Post-2027 EU funding for local development under threat

The debate has started about the next MFF of the EU. Although there are no formally proposals in the public domain, informal briefings have raised concerns about the possible implications of a new MFF archtecture for the local and regional level. These concerns stem mostly from two features highlighted in two recent news items: The EU is Mulling a Seismic Budgetary Shift and Post 2027 EU Budget – be careful what you wish for.

The first feature is the possibility of merging or bringing under the same regulation funding sources such as the Structural Funds, Common Agricultural Policy, Just Transition Fund, European Maritime and Fisheries Fund, European Social and Climate Fund from 2026, etc. The risk here is that “if there is only a single regulation, very general in tone, key levers of policy direction such as the existing 5% for LEADER Local Action Groups or 8% for Sustainable Urban Agenda might be lost or left to the discretion of Member States to implement”.

The second feature is the idea of using a single national plan for all funds currently under shared management. The risk here would be that “power would be concentrated into the hands of member states, who will be the hands holding the pen to write these plans”, i.e an overcentraised management of EU funds by national ministries without delegating or involving the competent regional and local authorities.

The debate is bound to hot up when the new Commission takes office and formal proposals become available in the first half of 2025. However, as things stand, bottom up local development approaches are at risk of losing the EU-level support they have enjoyed for sometime.