On general guidelines for the preparation of the 2026 budget – Section III – Commission

The Committee on Regional Development calls on the Committee on Budgets, as the committee responsible, to incorporate the following into its motion for a resolution:

A.whereas pursuant to Article 174 of the Treaty on the Functioning of the European Union (TFEU), ‘in order to promote its overall harmonious development, the Union shall develop and pursue its actions leading to the strengthening of its economic, social and territorial cohesion. In particular, the Union shall aim at reducing disparities between the levels of development of the various regions and the backwardness of the least-favoured regions’;

B.whereas cohesion policy is a key instrument for reducing disparities between the levels of development of the various regions within the Union and for addressing the fact that the least-favoured regions lag behind, playing a vital role in promoting sustainable development and also addressing environmental challenges, complementing national budgets and enhancing the EU’s ability to navigate global complexities;

C.whereas among the regions concerned, particular attention must be paid to rural areas, areas affected by the industrial and automotive transitions, less-developed areas inside the so-called developed regions, eastern EU regions bordering on Russia, Belarus or Ukraine, regions which suffer from severe and permanent natural or demographic handicaps, as well as outermost regions, islands and Mediterranean regions facing environmental and economic vulnerabilities;

D.whereas the absorption rate of cohesion policy funds remains very low partly owing to delays to the start of programmes and the high level of bureaucracy and complexity required in cohesion-funded projects, which can lead to unforced errors;

E.whereas among the beneficiaries concerned, particular attention should be paid to vulnerable people, such as persons with disabilities;

1.Considers that, as the EU’s main long-term investment instrument, cohesion policy is based on solidarity, creates sustainable growth and jobs across the Union and contributes to key Union objectives and priorities, including its climate, energy and biodiversity targets, competitiveness, as well as sustainable and socially inclusive economic growth, to tackle demographic challenges and ensure equitable access to affordable housing;

2.Recalls that cohesion policy has proven to be a helpful tool in tackling challenges in various crises, such as the Russian war of aggression against Ukraine and its effects on the energy supply, the high cost of living, inflation, and the needs of refugees and displaced persons, as well as natural disasters; underlines, however, that the resulting legislative amendments to cohesion policy have repeatedly brought unexpected changes to its objectives and resources, while cohesion policy should, when needed, complement rather than replace other financial instruments designed for emergency response;

3.Reiterates the need for coordination at budgetary level between all the financial instruments supporting cohesion policy; believes that, to make the most of NextGenerationEU funds, these should support and complement cohesion policy measures;

4.Emphasises the need to ensure that the ‘do no harm to cohesion’ principle is observed across the EU budget; stresses, in this regard, that cohesion policy should not undergo any fundamental changes which could jeopardise the structural and investment funds’ ability to deliver on their goals; stresses that the setting of new priorities should entail new resources and underlines that the long-term investment objectives of cohesion policy are to reduce regional disparities and enhance competitiveness;

5.Is concerned about the state of implementation of cohesion policy programmes for 2021-2027; urges the Commission to step up monitoring efforts, ensuring respect for the rule of law, a transparent, fair and responsible use of EU resources, as well as their sound financial management; urges the Commission to strengthen its cooperation with the Member State authorities at all levels in order to reduce bureaucracy to make cohesion funds more accessible to local and regional authorities, among others, and to avoid decommitments, unfinished projects and any political manipulation of fund allocation; stresses, therefore, the need to introduce a ‘smart conditionality’ mechanism;

6.Notes that the Just Transition Fund needs adequate financial resources and a long-term perspective to ensure its effectiveness in supporting regions’ transition towards climate neutrality, while ensuring that the most vulnerable regions are properly supported in the transition process; emphasises the need for a realistic and balanced approach to the just transition, ensuring economic, social and environmental sustainability, with the meaningful participation of local and regional authorities, as well as economic and social partners;

7.Calls for further simplification of cohesion policy to reduce the growing administrative burden, enhance fund accessibility and ensure investments tailored to the specific needs of regions while enabling the effective management of funds in line with the needs of final beneficiaries; highlights, in this context, the importance of the newly-created EU Councillors network, which is jointly run by the European Committee of the Regions and the European Commission, as a key tool for strengthening the ability to gather evidence of how the Union operates at local level;

8.Underlines that rural areas are a core part of Europe’s identity and economic potential; welcomes cohesion policy measures that recognise the contribution of more prosperous and resilient rural areas to Europe’s overall resilience; calls for adequate funding to enhance their role in environmental protection, food production, tourism and ensuring ‘the right to stay’; calls for increased public investment to tackle demographic challenges and support young people by improving services and infrastructure, expanding access to digital education, technologies and innovations, so as to raise living standards, increase the stock of affordable housing and foster equal access for citizens and families to culture and high quality education, essential social services and other public services, while making more efficient use of resources, reducing the impact on the environment and creating new opportunities for rural SMEs;

9.Notes that the European Regional Development Fund (ERDF) and the Cohesion Fund support investments in sustainable urban development, underlining its importance as a key component of integrated territorial development, with at least 8 % of ERDF resources at the national level being allocated to urban areas through the relevant mechanisms; further notes that this should include special attention to the sustainable development of functional urban and metropolitan areas, facilitating the digital, green and industrial transitions;

10.Calls for increased investment in digitalisation and innovation to enhance the competitiveness of SMEs in less-developed regions, including rural and peripheral areas, in order to bridge the digital divide and foster inclusive economic growth;

11.Underlines that sustainable development is directly linked to having a highly skilled work force; insists, therefore, on the need for increased efforts to ensure an adequate degree of upskilling and reskilling of all relevant working age individuals, as well as initiatives to increase citizens’ acceptance of the economic, industrial and energy transitions;

12.Recalls the importance of mechanisms and strategies adapted to the diversity of the EU’s territories, and therefore calls for a full use of Article 349 TFEU to adapt cohesion policy to the specificities of the outermost regions; reiterates that the outermost regions should receive specific additional allocations to offset the extra costs incurred as a result of permanent constraints on their development; calls for an Islands Pact to be considered by the EU institutions with the participation of the principal stakeholders, along the lines of the Urban Pact and the future Rural Pact;

13.Reaffirms the need for close cooperation between national, regional, local and other authorities as well as their dialogue with civil society organisations and all relevant stakeholders, including economic and social partners, universities and innovation centres; recognises the importance of research and innovation policy in driving economic growth and enhancing competitiveness in order to fulfil cohesion policy objectives; highlights the need to support the commercialisation and scaling up of interregional innovation projects, underlining the importance of developing value chains, particularly in less-developed regions;

14.Reiterates the need to strengthen the administrative capabilities and capacity of local, regional and national authorities, which are key components in the effective planning and implementation of initiatives and projects at the local level; highlights the importance of stronger ownership, responsibility, partnership and decentralisation; strongly considers that increased financial resources dedicated to technical assistance are key to effective project implementation;

15.Emphasises that the implementation of cohesion policy must respect horizontal principles, including its place-based nature, multilevel governance, sustainability, the partnership principle, gender equality and non-discrimination, ensuring that all projects contribute to a more equitable and inclusive Union;

16.Stresses the need to strengthen awareness-raising among European citizens about cohesion policy achievements and calls for further information measures promoting it such as accessible data platforms, as cohesion policy is a particularly effective means of promoting strong and balanced European regions.