Cohesion funds: €34.6Bn reallocated to strategic priorities, €3.1Bn for water, €1.2Bn for decarbonisation
"34,6 billion euros in the 2021-2027 cohesion policy funds have been reallocated to address the EU's most urgent strategic priorities", announces the European Commission on 25/03/2026. "This exercise covers the European Regional Development Fund, the Cohesion Fund, the Just Transition Fund, and the European Social Fund Plus."
"These reallocated funds represent almost 10% of the cohesion policy's €367 billion 2021-2027 budget covered by the mid-term review, including:
• €15.2 billion to boost competitiveness through critical technologies, innovation and the development of skills.
• €11.9 billion to strengthen defence industrial capabilities, military mobility, civil preparedness and skills development.
• €3.3 billion for affordable and sustainable housing, supporting social inclusion.
• €3.1 billion for water resilience, strengthening sustainable resource management.
• and €1.2 billion to enhance energy security and industrial decarbonisation, supporting quality jobs in the green transition."
"This shift in EU funding will reinforce Europe's competitive edge, bolster its security and preparedness, secure energy supply, make the daily life of citizens more affordable, and increase Europe's technological independence", declares the Commission.
"Reprogrammed funds will also support skills development in civil preparedness, defence and cybersecurity, as well as in support of the decarbonisation process."
How can funds be reallocated under the Cohesion policy?
The Cohesion policy allows Member States to adjust their investment priorities during the 2021-2027 implementation period.
In April 2025, the Commission proposed that Member States and regions redirect investments towards new strategic priorities in the light of geopolitical events.
The ones who decided to reprogram funds towards the new EU strategic priorities benefit from enhanced pre-financing for projects and a higher EU co-financing rate. Regions bordering Russia, Belarus and Ukraine were offered an even more favourable treatment, adds the Commission.
To discover all our content, subscribe now
Join our subscriber community by selecting your preferred subscription plan (monthly or annual) or try it for free for 30-day.