Published: 11/09/2019

Every euro spent on cohesion policy generates almost three times as much GDP, according to a report by the Polish Economic Institute entitled “Cohesion policy, or solidarity in action”.

Cuts in the cohesion policy budget

According to the Commission, the repercussions of Brexit, along with new security and environmental challenges, require an immediate reaction. For this reason, it has announced plans to cut the budget for cohesion policy by 10%. In its current form, the Commission’s draft allocates slightly less than EUR 330 bn to cohesion policy.

Decisions on how much countries would contribute to the EU budget for 2021-2027 have not yet been made. “Cohesion policy should be viewed in terms of long-term benefits,” says Krzysztof Kutwa, an analyst on the Polish Economic Institute’s Strategy Team. “On the one hand, there is a lack of reliable information for assessing its effectiveness, which is why a European Institute for Evaluating Cohesion Policy needs to be established. On the other hand, the challenges currently faced by the EU, such as Brexit, must be considered when adapting the funds to individual countries’ needs. The EU should forestall their negative consequences.”