Reimagining cohesion and EU policy: An integrated approach

January 2025

In the dynamic and diverse landscape of the EU, achieving economic, social and territorial cohesion remains a key objective. Cohesion policy has long been the EU's flagship initiative to reduce disparities and promote harmonious development across regions. However, as the EU grapples with shifting priorities such as climate change, competitiveness, defence and social inclusion, it is becoming increasingly clear that cohesion cannot be the sole responsibility of a single policy (see also previous blog post (Abre numa nova janela)).

This blog post looks at one of the three scenarios explored in the recent report ‘The future of EU cohesion: Scenarios and their impacts on regional inequalities (Abre numa nova janela)’ commissioned by the European Parliament: the integrated approach. It proposes a paradigm shift in the way cohesion policy interacts with other EU policies, aiming for greater coherence, synergy and impact. It sheds light on how integrated policy-making could redefine the path to a more cohesive EU.

Sceanrio assumptions

The integrated approach is based on the principle of coordinating different policies to achieve common objectives, in particular the reduction of regional disparities. The main assumptions underlying this scenario are:

• A single framework: The next EU budget, i.e. the Multiannual Financial Framework (MFF), would prioritise an integrated strategy brining all EU policies into a single policy framework. This would involve fewer, more coherent programmes linking investment, national reforms and private funding.

• Better policy coordination: Thorough territorial impact assessments (TIAs), it would ensure that all EU policies contribute positively to cohesion. This coordination would streamline objectives and address potential conflicts between policies.

• Efficiency as a guiding principle: Simplification of fund management procedures would reduce administrative burdens, while common objectives would avoid overlaps and maximise policy impact.

• Thematic and territorial focus: Policy efforts would address specific regional needs while contributing to broader EU objectives such as the green and digital transitions.

• A spirit of cohesion across all policies: The approach envisages cohesion not only as an objective of cohesion policy, but as a guiding value for all EU policies.

Integration in action (the scenario)

At its core, the ‘integrated approach sceanrio’ envisages a transformative shift in which cohesion policy no longer operates in isolation but becomes a unifying framework for regional and sectoral development. The scenario advocates merging the traditional cohesion policy funds - ERDF, ESF+, CF and potentially rural development funds under the common agricultural policy - into a single, more flexible pool. This would simplify the management of funds and allow multi-purpose projects to respond more effectively to different regional needs.

Better integration goes beyond funding mechanisms. Sectoral policies, which traditionally focus on thematic priorities such as innovation, competitiveness or environmental sustainability, would explicitly include objectives to reduce regional disparities. This will require a cultural change in the way EU policies are designed and implemented, with territorial impact assessments (TIAs) embedded at every stage to ensure consistency with cohesion objectives.

Territorial cooperation would play a crucial role in fostering integration by promoting cross-border and transnational projects that enhance cooperation and shared learning. By developing national plans that combine EU, national and regional funding streams, this scenario promotes coherence between different levels of governance and empowers local and regional actors.

The thematic scope of actions under this approach would be broad but focused. While addressing urgent priorities such as the green and digital transitions, defence and social inclusion, policies would also respond to unique regional challenges. Regional programmes would serve as platforms to align all investments within a territory, ensuring targeted and effective development.

Finally, the scenario envisages a governance model that strengthens multi-level participation. Local and regional authorities, often closest to citizens and their needs, would have a stronger voice in policy design and implementation. The European Commission would oversee this integrated approach, ensuring policy coherence while promoting accountability and transparency.

Expected impacts

The integrated approach could transform the way the EU tackles regional disparities, making economic development more inclusive and sustainable.

Economically, this scenario combines place-based strategies with broader policy coordination, enabling regions to exploit their unique potential while contributing to the growth of the single market. Less developed regions would benefit from targeted investment to help them overcome challenges such as low innovation capacity and development traps. While balancing global competitiveness and cohesion may pose initial challenges, the long-term benefits could strengthen the EU's economic resilience.

Environmentally, the integrated approach promotes coordinated efforts to tackle climate change and promote sustainability. Consistent green investments would reduce regional disparities in adaptation and mitigation capacity, creating more liveable and resilient territories. By promoting synergies between policies, this scenario supports ecosystem conservation and the transition to a circular economy, while addressing the uneven impacts of climate change across regions.

Socially, the scenario reinforces the EU's commitment to inclusion, equality and opportunity for all. By embedding social objectives in all policies, it addresses issues such as access to education, healthcare and quality jobs in under-served regions. This holistic approach could tackle pockets of poverty and social exclusion and promote a Union where individuals and communities can thrive without having to migrate in search of better opportunities.

Territorially, the scenario seeks to bridge divides between urban and rural areas, developed and lagging regions, and coastal and inland areas. While regions with robust infrastructure and skilled labour may see immediate benefits, the focus on place-based solutions ensures that less advantaged regions are not overlooked. By supporting capacity building and long-term development strategies, the approach creates pathways for all regions to contribute to and benefit from EU growth.

Conclusions

The scenario's emphasis on cohesion as a shared responsibility could strengthen European integration. By reducing inequalities and fostering a sense of togetherness, this approach counteracts Euroscepticism and reinforces the EU's role as a Union that values every citizen and every territory. Cohesion becomes not just a policy objective but a cornerstone of the EU's identity.By (Abre numa nova janela) fostering synergies and embracing cohesion as a core EU value, the Union can take a significant step towards reducing inequalities and creating opportunities for all its citizens and territories.

However, the success of this scenario depends on careful design and implementation. Striking the right balance between competitiveness and cohesion requires nuanced, place-based strategies and robust governance frameworks. Policymakers must also ensure that all regions - urban and rural, developed and lagging - feel the benefits of an integrated approach.

More details on this scenario are available in the EU Parliament report: The future of EU cohesion: Scenarios and their impacts on regional inequalities (Abre numa nova janela).

by Kai Böhme