Fourteen EU Member States Oppose Brussels’ Plan to Scrap Cohesion Funds
A total of 14 EU member states have joined forces to oppose the European Commission’s upcoming budget reform, details of which are expected to be unveiled later this month. Their opposition echoes that of nearly 150 regional governments who voiced their concerns last month.
The joint statement has been backed by Bulgaria, Czech Republic, Greece, Croatia, Hungary, Italy, Latvia, Lithuania, Poland, Portugal, Romania, Slovenia, Slovakia, and Spain.
The document, a so-called “non-paper”, an informal proposal with no legal status, was signed primarily by governments from Southern and Central-Eastern Europe, the main beneficiaries of the EU’s cohesion funds. The Commission aims to reform these funds by redirecting part of the EU budget toward other policy areas.
In a joint statement, the 14 signatory countries argue for preserving the EU’s cohesion policy as an independent financing mechanism based on a regional allocation model. They warn that dismantling this structure would undermine one of the European Union’s founding political goals: reducing economic disparities between subnational regions.
Cohesion funds, amounting to nearly €400 billion and currently the EU’s second-largest budget item after the Common Agricultural Policy (CAP), are distributed based on regional GDP per capita. This model aims to support less developed areas in catching up with the EU average.
However, under the European Commission’s proposed plans for the next Multiannual Financial Framework (MFF) beyond 2027, these funds would no longer exist as a standalone category. Instead, they would be transformed into “national investment plans.”
The reform envisions merging cohesion and agricultural funds with other budget lines, such as green transition and innovation. Allocation would shift from an automatic regional formula to a nationally managed one. Moreover, the new approach would link funding to specific reform milestones, a “money-for-reforms” model that critics say could open the door to political and ideological pressure, as seen with the post-COVID recovery funds.
Beyond the redistribution mechanism, the restructuring would pave the way for deep cuts to the EU’s long-term budget. Agricultural funds alone could face reductions of 15% to 20% in the next cycle. Farming unions and right-wing parties in the European Parliament have been sounding the alarm for months, but the Commission has pressed ahead, dismissing mounting opposition.
The 14 signatory states face an uphill battle. Major net contributors to the EU budget, such as Germany and France, support the Commission’s proposal. If Brussels manages to sway just one or two dissenting countries, the reform could pass with little effective resistance.
