EU directs funds towards defense and resilience amid changing priorities
- The EU Cohesion policy is modifying its priorities to address contemporary challenges, particularly in defense and resilience sectors.
- Member states have the ability to redirect funds towards five new investment priorities, with incentives for doing so.
- The European Commission aims for a completed resource reprogramming by the end of 2025 to support these new directions.
In an effort to adapt to a significantly altered global landscape, European policies are undergoing substantial transformations. This shift was highlighted during a mid-term review presented by Raffaele Fitto, the Executive Vice President of the European Commission, which emphasized the need to reallocate Cohesion Funds. With a treasure trove of 392 billion Euros available until 2027, the intention is to ensure that funding aligns with current economic, environmental, and geopolitical challenges while providing more flexible management options. Countries and regions are not required to reverse course on already established spending but are encouraged to redirect a portion of funds towards five new investment priorities, including defense and water resilience.