Latest news with #CohesionPolicy
Euractiv
5 days ago
- Business
- Euractiv
MFF: EU proposes historic €2 trillion budget
The European Commission proposed the largest long-term EU budget in the bloc's history Wednesday, merging historically separate farming and regional spending programmes into country-specific national plans and creating a €400+ billion fund to boost ailing industry. Brussels' proposed post-2027 "Multiannual Financial Framework" will amount to just under €2 trillion, or 1.26% of the bloc's gross national income, Ursula von der Leyen told reporters. This is well above the current budget, which amounts to 1.13% of the bloc's GNI. "The next MFF will be the most ambitious ever proposed. It is more strategic, more flexible, more transparent, and we're investing more in our capacity to respond and more in our independence," von der Leyen said. Europe's Common Agricultural Policy (CAP) and Cohesion Policy, which for decades have consumed a third each of the bloc's budget by providing subsidies to farmers and development funds to Europe's poorer regions through some 500 separate funding schemes, should be combined into just 27 'national and regional partnership plans' , Serafin said. The plans collectively amount to €865 billion, or less than half of the total budget. "The goal of the next of this next MFF is a modern, more flexible budget that builds on past successes and responds to the challenges of today, but also tomorrow," Serafin said. "You will see that reflected in overall figures, in new spending categories, and in the changes we have made to the structure and principles of the budget." A much-vaunted Competitiveness Fund (ECF), which will also seek to 'crowd in' hundreds of billions of euros of private investments in strategic sectors, will merge up to twelve distinct initiatives to bolster the EU's beleaguered industry and prevent the bloc falling further behind China and the US, he added. This is a developing story. (mm)
Euractiv
5 days ago
- Business
- Euractiv
Cohesion crunch: Europe's regions brace for loss of catch-up funds
Commission plan sidelines regions from EU funding decisions. Euractiv is part of the Trust Project Nikolaus J. Kurmayer Euractiv Jul 16, 2025 06:00 4 min. read News Based on facts, either observed and verified directly by the reporter, or reported and verified from knowledgeable sources. Regional authorities are set to lose control over billions in EU funds, as the European Commission is set to dismantle a decade-old policy that gave them a direct role in shaping how cohesion money is spent. After receiving a third of the EU budget for decades, regional chiefs are in for a rough awakening. On Wednesday, the Commission will unveil the radical overhaul of the €300 billion-plus cohesion policy, originally designed to help poorer regions catch up. 'From behind the smoke of simplification and efficiency, a 'Big Ugly Bill' will emerge,' warned Kata Tüttő, the president of the EU's regional representation body, in early July. According to a draft law seen by Euractiv , t he policy will be reshaped in four ways that 'increasingly blur its fundamental principles,' Sabrina Repp, an S&D MEP from Germany who focuses on the catch-up funds, told reporters on Tuesday. What could change Capitals in charge. Regional authorities, currently allowed to negotiate directly with Brussels, would be de facto cut out of the decision-making process. Instead, regions would pitch projects to their respective national capital. Country-first allocations. Rather than distributing funds to the EU's 244 regions based on how far they lag behind the bloc's average, the catch-up funds will be assigned to countries based on their GDP average. Southern Italian regions, for example, are economically poorer than their northern counterparts, but they would receive less under the new rules because of Italy's overall GDP. New strategic priorities. An April review of the catch-up funds, which had hardly been spent up to that point, introduced a host of new priorities: defence, affordable housing, water resilience, energy, and Eastern border countries and cities – all of which compete with the original goal of boosting laggard regions. Big firms over SMEs. The review also stressed the need to stop supporting just small-and medium-sized enterprises (SMEs) in lieu of bolstering larger firms. "With the cake staying the same size, big firms stand to benefit at the expense of SMEs," said a Parliament source, speaking candidly, calling the move a major shift. Big firms are more competitive, the Commission's thinking goes. 'This mid-term review marked the beginning of a fundamental restructuring of cohesion policy,' explained Repp. A coalition of majors and cities backing the policy, gathered under the banner of the 'Cohesion Alliance' are already looking to 2026, having failed to avert the Wednesday proposal that one member described as 'doomsday." "We are mobilised to fight for a strong Cohesion Policy after 2027,' reads an email seen by Euractiv addressed to 'Cohesion advocates' all over Europe. Cohesion policy problems Not everyone is expected to mourn the possible dismantling of cohesion policy. The Germans, who contribute the biggest share of the EU's seven-year budget, have long considered an overhaul inevitable . As it stands, the policy " is clearly overfunded and ineffective in many recipient regions with weak institutions, like southern Europe,' said Friedrich Heinemann, an analyst at the Centre for European Economic Research (ZEW). For Heinemann, the very premise of the policy is flawed. 'The EU's promise of catching up is primarily based on the single market,' he explained, suggesting Eastern Europe's economic gains were driven not by cohesion transfers but by "competitive" integration into the bloc's internal market. A 2023 study also shows that while cohesion funds do boost growth, most of the money goes to the rich in poor regions, widening inequality gaps. Thomas Schwab, a researcher at the Bertelsmann foundation, fears that the Commission's proposal which 'focuses only on the wealthiest regions' will inevitably 'weaken the core of the European idea.' 'What is currently being presented as 'flexibilisation' often means in practice a watering down and thus a weakening of this essential pillar of the EU.' (mm) Euractiv is part of the Trust Project
