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A Union under siege, or a Union besieging itself? The EU's new budget and the future of European integration

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  • Rodríguez-Pose, Andrés
  • Bartalucci, Federico

Abstract

The European Commission’s proposed Multiannual Financial Framework for 2028–2034 is the most far-reaching recasting of the European Union’s (EU) budget in the Union’s history. It folds fourteen funds into National and Regional Partnership Plans, tilts spending towards competitiveness, defence and strategic autonomy, and replaces cost reimbursement with performance-based milestones. The diagnosis behind the reform is broadly sound. Its likely consequences are risky for future European integration. Drawing on original cartographic analysis of competitiveness, defence capacity, trade exposure and industrial anxiety across European regions, we show that the proposed architecture will, in all likelihood, steer investment towards places that are already advantaged while hollowing out Cohesion Policy, the one instrument that has historically reached Europe’s most vulnerable territories and tempered the growing geography of discontent. A budget designed to make Europe more competitive, more secure and more strategically autonomous may instead make it less inclusive, more polarised and more fragile. Europe does not face a choice between competitiveness and cohesion. It faces a choice between mobilising its full territorial potential and gambling with the Union’s legitimacy and survival.

Suggested Citation

  • Rodríguez-Pose, Andrés & Bartalucci, Federico, 2026. "A Union under siege, or a Union besieging itself? The EU's new budget and the future of European integration," LSE Research Online Documents on Economics 139012, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:139012
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    File URL: https://researchonline.lse.ac.uk/id/eprint/139012/
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • F15 - International Economics - - Trade - - - Economic Integration
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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