European Parliament Demands Regional Funds Shift to Housing

Cohesion funds, which currently command €48.03bn in the 2021-2027 EU budget, traditionally finance large-scale infrastructure like railways and roads in regions with lower per capita income. Lawmakers now seek to broaden this scope, ensuring small municipalities can access the capital on equal footing with major cities. Italian conservative MEP Denis Nesci, who spearheaded the report, emphasized that navigating complex EU formalities remains a significant barrier for smaller local governments.

The proposal arrives as the European Commission eyes significant reductions for the 2028-34 multi-annual budget. A coalition of 16 member states has already signaled opposition to these cuts. During Monday’s debate, Lithuanian MEP Vytenis Povilas Andriukaitis described regional development as the primary instrument for European integration. Meanwhile, German MEP Fredis Beleris suggested that strengthening these financial mechanisms could serve as a vital buffer against rising political radicalization across the continent.