Brussels – The European Commission is considering a significant overhaul of the European Union’s long-term financial framework, with plans to merge two of its largest spending areas: the Common Agricultural Policy (CAP) and cohesion policy, according to a leaked draft of the EU’s next multiannual budget obtained by Euronews.
A Unified Framework
The proposal would introduce a single programming structure combining direct farming subsidies and regional development funds. This restructuring would eliminate the CAP’s “second pillar,” which currently supports rural development programmes, including environmental measures, infrastructure, farm modernization, and community development in rural areas.
“The new framework guarantees coherence by integrating the CAP interventions from the current two-funds structure under one single umbrella. Such alignment brings further flexibility and simplification,” the leaked document reads.
The plan would also establish a new instrument tentatively called “National and Regional Partnerships”, funded through a consolidated mechanism titled the European Economic, Territorial, Social, Rural and Maritime Sustainable Prosperity and Security Fund.
Potential Benefits: Flexibility and Synergy
Supporters of the proposed reform argue that unifying CAP and cohesion policy under one umbrella would improve synergies between rural and regional development, offering greater flexibility for EU Member States to tailor investments to local needs.
The revised approach aims to provide an expanded policy toolbox, including:
- Investment in rural infrastructure
- Access to digital, water, and energy services
- Skills development
- Generational renewal in agriculture
The Commission believes that this would help Member States respond more effectively to the evolving challenges faced by both farmers and rural communities.
Growing Resistance from Agricultural Stakeholders
Despite the Commission’s emphasis on coherence and simplification, the proposal is expected to face strong opposition, particularly from agricultural stakeholders and rural policymakers. The CAP’s second pillar has long been seen as a critical support mechanism for sustainable rural development, and many farmers’ groups have already expressed concerns over similar ideas in the past.
Several EU agriculture ministers and Agriculture Commissioner Christophe Hansen have voiced their preference for preserving the two-pillar structure of the CAP and maintaining a separate budget to ensure continued targeted support for farmers and rural areas.
Next Steps
The draft reform is still under discussion, and no formal proposal has been released. However, the leak signals the Commission’s intent to pursue major structural changes ahead of the next EU budget cycle.
As debates continue, the proposal highlights a broader question at the heart of EU spending: how to balance efficiency and flexibility with sector-specific support—particularly in an era of growing political and environmental challenges.
