EU regional development funding reform is set to change how cohesion money reaches Europe’s peripheries, with competitive project calls and new priorities expected to replace parts of the more predictable, allocation-based support used so far. In Finland, regional leaders in Lapland and Northern and Eastern Finland say the shift could bring opportunities in digitalisation and security, but they also warn that without clear legal wording the special support for sparsely populated areas may shrink in the 2028–2034 period.
Why Lapland fears losing the sparsely populated areas premium
For decades, the EU has channelled extra cohesion support to northern and eastern Finland to offset long distances, harsh climate and a very low population density. Regional authorities argue that this additional funding has been essential to keep small municipalities connected to national development, backing everything from business creation to tourism and infrastructure.
Lapland officials say the risk is not only smaller budgets, but weaker leverage: if the special treatment for sparsely populated areas is no longer spelled out clearly in EU regulations, it becomes harder to defend in negotiations and to protect once national priorities start competing for the same pot.
From grants to competition: what changes in 2028–2034
The upcoming seven-year budget cycle is expected to steer more regional money towards competed projects that align with EU-wide priorities. According to Finnish officials and regional representatives, the direction of travel is to reward projects that can demonstrate impact on strategic themes such as digital transition and security, rather than relying mainly on stable allocations for specific territories.
For Lapland, that could mean a bigger share of funding for projects that match Brussels’ current agenda: cross-border resilience, infrastructure that improves security, and technologies that strengthen both public services and economic activity in remote areas.
The Levi summit and a united front from Northern and Eastern Finland
The debate intensified after a two-day summit in Levi, where regional councils from several provinces in Northern and Eastern Finland issued a joint position calling on Helsinki to defend the role of cohesion funding and to safeguard support for sparsely populated regions.
Local decision-makers point to concrete outcomes: EU co-financing has supported Arctic know-how, tourism clusters and innovation ecosystems. The argument is that without cohesion money many projects would never move beyond feasibility studies—especially in areas where private capital is scarce and distances drive up costs.
Dual-use projects, drones and the security turn in EU regional policy
Regional representatives in Lapland also see upside in the new focus on security. With Finland’s long eastern border and the Arctic’s growing strategic relevance, Lapland leaders say the region can position itself as a hub for dual-use projects—initiatives that benefit both civilian society and defence preparedness.
In practice, that could include drone-related innovation, surveillance-supporting infrastructure, and logistics upgrades that improve emergency response and resilience. The political message from Lapland is that the EU’s security priorities are not abstract: keeping remote border regions populated and economically viable is itself part of Europe’s security architecture.
Internal security funding: more money, but not for salaries
A separate strand of the debate in Finland concerns a proposed €1.4 billion package linked to internal affairs priorities such as border management and migration. Finnish government officials stress that such funding is typically not intended to cover wages—meaning it cannot be used directly to hire more police officers or firefighters.
Instead, it could finance systems and infrastructure that support security more broadly, from digital tools and surveillance capabilities to facilities and cross-agency coordination. For Finnish negotiators, one key objective is to keep the rules flexible enough to reflect the reality of long distances and thinly staffed services in the north.
