EURADA welcomes the MFF proposal’s enhanced focus on research and innovation and the reinforcement of Europe’s industrial capacity in critical areas through increased funding under the Horizon Europe Programme and the Competitiveness Fund. This is critical to boost competitiveness, accelerate decarbonisation, and ensure strategic autonomy.

However, the package falls short of fully recognising the essential role of regional development and its key actors in achieving these objectives. The proposed reform of EU Cohesion Policy appears to mark a shift towards a largely top-down and place-neutral approach.

This is a step in the wrong direction that, alongside apparent cuts to the budget for Cohesion Policy, risks significantly weakening the EU’s ability not only to promote regional development, but also to tackle its future challenges. EURADA believes that the legislative guarantees offered in the package for involving regional authorities and allocating funds to regions might be insufficient.

The association is also concerned about the fate of the Smart Specialisation Strategies and Interregional Innovation Investments which appear very unclear at this stage. A marginalisation or discontinuation of these instruments will jeopardise interregional cooperation in the field of research and innovation, along with its critical role in building EU value chains. Regions have a key role to play in helping Europe achieve leadership in key sectors, including clean tech, deep tech as well as dual use technologies.

By sidelining regional and local actors in favor of national plans, the MFF proposal risks undermining the partnership principle at the core of Cohesion Policy, a move that critics warn could weaken local authorities’ roles and widen regional disparities indeed, a broad coalition of Member States and MEPs is already opposing such centralisation, calling instead for a stand-alone, region-focused cohesion policy with dedicated funding to ensure no territory is left behind in Europe’s future development.

EURADA urges the co-legislators to revisit the proposal and to reinforce mechanisms that ensure the genuine involvement of regional actors and a place-based approach, both of which are fundamental to achieving the EU's strategic ambitions.