Future EU budget: Regions and cities call urge for more resources and dedicated funds for Cohesion Policy

Key requests include also preserving long-term investments and keeping cohesion as a core principle.

After having shared their concerns about the next long-term budget of the European Union 2028-34 with the EU Commissioner for Budget Piotr Serafin, local and regional leaders unanimously adopted an opinion that aims at improving the proposal under discussion. The opinion was drafted by Sari Rautio (FI/EPP), city councillor of Hämeenlinna and President of the EPP group in the CoR.

An ambitious budget that strengthens the role of regions and cities can give the European Union effective tools to enhance competitiveness and security, support the transition to low-carbon economy, reverse demographic decline and tackle external threats and unexpected crises For this reason, at the Plenary session on 4 March, members of the European Committee of the Regions (CoR) called for an increase in the next EU long-term budget - the Multiannual Financial Framework (MFF) 2028-34 - to 1.27% of the EU Gross National Income (GNI), in line with the preliminary requests of the European Parliament. CoR members also insisted that the €150 billion in debt repayments from the post-pandemic scheme NextGenerationEU should be removed from the budget headings, as they constitute the repayment of a loan and do not provide new resources for investments.

As noted by the European Court of Auditors, if NextGenerationEU repayments are excluded from the European Commission's proposal, the MFF would rise only slightly: from the current 1.13% to a proposed 1.15% of the EU's GNI.

Every EU policy should do no harm to cohesion

The CoR strongly called for the 'do no harm to cohesion' principle to be applied to all EU policies, including those intended to boost European competitiveness, which largely depends on regions' ability to manage resources and policies according to their challenges and needs.

Local and regional leaders also supported the aim of making resource use more flexible. However, flexibility must not become a back door to centralise funding or to turn long-term investment - such as Cohesion Policy - into short-term tools to tackle upcoming crises.

Keeping separate budget lines for agriculture and cohesion

The Committee is seeking to keep separate budget lines for Cohesion Policy and agricultural policy. Moreover, local and regional leaders asked for guarantees at EU level to ensure support for Cohesion Policy for every category of region, not only for the poorest ones. Local and regional leaders are also calling to keep the place-based approach, shared management and genuine cooperation among between different levels of governance as fundamental and non-negotiable core principles of Cohesion Policy.

Quotes

CoR President Kata Tüttő (HU/PES): "The CoR works side by side with the European Parliament and is engaged in an open exchange with national governments and parliaments to make the voice of regions and cities heard in the decisions on the next long-term budget. It is getting clearer every day that the 'monster fund' based on national plans - NRPPs - would not bring any simplification and instead increase complexity at national level because of the many ropes tied around it. On the other side, there are growing fears that the proposed approach to competitiveness will benefit a very few regions leaving too many others behind, We need now to move ahead and agree on changes ensuring that the next EU budget makes our Union more competitive, resilient and cohesive."

The CoR First Vice-President Juanma Moreno (ES/EPP): "We are at a decisive moment, and it is still possible to ensure that the Cypriot Presidency's negotiation box is aligned with the needs of all Europe's territories and delivers an ambitious and balanced negotiation. Only a Europe that invests in all its regions can be competitive, cohesive and legitimate in the eyes of its citizens."

The rapporteur Sari Rautio (FI/EPP): "Regional 'checks' must be part of how we assess whether multi-level governance and the partnership principle are actually being implemented. That cannot remain optional or informal-it must be written into the relevant regulation. We also strongly encourage an agreement on a new package of EU own resources that is acceptable to all and that advances our shared ambitions. Europe's future depends on trust in our democracy and on cooperation between institutions and territories."

European Commissioner for Budget, Piotr Serafin: "The European Commission is proposing an increase to the EU budget to strengthen our common security and the competitiveness of our economies, benefiting all Member States and their regions. We are modernising the budget to make it more flexible and better equipped to respond to crises, while preserving predictability for key policies such as cohesion and agriculture. With this proposal, we are setting clear minimum allocations, reinforcing social and rural investment targets, and introducing new tools to support defence and competitiveness, so that Europe can remain strong, resilient and economically competitive in a more uncertain world."

Background

• Videos and photos of the plenary debate.

• The consolidated text of the opinion 'Multiannual Financial Framework (MFF) post 2027, including own resources package' will be available some days after the adoption on CoR's website.

• In addition to the one on the MFF, the CoR is working on 19 other opinions to assess specific aspects and regulations of the future EU long-term budget 2028-34: check the opinions' roadmap.

• The press releases on the other MFF-related opinions discussed at the 4-5 March Plenary session, on the European Competitiveness Fund and the Single Market and Customs Programme, will be available online after their adoption.

Contact:

Matteo Miglietta 
Tel. +32 470895382   
[email protected]