European Regions Warn Brussels Against Centralizing EU Funding

German federal states, alongside their counterparts in Belgium, Austria, and Poland, have jointly warned the European Commission against centralizing EU funding decisions. In a letter to Commission President Ursula von der Leyen, they stressed that the established European cohesion policy must not be jeopardized for the 2028-2034 funding period. The core of their concern lies in potential plans to centralize decision-making at the national level, which they believe could lead to drastic financial cuts for EU regions and a significant loss of their ability to shape their own development.

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Europe is under enormous pressure in international competition. It is crucial that we strengthen our economy, drive innovation, and ensure our security.

Saxony's state governor, Michael Kretschmer (CDU), emphasized the critical need to strengthen, not weaken, regional autonomy to bolster Europe's economy, drive innovation, and ensure security in a competitive international landscape. He warned that current plans could halve Saxony's EU funding, calling it a "wrong path." Kretschmer asserted that regions must retain the power to decide their own development, arguing that "Europe needs strong regions and proximity to citizens, not new bureaucracy."

Kretschmer highlighted the importance of continuity and reliability, noting that Saxony has greatly benefited from EU cohesion policy since German reunification, receiving over 20 billion euros in funding invested in education, infrastructure, and rural development. He expects the European Commission to correct its "dangerous centralization course" to avoid a substantial loss of influence for the regions.

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This is a wrong path. That is why we are fighting together to ensure that the regions can continue to decide on the development of their homeland independently. Europe needs strong regions and proximity to citizens, not new bureaucracy.

The signatories of the letter urgently cautioned that shifting decision-making and steering competencies to the national level would undermine the fundamental principles of subsidiarity and partnership. They are demanding a binding participation of regions in future national and regional partnership plans, adequate financial resources for the regional level, and decision-making authority over the use of regionally allocated funds. They also insist on maintaining co-financing conditions and realistic deadlines for implementing funding programs.

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Saxony, like hardly any other region in Germany, has benefited from the EU cohesion policy. Since reunification, more than 20 billion euros in funding has flowed into the Free State. We have wisely invested this in education, infrastructure, and rural areas.