Challenges for cohesion : looking ahead to 2035 : final report

The study delves into the future landscape of EU Cohesion Policy, set against the backdrop of three challenges: globalisation and technological advancements, shifting demographic trends, and the transition to a climate-neutral economy. To assess the impacts of these challenges on various EU regions, the study performs a regional vulnerability analysis, utilises four macroeconomic models to project potential developments in the economy and examines the on-the-ground responses to the challenges via case studies. The study highlights several risks. Globalisation and technological change may exacerbate regional disparities, as economically stronger regions are better equipped to leverage new technologies, driving innovation and growth. The demographic transition poses challenges to EU regions, particularly those with ageing populations and declining workforces. The transition to a climate-neutral economy presents risks for regions that rely on fossil fuel extraction. However, it also presents opportunities for regions with the potential for renewable energy production. The study puts forward a number of recommendations on how to tackle these risks of multiple transitions including a dynamic approach to regional development; targeted investments in less developed regions to create new opportunities based on renewable energy sources; an enhanced funding for effective support; cohesion as a shared objective between all EU policies; a coordinated approach to development; or enhancing the authorities' capacity to respond to emerging challenges.