Czech Business Today

The European Commission has unveiled a proposal for a major overhaul of EU development funding within the Multiannual Financial Framework (MFF) for 2028–2034. At its core is the creation of an integrated European Fund for economic, social, and territorial cohesion, agriculture, fisheries, prosperity, and security, which will replace the current 14 separate funds. This move aims to simplify administration, strengthen coordination, and make more efficient use of limited financial resources.

What Does the Fund Offer?

With a budget of €865.1 billion, the new fund is the largest component of the MFF and will finance National and Regional Partnership Plans (NRPPs), complemented by new instruments such as the EU Facility and the Interreg programme. The fund links traditional cohesion and agricultural policy areas with new themes, including migration, border protection, and security.

For entrepreneurs and regional stakeholders, this means greater scope to advocate for their interests during the programming, implementation, and control of projects. The success of NRPPs will depend on how each Member State leverages shared management, multi-level governance, and partnership principles.

Benefits and Risks for Czech Business

The European Economic and Social Committee (EESC) welcomes the Commission’s efforts to simplify and increase flexibility, allowing Member States to creatively combine interventions according to their needs. However, it also notes that significant changes will be required in national implementation structures. Merging cohesion and agricultural policies into a single framework will demand new procedures and active involvement from regional and sectoral partners.

Business leaders should pay close attention to areas supporting competitiveness, innovation, digitalisation, and the development of the EU’s industrial base. The fund emphasises boosting regional economic activity, which can create new opportunities for investment, business growth, and increased regional attractiveness.

Social and Environmental Dimensions

The fund does not neglect the social sphere—at least 14% of resources are earmarked for social objectives, including education, skills development, and social infrastructure. A significant portion is also allocated to the least developed regions, ensuring stable support for areas with greater needs.

On the other hand, the EESC highlights insufficient attention to the just transition process. The continuation of just transition efforts will depend on Member States’ decisions, which may affect the availability of funding for green projects.

Conclusion

The new European Fund represents a significant opportunity for Czech business, regions, and sectoral partners. Success will depend on the ability to make effective use of new possibilities, actively engage in programming and implementation, and stay informed about developments in European legislation. For business leaders, being prepared, informed, and open to collaboration at all levels will be key.