Toelichting bij COM(2025)552 - European Fund for Regional Development including for European Territorial Cooperation (Interreg) and the Cohesion Fund as part of the Fund set out in Regulation (EU) […] [NRP] and establishing conditions for the implementation of the Union support to regional development from 2028 to 2034

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1. CONTEXT OF THE PROPOSAL

Reasons for and objectives of the proposal

On 16 July 2025, the Commission adopted a proposal for the next multi-annual financial framework (‘MFF’) for the period 2028-2034 1 . This includes the European Regional Development Fund (‘ERDF’) and the Cohesion Fund.

While regional and territorial disparities have been substantially reduced, including by EU cohesion policies, 29% of EU citizens still live in regions with a GDP per capita below 75% and many challenges persist and new ones emerge. These challenges need to be addressed through a strengthened, modernised cohesion and growth policy, working in partnership with national, regional and local authorities.

A simpler, more focused and more impactful budget has been defined as a key objective in the Commission’s communication on ‘The road to the next multiannual financial framework’ 2 . The public consultation also showed broad agreement across stakeholders on the need for simplification and greater flexibility, which are the most frequently cited enablers of a more effective and efficient EU budget.

The objective of the Regulation is to address regional imbalances and support the development of lagging regions (Article 176 of the TFEU) by supporting reforms and investing in the social and economic development of all EU regions and cities as well as enhancing territorial cooperation (especially through the Interreg Plan). The Cohesion Fund aims to support investments and reforms in the area of environment and transport in Member States with a lower GDP per capita (Article 177).

This Regulation defines provisions applicable to both the ERDF and the Cohesion Fund, including for “European territorial cooperation” (Interreg).

Consistency with existing policy provisions in the policy area

The ERDF and the Cohesion Fund will work in strict complementarity with the other policies under the scope of the National and Regional Partnership Plans, thus fostering synergies between these policies. The Regulation establishing the European Fund for economic, social and territorial cohesion, agriculture and rural, fisheries and maritime, prosperity and security for the period 2028-2034 and amending Regulation (EU) 2023/955 and Regulation (EU, Euratom) 2024/2095 (‘NRP Regulation’) sets out common provisions for [nine] shared management funds at EU level.

Consistency with other Union policies

Cohesion policy seeks synergies and coherence with relevant EU instruments and policies, notably the European Competitiveness Fund, Horizon Europe, Connecting Europe Facility and Global Europe. Complementarity and synergy across the Union’s long-term budget and with Member States will be maximised inter alia through the Competitiveness Coordination Tool that will align industrial and research policies and investments at EU and national level around projects of common European interest or EU added value. Consistency will also be achieved via the new structure of the MFF ensuring synergies across relevant Union programmes, avoiding overlaps and focusing on investments with high Union added value with the ERDF and the Cohesion Fund focusing on reforms and investments of national and regional relevance. Territorial cohesion and sustainable development require addressing the needs of both present and future generations, and that young people must be enabled to play an active role in shaping resilient and prosperous regions. Facilitating their access to education, employment, innovation ecosystems, and housing, and by fostering their civic and democratic participation as well as support for cultural sectors is important.

The ERDF will also ensure coherence with the current and upcoming Union of Equality Strategies 3 and legislation that aim at combating any form of discrimination based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation.

2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

Legal basis

EU action is justified by Article 174 of the Treaty on the Functioning of the European Union (‘TFEU’): “The Union shall develop and pursue its actions leading to the strengthening of its economic, social and territorial cohesion. In particular, the Union shall aim at reducing disparities between the levels of development of the various regions and the backwardness of the least favoured regions”.

The aims of the ERDF are set out in Article 176 TFEU: “The European Regional Development Fund is intended to help to redress the main regional imbalances in the Union through participation in the development and structural adjustment of regions whose development is lagging behind and in the conversion of declining industrial regions”.

The aims of the Cohesion Fund are set out in Article 177 TFEU: “A Cohesion Fund set up in accordance with the same procedure shall provide a financial contribution to projects in the fields of environment and trans-European networks in the area of transport infrastructure”.

Article 178 TFEU constitutes the legal basis to adopt implementing regulations for the ERDF, the cohesion policy fund supporting the European territorial cooperation goal (Interreg).

In addition, Article 174 TFEU mandates particular attention to rural areas, areas affected by industrial transition, and regions which suffer from severe and permanent natural or demographic handicaps such as the northernmost regions with very low population density and islands, cross-border and mountain regions.

Article 349 TFEU mandates specific measures to take account of the structural social and economic situation of the outermost regions, which is compounded by certain specific features that severely restrain their development.

