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Regions Redirect Billions as Cohesion Policy Bends to Defence

Brussels: The European Commission has reshaped cohesion policy across the bloc, clearing amendments to 186 national and regional programmes in 25 member states so that regions can steer money toward defence, housing and energy instead of the plans they drafted years ago.

The overhaul flows from a mid-term review the Commission published on 25 March 2026. It lets governments redirect close to 10 percent of the €367 billion cohesion policy budget for 2021 to 2027, a sum that runs into the tens of billions of euros. Officials cast the shift as an honest response to a security and cost-of-living landscape that looks nothing like the one regions faced when they wrote their programmes.

Executive Vice-President Raffaele Fitto, who leads the file, has argued that flexibility keeps the policy relevant without abandoning its founding purpose of narrowing the gap between richer and poorer regions. The Commission insists the money still targets that mission, even as it flows into new channels.

The new priorities read like a summary of the bloc’s anxieties. Regions can now pour funds into competitiveness, defence and civil preparedness, affordable and sustainable housing, water resilience and energy connectivity. Managing authorities that move quickly stand to unlock extra pre-financing, a carrot the Commission built in to reward speed.

Critics worry that bending the rules mid-cycle risks hollowing out the policy’s regional heart. Local governments and several members of the European Parliament have cautioned that national capitals could hoover up the freed money for centrally chosen projects, sidelining the towns and provinces the funds were meant to lift. The Commission counters that regions themselves proposed the amendments it approved.

The numbers show how far the changes reach. When ministers and mayors reprogramme roughly a tenth of a policy this large, they redraw investment maps from the Baltic to the Mediterranean. Some regions have already swung money from long-planned infrastructure toward energy grids and emergency stockpiles, decisions that will shape local economies for the rest of the decade.

The debate also feeds directly into the fight over the bloc’s next long-term budget, where cohesion’s size and independence are both in question. The Commission has floated folding regional money into national plans, an idea regions treat as an existential threat. This review, in effect, previews that battle.

Brussels published the full results and the list of amended programmes through its regional policy service. The Commission set out the figures and the reasoning in its mid-term review announcement, and it details the wider programme in its regional and urban policy pages.

For now, the money is moving. Whether cohesion policy emerges from this decade as a regional tool or a national one is the question Brussels has quietly reopened.