directives, and 62% pointed to the potential cost and time involved in judiciary litigation when contract award procedures are challenged in court. The use of strategic public procurement received mixed answers, with almost 6 out of 10 respondents making use of green public procurement, yet the same share of respondents not using pre-commercial public procurement.

The survey respondents were also asked their opinion concerning several ideas and proposals that have emerged in the context of the debate surrounding the future of the EU budget and that of the Economic and Monetary Union, in particular with regards to structural reforms and investment. The idea gathering the highest degree of support among respondents was the proposal to set up a dedicated European fund for providing incentives to Member States to carry out structural reforms suggested in the Country-specific recommendations, with 86% saying they agree or agree under certain conditions.