Subsidiarity (for non-exclusive competence)

The ERDF and the Cohesion Fund are promoting integration and cooperation among Member States and reducing regional disparities within and between Member States, including between urban, rural, coastal or sparsely populated areas and between Europe’s mainland and outermost regions and islands. Cohesion policy funding has triggered investments that would not have materialised with the same scope, ambition and speed if the EU funding was not available. Therefore, the objectives of the proposal cannot be achieved by Member States acting alone and Union support creates added value.

EU level adds value to action at national level. Cohesion policy funding in 2014-2020 was significant, reaching nearly 13% of total government investment in the EU and 51% in cohesion countries 4 . Economic studies 5 consistently find that cohesion policy has a positive impact on regional economic growth, even at local scales 6 . In addition, macroeconomic simulations 7 suggest an overall increase of EU GDP from cohesion policy investment of nearly 1% by the peak impact year. The benefits are particularly significant in less developed regions, where GDP projections exceed those without cohesion policy at the end of the implementation period. More developed regions see a smaller but positive long-term impact due to spillover effects (benefits that spread across regions). These spillovers contribute around 15% of the total EU GDP impact, with the highest share (45%) in developed regions 8 .

Moreover, the policy choices in the Regulation are proportionate, since the funds will be implemented under shared management: programmes are not managed directly by the European Commission, but instead implemented in partnership with the Member States.

Proportionality

The proposal complies with the proportionality principle and does not go beyond what is necessary to achieve its goals. It falls within the scope for action in the area of strengthening economic, social and territorial cohesion. The objectives and corresponding Union support are proportionate to what the instrument aims to achieve. The proposal also aims at enhancing previous simplification efforts, by further unifying and consolidating rules.

Choice of the instrument

The most appropriate instrument for operating the current proposal is a Regulation of the European Parliament and the Council on the ERDF [and the Cohesion Fund] and complementing the [proposal for Regulation on a National and Regional Partnership Fund].

3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

Ex-post evaluations/fitness checks of existing legislation

The preliminary outcomes of the ex post evaluation of the ERDF and the Cohesion Fund show that programmes are on track to meet most of their objectives. So far, the funds have supported over 2.5 million small and medium enterprises and have contributed to the creation of over 370 thousand jobs. 24 million children benefit from newly built childcare places. Furthermore, more than EUR 66 billion were invested in climate-relevant projects, and the EU’s capacity for renewable energy production was increased by more than 6 000 Megawatts. The funds also allowed to put in place forest fire protection measures benefitting more than 24 million people based on reported programme values, and to improve broadband access of more than 8 million households.

Simplification measures introduced in the 2014-2020 programming period have led to some burden reduction, but there is scope for further simplification, such as through expanding the scope of Simplified Cost Options (SCOs) and Financing Not Linked to Costs (FNLC). However, nationally imposed rules beyond EU-level requirements (gold-plating) are still a considerable source of complexity for the implementation of the ERDF and the Cohesion Fund.

The performance framework, through common indicators, milestones and targets, enabled a robust data base for evidence and analysis notably via the collection of harmonised progress data including beneficiaries’ data. Enhancing the interoperability and accessibility of national databases would not only facilitate better monitoring and reinforce the performance orientation of the policy, but could also reduce administrative burden.

The ERDF and the Cohesion Fund made investments possible that would have likely not been carried out by Member States in absence of the funds, through the scale of funding, ability to crowd in additional private investment, and the targeting of investment. Moreover, the ERDF and the Cohesion Fund bring added value through multiannual planning and the continuity of funding.

Evidence shows that support was largely relevant for addressing both the continued and emerging needs of beneficiaries throughout the programming period. Investments were relevant for European competitiveness and mostly aligned with the European Green Deal, though with some inconsistencies across Member States. At EU level, most investment was allocated to policy areas coherent with the necessary reforms identified in the Country Specific Recommendations (‘CSRs’), with variations across Member States. Overall, CSRs have served as a useful tool in helping Member States orient investments toward reform needs. There is less evidence of CSRs formulated during the programming period influencing prioritisation or reallocations.

The ERDF and the Cohesion Fund are well-suited to support territorial cohesion. Their design and governance structure ensures that investment strategies address territorial challenges and allow for both national and decentralised regional programming and implementation, adapting the pursuit of EU priorities to territorial needs. In some cases, more flexibility in the application of the thematic concentration principle would have enabled a better adjustment to territorial specificities. The model simulations suggest that cohesion policy interventions have a positive impact on the EU economy. EU GDP is estimated to be up to +0.6% higher at the end of the policy period compared to a hypothetical scenario without the policy.

1.

Regarding Interreg, greater harmonisation and more robust means of coordination across different EU funding streams were identified as key areas for future improvement.


The preliminary outcomes of the mid-term evaluation of the ERDF, the Cohesion Fund and the Just Transition Fund show that although implementation started late and was slow at the start of the programming period, it accelerated considerably in the first half of 2024. Delays were due to largely exogenous factors and relate to the COVID-19 crisis and the Russian war of aggression against Ukraine. EU-level crisis response instruments, in particular the RRF, were prioritised by Member States.

