Today, the European Commission is revising the EUs cohesion policy to better support competitiveness, decarbonisation, defence, security, Eastern border regions, affordable housing, water resilience, and energy transition.
The goal is to make cohesion policy more effective by encouraging Member States and regions to invest in European strategic priorities while focusing on reducing economic, social, and territorial disparities. Member States are invited to reprogramme part of their 2021-2027 cohesion funds for new investments as part of the ongoing mid-term review.
Enhancing Europes Competitiveness
Businesses play a crucial role in innovation and technology transfer. Therefore, the Commission proposes to extend support from the European Regional Development Fund to large companies in critical areas like defence and decarbonisation. Member States are encouraged to invest in strategic technologies through the Strategic Technologies for Europe Platform.
Supporting Defence Industry and Eastern Border Regions
The proposal enables the use of cohesion funds to build resilient infrastructure to foster military mobility and support productive capacities in the defence sector.
Affordable Housing
According to the Presidents political guidelines, the amount for affordable housing is doubled. Member States can use a new financial instrument with the European Investment Bank.
Enhancing Water Resilience
There will be increased investment in water resilience, including infrastructure digitisation and drought mitigation.
Supporting Energy Transition
Cohesion funds will support investments in energy interconnectors and charging infrastructure, crucial for energy transition.
Financial Incentives under Strategic Priorities
Projects within EU strategic priorities are eligible for up to 30% prefinancing. Programs allocating at least 15% of their resources to these priorities will receive more advanced payments.
Next Steps
The amendments to cohesion policy legislation will be discussed by the European Parliament and the Council. The aim is to complete reprogramming with Member States and regions in 2025.
Background
With a budget of €392 billion, cohesion policy is the EUs main investment strategy. The current mid-term review allows Member States to adjust their cohesion programs to new political priorities.
More Information
Strategic Technologies for Europe Platform