International Conference on Economics, Finance & Business, London

THE FUTURE OF EU COHESION POLICY AFTER 2027: STRATEGIC CHALLENGES AND OPPORTUNITIES FOR THE CZECH REPUBLIC

RUDOLF HOLIK

Abstract:

Cohesion policy remains one of the cornerstones of the European Union’s strategy to promote balanced regional development and reduce disparities between and within member states. For the Czech Republic, a long-standing beneficiary of EU cohesion funding, the upcoming reform of this policy framework after 2027 represents both a challenge and a strategic opportunity. This paper provides a comprehensive analysis of the evolving European debate on the future of cohesion policy, evaluates the current state of its implementation in the Czech Republic, and formulates recommendations for the development of a national strategic framework for the post-2027 period. The analysis begins with an overview of the 2021–2027 programming period, identifying key achievements and structural challenges, including administrative burdens, limited absorption capacity, and regional disparities. The paper then explores the European-level discourse, summarizing major policy documents such as the 8th and 9th Cohesion Reports, the report of the High-Level Group on the future of cohesion, and declarations from the Council of the EU and member state representatives. These inputs signal a growing demand for a more place-based, flexible, and performance-oriented approach to cohesion policy in the future. Based on this context, the paper identifies strategic options for the Czech Republic. These include enhancing institutional capacity, promoting multi-level governance, supporting integrated territorial development tools (such as ITI and CLLD), and deepening innovation and smart specialization strategies, particularly in structurally affected regions. Furthermore, the Czech Republic is encouraged to prepare for potential shifts in the EU policy architecture, including greater use of competitive funding instruments and simplified delivery mechanisms. The final part of the paper presents a set of recommendations for the Strategic Framework of Czech Cohesion Policy after 2027. These emphasize the need for a clear national vision, inclusive partnership models, governance simplification, alignment with broader EU goals, and the strategic use of synergies with other EU programmes. The paper concludes that the success of Czech cohesion policy in the next programming period will depend not only on financial allocations, but on the country’s ability to strategically position itself in ongoing negotiations and to align national priorities with a rapidly evolving European landscape.

Keywords: Cohesion Policy; Regional Development; Structural Funds; Czech Republic; European Union; Multiannual Financial Framework; EU Policy Reform; Territorial Governance; Smart Specialisation; EU Budget