Breaking News: EU Cohesion Policy Shakeup Sparks Funding Concerns
Brussels, April 1, 2025 — The European Commission’s recent proposal to allow up to 100% co-financing for new priorities in the cohesion policy has set off alarm bells among policymakers and experts. The move, which shifts funds from traditional structural objectives to emerging sectors like defense, is raising doubts about the future of less developed and ultra-peripheral regions.
Key Concerns and Expert Insights
MEP Sérgio Gonçalves (S&D) has warned that this realignment of funds, without an increase in overall resources, could compromise the core mission of cohesion policy. The redirection of funding towards sectors such as defense, which are often concentrated in more industrialized areas, could exacerbate territorial inequalities and divert resources from regions still lagging in development.
Von der Leyen Commission’s Response
The Von der Leyen Commission has assured that the proposal does not alter the distribution of resources between different categories of regions or the rules for transfers between them. Funds intended for less developed regions will remain protected and cannot be used for transition or more developed regions. Each change in regional programs remains voluntary and must be approved by monitoring committees before the Commission’s examination.
Optimizing Available Resources
According to Brussels, some resources for the period 2021-2027 are still unallocated. Vice-President Raffaele Fitto emphasized the need to optimize the use of available resources amidst growing economic challenges and a limited tax framework. Management authorities will guide funds towards strategic investments addressing economic, social, and territorial emergencies to preserve the cohesion of the European Union.
Evergreen Context: The Evolution of EU Cohesion Policy
EU cohesion policy has been a cornerstone of regional development since the 1950s, aiming to reduce disparities between regions and promote balanced economic, social, and territorial development. Over the years, the policy has evolved to address new challenges, from infrastructure development to environmental sustainability and digital transformation. The current proposal is part of this ongoing evolution, reflecting the EU’s response to emerging global challenges.
Future Implications and Expert Advice
As the EU continues to navigate economic and geopolitical uncertainties, the balance between new priorities and traditional objectives will be crucial. Experts advise that while innovation is necessary, it must be complemented by a robust framework ensuring that no region is left behind. Policymakers should consider flexible and inclusive approaches that foster regional resilience and integration.
Stay tuned to archyde.com for the latest updates on this developing story and expert insights on the future of EU cohesion policy.
