Putting regions at the heart of Europe’s next budget

As the EU prepares for the post-2027 Multiannual Financial Framework (MFF), we face a defining choice: will our next long-term budget reflect the lived realities of Europe’s people and regions — or drift toward centralisation and uniformity?

The European People's Party group in the European Committee of the Regions believes firmly in the former. We advocate for a strategic, place-based MFF that empowers our territories, sustains cohesion, and boosts competitiveness.

The EU’s strength lies in its diversity — economic, social, and territorial.

Local and regional authorities (LRAs) are the democratic foundations of the European project. They know the needs on the ground. That is why the next MFF must reflect this complexity through a place-based approach, which implies greater engagement of regional and local authorities in the design and delivery of EU funds and policies. 

Tailor-made strategies

This requires not only active subsidiarity, but binding provisions to guarantee genuine dialogue across all levels of governance.

Subsidiarity means that we, as Europeans, have the right to shape how our lives and communities develop — moving together toward a peaceful and prosperous future.

Regions like Prešov and Košice, where capacity exists but centralised control often hinders responsiveness, are a clear example of why decision-making in EU fund management must be shifted closer to the people it is meant to serve.

In the outermost regions, such as the Canary Islands, the case is even stronger: EU policies must be adapted to their specific geographic, economic, and social realities. Their unique position calls for tailor-made strategies and robust local implementation, underscoring the need for LRAs to be at the forefront of delivering the EU’s strategic agenda.

This also means recognising the strategic importance of rural areas — not merely as zones to compensate, but as vital actors in Europe’s triple transition: green, digital, and demographic.

The future of the EU budget cannot be decided behind closed doors in Brussels — it must be co-created with those who live and work in Europe’s regions

Places like Plœuc-l’Hermitage in Brittany illustrate how rural communities can lead in sustainable agriculture, biodiversity preservation, and local innovation. The next MFF must ensure stable and dedicated funding for such areas, anchored in the EU budget and reflecting their role in food sovereignty, ecosystem services, and territorial cohesion.

We must also acknowledge the changing nature of challenges.

While security, digitalisation, and resilience are rightly rising in priority, they must not come at the expense of the EU’s founding pillars — cohesion, and the Common Agricultural Policy (CAP). These traditional policies must evolve and modernised by integrating with new goals while maintaining their strategic value and funding.

Simpler, quicker procedures

Cohesion and competitiveness are not contradictory — they are complementary.

For Europe to thrive globally, all its regions must thrive. That includes regions in transition and rural areas, but also industrial powerhouses like Bavaria and innovation-driven regions such as Zuid-Holland.

A forward-looking Cohesion Policy must help prevent even economically strong regions from stagnating or falling behind due to structural or demographic shifts. By supporting high-tech ecosystems, green innovation, and knowledge-intensive sectors — as seen in Zuid-Holland — cohesion policy actively contributes to Europe's competitiveness.

Flexibility in the MFF is essential — but it must be smart and strategic without derailing long-term objectives. We support the creation of flexible budgetary reserves and simpler, quicker procedures – so regions can respond to crise and cater for their particular needs and specificities.

Using differentiated indicators complementary to GDP that reflect socioeconomic diversity will help to adapt the EU co-financing on the ground. And we should empower implementing authorities with procedural agility and reduced compliance burdens — especially smaller municipalities.

Preserving proximity

At a recent meeting with MEPs from the EPP Group in the European Parliament’s Working Group for Budget and Structural Policies, we agreed that centralisation would be a major step backward.

The real strength of EU lies in its regions and cities, allowing territories to define their priorities and innovate accordingly. The next MFF must preserve the proximity. Europe needs to be closer to the ground and to the daily life of our citizens. 

In closing, I call on the European Council and all its formations to engage early in structured dialogue with the European Parliament and local and regional governments.

The future of the EU budget cannot be decided behind closed doors in Brussels — it must be co-created with those who live and work in Europe’s regions.

Furthermore, the next MFF must be equipped with sufficient financial means, new own resources, and incentives for private investment and public-private partnerships. Only then can we truly bring Europe closer to its citizens.

The EPP-CoR stands ready to work with all partners to shape a modern, transparent, inclusive MFF that delivers real impact on the ground — from Cantabria to Bavaria, from Zuid-Holland to Prešov and Košice, from the Canary Islands to the rural innovation of Plœuc-l’Hermitage, and across all of Europe’s vibrant territories.

EUobserver is a member-supported publication – please consider a membership so we can keep reporting on issues that matter.