Italy Reprograms €7 Billion in EU Cohesion Funds for Competitiveness and Housing

The country leads EU-wide effort to adapt regional development funds to new priorities like defense, energy, and economic resilience.

Mar. 29, 2026 at 9:45am

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The European Union has allowed member states to reprogram €34.6 billion in cohesion funds, with Italy reallocating over €7 billion - one of the highest figures in the Union. The funds will now prioritize investments in competitiveness, defense and civil preparedness, housing, water management, and energy transition, marking a shift from traditional regional development goals towards strengthening Europe's strategic autonomy.

Why it matters

This reprogramming of cohesion funds reflects the EU's need to adapt its regional development policies to address emerging geopolitical and economic challenges. By directing resources towards priorities like critical technologies, cybersecurity, and energy security, the EU is leveraging cohesion policy as a tool to enhance its overall economic and defense capabilities.

The details

Italy has modified 35 out of 48 of its cohesion programs, reallocating €4.7 billion to competitiveness and innovation, €1.1 billion to housing, €629 million to water management, €396 million to energy transition, and €248 million to defense. This is part of a broader EU-wide effort, with the largest share of reprogrammed funds - €15.2 billion - going towards competitiveness and critical technologies, followed by €11.9 billion for defense and civil preparedness.

  • On Tuesday, March 24, 2026, Italy's Minister for European Affairs Tommaso Foti asked to maintain cohesion funds in the next EU budget 2028-2034 at levels similar to the current ones.
  • On Thursday, March 19, 2026, EU Commission Vice-President Raffaele Fitto spoke in Naples about the need to modernize cohesion policy to address new challenges.

The players

Raffaele Fitto

Vice-President of the European Commission, who spoke about the need to adapt cohesion policy to new challenges.

Tommaso Foti

Italy's Minister for European Affairs, who asked to maintain cohesion funds in the next EU budget at similar levels.

Giorgia Meloni

Prime Minister of Italy, who stated that Italy has supported the need for greater flexibility and simplification in the use of European resources.

Kata Tüttő

President of the Committee of the Regions, who warned that without regional governance, cohesion policy could disappear in the post-2027 budget.

Maurizio Gardini

President of Confcooperative, who called for a balance between competitiveness and cohesion policy in the 2028-2034 EU budget.

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What they’re saying

“With the mid-term review and flexibility with regional ownership, investments are directed towards housing, water supply, emergency preparedness and competitiveness.”

— Kata Tüttő, President of the Committee of the Regions

“The Cohesion funds should remain of a similar financial size to the previous year and an objective model could be introduced.”

— Tommaso Foti, Minister for European Affairs

“There is a need to modernize cohesion policy, which is strategic, fundamental and present in the treaties, with the aim of reducing disparities.”

— Raffaele Fitto, Vice-President of the European Commission

“The funds are 'necessary and indispensable to support, above all, the development of territories that are slow to advance or are economically behind'.”

— Maurizio Gardini, President of Confcooperative

“The European Union must act decisively to strengthen defense policy and its autonomy.”

— Fernando López Miras, Spanish MP

What’s next

With the approval of the changes to the programs, the focus now shifts to the concrete implementation of the new investments. The European Commission will work closely with national and regional authorities to ensure the new priorities are translated into operational projects.

The takeaway

This reprogramming of EU cohesion funds marks a significant shift in regional development policy, moving beyond traditional territorial rebalancing goals towards strengthening Europe's strategic autonomy in areas like competitiveness, defense, and energy security. It highlights the EU's ability to adapt its funding mechanisms to address emerging geopolitical and economic challenges.