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From · Plenary report · 2025-07-02 A-10-2025-0129 on the proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) 2021/1058 and (EU) 2021/1056 as regards specific measures to address strategic challenges in the context of the mid-term review
To · Adopted text · 2025-09-10 TA-10-2025-0177 Amending ERDF, Cohesion Fund and Just Transition Fund as regards specific measures to address strategic challenges in the context of the mid-term review
+15 added · −669 removed · 4 modified paragraphs

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

P10_TA(2025)0177

on the proposal for a regulation ofAmending theERDF, EuropeanCohesion ParliamentFund and of the Council amending Regulations (EU) 2021/1058 andJust (EU)Transition 2021/1056Fund as regards specific measures to address strategic challenges in the context of the mid-term review (COM(2025)0123 – C100063 – 2025/0084(COD))

Committee on Regional Development

PE774.518

European Parliament legislative resolution of 10 September 2025 on the proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) 2021/1058 and (EU) 2021/1056 as regards specific measures to address strategic challenges in the context of the mid-term review (COM(2025)0123 – C10-0063/2025 – 2025/0084(COD))

(Ordinary legislative procedure: first reading)

– having regard to the Commission proposal to Parliament and the Council (COM(2025)0123),

– having regard to Article 294(2) and Article 175, 177,178177, 178 and 322 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C10-0063/2025),

– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

– having regard to the budgetary assessment by the Committee on Budgets,

– having regard to the opinion of the European Economic and Social Committee of 29 April 20252025,

– having regard to the opinion of the Committee of the Regions of 15 May 2025,– having regard to Rules 60 and58of its Rules of Procedure,2025,

– having regard to the provisional agreement approved by the committee responsible under Rule 75(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 23 July 2025 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

– having regard to Rules 60 and 58 of its Rules of Procedure,

– having regard to the opinion of the Committee on Security and Defence,

1. Adopts its position at first reading hereinafter set out;

2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

2. Takes note of the statement by the Commission annexed to this resolution, which will be published in the C series of the Official Journal of the European Union;

3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

3. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

Amendment 1

4. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Proposal for a regulation

P10_TC1-COD(2025)0084

Title 1

Position of the European Parliament adopted at first reading on 10 September 2025 with a view to the adoption of Regulation (EU) 2025/… of the European Parliament and of the Council amending Regulations (EU) 2021/1058 and (EU) 2021/1056 as regards specific measures to address strategic challenges in the context of the mid-term review

Amendment 2

(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2025/1914.)

Proposal for a regulation

ANNEX TO THE LEGISLATIVE RESOLUTION

Recital 1

Statement of the Commission on the respect for rule of law on the occasion of the adoption of Regulation (EU) 2025/1914

Amendment 3

The Commission underlines that the respect for rule of law and fundamental rights is of utmost importance for the European Union. The Commission understands the intention of the co-legislators to ensure the protection of the Union budget with its amendments to the Commission proposal. The Commission remains committed to ensuring the Rule of Law is upheld in the implementation of the Funds and will assess any request for programme amendments in line with the Common Provisions Regulation (CPR), the Rule of Law Conditionality Regulation and the provisions of the Mid-Term Review Regulation.

Proposal for a regulation

Recital 2

Amendment 4

Proposal for a regulation

Recital 2 a (new)

Amendment 5

Proposal for a regulation

Recital 3

Amendment 6

Proposal for a regulation

Recital 5

Amendment 7

Proposal for a regulation

Recital 5 a (new)

Amendment 8

Proposal for a regulation

Recital 5 b (new)

Amendment 9

Proposal for a regulation

Recital 5 c (new)

Amendment 10

Proposal for a regulation

Recital 6

Amendment 11

Proposal for a regulation

Recital 7

Amendment 12

Proposal for a regulation

Recital 8

Amendment 13

Proposal for a regulation

Recital 8 a (new)

Amendment 14

Proposal for a regulation

Recital 9

Amendment 15

Proposal for a regulation

Recital 10

Amendment 16

Proposal for a regulation

Recital 10 a (new)

Amendment 17

Proposal for a regulation

Recital 11

Amendment 18

Proposal for a regulation

Recital 12

Amendment 19

Proposal for a regulation

Recital 13

Amendment 20

Proposal for a regulation

Recital 15

Amendment 21

Proposal for a regulation

Recital 16

Amendment 22

Proposal for a regulation

Recital 19 a (new)

Amendment 23

Proposal for a regulation

Recital 19 b (new)

Amendment 24

Proposal for a regulation

Recital 20

Amendment 25

Proposal for a regulation

Recital 20 a (new)

Amendment 26

Proposal for a regulation

Article 1 – paragraph 1 – point 1 – point a – point i

Regulation (EU) 2021/1058

Article 3 – paragraph 1 – point a – point vii

Amendment 27

Proposal for a regulation

Article 1 – paragraph 1 – point 1 – point a – point ii

Regulation (EU) 2021/1058

Article 3 – paragraph 1 – point b – point v

Amendment 28

Proposal for a regulation

Article 1 – paragraph 1 – point 1 – point a – point iii

Regulation (EU) 2021/1058

Article 3 – paragraph 1 – point b – point xi

Amendment 29

Proposal for a regulation

Article 1 – paragraph 1 – point 1 – point a – point iii

Regulation (EU) 2021/1058

Article 3 – paragraph 1 – point b – point xii

Amendment 30

Proposal for a regulation

Article 1 – paragraph 1 – point 1 – point a – point iii

Regulation (EU) 2021/1058

Article 3 – paragraph 1 – point b – point xii a (new)

Justification

The proposed amendment aims to align the Cohesion Policy funding instruments with the strategic priorities of the European Union’s energy transition, specifically the deployment of long-duration electricity storage infrastructure, such as pumped-storage hydropower (PSH).The proposed change is therefore: Legally sound, building on existing eligibility clauses and definitions; Politically coherent, aligned with new EU funding and labelling tools; Practically necessary, to unlock funding for ready-to-implement strategic PSH projects during the reprogramming window.

