A series of proposals for revising cohesion policy by paving the way for the use of funds such as NSRF in investments related to defense and security, presented today (1.4.2024) or European Commission.
More specifically, the European Commission revises EU cohesion policy, encouraging Member States to invest in European strategic priorities, such as: defense and safety, financial housing, energy transition, enhancing water resilience and EU exemption.
Support of defense industry and support of eastern border areas
Among other things, today’s proposal will further allow Member States to use current cohesion funding to build resistant infrastructure to promote military mobility. It will also support the production capabilities of small and large defense businesses in all EU regions.
In addition, cohesion programs in the eastern border areas, which are disproportionately affected by the Russian offensive war against Ukraine, will benefit from a preferable pre -finance level if they transfer at least 15 % of their total funds to new strategic priorities.
Economic incentives in the context of strategic priorities
The Commission notes that, while all cohesion projects developed in the context of EU strategic priorities will be entitled to up to 30 % of pre -finance, cohesion programs, which will transfer at least 15 % of their total funds to these priorities, will receive an even higher level of advance payments. In addition, EU funding for strategic priorities will cover up to 100 % of the costs in all regions.
The Executive Vice President of the Commission, responsible for cohesion and reforms, Rafael Filohe said: “With today’s proposal, we are making cohesion policy clearer, more targeted and more efficient, aligning it with EU challenges. We must act urgently to enhance competitiveness, accelerate energy transition, strengthening defense, safeguarding. To achieve this, we reduce bureaucracy, optimize funding conditions and expand investment opportunities. “
Today’s amendments to cohesion policy laws proposed in the context of the 2025 interim review, will be discussed by the European Parliament and the Council. The aim of the Commission is to complete the procedure of recrogramming the intermediate review with the Member States and the Regions in 2025, so that the new programs begin to be implemented in early 2026.
With a budget of EUR 392 billion during the current planning period of 2021-2027, cohesion policy is the EU’s main investment policy. Member States will be called upon to reschedule, on a voluntary basis, part of their cohesion funds for the period 2021-2027 in new investments in the context of the inner review.
Source: RES – EIA