EU Budget 2026 Plans Prioritize Research, Support Ukraine Amid Delivery Challenges

Sweden's fiscal resilience, achieved through decades of austerity and structural reforms initiated in the early 1990s, serves as a model of stability in a challenging international economic environment, though replicating this success is difficult for other countries due to political complexities. Meanwhile, the European Parliament's 2026 budget negotiations emphasize the need for increased funding rather than cuts, underscoring commitments to key programs such as defense, Horizon Europe, and support for regions affected by the war in Ukraine. However, a study questions the efficacy of the EU's 392 billion euro cohesion policy, suggesting that while it stimulates infrastructure development and private investment in poorer regions, its overall impact on productivity and innovation remains uneven and regionally dependent. Despite these challenges, cohesion funds remain vital for many EU regions, enabling essential investments in infrastructure and services. Additionally, the UK’s Ministry of Housing Communities and Local Government is supporting social cohesion through grants targeting projects that build social connections across communities, highlighting the importance of grassroots initiatives in fostering unity. Lastly, small projects in European territorial cooperation are valued for the collaborative opportunities they provide, suggesting a need to encourage more such initiatives for stronger regional integration.