EU Commission departments handling cash could face restructuring

BRUSSELS — Every European Commission department that handles EU cash could be in the firing line as part of President Ursula von der Leyen’s restructuring plans, according to five officials familiar with the discussions.

Earlier this month, POLITICO Brussels Playbook reported that the Commission is considering a major restructuring of one of its oldest departments, the Directorate-General for Regional and Urban Policy, known as DG REGIO, which oversees almost a third of EU spending through the bloc’s cohesion policy.

Those restructuring plans could be extended to other departments, according to the officials, granted anonymity to speak about the sensitive discussions. They include the Directorate-General for Agriculture and Rural Development (DG AGRI), which manages Common Agricultural Policy money; the Directorate-General for Employment, Social Affairs and Inclusion (DG EMPL), which oversees the European Social Fund; the Directorate-General for Maritime Affairs and Fisheries (DG MARE), which deals with fisheries funding; and the Directorate-General for Research and Innovation (DG RTD), which manages Horizon research cash.

One Commission official described the process as part of von der Leyen’s “absolute centralization” drive. However, another official said it was an extension of the Brussels’ plans to change how the long-term budget is distributed, with spending programs merged into two main funds.

The officials said they believe the plan is to have a single centralized service manage EU funds. One senior official said the model is the recovery fund that was set up after Covid (handled by the Directorate-General for Structural Reform Support): with national governments submitting spending plans, cash disbursed based on hitting milestones, and centralized oversight.

“If everything moves to this system, it’s logical to create a service that does exactly that,” the official said of plans for a future DG INVEST.

Commission Executive Vice President Raffaele Fitto last week publicly hinted at the restructuring plans, saying: “Inside DG REGIO we are reflecting on the opportunity and possibility of creating a more efficient DG and identifying the right model.”

The restructuring process is advancing. On the Commission intranet, seen by Playbook, a dedicated “workstream” has been set up, tasked with examining how to “review directorates-general structures and better align them with Commission priorities and the future EU budget.”

The lead on the review is Valère Moutarlier, deputy director-general at the Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs. Moutarlier and her team's recommendations will go to former Commission secretary-general Catherine Day in mid-July, according to two officials.

Budget Commissioner Piotr Serafin will present the final restructuring suggestions to von der Leyen and the College by the end of 2026, a Commission spokesperson said. “We are reflecting on how to make DGs more efficient and ensure the best model for delivering our objectives,” the spokesperson said.

Officials inside DG AGRI told Playbook they had “definitely followed with interest” reports about DG REGIO’s possible dismantling. These concerns prompted a February “town hall” with DG HR boss Stephen Quest to discuss the broader structural review.

Concern is also growing in DG MARE. “Simplification must not lead to excessive centralization of power in Brussels,” said European Parliament fisheries committee Vice Chair Stéphanie Yon-Courtin.