Water has been formally elevated to the status of strategic infrastructure by the European Union, placed alongside competitiveness, defence, housing, and energy as one of five pillars of a €34.6 billion reallocation of cohesion policy funds. Of that total, €3.1 billion has been reallocated to water resilience across 16 Member States.
The reallocation is the outcome of the mid-term review of the 2021–2027 cohesion policy programmes, launched by the Commission in April 2025 and adopted by co-legislators in September 2025. By December 2025, Member States had submitted their final programme amendments; in March 2026 the Commission published the full reprogramming results, with investments set to be deployed from 2026 onwards.
Redirected, not new, money
The €3.1 billion for water — like the full €34.6 billion across all five priorities — does not represent new EU funding. The total 2021–2027 cohesion policy budget covered by the mid-term review stands at €367 billion, of which the reallocation represents just under 10%. It was drawn entirely from existing allocations already assigned to Member States but not yet committed to specific projects, meaning that participating countries had to redirect funds away from their original investment plans. For water specifically, this adds to the close to €13 billion already committed to water services and wastewater treatment within the 2021–2027 programmes.
The process was voluntary. Those that participated did so in exchange for newly introduced financial conditions applicable across all five strategic priorities: a 30% pre-financing rate in 2026, an EU co-financing rate of 100% for reallocated investments, and an additional year of fund eligibility.
Water as critical infrastructure
In proposing the mid-term review, the Commission stated that water infrastructure should be considered critical in the same way as energy — essential for food security, economic competitiveness, security, and defence. It warned that water systems face growing threats from floods, droughts, and cyberattacks, and called for a shift from reactive crisis management to proactive, risk-based planning. A new specific objective dedicated to promoting secure access to water, sustainable water management, and water resilience was created within the cohesion policy framework.
Planned investments span drinking water and wastewater infrastructure, new storage systems and interconnections, flood early warning, aquatic ecosystem protection and restoration, digitalisation and automation of water networks, water reuse, and pollution reduction including compliance with the Urban Wastewater Treatment Directive.
Where the money is going
The table below shows how the €3.1 billion breaks down across the 16 Member States that chose to reallocate funds to water. Not all EU countries did so — participation was voluntary and countries could choose which of the five strategic priorities to direct funds to. The result is a clear geographic concentration, with southern and central-eastern European countries as the primary beneficiaries.
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| Member State | Water allocation (€M) |
|---|---|
| Italy | 629 |
| Portugal | 524 |
| Greece | 356 |
| Poland | 348 |
| Romania | 200 |
| Bulgaria | 186 |
| Slovakia | 181 |
| Spain | 180 |
| Finland | 180 |
| Croatia | 154 |
| Germany | 133 |
| Lithuania | 48 |
| Czech Republic | 32 |
| Sweden | 19 |
| Netherlands | 15 |
| Belgium | 1 |
| Total | 3,082 |
With programme amendments approved, the Commission has committed to working closely with national and regional managing authorities to ensure effective delivery from 2026 onwards.
