EU Revises Cohesion Funding Priorities

In a significant move to address emerging challenges, the European Parliament’s Regional Development Committee has adopted a new stance on the EU’s cohesion funding priorities for 2021-2027. This comes after a report was passed with a decisive vote, aiming to redirect funds towards critical areas such as defense, energy, and housing, while maintaining focus on reducing regional disparities.

The committee’s decision includes backing new objectives eligible for cohesion funds, specifically enhancing defense industrial capacities and military mobility, improving water resilience, and increasing the availability of affordable housing. The proposal also emphasizes the importance of decarbonization and strengthening energy infrastructure, with additional support directed towards EU regions adjacent to Russia, Belarus, and Ukraine.

The Members of the European Parliament (MEPs) propose favorable funding conditions, including the possibility of 100% co-financing and adjustments to pre-financing allocations. The amendments prioritize dual-use infrastructure, integrated water management, and housing sustainability, ensuring that cohesion policy continues to address regional inequalities.

Committee Chair Dragoș Benea, who also served as rapporteur, highlighted the need to adapt cohesion policy to new priorities while preserving its core mission. He emphasized the commitment to ensuring no European region or citizen is neglected, particularly those in border areas or facing the green transition challenges.

Negotiations with the Council have been authorized to commence, pending approval in the upcoming July plenary session. The European Commission estimates the initiative will lead to significant pre-financing allocations in 2026, without introducing new resources, thus front-loading funds from future years.