Amendment 31

Proposal for a regulation

Article 1 – paragraph 1 – point 1 – point a – point iv

Regulation (EU) 2021/1058

Article 3 – paragraph 1 – point c – point iii

Amendment 32

Proposal for a regulation

Article 1 – paragraph 1 – point 1 – point a – point v

Regulation (EU) 2021/1058

Article 3 – paragraph 1 – point d – point vii

Amendment 33

Proposal for a regulation

Article 1 – paragraph 1 – point 1 – point a – point vi

Regulation (EU) 2021/1058

Article 3 – paragraph 1 – point e – paragraph 1 – point iii

Amendment 34

Proposal for a regulation

Article 1 – paragraph 1 – point 1 – point a – point vi

Regulation (EU) 2021/1058

Article 3 – paragraph 1 – point e – paragraph 1 – point iii a (new)

Amendment 35

Proposal for a regulation

Article 1 – paragraph 1 – point 1 – point a – point vi

Regulation (EU) 2021/1058

Article 3 – paragraph 1 – point e – point iii b (new)

Amendment 36

Proposal for a regulation

Article 1 – paragraph 1 – point 1 – point a – point vii

Regulation (EU) 2021/1058

Article 3 – paragraph 1 – subparagraph 1a

Amendment 37

Proposal for a regulation

Article 1 – paragraph 1 – point 1 – point c

Regulation (EU) 2021/1058

Article 3 – paragraph 1c – subparagraph 1

Amendment 38

Proposal for a regulation

Article 1 – paragraph 1 – point 1 – point c

Regulation (EU) 2021/1058

Article 3 – paragraph 1c – subparagraph 2

Amendment 39

Proposal for a regulation

Article 1 – paragraph 1 – point 1 – point c

Regulation (EU) 2021/1058

Article 3 – paragraph 1c – subparagraph 7

Justification

Maintain the 100% co-financing proposed by the Commission

Amendment 40

Proposal for a regulation

Article 1 – paragraph 1 – point 1 – point e

Regulation (EU) 2021/1058

Article 3 – paragraph 4 – subparagraph 2 a (new)

Justification

It should be clear and consistent which preparatory actions for reforms are eligible for funding.

Amendment 41

Proposal for a regulation

Article 1 – paragraph 1 – point 1 – point e a (new)

Regulation (EU) 2021/1058

Article 3 – paragraph 4 a (new)

Amendment 42

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1058

Article 4 – paragraph 10

Amendment 43

Proposal for a regulation

Article 1 – paragraph 1 – point 3 – point a – point i – point 1

Regulation (EU) 2021/1058

Article 5 – paragraph 2 – subparagraph 1 – point e

Amendment 44

Proposal for a regulation

Article 1 – paragraph 1 – point 3 – point a – point i – point 2

Regulation (EU) 2021/1058

Article 5 – paragraph 2 –subparagraph 1 – point f

Amendment 45

Proposal for a regulation

Article 1 – paragraph 1 – point 3 – point a – point i – point 3

Regulation (EU) 2021/1058

Article 5 – paragraph 2 – subparagraph 1 – point g

Amendment 46

Proposal for a regulation

Article 1 – paragraph 1 – point 3 – point a – point i – point 3

Regulation (EU) 2021/1058

Article 5 – paragraph 2 –subparagraph 1 – point g a (new)

Justification

The proposed amendment aims to align the Cohesion Policy funding instruments with the strategic priorities of the European Union’s energy transition, specifically the deployment of long-duration electricity storage infrastructure, such as pumped-storage hydropower (PSH).The proposed change is therefore: Legally sound, building on existing eligibility clauses and definitions; Politically coherent, aligned with new EU funding and labelling tools; Practically necessary, to unlock funding for ready-to-implement strategic PSH projects during the reprogramming window.

Amendment 47

Proposal for a regulation

Article 1 – paragraph 1 – point 3 – point a – point ii

Regulation (EU) 2021/1058

Article 5 – paragraph 2 – subparagraph 2

Amendment 48

Proposal for a regulation

Article 1 – paragraph 1 – point 3 – point b

Regulation (EU) 2021/1058

Article 5 – paragraph 10

Amendment 49

Proposal for a regulation

Article 1 – paragraph 1 – point 4 – point a

Regulation (EU) 2021/1058

Article 7 – paragraph 1 – point b

Amendment 50

Proposal for a regulation

Article 1 – paragraph 1 – point 4 – point b

Regulation (EU) 2021/1058

Article 7 – paragraph 1 – point h – point iv

Justification

The amendment deletes the proposed possibility of support to decarbonisation projects related to fossil fuels

Amendment 51

Proposal for a regulation

Article 1 – paragraph 1 – point 5

Regulation (EU) 2021/1058

Article 7a – paragraph 1 – subparagraph 1

Amendment 52

Proposal for a regulation

Article 1 – paragraph 1 – point 5

Regulation (EU) 2021/1058

Article 7a – paragraph 1 – subparagraph 2

Amendment 53

Proposal for a regulation

Article 1 – paragraph 1 – point 5

Regulation (EU) 2021/1058

Article 7a – paragraph 2

Amendment 54

Proposal for a regulation

Article 1 – paragraph 1 – point 5

Regulation (EU) 2021/1058

Article 7a – paragraph 3 a (new)

Amendment 55

Proposal for a regulation

Article 1 – paragraph 1 – point 5

Regulation (EU) 2021/1058

Article 7a – paragraph 4

Amendment 56

Proposal for a regulation

Article 1 – paragraph 1 – point 5

Regulation (EU) 2021/1058

Article 7a – paragraph 6 a (new)

