Local authorities to play central role in next EU budget despite centralization concerns

In Brussels on December 12, 2024, Raffaele Fitto, the European Commission's executive vice president for Cohesion and Reforms, addressed local government representatives expressing his commitment to maintaining the centrality of regional policy in the upcoming EU budget for the period 2028-2034. This dialogue comes against a backdrop of tension between local and regional authorities and the European Commission regarding a potential shift towards centralization of cohesion policy. Local authorities have voiced strong opposition to this shift, advocating for partnership and subsistence principles that ensure their voices are included in decisions regarding cohesion funds, emphasizing the importance of converging socio-economic development across regions. Fitto's remarks, made during a meeting of relevant EU committees, acknowledged the concerns of local leaders by affirming that regions and cities would be at the heart of the cohesion mission, signifying a potential shift in rhetoric at the Commission level. He reinforced the idea that the future cohesion policy must adapt and evolve, aiming not only to reduce disparities but also to support EU priorities like green and digital transitions, geopolitical security, and economic competitiveness. While his assurances provided some comfort to local authorities and members of the European Parliament, many remained cautious, voicing continued skepticism about how much autonomy regions will retain amidst proposals for nationalized management of cohesion funding, which could undermine collaborative governance principles. Prominent figures in local government, such as Isabelle Boudineau from New Aquitaine, reiterated the necessity for regions to play a crucial role rather than simply executing centrally dictated policies. The ongoing discussions signal a critical juncture in the evolution of EU cohesion policy, potentially impacting how regional funding is handled moving forward. As negotiations progress in the upcoming year, all parties involved will need to carefully navigate the balance between national-level control and local governance to ensure that the objectives of cohesion policy serve the interests of all EU constituents.