Emphasizing cooperation between EU institutions and regional authorities, Executive Vice-President Raffaele Fitto addressed the joint meeting of the European Parliament's Committee on Regional Development and the European Committee of the Regions. His speech centered on the importance of modernizing cohesion policy to better respond to evolving challenges and align with new European priorities.

Mid-Term Review Introduces Flexibility and Priority Focus Fitto highlighted a recently enacted mid-term review package designed to offer Member States and regions options and incentives to adapt their cohesion programmes. This initiative prioritizes five strategic goals: competitiveness, energy transition, affordable housing, water resilience, and defence. These focal points reflect both urgent needs and long-term European strategic interests.

Maintaining Regional Autonomy Within a Streamlined Framework The mid-term review aligns with the European Commission's Multiannual Financial Framework proposal, which introduces unified rules intended to simplify EU funding while preserving cohesion policy's fundamental principles—shared management, partnership, multilevel governance, and a place-based approach. Approximately €450 billion is earmarked for cohesion-related funding, with less developed regions guaranteed around €218 billion to address economic disparities.

New Territorial Strategies Target Specific Regions Beyond funding, Fitto introduced upcoming initiatives including the EU Agenda for Cities, Pact for Eastern Border Regions, and strategies tailored for outermost regions, islands, coastal communities, and an initiative termed "Right to Stay". These strategies seek to bolster resilience, connectivity, economic diversification, and social inclusion across varied territorial contexts.

Political Cleavages and Stakeholder Impact Fitto's proposals reflect a nuanced balance between increasing EU funding and regulatory coherence versus maintaining regional autonomy and partnership governance. For regional and national authorities, the reform offers enhanced flexibility but may entail administrative adjustments to align local plans with EU frameworks. EU producers and service providers in sectors linked to energy, housing, and water will face opportunities for innovation alongside compliance with updated programme goals. Meanwhile, citizens stand to benefit from tailored regional development and improved public services; however, the effectiveness depends on timely implementation and coordination.

In summary, Fitto's speech outlines a concrete policy orientation towards modernization, simplification, and place-based cohesion, mixing detailed budgetary allocations with strategic initiatives. Stakeholders can expect a blend of continued EU support with increased demand for collaborative regional planning.

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