June 20, 2025

The following is a press release:

Representatives from EU regions and cities gathered in Klagenfurt to discuss stronger regional innovation and enhanced defence readiness

The European Committee of the Regions (CoR) Commission for Economic Policy (ECON) met in Klagenfurt, Austria, on 19 and 20 June to urge stronger EU investment in regions, better alignment of innovation and sustainability goals, and enhanced multilevel cooperation for a resilient and secure Europe.

The two-day meeting and conference, hosted by CoR member and Governor of Carinthia, Peter Kaiser, brought together regional leaders, policymakers, academics, and innovation experts to explore how EU regions can lead the transition toward a green, inclusive and economically resilient future. Local and regional leaders highlighted how local strategies grounded in social inclusion, environmental integrity, and economic resilience are already proving effective – particularly in Carinthia, which presented its integrated development model as a template for broader European replication. The region successfully combines social cohesion policies with advanced technological research and industrial cooperation.

Participants demanded that EU funding tools – particularly those connected to sustainability, competitiveness, and defence – be re-designed to better reflect regional needs, capacities, and strategic roles. They stressed that achieving Europe’s goals for climate neutrality, industrial competitiveness and defence readiness will depend on empowered and well-resourced regions. They further called for support for regional innovation clusters, including those in border and structurally weaker regions, and emphasised the need to align economic development with the United Nations’ Sustainable Development Goals.

During the meeting, ECON members adopted a draft opinion on the “European Defence Readiness 2030”, emphasising the importance of empowering regions to contribute directly to Europe’s security, industrial resilience and economic stability. ECON members demanded additional EU support through the EU's Security Action for Europe (SAFE) initiative to benefit first and foremost EU Member States and Ukraine, to effectively reduce fragmentation in the defence market, where common procurements should involve at least two EU Member States. They called for balanced access and stronger EU content requirements – emphasising that an EU product must consist of at least 70% EU-origin components – exceeding the usual 65% threshold set by the Commission and Council. In this regard, ECON members stressed that EU origin should be defined as production from EU member states and Ukraine, while countries in the European Economic Area or the European Free Trade Association should still be able to take part in the SAFE common procurements. While backing an ambitious EU defence budget, they also stressed that cohesion and stability in regions hosting key industrial capacities must be safeguarded.

The conference concluded with visits to the Lakeside Science and Technology Park’s drone and robotics centres, followed by a visit to Infineon’s semi-conductor plant in Villach – a facility that produces key components for digital technologies and is an example of environmentally responsible industrial innovation in the EU.

Quotes

Alberto Cirio (IT/EPP), Chair of the ECON commission and President of the Piedmont region: “The opportunities of Artificial Intelligence are immense — in healthcare, justice, public transport, citizen engagement, and more efficient public services. But key challenges lie ahead. We must close the digital divide by ensuring access to digital tools in all areas, including rural ones, through strong AI infrastructures and AI Hubs. We need to develop skills and talent by creating a dynamic EU ecosystem that trains officials and managers to handle AI, with support from the Commission’s AI Continent Action Plan. And we must enable data sharing while safeguarding users’ privacy. These are the challenges and guiding principles of this opinion.”

Peter Kaiser (AT/PES), Governor of the Carinthia region: "With this conference, we are bringing Europe to Carinthia - and Carinthia even closer to Europe. The fact that we were given the opportunity to host the ECON commission is not only a great honour, but also a strong signal for Carinthia as an economically future-oriented region with strong European networks."

Ricardo Rio (PT/EPP), Mayor of Braga and rapporteur on the opinion of defence readiness: "Preparedness, defence and security go hand in hand. And regions and cities have a lot to say in shaping the future given their proximity to citizens, industry, academia and civil protection. Investment in defence means better enabling clusters towards greater interoperability and more regional stability. With this opinion, the CoR puts key recommendations on the table. Industry spill-over effects, including dual-use, with smaller players and their integration into the European Defence Technological and Industrial Base is fundamental. We call for common procurement to become the engine of defence cooperation — but with at least two EU Member States involved."

Also during the meeting

ECON members held a first exchange of views on the following opinions:

“AI Continent Action Plan”, by rapporteur Alberto Cirio (IT/EPP), Chair of the ECON commission and President of the Piedmont region

“A European Steel and Metals Action Plan”, by rapporteur Guillermo Peláez Álvarez (ES/PES), Regional Minister for Finance and European Funds of the Principality of Asturias

More information

Rewatch the meeting here.

Photos of the event.

The Commission presented on 19 March the White Paper for European Defence – Readiness 2030 and as part of the ReArm Europe Plan/Readiness 2030, an ambitious defence package providing financial levers to EU Member States to drive an investment surge in defence capabilities. While the ReArm Europe Plan/Readiness 2030 aims to strengthen pan-European defence capabilities with financial means, the White Paper frames a new approach to defence and identifies investment needs.

Contact

Theresa Sostmann

Tel: +32475999415

Theresa.Sostmann@cor.europa.eu