Ursula von der Leyen’s plan for 2024-2029 & the future of Cohesion Policy

July 2024

On 18 July 2024, Ursula von der Leyen delivered a comprehensive speech outlining her policy guidelines for the next five years. This was a pivotal speech, setting the tone for the European Union's priorities and strategic direction. While the speech covered a wide range of topics, the emphasis was on unity, resilience and strategic leadership in a rapidly changing global landscape. We want to see that it says about the future of Cohesion Policy.

Selected key messages

The main aim of von der Leyen's speech was to set out a coherent and ambitious plan for the EU to meet the diverse challenges of today's world. At the heart of this are four clear choices that she outlined:

• To face the uncertain world around us alone, or to unite our societies and our values.

• To be dependent and let divisions weaken us, or to be bold in our ambitions and confident in our actions, working with our partners around the world.

• To ignore new realities or the pace of change, or to see the world and the threats around us as they really are.

• To let the extremists and appeasers win, or to ensure that our democratic forces remain strong.

In her speech she set out a broad plan for the EU, emphasising the need for unity and a shared identity among member states. She underlined the strength of the EU in its diversity and the importance of building a common European identity to face global challenges together. This theme of unity ran throughout her speech, underlining the need for collective action to tackle security threats, climate change and economic competitiveness. She stressed that only through joint efforts could the EU effectively support Ukraine, defend democracy and ensure social justice.

Von der Leyen presented the European Prosperity Plan as a cornerstone of her strategy to boost economic prosperity and competitiveness in the EU. The plan focuses on making it easier to do business, promoting a clean industrial transition and investing heavily in research and innovation. She emphasised the urgent need for digital transformation to boost productivity and address skills and labour shortages. She also reaffirmed her commitment to the European Green Deal, with plans for a new Clean Industrial Deal to reduce energy prices, invest in clean energy infrastructure and achieve climate neutrality by 2050.

Technological and industrial leadership also featured prominently in von der Leyen's speech. She outlined plans to boost AI, digital technologies and biotech innovation, including the introduction of a European biotech law. On defence and security, she called for the creation of a European Defence Union and the appointment of a Commissioner for Defence, as well as increased investment in defence capabilities, proposing European Defence Industry Programmes and Defence Projects of Common European Interest. Migration and border security were also addressed, with von der Leyen emphasising the implementation of the Pact on Migration and Asylum to effectively manage migration and protect borders, and strengthening the role of Frontex in this effort.

In her speech, von der Leyen also underlines the geopolitical imperative of enlargement, where she highlights that accession will follow a merit-based process based on the EU acquis, as well as the appointment of a Commissioner for Enlargement. Furthermore, she prioritises EU’s efforts to be positioned globally. At first, this regards its direct neighbourhood, reflected by the proposed new Pact for the Mediterranean and the upcoming Commissioner for the Mediterranean to focus on investments and partnerships and reshape the relationships in the region. Further to this, also an active role in the Middle East is envisaged to further strengthen partnerships. Taking its geopolitical calls further, a new economic foreign policy should be prioritised, by focusing on economic security and economic statecraft, free and fair trade links and by taking the Global Gateway efforts to the next level through more integrated approaches.

The future of Cohesion Policy

The speech also provides some insight into her views on the future of Cohesion Policy. Although clearly not the main focus of her speech, it contains some important implications for regional development and disparities. She acknowledged the need to address regional disparities and stressed the need for policies that ensure that no region is left behind. Echoing Enrico Letta’s proposal of a freedom to stay (see our earlier blog post (Opens in a new window)), von der Leyen refers to the right for people to stay in the place they call home.

Von der Leyen emphasised the importance of strengthening cohesion and growth policies as part of the broader objective of increasing competitiveness across the Union. This approach emphasises a clear link between reform and investment, mobilising resources to build the necessary infrastructure and services that enable communities to thrive. The thematic focus includes public services, private sector activity, education, skills, transport and digital connectivity, which are essential components of regional development and competitiveness.

Regions will continue to play a central role in Cohesion Policy, suggesting that it will continue with a shared management approach. This means that policies will be designed in partnership with national, regional and local authorities, ensuring that the specific needs and conditions of each region are taken into account. Von der Leyen paid particular attention to islands, recognising the unique challenges they face and the need for tailored support. There will also be continued support to address the challenges faced by the outermost regions.

In addition to what she said explicitly about Cohesion Policy, her remarks on the future EU budget also contain some relevant points. One notable shift discussed in the speech is the possible move towards a policy-based budget rather than a programme-based one. While the details of this shift remain unclear, it suggests a more integrated and flexible approach to funding. This could involve fewer but more strategic programmes and a plan for each country linking key reforms to investment. This approach aims to streamline the EU budget and focus on common priorities such as promoting economic, social and territorial cohesion.