Amendment 57

Proposal for a regulation

Article 1 – paragraph 1 – point 7 – point a

Regulation (EU) 2021/1058

Annex 1 – table 1 – policy objective 1 – row vii

Amendment 58

Proposal for a regulation

Article 1 – paragraph 1 – point 7 – point b

Regulation (EU) 2021/1058

Annex 1 – table 1 – policy objective 2 – row v

Amendment 59

Proposal for a regulation

Article 1 – paragraph 1 – point 7 – point c

Regulation (EU) 2021/1058

Annex 1 – table 1 – policy objective 2 – row xi

Amendment 60

Proposal for a regulation

Article 1 – paragraph 1 – point 7 – point c

Regulation (EU) 2021/1058

Annex 1 – table 1 – policy objective 2 – row xii – column 2

Amendment 61

Proposal for a regulation

Article 1 – paragraph 1 – point 7 – point c

Regulation (EU) 2021/1056

Annex I – table 1 – point 2 – policy objective 2 – point xii a (new)

Justification

The proposed amendment aims to align the Cohesion Policy funding instruments with the strategic priorities of the European Union’s energy transition, specifically the deployment of long-duration electricity storage infrastructure, such as pumped-storage hydropower (PSH).The proposed change is therefore: Legally sound, building on existing eligibility clauses and definitions; Politically coherent, aligned with new EU funding and labelling tools; Practically necessary, to unlock funding for ready-to-implement strategic PSH projects during the reprogramming window.

Amendment 62

Proposal for a regulation

Article 1 – paragraph 1 – point 7 – point d

Regulation (EU) 2021/1058

Annex 1 – table 1 – policy objective 3 – row iii – column 2

Amendment 63

Proposal for a regulation

Article 1 – paragraph 1 – point 7 – point e

Regulation (EU) 2021/1058

Annex 1 – table 1 – policy objective 4 – row vii

Amendment 64

Proposal for a regulation

Article 1 – paragraph 1 – point 7 – point f

Regulation (EU) 2021/1058

Annex 1 – table 1 – policy objective 5 – row iii

Amendment 65

Proposal for a regulation

Article 1 – paragraph 1 – point 7 – point f a (new)

Regulation (EU) 2021/1058

Annex 1 – table 1 – point 5 – policy objective 5 – point iii a (new)

Amendment 66

Proposal for a regulation

Article 1 – paragraph 1 – point 7 – point f b (new)

Regulation (EU) 2021/1058

Annex 1 – table 1 – policy objective 5 – row iii b (new)

Amendment 67

Proposal for a regulation

Article 2 – paragraph 1 – point 1 – point -a (new)

Regulation (EU) 2021/1056

Article 8 – paragraph 2 – subparagraph 1 – point f

(02021R1056-20240301)

Amendment 68

Proposal for a regulation

Article 2 – paragraph 1 – point 1 – point -a a (new)

Regulation (EU) 2021/1056

Article 8 – paragraph 2 – subparagraph 1 – point i

(Document 02021R1056-20240301)

Amendment 69

Proposal for a regulation

Article 2 – paragraph 1 – point 1 – point a

Regulation (EU) 2021/1056

Article 8 – paragraph 2 – subparagraph 1 – point p

Amendment 70

Proposal for a regulation

Article 2 – paragraph 1 – point 1 – point a

Regulation (EU) 2021/1056

Article 8 – paragraph 2 – subparagraph 1 – point p a (new)

Justification

The proposed amendment aims to align the Cohesion Policy funding instruments with the strategic priorities of the European Union’s energy transition, specifically the deployment of long-duration electricity storage infrastructure, such as pumped-storage hydropower (PSH).The proposed change is therefore: Legally sound, building on existing eligibility clauses and definitions; Politically coherent, aligned with new EU funding and labelling tools; Practically necessary, to unlock funding for ready-to-implement strategic PSH projects during the reprogramming window.

Amendment 71

Proposal for a regulation

Article 2 – paragraph 1 – point 1 – point a a (new)

Regulation (EU) 2021/1056

Article 8 – paragraph 2 – subparagraph 2

(Document 02021R1056-20240301)

Amendment 72

Proposal for a regulation

Article 2 – paragraph 1 – point 1 – point b

Regulation (EU) 2021/1056

Article 8 – paragraph 2 – subparagraph 4

Amendment 73

Proposal for a regulation

Article 2 – paragraph 1 – point 2

Regulation (EU) 2021/1056

Article 9 – point d

Justification

Fossil fuel projects should not be supported.

Amendment 74

Proposal for a regulation

Article 2 – paragraph 1 – point 3

Regulation (EU) 2021/1056

Article 10 – paragraph 5 a (new)

Amendment 75

Proposal for a regulation

Article 2 – paragraph 1 – point 5 a (new)

Regulation (EU) 2021/1056

Annex 3 – table 1 – row 3

Amendment 76

Proposal for a regulation

Article 2 a (new)

Regulation (EU) 2021/1060

Article 24 – paragraph 10 a (new)

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that he received input from the following entities or persons in the preparation of the report, prior to the adoption thereof in committee:

The list above is drawn up under the exclusive responsibility of the rapporteur.

Where natural persons are identified in the list by their name, by their function or by both, the rapporteur declares that he has submitted to the natural persons concerned the European Parliament's Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.

