Cohesion funding at a crossroads: the push for performance-based allocations
As the EU prepares for its next budget cycle starting in 2028, there are growing calls to fundamentally reshape how cohesion funding is allocated, potentially tying payouts to the achievement of specific reform targets by Member States.
The European Union's cohesion policy has long been a cornerstone of its efforts to reduce regional disparities and promote balanced development across the continent. Funded through the bloc's multiannual budgets, cohesion policy has channelled hundreds of billions of euros to the EU's poorest members and regions, supporting investments in infrastructure, SMEs, innovation, and more.
However, the landscape of EU funding is rapidly evolving, with the launch of new instruments like the Recovery and Resilience Facility (RRF) and the Just