Local, regional, national and European leaders gathered in Rhodes for a high-level discussion on the future of the European Union's budget and the role of regions in delivering Europe's priorities. The event concluded with the adoption of the Rhodes Declaration, sending a clear message that the next Multiannual Financial Framework (MFF) must remain firmly rooted in Cohesion Policy, multilevel governance and strong regional involvement.
Opening the event, Georgios Chatzimarkos, Regional Governor of South Aegean and EPP-CoR member, underlined the importance of Cohesion Policy for Europe's future.
"Cohesion policy is our most powerful investment tool to reduce inequalities, drive innovation and ensure that no citizen and no region – no matter how remote or peripheral – is left behind." He stressed that regional development must remain at the centre of European policymaking. "From Rhodes, we are sending a clear message: there can be no strong Europe without strong regions, and there can be no effective MFF without Cohesion Policy at its core."
Sari Rautio, President of the EPP-CoR Group, highlighted the need for a stronger and more ambitious EU budget capable of addressing both long-standing priorities and emerging challenges. "Regions and cities must play a central role in the next EU budget. If Europe wants to deliver on both its traditional priorities and its new ambitions, then the budget must be more ambitious as well." She also called for timely negotiations on the next financial framework, stressing that the EPP-CoR Group expects European institutions and national governments to conclude negotiations by the end of 2026 to ensure the next MFF can start on schedule and deliver for citizens without unnecessary delays.
Cohesion Policy as a Strategic Investment for Europe
Delivering the keynote speech, Kostis Hatzidakis, Deputy Prime Minister of Greece, described Cohesion Policy as a strategic investment in Europe's future. "Cohesion Policy is not merely a tool for the redistribution of resources. It is an investment in Europe’s future, strengthening its competitiveness, cohesion and stability." He further emphasised that the future Multiannual Financial Framework cannot be designed without a strong role for regions.
Bringing Europe's Priorities Closer to Citizens
In a video message, Piotr Serafin, European Commissioner for Budget, Anti-Fraud and Public Administration, highlighted the financing challenges facing the next EU budget.
"If we want to have an ambitious EU budget, we need to have an ambitious package of new own resources." He also stressed that concluding negotiations on the next MFF should be a priority in the interest of all regions.
During the first panel, Andrey Novakov, Member of the European Parliament and EPP Coordinator in the Committee on Regional Development, emphasised the importance of local and regional ownership. "If mayors and regional governments, regional authorities are not on board for drafting and implementing these plans, the plan would be rejected."
Gintarė Skaistė, Member of the Lithuanian Seimas and member of the EPP Working Group on the MFF, underlined the growing geopolitical importance of territorial policy.
"For Lithuania and the Eastern flank of the European Union, territorial policy is no longer only about reducing economic disparities. It is also about security, strategic stability and Europe’s capacity to respond to today’s geopolitical challenges."
Emil Boc, EPP-CoR member and rapporteur on the National and Regional Partnership Plans Regulation, warned against excessive centralisation. "From the perspective of Europe’s local and regional authorities, cohesion policy must not be absorbed into centralised national planning." He called for stronger safeguards for regional involvement. "The future National and Regional Partnership Plans must include a clear subsidiarity clause and a legally defined regional check."
Radim Sršeň, EPP-CoR member and rapporteur on the Future of Rural Development 2028+, highlighted the need for place-based rural policies. "The future of rural development must be based on tailor-made solutions for every region, recognising the diverse needs of rural territories and ensuring adequate funding where it matters most." He concluded with a clear message: "Strong rural areas mean a stronger Europe."
Regions Driving Competitiveness and Strategic Autonomy
In a video message, Raffaele Fitto, Executive Vice-President of the European Commission, reaffirmed the importance of regional participation in future EU funding structures. "The national and regional partnership plans will rely on the cooperation and decision-making at the regional and local level through the dedicated regional chapters, keeping the same multi-level governance model of cohesion policy."
He stressed that: "The role of the regions will remain crucial. Regional authorities will retain a key role in implementing cohesion policy and will remain key interlocutors for the Commission."
Georgios Aftias, Member of the European Parliament, argued that Europe's development depends on understanding local realities. "If you do not listen to the regions, you cannot understand the real needs of Europe." He continued: "There can be no development in Europe without the regions. The region is the fundamental cell of development, because every region has its own challenges, its own needs and its own priorities." Calling for stronger regional empowerment, he stated: "Regional economic policy must be shaped by the regions themselves. Full stop. Because Parliament represents the people, and the people’s voice must be reflected in European decisions."
Fredis Beleris, Member of the European Parliament, advocated a stronger role for local and regional authorities. "The question is whether local and regional authorities should have fewer powers or more powers. For me, the answer is clear: they must have more responsibility, more decision-making power and a stronger role."
He also warned against complacency. "Europe must not believe that it can never fall. If we want Europe to continue offering peace, prosperity and democracy to its citizens, we must move faster, more decisively and always with the people at the centre."
Emma Blain, EPP-CoR member and rapporteur on the Single Market Programme, highlighted the central role of small and medium-sized enterprises. "Small and medium-sized enterprises are often called Europe’s backbone. But for local and regional leaders, this is not just a slogan — it is a daily reality." She stressed that SMEs: "Create jobs, generate growth, strengthen communities and help finance Europe’s social market economy." Looking ahead to the next budget, she argued: "The next EU budget must therefore better support businesses to scale up, trade across borders and benefit fully from the free movement of goods, services, capital and people."
Pehr Granfalk, EPP-CoR member and rapporteur on the European Competitiveness Fund, emphasised the territorial dimension of competitiveness. "The European Competitiveness Fund must be complemented by a place-based approach, recognising local and regional authorities as essential actors in Europe’s innovation ecosystems."
He added: "Regions and cities are not only potential beneficiaries. They are enablers, coordinators and testbeds where businesses, universities, research environments and civil society work together to turn ideas into real economic impact."
Adoption of the Rhodes Declaration
Closing the event, Nikolaos Chardalias, First Vice-President of the EPP-CoR Group, highlighted the practical value of Cohesion Policy and multilevel governance. "Multilevel governance, dear colleagues, is not an institutional luxury but a prerequisite for effectiveness." Referring to successful regional investments in Attica, he noted that projects such as the AENAON Metropolitan Park and a network of 250 social structures demonstrate what Cohesion Policy can achieve when implemented effectively. He also highlighted the decision to allocate one-third of Greece's current budget to regional management as proof that regions can deliver projects with speed and precision, stressing that for regional authorities this percentage should be considered the minimum necessary threshold rather than the ceiling.
Juanma Moreno Bonilla, First Vice-President of the European Committee of the Regions, underlined the strategic importance of agriculture and territorial cohesion.
"The CAP is essential not only for the sustainability of our primary sector, but also for guaranteeing the Union’s food security in an increasingly uncertain geopolitical context." He warned that making regions and farmers compete for the same resources, or recentralising policies, would weaken multilevel governance and risk undermining common objectives. He further stressed that if cohesion policy becomes dependent on national dynamics, resources may no longer reach the places where they are needed most. Concluding his intervention, he reaffirmed the role of local and regional authorities in European policymaking: "Regions cannot be mere implementers. We have competences, knowledge and the capacity to contribute decisively to European policies."
The conference concluded with the adoption of the Rhodes Declaration, reaffirming the commitment of EPP local and regional leaders to a strong Cohesion Policy, a place-based and ambitious post-2027 EU budget, and a strengthened role for regions and cities in shaping Europe's future.
The discussions were moderated by Aliki Moschis-Gauguet, Expert in International Relations and Cultural Diplomacy.