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MEPs Clash Over EU Regional Funding Rules: Hungarian MEP Kozma Opposes While German M&D Advocate for Stricter Controls

EU Funding & Programmes · Regions & Rural areas · Debates · 2026-03-24

MEPs Mareike Müther & Katalin Kozma engaged in a pointed exchange regarding EU regional funding governance during the REGI meeting of the European Parliament held on March 24, 2026. The clash centered on the balance between increasing EU oversight of structural funding and preserving national sovereignty and administrative flexibility.

Hungarian MEP Katalin Kozma voiced concerns about bolstering the European Commission’s authority in allocating EU regional funds. She emphasized national authorities’ lead role in managing territorial development policies, warning that heavier top-down EU control risks undermining local tailored solutions and regional autonomy. Kozma’s opposition highlighted fears that stronger EU supervision could impose excessive bureaucratic burdens and diminish local policymakers’ ability to adapt funding to specific regional needs.

In contrast, German MEP Mareike Müther advocated for reinforcing the European Commission’s regulatory oversight to ensure sound management of European Structural and Investment Funds (ESIF). Müther called for enhanced transparency, stricter adherence to financial rules, and stronger anti-fraud mechanisms. She proposed more rigorous ex-ante conditionalities and tighter deadlines to increase accountability. Müther prioritized safeguarding the budget’s integrity and efficient fund utilization, even if this meant increasing complexity for national and regional authorities.

The debate took place within the European Parliament’s Committee on Regional Development (REGI) on March 24, 2026. It revolved around legislative amendments focused on the financial management and supervision of Cohesion Policy funds under the Multiannual Financial Framework 2027-2033.

Concretely, Müther put forward proposals for establishing firmer EU compliance checks, backed by quantifiable measures like binding timelines for reporting, and calls to increase Commission staffing charged with fund supervision. These moves represent an orientation toward extending EU powers, tightening regulatory frameworks, and enhancing institutional oversight. Conversely, Kozma’s position was more cautious and defensive of national competencies without presenting detailed counter-proposals but rather offering calls for subsidiarity and proportionality principles.

The core cleavage was one of increased versus restrained EU intervention in regional policy administration. Müther’s approach implies higher compliance costs and administrative workloads for regional and national authorities, potentially slowing implementation but increasing financial transparency and reducing risks of mismanagement. Meanwhile, Kozma’s stance champions flexibility and local decision-making, benefiting regional policymakers and potentially accelerating disbursements but risking inconsistent application of rules and transparency.

Stakeholders most affected by this divide include EU producers and businesses depending on regional development projects, who would face either more stringent spending conditions or benefit from more aligned regulatory certainty. National authorities confront trade-offs between managing autonomy versus adhering to EU-imposed deadlines. The European Commission itself would gain stronger institutional influence and responsibilities, potentially requiring expanded staffing resources. EU taxpayers anticipate improved fund efficiency under Müther’s proposals but may also experience longer project initiation phases.

Overall, this debate signals an ongoing political balancing act within the Parliament on how to reconcile efficient fund governance with respect for national sovereignty and local needs. The outcome will guide the future shape of Cohesion Policy governance rules in the forthcoming Multiannual Financial Framework period. The Parliament is expected to proceed with further trilogue negotiations with the Council and the Commission, where these tensions between central oversight and decentralization will be key to resolving the final legislative text.

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