In addition, the introduction of the European Competitiveness Fund raises questions about its relationship with existing Cohesion Policy frameworks. However, it represents a strong commitment to boosting the EU's competitiveness, which is likely to involve significant investment in innovation, technology and infrastructure. There is also a clear message on the need to leverage further national, private and institutional funding. Other key areas highlighted for increased resources include defence, security, migration and the Clean Industrial Deal, suggesting a broad and multi-faceted strategy for the Union's future.

Overall, von der Leyen's speech shows a commitment to Cohesion Policy as a tool for promoting balanced and inclusive growth in the EU. By tackling regional disparities, investing in public services and infrastructure, and promoting a collaborative approach to policy design and implementation, the EU aims to create a future in which all regions and citizens can thrive. The proposed budgetary changes and the focus on competitiveness underline the ambition to make Cohesion Policy a cornerstone of the EU's strategy for sustainable development and social justice.

Many of the points raised by von der Leyen do not come as a surprise and reflect points raised by group of high-level specialists on the future of Cohesion Policy, on which we have reported in previous blog posts (Opens in a new window).

A future for all places and people in the EU

Von der Leyen's overall priorities for the EU have several implications for regional disparities, cohesion and the concept of a future for all places and people in the EU. A very optimistic reading of her speech finds several hooks for increasing cohesion and working towards a future for all places and people in the EU.

The emphasis on social justice and economic competitiveness suggests a commitment to inclusive growth. This approach aims to ensure that all regions benefit from economic development and that no one is left behind. By focusing on reducing disparities and increasing opportunities in less developed regions, the policy aims to create a more balanced and fairer Union.

She also wants to tackle the root causes of demographic change and adapt to new realities. Key issues in this context are labour shortages, public services, financial stability and pensions. This includes tackling generational and regional disparities.

By prioritising investment in research, innovation and digital technologies, von der Leyen aims to boost regional competitiveness. This could help lagging regions catch up with more developed areas by promoting innovation-driven growth. The focus on digital connectivity and skills development is particularly important to enable regions to participate fully in the digital economy.

The focus on the European Green Deal and the Clean Industrial Deal hint on a commitment to sustainable development. Investing in clean energy infrastructure and promoting green technologies could create new economic opportunities in regions facing economic decline. This is also in line with the wider objectives of reducing carbon emissions and improving environmental sustainability, which are crucial for long-term regional resilience.

In terms of social cohesion, she stresses the need to address housing as a European priority, even deserving of its own Commissioner. Efforts could include the introduction of a European Affordable Housing Plan to address the housing crisis, focusing on affordable, energy-efficient and social housing. Supporting a Union of equality for all, through a new Gender Equality Strategy, a Roadmap for Women’s Rights, as well as by appointing a Commissioner for Equality to lead an updated strategy on LGBTIQ equality.

Von der Leyen's commitment to the European Pillar of Social Rights and the introduction of an EU anti-poverty strategy highlight the importance of social cohesion. These policies aim to reduce inequalities and ensure that all citizens have access to essential services and opportunities. Focusing on quality jobs, fair wages and tackling poverty is essential to creating a more inclusive society where everyone can thrive.

By investing in youth and education, von der Leyen aims to build a future-ready workforce and promote social mobility. A new Commissioner working on intergenerational fairness shall make sure that decisions of today should not harm the next generations. Strengthening Erasmus+ and establishing a Youth Advisory Board are steps towards involving young people in shaping the future of the EU. This focus on education and youth engagement is crucial to creating a more dynamic and innovative society capable of meeting the challenges of the future.

However, a more sceptical reading could also suggest that the focus will be on strengthening the most promising and competitive places in the EU to boost global competitiveness. It remains to be seen how well a future Commission will be able to balance the need to utilise all places to increase competitiveness - and thereby promote cohesion - or to bet on the most promising horses - and thereby accelerate disparities.

Conclusion

Ursula von der Leyen's speech of 18 July 2024 outlines an ambitious and comprehensive plan for the EU. While regional disparities, inequalities and cohesion were not the main focus, the proposed policies and priorities have significant implications for these areas. Her words on unity, social justice and inclusive growth and her affirmation that regions will remain at the centre of EU’s work, suggest a commitment to tackling economic, social and territorial disparities and promoting cohesion across the EU. By investing in innovation, technology and sustainable development, von der Leyen aims to create a future in which all regions and citizens can also thrive.

As the EU moves forward, the success of these policies will depend on effective implementation and cooperation at all levels of government and society. The focus on Cohesion Policy, with its emphasis on reducing disparities and promoting inclusive growth, will be crucial in realising this plan and ensuring that no region or citizen is left behind.

by Kai Böhme & Maria Toptsidou