Cohesion Policy on the Line: What the Future EU Budget Might Mean for Europe’s Regions
- maria tsaousi
- Jul 20
- 3 min read
As the European Commission prepares to unveil its proposal for the post-2027 Multiannual Financial Framework (MFF) on 16 July, all eyes are on the fate of one of the EU’s cornerstone investment strategies: Cohesion Policy.
This isn’t just a technical debate about budgets—it’s about how Europe invests in its future, who gets a say, and whether the principle of territorial solidarity remains central to the European project.
What Is Cohesion Policy—and Why Does It Matter?
Cohesion Policy is the EU’s main investment tool aimed at reducing regional disparities and promoting balanced development. It funds everything from infrastructure and innovation to social inclusion and green transition projects—especially in less-developed regions.
It’s not just about money. Cohesion Policy is built on partnership, decentralisation, and long-term planning. It empowers local and regional authorities to shape investments based on local needs.
A Shift Towards Centralisation?
There are growing fears that the next EU budget could weaken this policy. Leaks and political signals suggest a possible move away from allocating funds based on regional development levels (like GDP per capita). Instead, some are worried the Commission may propose a more centralised system—similar to the Recovery and Resilience Facility (RRF)—where each country submits a single national plan, reducing the influence of cities and regions.
As Jan Olbrycht, a key adviser to the EU Budget Commissioner, put it: "I don't know" when asked if the current allocation criteria would survive the next MFF. That uncertainty is triggering strong reactions across Europe.
A United Front Defending Regional Investment
In the past weeks, a powerful coalition has emerged to defend Cohesion Policy:
The European Parliament rejected a centralised "one plan per country" approach and called for full regional involvement.
The European Committee of the Regions (CoR) unanimously warned that only decentralised, long-term investment can tackle Europe’s future challenges.
18 Member States, including Poland, issued non-papers defending dedicated funding, region-based allocation, and standalone legislation for Cohesion Policy.
149 regions from 20 countries (through the #Euregions4cohesion campaign) sent a letter to Commission President Ursula von der Leyen calling for indicative regional allocations based on social and economic indicators.
Eurocities urged the EU to reserve at least 15% of Cohesion Funds for urban priorities, placing cities at the heart of EU investment strategies.
Political Unity in the European Parliament
This isn't a partisan issue—across the political spectrum, support for Cohesion Policy is strong:
The EPP Group called weakening regional policy a “deal breaker.”
The S&D Group rejected “power centralisation in the hands of the few.”
Renew Europe warned that sidelining regions could undermine trust in the EU.
The ECR Group reaffirmed support for territorial solidarity and multilevel governance.
What Happens Next?
On 16 July, Commission President Ursula von der Leyen will present the first draft of the new MFF and an initial package of sectoral legislation. A second wave of legislative proposals will follow in September.
Expect immediate reactions from the European Parliament. Several committees are already planning extraordinary meetings with key Commissioners, and a statement from the Conference of Presidents is due within hours of the proposal's publication.
Why It Matters
The debate around Cohesion Policy is about more than how EU funds are distributed—it's about the direction of European integration:
Will the EU remain committed to bottom-up development and local democracy?
Or will the pursuit of "simplification" and "efficiency" lead to centralised, one-size-fits-all policies?
As Kata Tüttő, President of the CoR, warned:
“I have the bad feeling that from behind the smoke of simplification and efficiency a 'Big Ugly Bill' will emerge in the form of a smaller, weaker EU budget post-2027.”
The stakes are high, and the next few weeks will be critical in shaping how—and for whom—the EU invests in the future.
European Week of Regions and Cities
Date & location: 13 - 15 October, Brussels (Belgium).
The #EURegionsWeek is the biggest annual Brussels-based event during which cities and regions showcase their capacity to create growth and jobs, implement European Union Cohesion Policy, and prove the importance of the local and regional level for good European governance.
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