Urban vs. Rural Funding Sparks Debate Between Fitto and EPP
The main fault line of the December 3, 2025 REGI Committee debate in the European Parliament crystallized around executive vice-president Raffaele Fitto's vision of urban-focused EU cohesion policy and the European People's Party (EPP) members' vigorous defense of rural areas. Fitto defended the EU Agenda for Cities and the 2025 Annual Progress Report emphasizing simplification, flexibility, and multi-level governance with integrated urban development as a mandatory approach—yet firmly rejected fixed minimum funding thresholds for cities to preserve Member States' discretion. By contrast, EPP representatives including Isabelle Le Callennec, Elena Nevado del Campo, and Gabriella Gerzsenyi voiced alarm that rural territories risked being overshadowed, calling for explicit anti-depopulation measures and questioning cuts in rural earmarking.
The 2028–2034 Multiannual Financial Framework (MFF) and Cohesion Policy Review
This intense exchange took place during a wide-ranging REGI committee session covering the MFF 2028–2034, the CAP and ESF reforms, the EU Cities Agenda, and cohesion policy's mid-term review. Apart from the urban-rural funding divide, the debate scrutinized issues of centralization versus multi-level governance, simplification of administrative burdens, fund allocation, digital connectivity, and territorial strategies for islands, outermost regions and borders.
Concrete Proposals vs. Vague Assurances
Fitto presented detailed policy plans including tools like the EU Cities Portal and capacity-building platforms aimed at simplification. He assured about a €5.1 billion reallocation to new priorities and reaffirmed the principle of multi-level governance though he did not concede to fixed minimum shares for cities. DG EMPL, represented by Ruth Paserman, provided clarity on ESF reform targets—specifically a 14% social target and new financing rules separated from previous cost-based methods.
On the other hand, EPP speakers like Daniel Buda provided pointed criticism with concerns about IT system incompatibility, uncertainties in funding streams, and strong opposition to merging the Common Agricultural Policy (CAP) and cohesion funding. Buda and other EPP MPs highlighted concrete risks such as rural depopulation, loss of farmer income support and food security threats, pointing to a consensus against this merger for diluting policy effectiveness.
Cleavages Revealed: Centralized Funding vs. Territorial Flexibility
The debate showed a cleavage over the increasing centralization implied by National Partnership Plans, criticized for sidelining local authorities. S&D and Greens/EFA called for stronger blocking mechanisms for cities not consulted. ACross-the-board calls emerged for simplifying compliance burdens, balancing consumer protection (urban dwellers and social inclusion) with ensuring competitiveness and sustainability in rural farming sectors.
Impact on Stakeholders
The urban agenda proposed by Fitto promises enhanced funding and streamlined access for cities, potentially benefiting urban administrations, local businesses, and EU consumers through improved infrastructure and digital inclusion. Conversely, rural communities, farmers, and regional authorities could face moderate negative impacts from perceived funding dilution and the merging of CAP with cohesion policies—potentially complicating access to dedicated support.
Next Steps and Institutional Follow-up
The REGI Chair, Dragoș Benea, signaled an organized timeline for amendments and voting on the report. The Commission's willingness to engage in dialogue on co-funding rules and allocation nuances, combined with strong parliamentary scrutiny, suggests future negotiations will seek compromises that address regional inequalities while preserving flexibility and simplification ambitions.
In sum, the December 3 debate laid bare significant disagreements on the balance between urban and rural priorities, centralization versus local empowerment, and the shape of the CAP and cohesion relationship in the next EU budget cycle—issues that will resonate through the upcoming legislative negotiations.