Euronews
5 days ago
- Business
- Euronews
5 key ideas behind the EU Commission's new farming rulebook
What the European Commission is set to unveil today marks only the first stage of a sweeping transformation that will redefine the Common Agricultural Policy (CAP) at its core. In many ways, the upcoming changes are the culmination of reforms initiated in response to farmers' protests, focused on simplification and reducing conditionality. Now, these efforts are being pushed to their logical extreme. Yet, EU Agriculture Commissioner Christophe Hansen faces a challenging road ahead, as the reforms are expected to be seen as drastic. At the heart of the shift is an unprecedented simplification: the CAP will be absorbed into a single fund—alongside previously distinct funding mechanisms like Cohesion Policy or the EU's fisheries subsidies—under a unified set of delivery rules for disbursing funds. One of the most symbolic changes is the abolition of the long-standing CAP structure built around two pillars, a structure in place since the 1999 reform. For CAP 'traditionalists', this is a major blow. Despite the clear rationale behind this overhaul—simplify the EU's farming rulebook—the new architecture of EU agricultural subsidies will be among the most complex elements of the upcoming EU budget. Here are five key ideas underpinning the reform: 1. Evolution toward revolution Since taking office, Commissioner Hansen has repeatedly pointed out that the next CAP would be an "evolution, not a revolution". But the reality seems to contradict his rhetoric. The new structure—and especially the shift to a single fund and removal of strong conditionality—has left many in the sector surprised, given Hansen's previously moderate stance, which enjoyed support from major stakeholders. In truth, it's a blend of both. The reform is indeed an evolution, building on recent simplification measures introduced after last year's farmer protests. Even the new delivery model, for instance, closely mirrors the current system agreed in 2021 based on 27 national strategic plans. However, these 'evolutionary' elements have now crystallised into a full-scale revolution: a single fund, a single budget heading, and minimal EU-level conditionality. 2. The 'Great Merger' is gentler on agriculture Another long-feared development has come to pass: the merger of regional funds and agricultural subsidies. Both CAP and Cohesion Policy, which account for two-thirds of the EU budget, will now be folded into a broader Single Fund. For the agricultural sector, the impact is softened. A ring-fencing mechanism ensures that a minimum share of the fund remains earmarked for agriculture, protecting it from budgetary flexibility that will affect other areas like cohesion policy more significantly. Despite agriculture receiving special consideration, the von der Leyen Commission's push for radical simplification of the program has proven unstoppable. 3. Rural development is still there (but no longer as a pillar) Since 2000, the CAP has operated under a two-pillar system, separating direct payments (the so-called first pillar) from rural development projects (also known as the second pillar), with the latter funded through multi-annual, co-financed programs. The new EU budget proposal would eliminate the CAP's 'second pillar'—but this doesn't mean rural development will disappear completely. Under the new CAP architecture, rural development actions such as support for small farmers or agri-environmental measures will continue, but no longer as part of a distinct 'pillar' with its distinctive policy objectives. Critical elements such as the terminology, structural division, and foundational aspect are gone, though the substance of rural development (including its co-financed feature) remains. 4. Losing the 'C' in CAP The risk of renationalisation—where the "Common" part in the Common Agricultural Policy begins to fade—has been growing since the previous CAP reform proposed by the then agriculture Commissioner Phil Hogan and agreed on by lawmakers in 2021. That risk is now a reality. Post-2028, CAP implementation will lean heavily on bilateral negotiations between the European Commission and individual member states. Other influential actors, particularly local authorities but also the European Parliament, will have little say. With member states gaining significant autonomy over how funds are spent, the CAP is becoming increasingly national in character, which could undermine its 'common' objectives. 5. Familiar foundations with a few new twists Some foundational CAP elements will remain intact. Area-based income support and coupled income support—both central features of direct payments—will still be in place (with few tweaks). The crisis reserve, introduced in the last reform to address market shocks or disasters, also survives. But there are new features too. Notably, all member states will be required to establish farm relief services. These will provide support when farmers are unable to work due to illness, childbirth, or family care responsibilities, with co-financing from national governments.
