Cohesion policy mid-term review: Council adopts new laws to better address current and emerging challenges 10:25 Council amends existing regulations to address current and[...]

In the context of the mid-term review of the EU's cohesion policy, the Council adopted today amendments to existing regulations to better address current and emerging strategic challenges linked to the economic, social and territorial cohesion. These include, notably, defence and security, competitiveness and decarbonisation, affordable housing, measures related to water and challenges facing Eastern border regions.

The regulations adopted by the co-legislators in a record time, as tasked by the European Council, provide amendments to the regulations on:

• the European Regional Development Fund (ERDF) and the Cohesion Fund, as well as the Just Transition Fund (JTF), and
• the European Social Fund Plus (ESF+)

They contain targeted amendments to the regulatory framework of the cohesion policy funds to align investment priorities with the evolving economic, societal and geopolitical context, as well as with the EU's climate and environment objectives. Their main objective is to align cohesion policy investments to new priorities, notably defence and security, competitiveness and decarbonisation, affordable housing, access to water, sustainable water management and water resilience, energy transition and challenges facing Eastern border regions. To this end, the new regulations introduce greater flexibility and incentives to facilitate the rapid deployment of existing resources and accelerate the implementation of the programmes.

Next steps

The regulations will be published in the EU's official journal in the coming days and will enter into force the day after this publication.

Background information

In continuation of the ReArm Europe Plan, the Commission published on 1 April 2025 the Communication titled 'A modernised Cohesion policy: The mid-term review' alongside two legislative proposals that amend: (i) the regulations on the European Regional Development Fund (ERDF), the Cohesion Fund and the Just Transition Fund (JTF), and (ii) the regulation on the European Social Fund+.

This package takes the opportunity of the ongoing mid-term review of cohesion programmes, which serves to allocate the 'flexibility reserve' that corresponds to 50% allocation of all funds for 2026 and 2027, to introduce new priorities that stem from the current geopolitical and economic challenges.

The proposals devote special attention to defence and security with a view to competitiveness, eastern border regions, affordable housing (including social housing), secure access to water, sustainable water management and water resilience, energy transition (decarbonisation), and cities. They envisage financial incentives for those programmes that allocate the flexibility reserve towards any of these priorities (higher pre-financing and up to 100% EU financing). In case the programmes devote at least 15% of their allocation to these priorities, they get extra pre-financing as bonus, and an extension of eligibility by one year (until 31 December 2030).

• Regulation amending regulations (EU) 2021/1058 and (EU) 2021/1056 as regards specific measures to address strategic challenges in the context of the mid-term review, 18 September 2025
• Regulation amending regulation (EU) 2021/1057 establishing the European Social Fund Plus (ESF+) as regards specific measures to address strategic challenges, 18 September 2025
• Regulation on specific measures to address strategic challenges in the context of the mid-term review, Commission proposal, 2 April 2025
• Regulation amending regulation (EU) 2021/1057 establishing the European Social Fund + (ESF+) on specific measures to address strategic challenges, Commission proposal, 2 April 2025
• 'A modernised Cohesion policy: The mid-term review', Commission communication, 1 April 2025
• Cohesion: How the EU supports regional development to create jobs and prosperity across its member countries (background information)