18.6.2025

BUDGETARY ASSESSMENT OF THE COMMITTEE ON BUDGETS

for the Committee on Regional Development

on the proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) 2021/1058 and (EU) 2021/1056 as regards specific measures to address strategic challenges in the context of the mid-term review

(COM(2025)0123 – C100063/2025 – 2025/0084(COD))

Rapporteur for budgetary assessment: Danuše Nerudová

The Committee on Budgets has carried out a budgetary assessment of the proposal under Rule 58 of the Rules of Procedure and has reached the following conclusions:

The Committee on Budgets,

A. whereas the proposal does not modify existing budgetary commitments and remains within the limits of the overall allocations for the period 2021-2027, and is therefore budgetary neutral;

B. whereas the combined effect of exceptional one-off 30 % pre-financing and 100 % co-financing on new EU priorities, as well as additional one-off pre-financing of 4.5 % (9.5 % for NUTS 2 regions that have borders with Russia, Belarus or Ukraine) for programmes that reallocate at least 15 % of their resources to the new priorities, leads to a partial front-loading of estimated payment appropriations of EUR 3.6 billion in 2026, followed by lower payments in 2027;

C. whereas the extension of the eligibility period by one year – from the end of 2029 to the end of 2030 – for programmes that reallocate at least 15 % of their total allocation to new specific objectives creates payments in 2030 and changes the applicable decommitment rule for 2027 from year n+2 to year n+3;

Conclusions of the budgetary assessment

1. Determines that the proposal is compatible with the MFF Regulation; notes that the proposed measures are voluntary and do not involve any top-up of the initial allocation available to the Member States;

2. Notes that the proposal does not require additional human resources, despite the changes in the policy areas concerned;

3. Determines that the proposal is compatible with the Interinstitutional agreement on budgetary discipline (IIA); notes, however, that re-programming in the context of the mid-term review is considered not to alter the contribution to climate targets as set out in point 16 of the IIA; calls on the Commission to assess the impact of the revised plans on the shares of expenditure supporting climate objectives; notes also that the ‘do no significant harm’ principle should apply and takes note of the current security threats;

4. Considers that the proposal is compatible with the budgetary principles laid down in the Financial Regulation; notes, however, that the pre-financing paid in 2026 will be counted as payments made in 2025 for the purposes of calculating the amounts to be decommitted, in particular as regards respect for the principle of annuality;

5. Recalls the importance of the general regime of conditionality as set out in Article 6 of the Financial Regulation; calls on the Commission and the Member States to ensure compliance with the Charter of Fundamental Rights of the European Union and to respect the Union values enshrined in Article 2 of the Treaty on European Union in the implementation of the budget;

6. Notes that the Commission does not expect any implications for the budget for 2025; expects the Commission to take into account the current proposal and the updated payment needs for the European Regional Development Fund (ERDF) and the Cohesion Fund in the budgetary procedure for 2026 following the actual re-programming by Member States and to keep Parliament informed in a timely manner of the progress of the mid-term review in the Member States and the actual payment needs for 2026;

Recommendations as regards budget implementation

7. Notes that the proposal provides further flexibility and introduces incentives for Member States in the context of the mid-term review of cohesion policy to address strategic challenges that the EU is facing by redirecting resources to new and strategic EU priorities such as strengthening defence capabilities, including the value chains that underpin them, and the overall competitiveness of European companies while ensuring continued investment in territorial cohesion, social justice and the green transition; regrets that cohesion policy is again being used as a flexibility response tool and maintains that this approach risks undermining its longer-term policy and investment objectives, including regional development, and investments in skills, innovation, productivity and key social infrastructure; regrets that the Commission did not perform an impact assessment of the changes; acknowledges that the proposal offers a pragmatic yet unsatisfactory way forward for dealing with insufficient budgetary flexibility and response capacity in the EU budget, which was not adequately addressed in the mid-term revision of the multiannual financial framework (MFF);

8. Recalls that the next MFF should ensure the existence of sufficient budgetary reserves to respond to unforeseen events as well as new challenges faced by the EU, including climate disasters, military threats and conflicts on European soil, or any developments that could significantly affect the Union and its territories; recalls that budgetary reserves cannot come at the expense of nor lead to a reduction in long-term investment in the economic, social and territorial cohesion of the Union, and that safeguards to prevent the dismantling of the core objectives of cohesion policy must be maintained; underlines that the combined effect of reallocating a minimum of 15 % of resources and of lifting the 20 % ceiling for transfer towards Strategic Technologies for Europe Platform (STEP) objectives may have a negative impact on the achievement of targets initially set owing to a discontinuity in matching objectives with resources;

9. Notes that payments to 2021-2027 cohesion policy programmes were very low in the first years of implementation, leading to increased payment needs in the later years; recalls that this actual payment cycle does not coincide with the more linear payment profile set out in the MFF Regulation and that this situation results in a serious risk of exceeding payment ceilings; highlights that the current low absorption rate of cohesion policy is due to the overlapping of the programming periods and the late start of the programmes, combined with the parallel implementation of the Recovery and Resilience Facility; calls for better access to the funds and simplified procedures tailored to administrative capacities, especially for less developed regions smaller communities and beneficiaries; considers that the front-loading of payments towards 2026 could alleviate the pressure on payments, as has been highlighted on numerous occasions;

10. Recalls that the STEP Regulation and the RESTORE Amending Regulation in 2024 were accompanied by a front-loading of payment appropriations in the budgets for 2024 and for 2025; notes that the total amount of payment appropriations in the 2026 draft budget is very close to the payment ceiling and is concerned, in this respect, about the large uncertainty regarding the volume of payment claims in 2026;

11. Recalls that 100 % co-financing without additional resources leads to a lower total amount of financial support through the programme; recalls that broadening the scope of investment under the ERDF and the Cohesion Fund must not lead to a reduction of financial support for initial objectives; recalls that mandatory co-financing is an important principle for cohesion policy funds;

12. Requests that the Commission report on transfers in a traceable and timely way, to make the impact of the mid-term review clearly identifiable for the budgetary authority, including on payment schedules and payment forecasts;

13. Believes that the proposal could potentially create a loophole allowing the release of European funds blocked due to rule of law breaches; calls on the Commission to maintain consistency in applying conditionality across all EU funding streams; insists that amendments in Parliament’s reading are essential to close any loophole; demands enforcement of conditionality mechanisms and explicitly rejects any reallocation of blocked cohesion policy funds that would circumvent the rule-of-law-related requirements established in the Common Provisions Regulation; underlines that rule of law conditionality is a fundamental principle that must apply to all EU funds without exception;

