The German Association for Housing, Urban and Spatial Development (DV) is conducting a study on integrated regional development in Germany. It is being funded by the Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR) on behalf of the Federal Ministry of Housing, Urban Development and Building (BMWSB) and jointly implemented with the the Institut für Stadtforschung und Strukturpolitik GmbH (IfS).

Integrated regional development concepts (REK) are comprehensive, informal strategies based on consensus and individual responsibility. The objective is to strengthen a region in the long term through coordinated measures and projects by public and private stakeholders and to initiate a sustainable development process. REKs act as voluntary instruments that promote interdepartmental and interdisciplinary cooperation across administrative boundaries. Although integrated regional development strategies have great potential within the framework of cohesion policy, they are not yet well established in Germany. This is despite the possibilities that the EU regulations provide for so-called territorial instruments outside of cities.

The study primarily examines how EU cohesion policy in Germany supports integrated regional development, identifying both challenges and opportunities. Its findings will inform recommendations aimed at strengthening these integrated approaches during the next funding cycle (2028–2034). Special attention will be paid to existing funding approaches and their territorial instruments, how they are organised in practice and which success factors play a role.

On the basis of the study, well-founded recommendations will be developed to promote a stronger integration of regional development approaches in future European regulations and the regional programmes of EU cohesion policy.

The study draws on a similar approach to analyse the urban dimension in EU structural policy and funding practice in Germany. The recently published study provides an overview of the EU funding programmed in the federal states in the current funding period to support integrated urban development (available here).

Selected Results of the Research Project

The project analysed funding approaches for integrated regional development from both the current and previous funding periods in six different federal states. The following key findings can be derived:

1. Use of Territorial Instruments: 
   Almost all federal states make use of the “territorial instruments” provided within the Structural Funds to promote integrated approaches to regional or urban development. The focus is predominantly on sustainable urban development, which is pursued by most federal states. However, some states are now also implementing integrated regional development approaches that go beyond mere urban development.
    
2.  Flexibility of EU Cohesion Policy:
   EU cohesion policy generally offers a high degree of flexibility in the allocation of resources at the regional level. Federal states and regions value this flexibility as it enables tailored solutions. The thematic diversity (e.g., energy efficiency, climate protection, competitiveness, innovation, mobility, revitalization of brownfield sites, public services), the varying spatial configurations (functional regions, inter-municipal cooperation), as well as the different regional governance structures and methods of strategy development, differ significantly between the federal states.
    
3. Challenges:  
   The study identifies key challenges including the often-high complexity of funding procedures, a lack of coordination between sectoral policy objectives and territorial needs, and uncertainties in strategic planning due to insufficient planning security at both the EU and state levels.
    
4. Success Factors:
   It is also evident that well-supported strategy development processes, targeted development of regional networks, and the promotion of management structures can significantly contribute to the effectiveness of the programs.

Selected Recommendations for Future EU Structural Policy

At EU Level:  
Proven, flexible instrument categories such as ITI, CLLD, and other territorial approaches should be maintained. It must be ensured that there is sufficient thematic scope for integrated regional development approaches, for example within the framework of the political objective 5 “A Europe closer to citizens.” Furthermore, existing regional strategies should be able to serve as a basis for territorial funding in the future. Administrative and funding-related simplifications are urgently needed to improve the accessibility and efficiency of funding procedures.

At National Level: 
The responsible ministries of the federal states require sufficient flexibility at an early stage in programming, in order to specifically promote integrated territorial development approaches. This includes both financial incentives and binding budgets, as well as professional and institutional support. Linking with national initiatives for strategic regional development, such as the funding program “RegioStrat – Strategic Regional Development.

At Regional level: 
It is essential to enable a broad thematic funding spectrum and to transfer genuine responsibility for budget and project selection to the regions. Furthermore, targeted – including financial – support should be provided for the development and strengthening of regional strategy and governance structures, as well as the corresponding capacities, in order to ensure sustainable and effective regional development.

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