European Commission reveals new plan to strengthen eastern region, including Hungary

The European Commission has unveiled a new strategy to strengthen support for the EU’s eastern regions bordering Russia, Belarus and Ukraine, aiming to boost resilience, economic stability and security in areas heavily affected by the war in Ukraine.

According to the European Commission, the initiative is both a show of solidarity and a strategic investment in Europe’s long-term security and competitiveness. Regions across nine Member States — Finland, Estonia, Latvia, Lithuania, Poland, Slovakia, Hungary, Romania and Bulgaria — have faced mounting challenges since Russia’s full-scale invasion of Ukraine, including hybrid threats, economic disruption, labour shortages and population decline.

War-related pressures

Since the start of the conflict, the EU has already provided political, financial and technical assistance to these border regions. Support has focused on improving infrastructure, strengthening defence capacities, boosting economic resilience and maintaining trade flows, notably through the EU–Ukraine Solidarity Lanes. However, Brussels warns that ongoing security risks and economic pressures mean further targeted assistance is now necessary.

We recently reported that Hungary and Slovakia turned to Brussels over oil transit dispute with Croatia.

Five key priorities

The European Commission’s new strategy centres on five main areas. The first is security and resilience. Plans include developing initiatives such as an Eastern Flank Watch system, enhanced drone defence measures, and broader European air and space protection frameworks. A new network of specialists will also be created to improve cross-border preparedness.

The next one is growth and regional prosperity. Financial access will be expanded through a proposed EastInvest facility, bringing together major lenders, including the European Investment Bank Group and international partners. Cooperation with the World Bank is also expected to support development in the hardest-hit areas.

Next up is building on local strengths, which means efforts will prioritise integrating Baltic electricity systems with European networks and developing cross-border hydrogen infrastructure, including the Nordic-Baltic Hydrogen Corridor. Circular industry projects and regional bioeconomy hubs will also receive backing.

The following step is connectivity. Investments will focus on digital infrastructure and transport upgrades, including dual-use roads, railways, ports and improved links with Ukraine and Moldova.

People and communities: Measures will target depopulation and labour shortages through education-to-employment programmes, alongside initiatives to strengthen media resilience and counter disinformation.

To monitor progress, the European Commission will launch an annual high-level political dialogue with Member States. The first meeting is scheduled for 26 February 2026, when financial institutions are expected to sign a declaration formally launching the EastInvest facility.

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Why is it necessary?

Eastern EU regions have experienced slower economic growth, falling investment and rising security costs since Russia’s invasion of Ukraine. A mid-term review of EU cohesion policy in 2025 already recognised these challenges and allocated additional funding.

Looking ahead, the European Commission has also proposed dedicated resources for eastern border regions within the EU’s next long-term budget framework for 2028–2034.