Concerns Grow Over Proposed EU Budget's Impact on Regional Cohesion Policy
The EU's proposed 2028-2034 budget raises concerns regarding regional autonomy and cohesion policy.
Key Points
- • The proposed EU budget is €2 trillion, the highest ever.
- • 48% of the budget will merge funds from the CAP and cohesion policy.
- • Critics warn of 'renationalization' reducing regional authorities' influence.
- • Negotiations will continue until 2027, impacting the final budget.
On July 18, 2025, the European Commission unveiled a controversial €2 trillion budget proposal for the years 2028 to 2034, a move that is provoking serious concerns about the future of the EU's cohesion policy and regional autonomy, particularly among French local authorities.
This proposed budget marks the largest in EU history, increasing contributions from member states from 1.1% to 1.26% of their gross national income, alongside the introduction of five new taxes projected to generate nearly €60 billion. Notably, these taxes will include a carbon tariff and a new levy targeting large corporations with revenues exceeding €100 million annually. However, some member states, including Germany, have expressed resistance to the last measure.
Significantly, the new budget structure aims to simplify the existing framework by merging a range of funds into larger 'mega-funds', which will cut the number of programs from 52 to 16. A staggering 48% of the budget, or €865 billion, is set to be allocated to national and regional partnership plans that consolidate resources from the Common Agricultural Policy (CAP) and cohesion policy. Critics are voicing that this consolidation poses a serious threat to the essence of cohesion policy, as funding will now shift towards enhancing competitiveness and strategic sectors like defense and technology.
Local authorities, especially in France, are particularly alarmed by what they describe as a potential 'renationalization' of fund distribution. The changes suggest that EU financial assistance would require member states to submit reform plans, thus potentially reducing the influence of regional authorities in managing funds. This sentiment is echoed by the French association of local councils (Afccre), which argues that such measures could exacerbate regional inequalities and undermine the foundational goals of the EU’s cohesion policy.
In light of these developments, the French government is reportedly planning to collaborate with local associations to mount a unified response to the centralizing aspects of the proposal, emphasizing the need for retaining territorial autonomy in managing EU funds. Negotiations on this budget are expected to span several years, with discussions anticipated to continue until 2027, meaning the final shape of the budget remains uncertain but could have lasting implications for regional governance across the EU.