14. Considers that the effectiveness of the threshold of 15 % re-allocation should be reassessed to ensure sufficient flexibility in order to meet the main objectives of the proposal while ensuring that the genuine objectives of cohesion policy are safeguarded; notes that the proposed condition of the reallocation of at least 15 % of the funds to new priorities may be too high, given the advanced stage of implementation of the MFF, and that it may not be suitable for single national programmes; is therefore of the opinion that the required allocation level of the financial resources is disproportionately high;

15. Recalls the need to strengthen safeguards preventing double financing and calls on the Member States and the Commission to ensure that support for the new types of investment is in addition to support under other Union programmes, including the European Development Fund, the European defence industry programme and the Security Action for Europe instrument;

16. Notes that the mid-term review may reduce the amount of funds at risk of decommitment; recalls that an amount equivalent to the cumulative decommitments made on outstanding commitments since 2021 can be made available for the European Union Recovery Instrument (EURI); asks the Commission to provide further analysis about the impact of the mid-term review on EURI;

17. Notes, however, that extending the eligibility period by one more year increases the risk of delayed payment claims, further delays to the implementation of cohesion policy and a higher stock of outstanding commitments.

AMENDMENT

As part of its budgetary assessment, the Committee on Budgets also submits the following amendment to the proposal:

Amendment 1

Proposal for a regulation

Recital [18] a (new)

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR FOR BUDGETARY ASSESSMENT HAS RECEIVED INPUT

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur for budgetary assessment declares that she received input from the following entities or persons in the preparation of the budgetary assessment:

The list is drawn up under the exclusive responsibility of the rapporteur for budgetary assessment.

Where natural persons are identified in the list by their name, by their function or by both, the rapporteur for budgetary assessment declares that she has submitted to the natural persons concerned the European Parliament’s Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.

PROCEDURE – COMMITTEE ASKED FOR BUDGETARY ASSESSMENT

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR BUDGETARY ASSESSMENT

17.6.2025

OPINION OF THE COMMITTEE ON SECURITY AND DEFENCE

for the Committee on Regional Development

on the proposal for a regulation of the European Parliament and of the Council Amending Regulations (EU) 2021/1058 and (EU) 2021/1056 as regards specific measures to address strategic challenges in the context of the mid-term review

(COM(2025)0123 – C100063/2025 – 2025/0084(COD))

Rapporteur for opinion: Riho Terras

AMENDMENTS

The Committee on Security and Defence submits the following to the Committee on Regional Development, as the committee responsible:

Amendment 1

Proposal for a regulation

Citation 1

Amendment 2

Proposal for a regulation

Recital 1

Amendment 3

Proposal for a regulation

Recital 2

Amendment 4

Proposal for a regulation

Recital 2 a (new)

Amendment 5

Proposal for a regulation

Recital 3

Amendment 6

Proposal for a regulation

Recital 5

Amendment 7

Proposal for a regulation

Recital 5 a (new)

Amendment 8

Proposal for a regulation

Recital 5 b (new)

Amendment 9

Proposal for a regulation

Recital 5 c (new)

Amendment 10

Proposal for a regulation

Recital 5 d (new)

Amendment 11

Proposal for a regulation

Recital 6

Amendment 12

Proposal for a regulation

Recital 7

Amendment 13

Proposal for a regulation

Recital 8

Amendment 14

Proposal for a regulation

Recital 10

Amendment 15

Proposal for a regulation

Recital 11

Amendment 16

Proposal for a regulation

Recital 18 a (new)

Amendment 17

Proposal for a regulation

Recital 20

Amendment 18

Proposal for a regulation

Article 1 – paragraph 1 – point 1 – point a – point i

Regulation (EU) 2021/1058

Article 3 – paragraph 1 – point a – point vii

Amendment 19

Proposal for a regulation

Article 1 – paragraph 1 – point 1 – point a – point iii

Regulation (EU) 2021/1058

Article 3 – paragraph 1 – point b – point xii

Amendment 20

Proposal for a regulation

Article 1 – paragraph 1 – point 1 – point a – point iv

Regulation (EU) 2021/1058

Article 3 – paragraph 1 – point c – point iii

Amendment 21

Proposal for a regulation

Article 1 – paragraph 1 – point 1 – point a – point vi – introductory part

Regulation (EU) 2021/1058

Article 3 – paragraph 1 – point e – subparagraph 1 – points iii and iv

Amendment 22

Proposal for a regulation

Article 1 – paragraph 1 – point 1 – point a – point vi

Regulation (EU) 2021/1058

Article 3 – paragraph 1 – point e – subparagraph 1 – point iv (new)

Amendment 23

Proposal for a regulation

Article 1 – paragraph 1 – point 1 – point a – point vii

Regulation (EU) 2021/1058

Article 3 – paragraph 1 – subparagraph 1a

Amendment 24

Proposal for a regulation

Article 1 – paragraph 1 – point 1 – point b

Regulation (EU) 2021/1058

Article 3 – paragraph 1a – subparagraph 2

Amendment 25

Proposal for a regulation

Article 1 – paragraph 1 – point 1 – point c

Regulation (EU) 2021/1058

Article 3 – paragraph 1c – subparagraph 1

Amendment 26

Proposal for a regulation

Article 1 – paragraph 1 – point 1 – point c

Regulation (EU) 2021/1058

Article 3 – paragraph 1c – subparagraph 2

Amendment 27

Proposal for a regulation

Article 1 – paragraph 1 – point 1 – point c

Regulation (EU) 2021/1058

Article 3 – paragraph 1c – subparagraph 4

Amendment 28

Proposal for a regulation

Article 1 – paragraph 1 – point 1 – point c

Regulation (EU) 2021/1058

Article 3 – paragraph 1c – subparagraph 7

Amendment 29

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1058

Article 4 – paragraph 10

Amendment 30

Proposal for a regulation

Article 1 – paragraph 1 – point 3 – point a – point i – point 1

Regulation (EU) 2021/1058

Article 5 – paragraph 2 – subparagraph 1 – point e

Amendment 31

Proposal for a regulation

Article 1 – paragraph 1 – point 5

Regulation (EU) 2021/1058

Article 7a – paragraph 1 – subparagraph 2

Amendment 32

Proposal for a regulation

Article 1 – paragraph 1 – point 5

Regulation (EU) 2021/1058

Article 7a – paragraph 2

Amendment 33

Proposal for a regulation

Article 1 – paragraph 1 – point 5

Regulation (EU) 2021/1058

Article 7a – paragraph 4

Amendment 34

Proposal for a regulation

Article 1 – paragraph 1 – point 5

Regulation (EU) 2021/1058

Article 7a – paragraph 6 a (new)