Built-in territorial consideration and tools make the funds well-suited to address regional disparities. Adequate administrative capacity is a prerequisite but not yet a reality for all programmes. Partnership and multilevel governance have a strong positive effect on programming and implementation, but there are still areas for improvement in stakeholder engagement and participatory decision-making.

The transition from ex-ante conditionalities to fewer and clearer enabling conditions has improved efficiency. The vast majority of enabling conditions is already fulfilled and triggered reform processes in areas such as smart specialisation, transport, and climate. Enabling conditions and RRF milestones have been mutually reinforcing in some areas. Tailoring conditions to specific national and regional contexts as opposed to keeping them universally applicable for all programmes could enhance synergies of cohesion policy investments with relevant sectoral policies and local needs.

There are good practices in Member States combining cohesion policy and RRF funding to support complementary measures. Reforms triggered by RRF milestones benefit cohesion investments and vice versa: enabling conditions can also benefit RRF investments.

2.

New simplification measures contribute to a reduction in administrative burden. Simplified Cost Options and Financing Not Linked to Cost offer great potential, but their uptake has remained uneven.


The ERDF and the Cohesion Fund allow to address specific development challenges which would not be pursued to the same extent in their absence. The added value of the funds includes a long-term strategic perspective and capacity building at sub-national and sub-regional levels, with positive spillovers to the implementation of national instruments. The multi-level governance and partnership principle link EU, national and regional levels through a place-based approach, unique to the evaluated funds vis-à-vis other national and EU instruments. The funds contribute to areas with a clear European dimension, including climate action, digital transformation, defence, trans-European transport, and inter-regional and cross-border cooperation.

The adopted allocations show a very high degree of alignment with both the Council’s Strategic Agenda and the Commission President’s Guidelines, as well as European Semester priorities. In addition, the funds contribute to the areas to boost growth identified by the Draghi report. This shows the continued relevance of cohesion policy for the current policy cycle and predicted future needs.

Stakeholder consultations

The Commission actively engaged with the stakeholders in the process of the initiative, notably through dedicated events and public consultation activities, as detailed in the corresponding chapter of the explanatory memorandum of the proposal for a Regulation (EU) […] for a National and Regional Partnership Fund.

Collection and use of expertise

Information about the Commission’s use of external expertise is provided in the corresponding chapter of the explanatory memorandum of the proposal for a Regulation (EU) […] for a National and Regional Partnership Fund.

Impact assessment

Information about the Commission’s Impact Assessment is provided in the corresponding chapter of the explanatory memorandum of the proposal for a Regulation (EU) […] for a National and Regional Partnership Fund.

Regulatory fitness and simplification

The initiative is expected to contribute to a significant reduction of administrative burden and costs, as well as improved efficiency in the implementation of Union support, see also the corresponding chapter of the explanatory memorandum of the proposal for a Regulation (EU) […] for a National and Regional Partnership Fund.

Fundamental rights

The Union support will be implemented in compliance with the Charter of Fundamental Rights of the European Union and the principle of the rule of law, as set out in Article 2(a) of Regulation (EU, Euratom) 2020/2092, see also the corresponding section in the explanatory memorandum of the proposal for a Regulation (EU) (NRP Regulation).

Alongside the Conditionality Regulation which will continue to apply to the whole of the EU budget, this Regulation includes strong safeguards to ensure that the funds are implemented in compliance with the Charter of Fundamental Rights of the European Union and the principles of the rule of law, as set out in Article 2(a) of Regulation (EU, Euratom) 2020/2092. The inclusion in the future Plans of reforms linked, inter alia, to recommendations from the Rule of Law Report is also expected to enhance the protection of fundamental rights and strengthen compliance with the Charter.

This initiative will also respect the principles of the United Nations Convention of Rights of persons with disabilities.

4. BUDGETARY IMPLICATIONS

5. OTHER ELEMENTS

Implementation plans and monitoring, evaluation and reporting arrangements

The Union support under this proposal will be implemented though shared management by the Member States and direct/indirect management by the Commission. The implementation of the Union support will be monitored through the performance framework applicable for the 2028-2034 multiannual financial framework, which is set out in the proposal for a Regulation (EU) […] [Performance framework].

Detailed explanation of the specific provisions of the proposal

The majority of delivery and implementation rules of the ERDF and the Cohesion Fund are covered in Regulation (EU) [NRP Regulation].

Chapter I establishes the general provisions on the scope of support from the ERDF, including for European territorial cooperation (Interreg), and the Cohesion Fund for the period 2028-2034.

Chapter II lays down rules for Interreg promoting cooperation between Member States and their regions inside the Union and between Member States, their regions and non-Member States or regional integration and cooperation organisations in the framework of an Interreg plan.

Chapters III covers specific final provisions.