The European Parliament's Regional Development (REGI) committee on 2 June 2026 debated the draft opinion on the budget expenditure tracking and performance framework regulation, with 690 amendments tabled exposing a divide between those prioritising simplification for beneficiaries and those defending cohesion policy's traditional principles. Budget co-rapporteur Jean-Marc Germain (S&D) outlined a delayed timetable—draft report due 7 September, plenary vote in October or November—to incorporate committee inputs, stressing multilevel governance and performance indicators suited to diverse regions. REGI rapporteur Raquel García Hermida-Van Der Walle (Renew) prioritised simplicity for final beneficiaries, meaningful horizontal principles (gender, climate, DNSH), and synergy between cohesion and competitiveness.
EPP shadow Isabel Le Callennec criticised the European Commission for undermining cohesion policy's DNA, warning that horizontal priorities and Annex 1 increase complexity and risk excluding projects, while calling for stronger regional roles and outermost region provisions. S&D's Andi Cristea backed an efficient framework but opposed amendments weakening DNSH or adding red tape. Klara Dostalova (PfE) demanded subsidiarity, lighter rules for SMEs and local authorities, and reduced bureaucracy. Greens-EFA's V. Prebilič welcomed the rapporteur's approach but flagged concerns over DNSH's disappearance and urged transparency via the single gateway and rural focus. Commission representative Máté Tas defended the regulation as simplification, noting continuity with cohesion rules and that DNSH obligations stem from the Financial Regulation, with guidance to clarify compliance without extra burdens. García Hermida countered that simplification benefits member states more than final beneficiaries, a point the committee aims to correct. The opinion will be adopted on 1 September.
The regulation's outcome will directly affect regional and local authorities, which face administrative burdens from horizontal principles and Annex 1 requirements; SMEs and final beneficiaries stand to gain from lighter rules if simplification prevails, but may lose if complexity increases. Managing authorities could see reduced red tape under proposals from PfE and Renew, while the Commission's guidance on DNSH may ease compliance costs. The debate reflects a trade-off between maintaining cohesion policy's traditional safeguards and reducing bureaucracy to speed up project delivery.