A leaked internal document has revealed that the European Commission is considering a major overhaul of its budget structure by merging the EU’s agricultural and regional development funds. The move would mark one of the most significant shifts in European funding policy in decades, with wide-reaching implications for rural economies, farmers, and local governments.
According to the leak, the proposal aims to streamline financial instruments under a single framework to improve efficiency, cut administrative costs, and align spending more closely with the EU’s climate and digital transition goals. The Common Agricultural Policy (CAP) and the Cohesion Fund currently account for a large share of the EU’s multiannual budget, and merging them would fundamentally alter how subsidies and investment flows are managed across member states.
The plan is expected to face strong resistance from farming lobbies, regional authorities, and several national governments that rely heavily on CAP subsidies or cohesion funds. Critics argue that combining the funds could dilute the specific goals of each policy area and trigger fierce competition for resources.
While the Commission has yet to formally confirm the plan, the leak has already sparked intense debate in Brussels and beyond. A formal proposal could be presented as early as this autumn, ahead of negotiations for the EU’s next long-term budget cycle.