Amendment 35

Proposal for a regulation

Article 1 – paragraph 1 – point 5

Regulation (EU) 2021/1058

Article 7a – paragraph 6 b (new)

Amendment 36

Proposal for a regulation

Article 1 – paragraph 1 – point 7 – point a

Regulation (EU) 2021/1058

Annex I – table 1 – policy objective 1

Amendment 37

Proposal for a regulation

Article 1 – paragraph 1 – point 7 – point c

Regulation (EU) 2021/1058

Annex I – table 1 – policy objective 2 – row xii – column 2

Amendment 38

Proposal for a regulation

Article 1 – paragraph 1 – point 7 – point f

Regulation (EU) 2021/1058

Annex I – table 1 – policy objective 5 – row iii a (new)

Amendment 39

Proposal for a regulation

Article 2 – paragraph 1 – point 1 – point b

Regulation (EU) 2021/1056

Article 8 – paragraph 2 – subparagraph 4

Amendment 40

Proposal for a regulation

Article 2 – paragraph 1 – point 3

Regulation (EU) 2021/1056

Article 10 – paragraph 4 – subparagraph 1

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The rapporteur for the opinion declares under his exclusive responsibility that he did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

PROCEDURE – COMMITTEE ASKED FOR OPINION

FINAL VOTE BY ROLL CALL BY THE COMMITTEE ASKED FOR OPINION

5.6.2025

LETTER OF THE COMMITTEE ON THE ENVIRONMENT, CLIMATE AND FOOD SAFETY

Mr Dragoş Benea

Chair

Committee on Regional Development

BRUSSELS

Subject: Opinion on the proposal for a regulation amending Regulations (EU) 2021/1058 and (EU) 2021/1056 as regards specific measures to address strategic challenges in the context of the mid-term review (2025/0084(COD))

(2025/0084(COD))

Dear Mr Benea,

Under the procedure referred to above, the Committee on the Environment, Climate and Food Safety has been asked to submit an opinion to your committee. At its coordinators meeting of 23 April 2025, the committee decided to send the opinion in the form of a letter. It adopted the opinion at the meeting of 4 June 2025.

The proposed changes in the Regulations on the ERDF, CF and JTF at its mid-term review aim to allow Member States enlarging eligible investments in line with the Union’s new priorities, and to introduce simplifications and flexibilities. The proposals are not accompanied by an impact assessment, as pointed out by Opinion 02/2025 of the European Court of Auditors (ECA).

Regarding the ENVI Committee’s competences, the Commission proposes in Regulation (EU) 2021/1058 to broaden the sustainable water management priority with water resilience, to add a priority on energy interconnectors and related transmission and recharging infrastructures thus impacting EU greenhouse gas emissions, and to introduce an exemption to investments achieving the reduction of greenhouse gas emissions as per Directive 2003/87/EC (EU ETS Directive), when awarded a Seal of Excellence. It also proposes an exemption to the thematic concentration rules, notably allowing for investments in defence, military mobility or affordable housing to be counting towards the priority objectives. For Regulation (EU) 2021/1056 it suggests to allow granting JTF funding to projects having obtained the Seal of Excellence and the Sovereignty Seal, as well as removing requirements to substantially reduce greenhouse gas emissions in line with the EU ETS Directive.

The ENVI Committee broadly agrees with the Commission’s rationale on simplification and flexibility, aligning to the new geopolitical context and shifting priorities, while emphasising the importance of preserving a strong focus on cohesion and regional development in the green and digital transitions, ensuring that no region is left behind. It also explicitly supports adding water resilience as a key priority, recognising its vital role in climate adaptation and economic stability. The proposed support for sustainable water management, improved efficiency, and access to water—backed by similar financial incentives—will help address water scarcity and strengthen climate resilience across Member States. It also supports the addition of the affordable housing priority, which should be broadened with sustainability to reflect housings’ potential to contribute to better in- and outdoor environmental quality and reduced whole-lifecycle greenhouse gas emissions, including through energy performance, or sustainable building materials. The ‘renovation wave’ plays a key role in upgrading existing Union buildings and making them more energy efficient and is an important element to achieve the Union’s climate goals. Moreover, investments are also needed to ensure that housing is adapted and maintained to withstand the consequences of climate change such as extreme heat, higher tides or flooding which causes structural damage.

However, upon careful consideration, it appears that several aspects need adjustments, in order to fulfil the policy objectives on climate and environment, while avoiding overlaps with dedicated funds such as those disbursed through the Recovery and Resilience Facility (RRF), the Connecting Europe Facility (CEF) or those under the EU ETS Directive that can already fund energy infrastructure necessary to Union sovereignty. At the same time, projects contributing to Union climate targets and with the Sovereignty Seal as introduced under the Strategic Technologies for Europe Platform (STEP) could also be supported, to reflect these projects’ strategic importance for Europe. As regards the JTF, it has to be noted that it already can support investments to reduce greenhouse gas emissions from ETS installations, provided that such investments contribute to a transition to a climate-neutral economy and lead to a substantial reduction in greenhouse gas emissions, such as permanent carbon removals, including carbon capture and storage, going substantially below the benchmarks established for free allocation under the EU ETS Directive.

