Edited by: Alva Finn and Dr. Antonios Nestoras

The European Union’s cohesion policy is arguably one of the most effective development policies in history, lifting many regions to levels of development that they could not have dreamed of without it. For decades, it has served as a redistributive mechanism, building roads, digital networks, and public services across less-developed regions. But in an era of geopolitical tension, climate urgency, and technological disruption, a growing number of liberals argue that this approach is no longer enough. The liberal response is not to abandon cohesion, but to fundamentally reimagine it—moving from a politics of scarcity to one of abundance.

This publication rethinks the European Union’s cohesion policy as a strategic instrument for resilience, competitiveness, and inclusion rather than a redistributive tool. It identifies structural weaknesses—fragmentation, limited administrative capacity, politicisation, and crisis-driven reprogramming—and proposes reforms including a unified cohesion fund, longer planning horizons, and stronger multi-level governance.

Key investment priorities span infrastructure, human capital, territorial resilience, and neighbourhood integration. To improve effectiveness and legitimacy, the paper advances performance-based funding, modern indicators beyond GDP, and enhanced communication strategies. By making cohesion more visible and citizen-centred, the paper reframes it as the EU’s most powerful tool to deliver prosperity, solidarity, and a renewed sense of belonging for all Europeans.

Methodology

This publication is the outcome of the Innovation Policy Lab, a joint undertaking between the European Liberal Forum (ELF) and the Friedrich Naumann Foundation for Freedom Europe (FNF Europe). It represents a culmination of collaborative efforts, discussions, and expert insights aimed at addressing the multifaceted challenges confronting Europe. The ELF–FNF Policy Labs brought together a diverse group of policymakers, academics, practitioners, and civil society representatives from across Europe.

This dynamic gathering fostered an environment conducive to in-depth analysis, debate, and creative thinking. The participants, each bringing their unique perspectives and expertise, played a crucial role in shaping the discussions and formulating the policy recommendations presented in this book.

It is important to note that not all chapters in this publication were developed solely through this conference. While the majority of the content is derived from the Policy Labs, some chapters were influenced by additional research, expert consultations, and policy discussions. These contributions were integrated to provide a comprehensive and well-rounded set of policy proposals.

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