Cohesion policy/ Source: European Commission

CEE countries jointly oppose EU's 'flexible funding' plan

Central European Times 7 Jul 2025 1 min read

Ministers from 14 EU member states, including 11 from Central and Eastern Europe (CEE), have signed a joint declaration in Warsaw urging the European Commission to retain cohesion policy as a standalone element of the bloc’s next long-term budget, Euractiv learned.

Poland among supporters of cohesion policy

The signatories, including Poland, Romania, Hungary, Bulgaria, Slovakia, Estonia, Latvia and Lithuania, said the policy’s “visibility and predictability” would be compromised if merged into a broader single investment fund. “There is no EU development policy without a cohesion policy,” the joint text stated.

Polish Funds Minister Katarzyna Pelczynska-Nalecz said cohesion support should evolve to address “new challenges and priorities such as defence, security, housing and the green transition” while remaining rooted in territorial needs.

EC plans more flexible funding

The development comes as the EC prepares its 2026 proposal for the next multiannual financial framework, which is expected to prioritise funding flexibility and strategic alignment across EU instruments.

Cohesion policy accounts for nearly one-third of the current EUR 1.2tn EU budget. Poland is set to receive more than EUR 76bn from 2021-27, with Romania, Hungary and other CEE countries also among the largest recipients.

Ministers from Slovenia, Estonia, Latvia and Lithuania also endorsed the declaration. “Cohesion instruments must remain territorially sensitive and based on place-based needs,” Slovenia’s Cohesion Ministry said on 21 May.

New approach would simplify disbursement - EC

The EC has proposed combining the European Regional Development Fund, Cohesion Fund, Just Transition Fund and ESF Plus into a single investment framework. Brussels argues this would simplify procedures and improve absorption across member states.

European Council representatives approved a mid-term reform package on 18 June, introducing a voluntary co-financing bonus for projects focused on housing, water resilience and defence infrastructure.

Formal negotiations on the 2028-34 EU budget are due from next year. Several CEE governments have stated that they will oppose reforms that reduce ring-fencing or shift investment control away from national and regional authorities.

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The model reflects past moves in Hungary and Romania to centralise economic power, often justified as way to improve implementation. Poland’s approach, however, appears more technocratic, with few political figures outside the prime minister and foreign minister elevated.

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The EC is expected to present the proposal formally as part of its mid-term budget review later this year. The plan must be approved unanimously by all 27 member states and endorsed by the European Parliament. Opposition is expected from net contributor countries and regions facing cuts.

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