Context and Key Messages
At the conference titled "The European Way of Growth: A Growth Policy for a Secure, Resilient and Globally Competitive Europe," Commissioner Raffaele Fitto delivered a speech focusing on the modernization of the EU's cohesion policy. Drawing on Poland's success within the EU framework as a model, Fitto emphasized the pressing challenges of competitiveness, green and digital transitions, demographic decline, and the need to counter brain drain in many European regions.
Concrete Proposals and Policy Direction
Fitto outlined four key messages. The first calls for accelerating the implementation of current cohesion programmes by improving absorption rates and simplifying bureaucratic procedures, particularly through a mid-term review. The second focuses on urban development with the upcoming EU Agenda for Cities, which aims to address sustainable development, affordable housing, climate action, and social inclusion. This includes a European Plan for Affordable Housing and the expansion of the New European Bauhaus initiative targeting inclusive and resilient housing.
Looking forward, Fitto's third message sets the tone for the next multiannual financial framework (MFF) negotiations, emphasizing a more strategic, performance-based cohesion policy. The proposals highlight increasing flexibility, simplifying funding landscapes, fostering local and regional authority involvement, and tailoring interventions to member-specific needs. Lastly, Fitto pledged ongoing consultation and incorporation of stakeholders’ feedback to refine cohesion policy.
Political and Stakeholder Implications
The proposal advocates a shift towards increasing EU policy powers through enhanced coordination, simplification, and strategic alignment across member states, while promoting local and regional autonomy in implementation. Business sectors related to construction and housing may experience growth opportunities from increased investment but also face stricter sustainability and social inclusion requirements, potentially raising compliance costs. Citizens in rural and border areas may benefit from enhanced services and job prospects, countering demographic decline. National authorities are expected to engage more intensively in policy alignment and programme delivery, potentially facing administrative pressure to accelerate fund absorption.
The speech carefully balances calls for strengthening EU cohesion policy with sensitivity to emerging security concerns and demographic challenges, positioning the policy as a tool to fortify Europe’s resilience and global competitiveness. It leaves room for political negotiation regarding budget allocations and the scope of policy reforms in the upcoming funding cycle.