Today’s vote on the mid-term review for cohesion policy funds and European Social Funds unlocks the potential to reprogram EU funds toward urgent priorities, while also reinforcing the rule of law. Millions of Europeans will profit from these new rules. During the negotiations, Renew Europe secured a majority for crucial reforms, ensuring that Member States and regions can respond to pressing needs. This includes more support for defence and civil preparedness, decarbonisation, affordable housing, strengthened support for eastern borders, and reinforced multi-level governance, as well as a prolonged Just Transition Fund (JTF) and the flexibility to shift unspent funds to projects in housing, electricity grids, and water management. These measures directly address the specific challenges faced by Europe’s regions. Now, Member States and regions - in line with their needs - can benefit from the possibility to shift unspent funds to housing, electricity grids, water management, decarbonisation, defence and civil preparedness. This will address to specific challenges of regions.
Ľubica Karvašová, Renew Europe shadow rapporteur, said:
“We fought hard to put Europe’s regions and citizens first. We secured funds not just for defence and civil preparedness, but for what people truly need: affordable housing, reliable electricity grids, and better water management. We defended poorer regions, small and medium enterprises, the continuation of the Just Transition Fund and the rule of law, because Europe’s money must serve Europe’s people. This compromise is progress, but it is only the first step-in the coming 7-years EU budget, we will demand stronger safeguards.”
The approved major changes will secure the continuation of funds, and Members States and regions can - on a voluntary basis - redirect resources towards investment in five areas: defence and security, competitiveness and decarbonisation, affordable and sustainable housing, water management and water resilience, and energy transition.
Renew Europe was at the forefront to protect the rule of law and prevent Member States from reprogramming frozen funds, protecting EU taxpayers' money from misuse. Furthermore, Members States need to consult with regions before they can reallocate resources already programmed for the different territories. This gives more power to local and regional communities. Brigitte van den Berg, Renew MEP and member of the Committee on Employment and Social Affairs added:
“Europe needs to be on the side of people, and with this report we achieve this goal. This is a fund that invests in people, and we are very happy that the changes reflect the new challenges Europe faces since the inception of the fund. Therefore, I am very happy with the new investments in skills for defence and decarbonisation. However, I do want to mention that rule of law is of great importance for Renew and therefore I call on the Commission to make sure that no circumvention of the rule of law provisions will be allowed.”
Another major step is the support for small and medium enterprises especially in less developed regions as well as the prolongation of the Just Transition Fund (JTF). This Fund provides financial support for regions most negatively affected by the transition to a climate-neutral economy with targeted funding for economic diversification, worker reskilling, clean energy investments, and the environmental rehabilitation of former industrial sites.
The mid-term review amends the existing regulations on the European Regional Development Fund (ERDF) and the Just transition Fund (JFT) to address strategic challenges and helps to make the EU more competitive, resilient and independent so that it is better equipped to face global challenges. It will enter into force very shortly.
