A transformative and future-wise Cohesion Policy

April 2024

In the face of rapid global changes, emerging societal challenges and green, digital and demographic transitions, Cohesion Policy stands at a pivotal juncture. Originally designed to reduce disparities between EU regions and promote harmonious development, its relevance is increasingly being tested by new waves of technological advancements, societal transitions, and unforeseen global events. A reimagined, more transformative and future-wise Cohesion Policy would be essential for securing a prosperous, inclusive, and cohesive EU for generations to come.

The report of the group of high-level specialists on the future of Cohesion Policy (Si apre in una nuova finestra), argues for a place-based and transformative policy, with future-oriented investments sensitive to the unique strengths, challenges and needs of regions. Cohesion Policy should not be reactive but transformative.

The imperative for transformation

Cohesion Policy is at a crossroad, tasked with addressing the dual challenges of market failures and regional disparities that undermine the collective prosperity and stability of the EU. To master these challenges, policymaking needs to be anticipatory and support transformative shifts which endow places and people with the capabilities needed to master the transitions ahead. This may include shifts from low-tech sector, low-skilled labour economies to more dynamic, innovation-driven ones, as well as shifts to a green and digital economy. To also needs to smooth transitions and enhance social investment.

The EU's major economic and societal transitions, notably the green and digital shifts, risk exacerbating inequalities. Regions with high capabilities can exploit these transitions better than those with lower capabilities, leading to further fragmentation between thriving and left-behind places. Thus, Cohesion Policy must support these transitions while mitigating non-cohesion effects, ensuring that no region is left behind.