Introduction to Policy Proposals On September 9, 2025, Executive Vice-President Raffaele Fitto addressed the European Parliament emphasizing ongoing and future initiatives in EU cohesion policy. He stressed the importance of a collaborative approach between EU institutions, Member States, and regions in shaping a modernized policy framework.
Concrete Funding Commitments and Flexibility Fitto highlighted a significant financial allocation: €450 billion earmarked for cohesion policy, rural development, and fishing communities, with at least €218 billion dedicated to less developed regions. This underscores a strong commitment to regional economic convergence and social inclusion. The proposed mid-term review aims to simplify processes and increase flexibility, allowing accelerated investment, particularly through instruments like the Just Transition Fund (JTF), which has already contracted 46% of its funding.
Housing and Just Transition Acknowledging the housing crisis across Europe, Fitto supported increasing cohesion investment in affordable housing via the new European Affordable Housing Plan. However, he recognized cohesion policy alone cannot solve this complex issue, advocating for complementary funding, including revised State aid rules. He also emphasized the role of cooperation in implementing the Just Transition Fund to support climate-neutral economies in vulnerable regions.
Policy Orientations and Cleavages Fitto's speech advocates for increased EU financial involvement (more budgetary power) while maintaining shared management and multi-level governance, thereby balancing EU integration with respect for national and regional autonomy. Simplification measures suggest a reduction in administrative burdens. The emphasis on prioritizing less developed regions favors social welfare enhancement over market liberalization in these areas.
Stakeholder Impact - EU regional authorities and Member States gain increased funding but face obligations for coordination and partnership. - Regional economies in less developed areas stand to benefit from targeted investment promoting competitiveness and social inclusion. - The construction and affordable housing sectors may experience growth opportunities but encounter demands for compliance with diversified funding and regulatory frameworks. - EU taxpayers indirectly support a substantial budget envelope aimed at reducing regional disparities, with the trade-off of increased public expenditure.
In conclusion, Fitto’s position outlines a direction towards strengthened cohesion policy through substantial funding, simplification, and multi-sectoral cooperation. The balance between EU intervention powers and regional autonomy remains central, with an ongoing dialogue foreseen to refine and implement these proposals.
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