Germany Proposes New Framework for EU Cohesion Funds Tied to Reforms
A study for the German government suggests linking EU cohesion funding to member states' reform agendas ahead of the next budget cycle.
Brussels – Germany has put forward a proposal for a revised framework concerning the distribution of EU cohesion funds, suggesting that their allocation be contingent upon member states' commitments to implement specific reforms.
This proposal is part of a study commissioned by the German Ministry of Economic Affairs and Climate Action and was presented during a session of the European Committee of the Regions (COR).
The initiative is geared towards enhancing the European character of cohesion funds, moving away from locally driven criteria towards a model reminiscent of the European Semester, which coordinates economic and budgetary policies among EU member states.
The focus of the study highlights the need for improved governance in the use of resources allocated for cohesion, particularly in view of the upcoming multi-year financial framework (MFF) set for 2028-2034.
Notably, the report does not emphasize reforms in light of the EU enlargement process but rather underscores better governance and resource management principles.
The authors of the study argue that integrating evaluations of reform implementation with fund disbursements could enhance the performance and absorption of resources, addressing the disparities among member states such as Italy, which faces challenges in fully utilizing available funds.
The German proposal also reintroduces the concept of advance evaluations, which were developed in the 2014-2020 programming cycle but were not included in the current cycle.
These evaluations would serve as conditionalities, linking the release of funds to the demonstration of socio-economic benefits derived from investment in reforms.
Nicola De Michelis, Deputy Director-General of the European Commission’s Directorate-General for Regional Policies, acknowledged the proposal's underlying rationale, emphasizing the need for efficient use of EU funds.
He noted a prevailing concern that approximately one-third of the EU budget does not yield significant outcomes due to numerous fragmented projects, thereby obscuring the connection between funding and the broader EU agenda.
As discussions on the next phase of cohesion policy continue, the German proposal seeks to balance the need for stringent oversight and accountability with the empowerment of local governments, promoting regional foresight processes to foster strategic development programs.
This proposal is part of a study commissioned by the German Ministry of Economic Affairs and Climate Action and was presented during a session of the European Committee of the Regions (COR).
The initiative is geared towards enhancing the European character of cohesion funds, moving away from locally driven criteria towards a model reminiscent of the European Semester, which coordinates economic and budgetary policies among EU member states.
The focus of the study highlights the need for improved governance in the use of resources allocated for cohesion, particularly in view of the upcoming multi-year financial framework (MFF) set for 2028-2034.
Notably, the report does not emphasize reforms in light of the EU enlargement process but rather underscores better governance and resource management principles.
The authors of the study argue that integrating evaluations of reform implementation with fund disbursements could enhance the performance and absorption of resources, addressing the disparities among member states such as Italy, which faces challenges in fully utilizing available funds.
The German proposal also reintroduces the concept of advance evaluations, which were developed in the 2014-2020 programming cycle but were not included in the current cycle.
These evaluations would serve as conditionalities, linking the release of funds to the demonstration of socio-economic benefits derived from investment in reforms.
Nicola De Michelis, Deputy Director-General of the European Commission’s Directorate-General for Regional Policies, acknowledged the proposal's underlying rationale, emphasizing the need for efficient use of EU funds.
He noted a prevailing concern that approximately one-third of the EU budget does not yield significant outcomes due to numerous fragmented projects, thereby obscuring the connection between funding and the broader EU agenda.
As discussions on the next phase of cohesion policy continue, the German proposal seeks to balance the need for stringent oversight and accountability with the empowerment of local governments, promoting regional foresight processes to foster strategic development programs.
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