EU enlargement and the cohesion funds conundrum: more money is needed for the future

Brussels – Enlargement, yes—but beware: Any further expansion of the European Union carries risks for the support for its less-developed regions. With its structural funds, the cohesion policy is designed to smooth the gaps between the rich and the poor. Still, in prospect, all the resources channelled today to the more disadvantaged territories risk “disappearing” because of countries poorer than those already part of the twenty-seven bloc.

The high-level group for cohesion warns of the opportunities and challenges presented by the entry of more states into the twelve-star club. The special independent body established to guide the European Commission, in its special report on the future of cohesion policies, starts precisely from the policy choices made at the EU level.

The European Union has decided to expand to include nations from the Western Balkans (Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia) and the East (Moldova, Ukraine, and Georgia): “All of these countries have significantly lower GDP per capita than Bulgaria, which is currently the least developed EU27 member state,” the study points out.

This is no minor emphasis, especially in terms of accounting and budgeting, because the principle behind the policies for the regions is, as mentioned, to give more to those in need. Potential new members will draw to themselves resources allocated to others today. That’s why the recommendations include the one that the EU should integrate the candidate countries “without compromising investment in the current regions of the EU.” For Italy, it means preserving funds to support its south, which are crucial in reducing the historic North-South gap. Resources, in this case, that Italy needs and which must be put in the safe. 

The point is to seek the balance between old and new needs without cutting the resources that, to date, have been guaranteed to promote local economies and territories. “Additional funds are therefore needed, writes the paper conducted on behalf of the European Commission, which calls member states for more national contributions to the common budget. “Considering the magnitude of the challenges, particularly in Ukraine, relying solely on the cohesion policy is not enough” for the future of European regions.

This is why, considering the challenges posed by enlargement and Ukraine’s reconstruction needs, “the EU will have to undertake specifically targeted interventions, possibly using “ad hoc” mechanisms to ensure that the most urgent and difficult issues such as reconstruction are effectively addressed.”