EU funding for Catalonia has secured a significant victory after European Commission President Ursula von der Leyen reversed plans to centralise regional fund distribution through national capitals.

The decision follows widespread opposition from European regions concerned about losing direct access to crucial cohesion funds that have traditionally supported local development projects.

EU Funding Compromise Maintains Regional Influence

Von der Leyen confirmed the policy shift during a Tuesday appearance at the European Parliament, where she explicitly promised that regional governments would continue negotiating directly with the European Commission.

The President of the European Commission, Ursula von der Leyen. / OLIVER HOSLET | Efe

“The governance of cohesion remains the same, with the complete commitment of the regions,” she declared.

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“Of course, they will continue to negotiate directly with the European Commission – there should be no doubt about this.”

The proposed changes would have seen all regional funding, including the significant Cohesion Fund, distributed through state capitals like Madrid. Consequently, this would have given national governments final say over how European money was allocated within their territories. However, the Commission’s new proposal includes a “regional review” mechanism that maintains regional authorities’ ability to validate and negotiate EU funds directly with Brussels.

Furthermore, the Commission has committed to preserving key funding programmes including the Cohesion Fund and the Common Agricultural Policy (CAP). These programmes represent some of the most direct funding channels between the EU and regional administrations. Additionally, the new framework mandates that 10% of national financing plans must be dedicated to rural development, ensuring balanced regional investment.

Political Reactions and Future Implications

The policy reversal comes after substantial pressure from multiple European regions and political groups within the European Parliament. Interestingly, even von der Leyen’s own European People’s Party had joined calls to maintain direct regional access to EU funding streams. Meanwhile, social democrats have described the changes as “cosmetic” and urged further reforms, while liberal and green groups see the compromise as merely a starting point for budget negotiations.

This development represents a significant achievement for regional governance across Europe. The maintained EU funding access ensures that regions like Catalonia can continue pursuing development priorities that might differ from national government agendas. This decision comes amid ongoing discussions about regional challenges requiring European support, particularly in areas like housing and urban development.

The new European budgets, which will take effect in 2028 and run until 2034, will now proceed with this modified framework. The compromise reflects the complex balance between European integration and regional autonomy that continues to shape EU policy-making. As negotiations continue, regional governments will monitor how these principles are implemented in practice, ensuring that the promised direct access to EU funding becomes reality rather than rhetoric.

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