Regions and Cities at the Heart of Europe's Future: Why Cohesion Policy Must Stay Strong

As the European Union begins to chart its financial course beyond 2027, a powerful message is emerging from the ground up: regions and cities must be at the core of EU investment and reform.

This message was front and center at an informal gathering of EU ministers responsible for Cohesion Policy held recently in Warsaw, Poland. There, Kata Tüttő, President of the European Committee of the Regions (CoR), made a compelling case for keeping Cohesion Policy—not only intact—but stronger and smarter in the EU’s next long-term budget.

“Territories and places matter,” Tüttő told the assembled ministers. “We need all EU policies to be territorially sensitive. In today’s era of polycrisis—marked by geopolitical tensions, climate change, inequality, and economic shifts—no level of government can go it alone. We need everyone on board, from village mayors to regional presidents.”

Cohesion Policy: More Than Just Funding

Cohesion Policy has long been a pillar of the EU’s commitment to reducing regional disparities and supporting development in less advantaged areas. But it’s more than just money. It’s also about shared governance, long-term thinking, and building local capacity.

Tüttő called on EU Member States to maintain Cohesion Policy funding at at least the same level as the 2021–2027 budget, arguing that investing in local and regional actors is investing in Europe’s resilience.

“Cohesion Policy links all levels of government,” she said. “It’s the backbone of Europe’s unity and strength.”

Competitiveness and Cohesion: Two Sides of the Same Coin

Also speaking in Warsaw was Isabelle Boudineau, CoR rapporteur and member of the French region Nouvelle-Aquitaine, who presented the Committee’s new opinion on the future of Cohesion Policy. Her message: don’t pit competitiveness against cohesion.

“True competitiveness,” Boudineau explained, “is built on the backs of small and medium enterprises, mid-sized companies, and local innovation ecosystems. That’s where disruptive technologies are born, and where real, inclusive growth happens.”

She urged policymakers to embrace territorial engineering—supporting innovation and growth at the local level without widening social and economic inequalities.

A Shared Vision for a Stronger Europe

The ministers adopted a joint declaration reinforcing the role of Cohesion Policy in reducing disparities and preserving the principles that make it work: multi-level governance, partnership, a place-based approach, and shared management.

Polish Minister Katarzyna Pełczyńska-Nałęcz, who hosted the event as part of the Polish Presidency of the Council of the EU, summed it up:

“If we don’t anchor development in local communities, we risk becoming less effective and more distant from citizens. Local and regional authorities must be co-designers of EU policies—not just implementers.”

Looking Ahead

This gathering came at a crucial moment. The CoR recently voted on urgent resolutions regarding the EU’s next long-term budget and a mid-term review of current Cohesion Policy programs. The conversation is clearly shifting toward more inclusion, smarter investment, and empowering the regions that truly shape citizens' everyday lives.

As Europe prepares for future challenges, one thing is clear: cities and regions aren’t just where EU policy is felt—they’re where EU policy begins.