EU Cohesion Shifts Focus to Include Defense Priorities

Brussels (ANSA) – The EU Cohesion policy is undergoing a shift in priorities to address the rapidly evolving global landscape, focusing on areas such as defense, water resilience, housing, and competitiveness. While there is no requirement for member states to alter existing spending plans, the European Commission is encouraging governments to reallocate some funds towards five new investment priorities.

This change is highlighted in the mid-term review presented by the Executive Vice President of the Commission, Raffaele Fitto. The reform concerns a substantial budget of 392 billion euros allocated until 2027, which the EU aims to align with the current economic, environmental, and geopolitical conditions while providing greater management flexibility.

Fitto emphasized the important aspect of “voluntariness” in the reallocation process. He stated, “It is up to the member states and regions to decide whether to take advantage of the opportunity to adjust the programs according to regional needs.” He also clarified, “This has nothing to do with the purchase of weapons.”

To motivate strategic spending adjustments, the Commission, led by Ursula von der Leyen, is offering improved financing conditions and enhanced flexibility. Governments can request a pre-financing of 30% for projects linked to the five key priorities, with the prospect of 100% co-financing from EU funds in 2026.

Member states that allocate at least 15% of their overall program budget toward these priorities will benefit from an additional year (until 2030) to utilize the funds, along with an extra 5% pre-financing. Additionally, governments are invited to identify by June any PNRR projects that may not meet the August 2026 deadline and could potentially be redirected for funding through the Cohesion policy.

The EU aims to complete the reprogramming of resources by the end of 2025, with the revised programs expected to be implemented starting in 2026. However, obtaining approval from both governments and Members of Parliament is anticipated to be a challenging task, with a deadline set for April 1.