In May, the European Parliament adopted, by majority vote, a report on economic and social cohesion and its future after 2027. The vast majority of political groups support a decentralized model of cohesion policy, firmly rejecting any reduction of the role of regional and local authorities. At the same time, they emphasize the need to make this key investment policy more flexible in order to respond effectively to potential crises and new challenges.
“Cohesion policy, as the European Union’s main investment instrument, should be maintained in its current form or even strengthened. It generates local government investments and business investments across Europe, which help reduce development disparities between European regions,” said Jacek Protas, Member of the European Parliament from the Civic Platform and rapporteur of the project, in an interview with Newseria.
Cohesion policy is a vital tool whose beneficiaries include almost all local governments in the EU, including those in Poland. Poland has repeatedly utilized EU budgets in the periods 2000–2006, 2007–2013, 2014–2020, and currently 2021–2027, remaining one of the largest beneficiaries. Cohesion policy has supported thousands of projects financed by the European Regional Development Fund (ERDF), the European Social Fund (ESF), and the Cohesion Fund throughout Europe. The Parliament highlights that this policy contributed to GDP growth in Central and Eastern European member states—from 43% of the EU average in 1995 to approximately 80% in 2023. By the end of 2022, over 4.4 million enterprises had received support through cohesion policy, creating more than 370,000 jobs.
Economic and social cohesion, by definition, aims “to reduce disparities between regions and counteract the backwardness of regions in unfavorable situations.” The Lisbon Treaty refers to “economic, social and territorial cohesion,” meaning cohesion policy is designed to promote balanced and more sustainable territorial development, thus covering a broader scope than regional policy. Regional policy, closely linked to the ERDF, focuses on tasks at the regional level.
The ninth report on economic and social cohesion recently debated in the European Parliament outlines the direction cohesion policy should take in the EU. The document was extensively consulted with organizations, institutions representing diverse sectors, and the EU Committee of the Regions. It calls for even greater decentralization of cohesion policy, which in turn should improve its effectiveness and enhance the role of local authorities.
“There have been speculations and proposals from the European Commission pushing for centralization of cohesion policy management. As the European Parliament, we disagree with this model. We believe only a decentralized cohesion policy can be effective because regions, cities, and municipalities know best the needs of their local communities. Regional development cannot be managed from Brussels or any national capital. I am deeply convinced that this strong message also reaches the representatives of the European Commission,” explained the MEP.
The report states that the European Parliament “emphasizes that the key and positive elements of cohesion policy determining its effectiveness are the regional and local place-based approach, strategic planning, and a decentralized model of programming and implementation based on partnership principles, alongside more efficient application of the European Code of Conduct, involvement of economic and civil society actors, and multi-level governance (…).”
“We must respond to new challenges—the war in Ukraine, the need to phase out coal energy sourced from Russia, strengthening the EU’s eastern border—especially in regions and countries bordering Russia, Belarus, and Ukraine—as well as the need to enhance our economy’s competitiveness because, unfortunately, we have recently lost share in global GDP and our ability to respond to crises,” Jacek Protas listed. “Strengthening housing policy is also a new priority.”
He stressed that longstanding cohesion policy goals—such as reducing regional disparities—remain relevant.
“I am firmly convinced that in the new programming period, we will have effective tools and funds for this,” the MEP said. “The report highlights the necessity for cohesion policy to finance dual-use products, which during peace serve the residents but can be used as shelters or field military hospitals during wartime. Strengthening the load capacity of roads and bridges are among these new challenges I want to highlight.”
The European Parliament calls for a clear distinction between cohesion policy and other instruments to avoid overlap and competition among EU funds. The report stresses that cohesion policy financing post-2027 must be ambitious and easily accessible, allowing it to remain the EU’s main investment policy while preserving flexibility to meet new challenges, including funding for dual-use development. Importantly, the ability to respond flexibly to unpredictable challenges should not come at the expense of clear long-term strategic focus and cohesion policy objectives.
