António Costa Stresses the Importance of Cohesion in EU Budget Policies Amid Defense Spending Concerns

European Cohesion and Defense Funding

António Costa, President of the European Council, emphasized that the Cohesion Policy funding in the upcoming multiannual financial framework (MFF) cannot be compromised due to the urgent need for resources to bolster the European Union's defense capabilities. Speaking at the inaugural session of the new mandate of the Committee of the Regions in Brussels, he stated, "We need cohesion in all policies, including defense."

Costa, who will lead the challenging negotiations among member states for the approval of the next community budget starting in 2028, highlighted the necessity of a European defense mindset at all levels. He firmly asserted that investments in defense should not undermine cohesion, reflecting his role as a spokesperson for the Cohesion Friends group during the 2020 negotiations.

Upcoming Budget Guidelines

The European Commission is set to present its proposal for the next MFF in July. However, the guidelines for the upcoming exercise, as outlined in the communication titled "A Roadmap for the Multiannual Financial Framework," have raised concerns among members of the Committee of the Regions. They fear a potential distortion of the Cohesion Policy and a marginalization of regional and local authorities in managing structural funds.

Centralization Concerns

Vasco Cordeiro, the outgoing president of the Committee of the Regions, confirmed worries about a possible nationalization or centralization of decisions that exclude subnational levels of government. He highlighted that this poses a challenge and concern for local governance.

A Unified Approach to Budgeting

In the upcoming debate on the long-term budget, Costa agrees with the European Commission's approach to replicate the model of "tailored reforms and investments" initially applied through the Recovery and Resilience Plans. He called for a clear logic with defined goals and timelines, advocating for a cohesion objective across all European policies.

Prioritizing Defense Investments

Costa identified investment in defense as a top priority for a Union facing unprecedented tests from geopolitical challenges, economic conditions, and a disconnect between citizens and leaders. He articulated that the situation demands urgency and highlighted the potential for new defense investments to create jobs and boost regional development. He envisions building a European network of secure supply chains and an innovative industry.

Differentiating Defense from Cohesion

While Costa's message resonated with many, Cordeiro noted the distinction between climate defense against extreme events and energy defense, emphasizing that the latter differs from the Cohesion Policy. Cordeiro fully aligned with Costa regarding the need for new resources for the upcoming MFF, stressing that addressing new priorities requires additional funding.