Throughout the proposal, the correctness and transparency in accounting for the set sustainability and climate mainstreaming objectives should be safeguarded. Finally, it needs to be clarified how the “do no significant harm” (DNSH) environment principle would be applied to defence investments, as was also pointed out by the ECA.

Against this background, the following adjustment should be made to the Commission proposal:

“Regulation (EU) 2021/1058 is amended as follows:

(1) Article 3 is amended as follows:

(a) paragraph 1 is amended as follows:

[...]

(ii) in point (b), point (v) is replaced by the following:

‘(v) promoting secure access to water, sustainable and integrated water management and enhanced water resilience, including through nature-based solutions, ensuring measurable improvements in water efficiency, reduction of pollution, and ecosystem restoration;’

[...]

“(iii) the following points (xi) and (xii) are added:

(xi) promoting access to decent, sustainable and affordable housing, and related reforms;

(xii) promoting energy and electricity interconnectors and related transmission infrastructure, and the deployment of recharging infrastructure.; ’

[...]

(v) in point (d), the following point (vii) is added:

‘(vii) promoting access to decent, sustainable and affordable housing, and related reforms.’;”

(2) In Article 4, paragraph 10 is replaced by the following:

“10. The thematic concentration requirements set out in paragraph 6 of this Article shall be complied with throughout the entire programming period, including when ERDF allocations are transferred between priorities of a programme or between programmes and at the mid-term review in accordance with Article 18 of Regulation (EU) 2021/1060. Where a Member State submits a request for an amendment of a programme in accordance with Article 24 of Regulation (EU) 2021/1060, amounts programmed for the specific objectives referred to in paragraph 1, points (a)(vi) and (b)(ix), of this Article, as well as for the specific objectives referred to in paragraph 1, points ▌, (b)(v), (b)(xi), (b)(xii), ▌, (d)(vii) and (e)(iii), of this Article, may be counted towards either the amounts required for PO 1 or PO 2 or divided between the two, limited to the shares that demonstrably contribute to climate mitigation or adaptation, as verified by the managing authority in accordance with the Climate Tracking Methodology under Regulation (EU) 2021/1060 and the objectives defined in Article 3 of this Regulation, while avoiding double counting in case of combination of several funding streams.

’”

(4) In Article 7, paragraph 1 is amended as follows:

(a) point (b) is amended as follows:

“ ‘(b) investment to achieve the reduction of greenhouse gas emissions from activities listed in Annex I to Directive 2003/87/EC, except those which have been awarded a Sovereignty Seal under Article 4(1) of Regulation (EU) 2024/795 in a call for proposals under Commission Delegated Regulation (EU) 2019/856 ▌;’ ”

(5a)(new) In Article 8, paragraph 2, the following paragraphs are inserted:

2a. By 1 January 2026, the Commission shall assess the progress towards the objective referred to in Article 3(1), point (b), as well as the shares of expenditure supporting climate objectives as required by this Regulation and, where further progress needs to be achieved, propose actions required to reach that objective by the same date.

2b. By 1 January 2026, the Commission shall provide guidance on the application of Article 17 of Regulation (EU) 2020/852, in conjunction with Regulation (EU) 2021/1060, for the specific objectives referred to in Article 3(1), points (a)(vii) and (c)(iii), of this Regulation.“

(7) In Annex I, Table 1 is amended as follows:

“Annex I, Table 1

(a) in policy objective 2, the row for specific objective (v) is replaced

by the following:

(c) in policy objective 2, the following rows are added:

(e) in policy objective 4, the following row is added:

(f) in policy objective 5, the following row is added:

“Article 2

Regulation (EU) 2021/1056 is amended as follows:

“(1) Article 8(2) is amended as follows:

(a) in the first subparagraph, the following point (p) is added:

‘(p) promoting access to decent, sustainable and affordable housing, and related reforms.’;

[...]

[...]

Should the Council opt to amend these parts of the proposal in a different way, the ENVI Committee would like to remain involved in the spirit of sincere and good cooperation during the inter-institutional negotiations.

Yours sincerely,

Antonio Decaro

ANNEX: entities or persons

from whom the rapporteur for the OPINION has received input

The Chair in his capacity as rapporteur for the opinion declares under his exclusive responsibility that he did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

3.6.2025

LETTER OF THE COMMITTEE ON TRANSPORT AND TOURISM

Mr Dragoş Benea

Chair

Committee on Regional Development

BRUSSELS

Subject: Opinion on the proposal for a regulation of the European parliament and of the Council amending Regulation (EU) 2021/1058 and (EU) 2021/1056 as regards specific measures to address strategic challenges in the context of the mid-term review. (COM(2025)0123 – C100063/2025 – 2025/0084(COD))

Dear Mr Chair,

Under the procedure referred to above, the Committee on Transport and Tourism has been asked to submit an opinion to your committee. On 9 April 2025, TRAN coordinators decided to adopt an opinion. Following REGI request for an urgent procedure under rule 170, granted by a plenary vote on 7 may 2025, TRAN coordinators then decided on 14 May 2025 to draft an opinion in the form of a letter. Work on this opinion was led by the Rapporteur, Mr. Sérgio Humberto. The Committee adopted the opinion at its meeting of 3 June 2025.

TRAN committee generally supports the proposal of the Commission, in particular the following points that should be preserved in the final report:

 The creation of new specific objectives for support from the European Regional Development fund (ERDF) and the Cohesion Fund (CF) to allow for investments in resilient defence or dual-use infrastructure with a view to fostering military mobility, but also in the deployment of charging infrastructure;

 The facilitation of ERDF and CF investments in regions where they facilitate industrial adjustment linked to the decarbonisation and circularity of production processes such as the automotive industry;

 The support mechanisms provided for to help alleviate the economic and social hardship faced by the people of EU’s Eastern borders regions (especially Baltic States, Finland, Poland and Romania) that have been particularly affected by the suspension of cross-border mobility as a consequence of Russia’s war of aggression against Ukraine;

 The possibilities for simplified selection procedures provided for in the proposal.