Euronews
02-07-2025
- Business
- Euronews
Fourteen member states oppose the Commission's EU budget overhaul
With the proposal for the next EU budget after 2027 just around the corner, the political landscape is far from calm. The latest sign of unrest: fourteen member states have endorsed a non-paper opposing the European Commission's plans to centralise the management and distribution of EU funds. 'Only a distinct and robust budget and a region-based allocation methodology, reflecting the different development levels of regions, together with a stand-alone Cohesion Policy dedicated legislation, can ensure that the next Multiannual Financial Framework (MFF) will deliver long-term unity, competitiveness and convergence across EU regions,' states the document. Bulgaria, Czechia, Greece, Spain, Hungary, Italy, Latvia, Lithuania, Poland, Portugal, Romania, Slovenia and Slovakia signed the non-paper on 'Cohesion Policy in the Future MFF,' aiming to secure a separate pot for narrowing the socio-economic gap between the richest and poorest European regions. The call from more than half of the member states comes in response to a leak about the Commission's plans to create a single funding pot for each EU country (covering around 530 programmes) and to link the receipt of funds to the fulfilment of policy objectives. The potential centralisation of the management and access to EU money would give greater power to national governments and Brussels, while proving detrimental to regions and other departments within the European Commission. European Commission president Ursula von der Leyen is expected to present the budget proposal for the next long-term financial period (2028–2034) on July 16 — but criticism from regions, member states, MEPs, and industry representatives continues to mount. Both Poland and the centre-left Socialists and Democrats (S&D) group in the European Parliament have raised concerns about the Commission's intention to merge dozens of individual funding streams into a single cash pot per member state, as detailed in their respective position papers on the next MFF. 'We will strongly oppose the 'one national plan per member state' approach, as well as the possibility for national plans to be underpinned by a 'payments against reforms' rule,' the Socialists wrote in a letter to von der Leyen sent on Monday. The Socialists — the second-largest group in the Parliament — also called on the Commission chief to propose a larger and more ambitious long-term budget, exceeding the current 1% of the EU's GDP, which is equivalent to around €1.2 trillion. Poland's conservative government, meanwhile, emphasized that future reforms should not lead to further centralisation or the merging of funding instruments. 'Regions should remain at the core of cohesion policy,' its position paper, dated 1 July, states. The EU's Common Agricultural Policy (CAP) and cohesion policy together account for more than two-thirds of the total EU budget — and Poland, which receives the most funding from cohesion policy, insists that their combined share in the MFF should not be less than it is currently. 'One of the priorities of the next MFF should be increasing the importance of economic, social, and territorial cohesion within the EU and striving for convergence,' Poland defends in its position paper. 'Competitiveness and cohesion are the two sides of the same coin,' they conclude.
