Future governance of EU Cohesion Policy after 2027

Strong centralisation is not recommended: Our study, based on stakeholder surveys and interviews with experts, shows what the future distribution of European structural funds should look like. The results make it clear that the multi-level governance approach (EU, federal government, federal states) is still considered sensible.

The Federal Ministry for Economic Affairs and Climate Protection (BMWK) commissioned Prognos, DLR Projektträger and Taurus Eco Consulting to support it in the future orientation of European structural funding from the perspective of the federal and state governments.

As part of the project, relevant issues relating to the future implementation, management and administration of European structural funds were analysed using a participatory approach. Based on these findings, the BMWK will develop its position for the negotiations for the 2028 to 2034 funding period.

How should the distribution of EU funds for structural support be organised in future?

Europe’s regions are facing significant transformation challenges. The European Union is supporting them in tackling these challenges. By providing various structural funds, it strengthens economic, social and territorial cohesion and reduces regional imbalances between the European regions. These include the European Social Fund (ESF) and the European Regional Development Fund (ERDF).

In order to shed light on key aspects of the implementation, management and governance of the structural funds, with a focus on ERDF funding, in the federal states, we surveyed the administrative authorities of the federal states as well as relevant stakeholders from science, business and civil society. The aim is to make future programmes and funding guidelines even more targeted, effective and simple.

The most important findings of our study:

• Cohesion policy plays a decisive role for regional economic development in Germany. It should continue to be implemented within the tried and tested multi-level governance framework (EU, federal government, federal states) with the shared management approach. Strong centralisation is not recommended.
• The governance system of cohesion policy serves as a model for other economic policy programmes. It convinces through active programme planning, the involvement of stakeholders in monitoring committees and an effective evaluation system.
• In order to effectively combat regional inequalities, the interplay between EU cohesion policy and funding measures at federal and state level is crucial. Coordination with other EU instruments such as Horizon Europe also plays an important role at regional level.
• An important building block in the organisation of cohesion policy is cross-regional cooperation both within Germany and across borders. This can be achieved through joint RIS3 processes or through active use of the Interreg programmes.
• The closer linking of cohesion policy measures with structural reforms can further develop the institutional and regulatory conditions. In federal systems such as the Federal Republic of Germany, however, competences are distributed differently. A new governance approach is therefore required that systematically translates local and regional reform needs into legislative reform projects at state and federal level.
• In order to increase the efficiency of cohesion policy, options such as performance-based reimbursements, simplified cost models and increased digitalisation of processes continue to be available.
• Better implementation could also be achieved through scaled funding that provides targeted, multi-stage support for high-risk projects. Tax incentives for research and innovative procurement also help.

Our approach

Based on the expertise of science and practice, we worked together with DLR Projektträger and Taurus Eco Consulting to develop recommendations for action for future-proof governance and implementation of cohesion policy. The following methods were applied:

• Six thematic online workshops with state representatives, in particular ERDF managing authorities
• Nationwide online survey to involve further stakeholders
• Expert workshop in Berlin
• Literature and document analyses
• Case analyses

The results will help the BMWK to prepare a joint statement by the federal and state governments. This contains proposals for a reformed cohesion policy, which is to be presented to the European Commission at the end of the year.  

Links and downloads

To the study (PDF)

Further information (BMWK press release, german)

Results of the stakeholder consultation (BMWK press release, german)

Project team: Holger Bornemann, Dr Jan-Philipp Kramer, Ralph Rautenberg

Latest update: 09.12.2024