The Future of EU Cohesion Policy: Local Power, Smart Funding, and No One Left Behind

https://www.europarl.europa.eu/news/en/press-room/20250502IPR28227/future-of-cohesion-policy-decentralised-decisions-adequate-funding-essentialAs Europe moves into a new phase of social and economic transformation, the European Parliament has made a clear and timely call: the future of the EU’s cohesion policy must be local, well-funded, and built to serve every corner of the Union — from remote villages to bustling metropolises.

On May 8, 2025, the Parliament adopted a pivotal report outlining its vision for cohesion policy in the next EU budget cycle (2028–2034). The vote — 392 in favour, 125 against, and 55 abstentions — sends a strong message about the kind of Europe policymakers want to build: one that values place-based development, equitable access to opportunity, and long-term resilience over top-down, short-term fixes.

Power to the Regions: Why Local Decisions Matter

The backbone of the Parliament’s vision is decentralisation. MEPs argue that the success of cohesion policy so far has stemmed from its partnership approach, where decisions are made in partnership with local and regional authorities rather than imposed from Brussels.

This model, they say, must not only continue — it must be strengthened. In contrast, proposals for centralised, one-size-fits-all EU funding mechanisms have been flatly rejected.

“Funding can respond to the specific needs of every area,” said rapporteur Jacek Protas (EPP, Poland). “This includes Eastern border regions, outermost regions, rural areas and metropolitan areas, each with their own particular challenges.”

Beyond Bureaucracy: A Call for Ambitious and Accessible Funding

One of the loudest demands from the Parliament is better, faster access to EU funds. That means:

Higher levels of co-financing and pre-financing

Simplified application processes

Speedier reimbursements

And, crucially, a more ambitious budget for 2028–2034

The rationale is simple: when funding is easier to access and tailored to real needs, it's more effective. And with persistent regional disparities and new challenges on the horizon, effectiveness is not a luxury — it's a necessity.

The Real Challenges: Ageing, Decline, and Development Traps

MEPs raised the alarm about a growing number of regions caught in “development traps” — places where economies are stagnating, populations are ageing, and essential services are dwindling.

To counter these trends, they call for:

Targeted economic incentives

Investment in essential public services

Expanded eligibility for affordable housing projects

Special support for EU border regions, which face unique strategic and demographic pressures

These are not fringe issues. If left unaddressed, they risk undermining the EU’s promise of shared prosperity.

Transitioning Together: Cohesion in a Green and Digital Europe

The green and digital transitions are central to the EU’s strategy — but they must be inclusive. MEPs warned that unless investment is channeled to all regions, the transitions could deepen disparities rather than reduce them.

The Parliament wants to see cohesion funds used to:

Support green industries

Modernise transport and digital infrastructure

Fully integrate lagging regions into the single market

Not a Crisis Tool — But Still Crucial

Importantly, MEPs stressed that cohesion policy should not be used as an all-purpose crisis fund. They support enhancing tools like the EU Solidarity Fund for emergency responses — but insist that cohesion policy must retain its focus: long-term, balanced development.

Fair Play: Rule of Law Still Matters

MEPs reaffirmed the need for rule of law conditionality — ensuring that EU funds are used transparently, responsibly, and fairly. It’s a reminder that cohesion isn’t just about money — it’s about values, too.

A Proven Track Record, A Bigger Role Ahead

According to the European Commission’s latest figures, cohesion policy has helped raise GDP in Eastern and Central Europe from 43% to around 80% of the EU average since 1995. It’s created over 370,000 jobs and supported 4.4 million businesses.

But the job isn’t done. In fact, the challenges ahead — demographic shifts, digital divides, housing shortages, and climate resilience — make a strong, responsive cohesion policy more essential than ever.

Looking Forward

With this vote, the European Parliament has drawn a clear roadmap for cohesion policy in the years ahead: keep it local, keep it ambitious, and keep it fair.

The next step? Ensuring that these priorities are reflected in the upcoming budget negotiations and Commission proposals. Because a united Europe isn’t built from the top down — it’s built from the ground up.