European ministers have rewritten the bloc’s €370bn cohesion policy to channel more cash into defence, water security and eastern border regions. Brussels thus scrambles to adapt its flagship anti-inequality programme to new needs arising from mounting crises.
Meeting on Thursday, 18 September—in record time, just five months after the European Commission tabled proposals—the Council on Tuesday approved amendments letting member states divert half their remaining 2026-27 cohesion funds into priorities like military infrastructure, affordable housing and drought resilience.
“The EU must be better prepared for tomorrow’s challenges,” said Denmark’s European affairs minister, Marie Bjerre, who chaired the talks. “This legislation enables member states to spend EU cohesion funds on defence, security and civil preparedness. It is an important step towards a European Union that takes responsibility for its own security.” The move follows April’s ReArm Europe Plan, which refocused cohesion cash on geopolitical threats after Russia’s 2022 invasion of Ukraine.
Flexibility reserve
Under the reforms, programmes allocating at least 15 per cent of their “flexibility reserve”—half their 2026-27 budgets—to defence, water resilience or other new priorities will get bonus pre-financing and extended spending deadlines until 2030. Regions along the EU’s eastern flank, from Finland to Romania, gain special access to funds for border security and crisis preparedness. Ms Bjerre stressed the rules also address “societal cohesion”, with incentives for affordable housing and skills training tied to the green transition.
The overhaul reflects growing pressure to align cohesion policy—traditionally focused on narrowing wealth gaps—with strategic goals. Since 2021, over €2bn from Mediterranean Interreg programmes has targeted sustainable tourism. A new €30,000 grant scheme now supports cross-border pilot projects, such as shared natural-resource management or streamlined hiring across frontiers. Three projects will be picked by 30 September, with implementation starting in November.
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Critics argue the changes risk diluting cohesion’s core mission. But officials counter that climate and digital goals remain central: the Just Transition Fund, which aids regions quitting fossil fuels, stays untouched. “We are correcting imbalances while delivering on green and digital priorities,” said Ms Bjerre. “Flexibility ensures no region is left behind—whether facing droughts, energy shifts or security threats.”
Proactive pragmatism
The laws, due in the EU’s Official Journal within days, let states claim 100 per cent EU financing for defence-related projects—a first for cohesion funds. Water resilience measures, including flood defences and purification systems, also qualify for full Brussels backing. Eastern border regions gain tailored support for infrastructure hardening and crisis-response systems.
Flexibility ensures no region is left behind—whether facing droughts, energy shifts or security threats. — Marie Bjerre, Denmark’s minister for Europe
The rapid adoption—unusual for cohesion reforms—signals mounting alarm over climate and security risks. Record droughts have parched southern Europe, while eastern states warn of hybrid threats from Belarus and Russia. With €2.3bn already earmarked for Mediterranean tourism sustainability, the updated rules aim to future-proof spending.
Ms Bjerre framed it as proactive pragmatism. “These are targeted amendments to address evolving challenges,” she said. “They maintain our focus on economic, social and territorial cohesion—but make it fit for today’s world.” For Brussels, that world now includes war, climate breakdown and a race to secure critical infrastructure.
