Despite concessions from EU Commission president Ursula von der Leyen, Europe's regional authorities are still unhappy with the proposed EU budget for 2028-2034.
Cities and regions fear that they will be cut out of funding decisions that affect their local communities.
In the summer, the commission presented its proposal for the next long-term EU budget, the multiannual financial framework (MFF).
Criticism quickly grew, with special concern about the proposed National and Regional Partnership Plans (NRPP).
The plans would manage about €865bn (some 44 percent of the total budget of €2 trillion) and include cohesion funds alongside the Common Agricultural Policy (CAP).
“We all know that right now, because of what's happening around the world, we need to put more money on security. At the same time, it's obvious that we still have to put a lot of money in modernising our industry, in decarbonising the industry, in fighting against climate change, competitiveness, energy. All these priorities are important, all these priorities need money,” Catalan minister for EU affairs, Jaume Duch, told EUobserver.
The main criticism Duch, plus many European regions, have when it comes to the MFF is that: “The proposal is too reduced compared with the priorities and the necessities of the EU."
"All that the commission is proposing is in reality the result of this situation: less money, more priorities," Duch said.
The Catalan minister and former chief of communications in the European Parliament points out that democracy within the European Union is also under threat, and to fight anti-democratic tendencies, the EU itself needs to be reinforced.
“And if you want to reinforce the European Union, of course, you need political willingness, sure. But you also need means.”
Usually, funds in the EU budget have been managed by the commission working together with the member states and the regional governments. Money was directed to certain topics like health, cohesion or agriculture.
With the new proposal and the implementation of the NRPP, funds would be directed to the national governments. They then get to decide where to use the money.
“It means that in reality we end up in a European Union where the member states send money to Brussels and then Brussels sends money back to the member states,” said Duch.
The minister also sees a push by the commission to centralise regional policy, and give more power to the national governments.
“Many regions in Europe are very mobilised to confront this idea, and these plans. First of all, through the Committee of Region", he said.
"I think that the Committee of Regions has been very vocal against these proposals, using the different networks.”
After all this opposition, von der Leyen backtracked. Concessions made in November include a minimum of 10 percent of national agriculture and cohesion funds reserved for rural objectives.
Regional authorities are also guaranteed a role in planning how the money is allocated.
In Duch’s opinion, “that is a good basis but it’s not enough.”
“Cohesion is also about solidarity, and if you cancel or reduce solidarity inside the European Union, you will probably also weaken the relationship between the European Union and the institutions and quite a lot of people, quite a share of the European population,” he added.
Speaking from experience in both the Committee of the Regions, and talking with Spanish MEPs, Duch is sure that a majority of MEPs do not support the commission's push away from regions.
The parliament is expected to adopt an interim report on the commission’s proposal in May 2026.
Negotiations between parliament and council to reach a conclusion on the regulation will start soon after.
However, the fight around the spending of almost €2 trillion will be long and negotiations are expected to be challenging.
According to the draft conclusions of this week's EU leaders summit, seen by EUobserver, the council is expected to agree on its position by the end of 2026, paving the way for a final adoption in 2027.
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Hannah Kriwak is a junior reporter from Austria at EUobserver, covering European politics.
Hannah Kriwak is a junior reporter from Austria at EUobserver, covering European politics.