Notwithstanding TRAN Committee’s general support to the proposal and to the prioritisation afforded to specific transport objectives therein, it should be noted that the outcome of this process should not prejudge the forthcoming review of cohesion policy under the next financing period, particularly when it comes to strengthening other priorities in the transport sector relevant for cohesion policy, such as investment in public transport.

Taking the above into consideration, the Committee on Transport and Tourism calls on the Committee on Regional Development, as the committee responsible, to incorporate the following suggestions into its report:

(1) (...) Those simultaneous transformations demonstrate the urgent need to close the innovation gap, accelerate decarbonisation efforts to reinforce economic competitiveness and reduce external dependencies by diversifying supply chains, scaling-up domestically produced green energy, and investing in critical sectors such as transport, in particular the deployment of the Trans-European Transport Network (TEN-T).

(5) (...) Member States are encouraged to use the possibility foreseen in the current legal framework of voluntarily transferring resources allocated to them in shared management to directly managed programmes with defence and security objectives. CEF-T, in particular, has proven its high efficiency for cross-border projects. In this context, transfers to the Connecting Europe Facility (CEF) military mobility envelope would ensure coordinated interventions along the military mobility corridors highlighted in the White Paper on Defence. Beyond these corridors, completion of the TEN-T network and the development of a High-Speed Rail EU Plan is key to EU strategic autonomy. Given the 94% overlap between the military mobility corridors and TEN-T dual use infrastructure, funding of military mobility will necessarily also benefit civilian use.

(8) In order to enhance energy security, accelerate the energy transition and clean mobility, the investments under the Connecting Europe Facility, STEP and the Alternative Fuels Infrastructure Facility should be complemented by creating a new specific objective for the ERDF and the Cohesion Fund under policy objective 2 to promote the transmission, and the deployment of charging infrastructure.

(9) Important Projects of Common European Interest (IPCEI) result from a State aid instrument requiring cross-European cooperation for innovative technologies or panEuropean infrastructures. IPCEI are projects that support and promote large-scale, cross-border projects that are considered essential for the economic growth, innovation, and competitiveness of the Union. To help accelerate the design of new IPCEI and the implementation of the existing ones, support from the ERDF for investments in projects participating in an IPCEI as approved by the Commission pursuant to Article 107(3), point (b), of the Treaty on the Functioning of the European Union (TFEU) and to Communication C(2021) 8481 should be allowed in all categories of regions. This could for example benefit the achievement of cross-border projects along the military mobility corridors highlighted in the White Paper on Defence. Furthermore, operations contributing to an IPCEI approved by the Commission should benefit from simplified selection procedures.

(15) (...) It should also be possible to apply a maximum co-financing rate of up to 100% to priorities in programmes under the Investment for jobs and growth goal covering one or more NUTS2 regions bordering Russia, Belarus or Ukraine, given the adverse impact on those regions of the Russian war of aggression against Ukraine. This could for example benefit the improvement of the capacity along the EU-Ukraine solidarity Lanes, encompassing railway upgrades, improved border crossings and the crucial step of integrating relevant lines of Ukraine’s rail system into the EU’s standard gauge to facilitate the uninterrupted movement of goods and services.

Article 1. (1) (a) amending Article 3 of Regulation (EU) 2021/1058

(iv) in point (c), the following point (iii) is added:

(iii) developing resilient defence and dual-use infrastructure to enhance mobility and cross-border connectivity in the Union. All such investments in infrastructure shall contribute to the improvement and acceleration of the Trans-European Transport Network (TEN-T), and be designed for interoperability and compatibility with civilian use.

“(vii) The following subparagraph is added in paragraph 1:

Operations supported under the specific objective set out in point (c)(iii) shall primarily focus, where relevant, on one or more of the four EU Priority Military Mobility Corridors identified by Member States in Annex II to the Military Requirements for Military Mobility within and beyond the EU as adopted by the Council on [18 March 2025 and with reference ST 6728/25 ADD1], and in particular on the cross-border sections of these corridors. Priority investments on these corridors, their cross-border sections and the hot spots identified by the Commission shall be led in cooperation with NATO and driven by its requirements.

Article 1. (1) (c) amending Article 3 of Regulation (EU) 2021/1058

(...) By way of derogation from Article 112 of Regulation (EU) 2021/1060, the maximum co-financing rate for dedicated priorities established to support the specific objectives referred to in paragraph 1, points (a)(vii), (b)(v), (b)(xi), (b) (xii), (c)(iii), (d)(vii) and (e)(iii), of this Article shall be 100%.’ This maximum co-financing rate may in particular apply to the hot spots identified in the European Commission within the four priority Military Mobility Corridors. When awarding contracts for improving these hot spots, special attention shall be paid to involvement of local enterprises.

Article 1. (5) inserting an Article 7a to regulation (EU) 2021/1058

5. In addition to the assessment for each programme on the outcome of the mid-term review to be submitted in accordance with Article 18(2) of Regulation (EU) 2021/1060, Member States may resubmit a complementary assessment as well as related requests for programme amendments, taking into account the specific objectives introduced by Regulation (EU) XXXX/XXXX [this Regulation], within 4 months of the entry into force of Regulation (EU) XXXX/XXXX [this Regulation]. The deadlines set out in Article 18(3) of Regulation (EU) 2021/1060 shall apply

Yours sincerely,

(Signé) Elissavet VozembergVrionidi Sérgio Humberto the Rapporteur

PROCEDURE – COMMITTEE RESPONSIBLE

FINAL VOTE BY ROLL CALL BY THE COMMITTEE RESPONSIBLE