Future of EU cohesion policy: challenges and opportunities 2025!

Future of EU cohesion policy: challenges and opportunities 2025!

On July 14, 2025, the European Commission will present proposals for the Multiannual Financial Framework (MFF) and cohesion policy from 2028. These proposals are particularly important as cohesion policy accounts for almost a third of the entire EU budget and is therefore crucial for strengthening economic, social and territorial cohesion in Member States. The objective is clear: regional imbalances should be reduced and the competitiveness of the EU regions should be promoted. DIHK reports that the European Commission will also address the impact of the financing plans on key areas such as environmental protection and climate resilience in its upcoming proposals.

Discussions about the future of cohesion policy currently revolve primarily around possible financial cuts in favor of defense spending and considerations of greater centralization of the management of cohesion funds. This centralization could limit the regions' scope for action and lead to less tailored measures. The high administrative burden of applying for funds from programs such as the European Regional Development Fund (ERDF) and the European Social Fund (ESF) is also a key issue. The demands for standardization and digitalization of procedures are increasing in order to ensure efficient, targeted and unbureaucratic use of funds.

Challenges and requirements for cohesion policy

The need for a readjustment of the content of cohesion policy is unmistakable. The return to clear core goals, such as the creation of attractive location conditions and investments in infrastructure as well as the promotion of skilled workers and training measures, is considered essential. In the spirit of sustainable development, the Federal Environment Agency demands that at least 30% of the MFF funds be used for climate protection in order to promote competitiveness and social satisfaction while ensuring a healthy environment. Federal Environment Agency emphasizes that this targeted orientation is also necessary to take regional characteristics into account and to expand future topics such as climate neutrality and biodiversity.

In this context, several strategic elements need to be taken into account: Regional transition plans need to be developed that adopt a participatory approach to ensure a fairer transition for all stakeholders, especially for workers and trade unions. It is important to avoid path dependencies and exclude unsustainable technologies. The just transition ensures that the population is actively involved in the transformation processes.

In the coming months, European, national and regional politics will intensively address the EU Commission's proposals. Negotiations with the EU Parliament and the Council will follow, with a final agreement having to be confirmed unanimously by the member states and by a majority vote by the EU Parliament. It is the responsibility of all actors not to lose sight of the interests of the commercial economy in order to ensure a balance between economic growth and social and ecological goals.