Context:Fitto Speaks to Economic and Security Challenges
Executive Vice-President Raffaele Fitto delivered the welcome and opening speech at the EU Investments Conference “ES+U” held in Vilnius on 25 September 2025. Focusing on the backdrop of the ongoing war of aggression against Ukraine, Fitto highlighted the particular pressures on eastern border countries and framed the EU’s response as a defense of shared values and territory.
Mid-Term Review: Modernizing Cohesion Policy
Fitto emphasized cohesion policy’s importance, representing one third of the current Multiannual Financial Framework (MFF), as the EU’s main tool for reducing regional disparities. Drawing on extensive consultations with ministers, regions, and stakeholders, he elaborated on the mid-term review package now in force. This review primarily seeks to modernize cohesion policy by introducing more flexibility, simplified rules, higher co-financing and pre-financing rates, and longer implementation periods. It offers member states and regions voluntary options to reallocate funding toward five priority goals: competitiveness (strategic tech investments), energy transition (interconnectors charging infrastructure), affordable housing, water resilience, and defence (including dual-use infrastructure).
Policy Orientation and Cleavages
The proposals indicate a notable shift toward increasing EU financial support for defence-related projects at regional levels, blending civilian and military purposes—a move strengthening the EU’s role in security through cohesion funds. At the same time, they maintain a strong focus on traditional cohesion goals like competitiveness and environmental resilience. This reflects a blend of increasing EU powers in security funding versus continuing emphasis on social and economic cohesion. Simplification and flexibility measures suggest responsive governance, yet also raise questions about administrative readiness to manage more fluid resource allocation.
NextGenerationEU and Synergies
Fitto touched on the Recovery and Resilience Facility (RRF) nearing its 2026 deadline. He outlined ongoing work to help member states reallocate unused RRF funds through cohesion policy, enhancing policy coordination and continuity.
Focus on Eastern Border Regions
The Commissioner’s repeated visits to eastern border regions and his engagement in launching the Pact for Eastern Border Regions underline a strategic priority. This pact aims to combine physical and economic security measures, support the defence sector, revive business confidence, and restore tourism, particularly targeting regions impacted by the Ukraine war.
Stakeholder Impact
- Eastern border member states and local authorities stand to gain through targeted investments in defence, infrastructure, and economic revitalization, but face challenges in adapting to new administrative procedures under flexible reallocation.
- Defence and dual-use industries benefit from access to cohesion funds, potentially increasing their regional presence and innovation opportunities.
- Companies in strategic technologies and energy sectors could see growth opportunities from prioritized funding.
- Citizens in diverse regions, including rural and urban areas, may experience improved services but might face transitional uncertainties during policy implementation.
Overall, Fitto’s speech outlines concrete policy proposals reinforcing EU-level investment in both economic cohesion and defence capabilities, signaling a nuanced evolution of cohesion policy that integrates security considerations without forsaking social and economic objectives.