The European Commission has initiated revising the EU’s cohesion policy to enhance support for key areas such as competitiveness, decarbonisation, defence, affordable housing, water resilience, and the energy transition. With a budget of €392 billion allocated for the period from 2021 to 2027, this policy serves as the EU’s primary investment framework.
The current mid-term review process enables Member States to assess and adjust their cohesion programmes to align with new political priorities for 2025. This initiative aims to improve the effectiveness of cohesion policy in addressing economic, social, and territorial disparities across the EU.
“With today’s proposal, we are making cohesion policy clearer, more targeted, and more effective, aligning it with the EU’s challenges. We must act urgently to strengthen competitiveness, accelerate the energy transition, enhance defence, ensure affordable housing, and improve water resilience. To achieve this, we are reducing bureaucracy, optimizing financing conditions, and expanding investment opportunities. We will work together to redesign programmes, delivering tangible benefits to European citizens and unlocking the potential of every territory,” Raffaele Fitto, Executive Vice-President for Cohesion and Reforms, said.
Member States will have the opportunity to reprogramme a portion of their allocated funds for new investments. The Commission intends to extend support from the European Regional Development Fund to larger enterprises operating in critical sectors such as defence and strategic technologies. Furthermore, the Commission encourages Member States to increase investments in strategic technologies through the Strategic Technologies for Europe Platform, enhancing overall competitiveness.
Cohesion funding will also strengthen military mobility and support both small and large enterprises within the defence sector.
Programmes in the Eastern border regions, which have been disproportionately impacted by the Russian war against Ukraine, may qualify for preferential pre-financing if they allocate at least 15% of their overall funds to these new strategic priorities.
Additionally, the Commission proposes doubling the affordable housing funding, reinforcing its commitment to social objectives.
Member States will have the chance to leverage both private and public financing through a new financial instrument developed in partnership with the European Investment Bank (EIB). This instrument combines cohesion funding with resources from the EIB and other financial entities.
Investments in water resilience and energy interconnectors, including infrastructure for recharging electric vehicles, will be prioritised to support the energy transition. The proposal allows cohesion projects to qualify for up to 30% in pre-financing, with even higher levels available for those closely aligned with the identified strategic priorities.
The proposed amendments to the cohesion policy legislation will be subject to discussion by the European Parliament and the Council. The Commission aims to complete the reprogramming process by 2025 in order to enable the early implementation of new programmes in 2026.
