The Regional Development Committee has taken a significant step by adopting its position on proposals aimed at introducing new priorities and flexibilities in the current EU cohesion funding cycle. The report, approved with 26 votes in favor, 10 against, and 5 abstentions, seeks to adapt the EU’s cohesion policy for the period of 2021–2027 while ensuring that the core principles remain intact.
The committee members supported the inclusion of new objectives eligible for cohesion funds. These include defense industrial capabilities, military mobility, water resilience, affordable housing, decarbonization, and energy infrastructure. There is also an agreement to allocate some funds towards enhancing EU competitiveness through the Strategic Technologies for Europe Platform (STEP) and providing additional support for EU regions bordering Russia, Belarus, and Ukraine.
Moreover, MEPs advocated for more favorable funding conditions such as potential 100% co-financing and other financial incentives if certain reallocation thresholds are met. They proposed lowering these thresholds from 15% to 10%.
Amendments from MEPs emphasized prioritizing dual-use infrastructure in defense and military mobility funding. They also aimed to expand support for integrated water management systems like irrigation and desalination. Sustainability in housing was highlighted as a priority alongside safeguarding critical energy infrastructure.
To maintain focus on reducing regional inequalities, MEPs updated rules so large companies could access new funds only in less developed regions under specific conditions such as committing to local employment. Local consent remains crucial when transferring territorial development funds.
Importantly, MEPs clarified that any new flexibilities would not apply to cohesion funding frozen due to violations of EU values or rule of law.
Following the vote, Dragoș Benea (S&D, Romania), rapporteur and Committee Chair remarked: “Parliament is stepping up to deliver concrete answers to citizens living in border regions…By adapting the rules of cohesion policy…we reaffirm our commitment to ensuring no region and no European citizen is left behind.”
Negotiations with the Council were authorized with a majority vote and will be announced during Parliament’s July session unless objections arise.
This proposal from the Commission aims to amend several funds including the European Regional Development Fund without introducing new resources but front-loading €16.1 billion from subsequent years’ allocations. Meanwhile, related discussions continue within the Employment and Social Affairs Committee concerning similar proposals tied to the European Social Fund +.
