€34.6 billion in cohesion policy funds reallocated to address EU’s strategic priorities

This article is brought to you in association with the European Commission.

Member States have successfully reprogrammed €34.6 billion in their 2021-2027 cohesion policy funds towards the EU’s most urgent strategic priorities. These include boosting competitiveness, enhancing defence and civil preparedness, promoting affordable and sustainable housing, improving water resilience, and advancing energy connectivity.

This shift in EU funding will reinforce Europe’s competitive edge, bolster its security and preparedness, secure energy supply, make daily life of citizens more affordable, and increase Europe’s technological independence. Reprogrammed funds will also support skills development in civil preparedness, defence and cybersecurity, as well as in support of the decarbonisation process.

Evolving strategic priorities

Cohesion policy’s in-built flexibility allows Member States to adjust their investment priorities during the 2021-2027 implementation period, particularly in the framework of the regulatory mid-term review scheduled for 2025. However, in response to the rapidly changing geopolitical landscape since the launch of the 2021-2027 cohesion programmes, the Commission proposed in April 2025 to encourage Member States and regions to re-direct investments towards the new strategic priorities. By offering financial incentives, simplifying policy rules, and extending the implementation period of amended programmes, Member States and regions were encouraged to adjust their investment plans for the final years of the implementation period to better address evolving needs and priorities. This exercise covers the European Regional Development Fund, the Cohesion Fund, the Just Transition Fund, and the European Social Fund Plus.

Since the adoption of the proposal by the co-legislators, in September 2025, the Commission has approved amendments to 186 national and regional cohesion programmes in 25 Member States, aligning national, regional and local investments with EU priorities. These reallocated funds represent almost 10% of cohesion policy’s €367 billion 2021-2027 budget covered by the mid-term review.

Reallocated funding for strategic priorities

• €15.2 billion to boost competitiveness through critical technologies, innovation and the development of skills.
• €11.9 billion to strengthen defence industrial capabilities, military mobility and civil preparedness and skills development.
• €3.3 billion for affordable and sustainable housing, supporting social inclusion.
• €3.1 billion for water resilience, strengthening sustainable resource management.
• €1.2 billion to enhance energy security and industrial decarbonisation, supporting quality jobs in the green transition.

Member States and regions that reprogrammed funds towards the new EU strategic priorities benefit from enhanced pre-financing to kickstart projects, and a higher EU co-financing rate of regional development projects to ease the pressure on national budgets.

An even more favourable treatment was offered to regions bordering Russia, Belarus, and Ukraine, which have faced significant challenges since the beginning of Russia’s full-scale war of aggression in 2022.

The mid-term review has demonstrated cohesion policy’s ability to swiftly adapt to new circumstances. With programme amendments now adopted, the emphasis will shift to the implementation by Member States and regions. The Commission will work closely with the managing authorities to ensure effective delivery of strategic priorities.