Euronews
17-06-2025
- Politics
- Euronews
Austrian gunman was obsessed with school shootings, police say
According to police, the gunman was fascinated by school shootings, but his motive remains a mystery. After killing 10 people at the BORG Dreierschützengasse high school in Graz, the perpetrator killed himself. He left the school three years earlier. The incident in Austria's second-largest city was the deadliest mass shooting in the country's recent history. Although his motive for the attack remains unclear, investigators can 'say with certainty that, over the years, he developed a passion for school shootings,' said Michael Lohnegger, the head of Styria province's criminal police office. 'He glorified not just the acts in general, but also the perpetrators who carried out these acts." The gunman had planned the attack meticulously, according to investigators, but they did not know why he chose the date he did for the massacre or why he stopped shooting when he did - the gunman still had many additional bullets. The shooter had no prior criminal record. During a search of his house, police found plans for an explosive attack as well as a non-functioning pipe bomb. Officers also discovered a digital and handwritten suicide note addressed to his parents, although the Director of Public Security Franz Ruf said that it offered no motive. Nine of the 11 people wounded in last week's attack remain in hospital, Lohnegger said on Tuesday, adding that they were not in critical condition. The shooter used two firearms he legally owned to carry out the attack. On Monday, Chancellor Christian Stocker vowed to tighten Austria's gun laws. In the wake of the attack, the mayor of Graz, Elke Kahr, called for a complete ban on private weapons. Gun licenses are "issued too quickly," she said last week. The European Water Resilience Strategy presented this month by the European Commission aims to reduce water pollution, prevent waste and make water accessible to all. The EU's executive body promises to help member states better implement the 2000 Water Framework Directive and three related laws. It will also promote more investment, given the seriousness of the situation. Only 37% of the EU's surface waters have a good ecological status and only 29% have a good chemical status. The continent is the fastest-warming region in the world due to climate change, which has increased the number of water-related natural disasters. Currently, 30% of the EU suffers from water scarcity due to prolonged droughts. Meanwhile, devastating floods caused €325 billion in damage between 1980 and 2023. "Everyone knows the emergency we are in and the investments needed in the sector. We have the numbers," said Hildegard Bentele (Germany/EPP), a centre-right lawmaker who chairs the MEP Water Group at the European Parliament. "We can react with the next EU budget and make better use of Cohesion Policy, because we have seen that the funds have not been used for the necessary investments," she added. According to the European Commission, around €55 billion is spent on water investments across Europe, but there is an annual gap of €23 billion additional funding needed. To address this gap, the EU executive will allocate a larger share of the Cohesion Policy funds, which are intended for less wealthy regions, to water management. In addition, the European Investment Bank will launch a new programme: €15 billion will be available over the period 2025-2027 and it aims to attract a further €25 billion from commercial investors. Industry and agriculture are two sectors that use a lot of fresh water and also contribute to its pollution with chemicals. One of the main issues the Commission intends to address is water pollution, particularly caused by chemicals called PFAS or 'forever chemicals'. "PFAS are substances dubbed forever pollutants because they don't easily break down. So they tend to accumulate over time in the environment. Research has shown that exposure to certain types of PFAS causes serious health problems," said Amandine Hess, Euronews reporter who covered the communication. "The Commission is planning to launch a public-private partnership to support innovation, to clean up pollution from PFAS and other chemicals. The 'polluter pays' principle will be applied, so it means that public funding would be used only for the sites where it has not been possible to identify who is responsible for the pollution," she added. NGOs and the European Green Party say the strategy falls far short of providing concrete answers to the complex problems surrounding water management, pointing to a lack of clear legal requirements and a failure to tackle pollution at source. "The environmentalists are calling for strict management of fertilisers and chemicals. On the other hand, the Commission call to increase water efficiency by at least 10% by 2030 but does not set clear binding targets," said Amandine Hess. MEP Hildegard Bentele admits that a 10% target for water efficiency is "a modest good intention" and acknowledges that member states are lagging behind in implementing legislation, going so far as to say that "we could sanction member states that do not meet the targets". "We are behind schedule, we have not seen much progress in the last 20 years. That is why we need to move faster. I would like to see the Commission more rigorous in this regard in the coming years, including in the new strategy",said MEP Hildegard Bentele. Watch the video here! Journalist: Isabel Marques da Silva Content production: Pilar Montero López Video production: Zacharia Vigneron Graphism: Loredana Dumitru Editorial coordination: Ana Lázaro Bosch and Jeremy Fleming-Jones
