EU eastern border regions struggle with war disruption, labour shortages and security costs

EU regions bordering Russia, Belarus and Ukraine are facing a combination of security threats, disrupted trade, falling investment, labour shortages and population decline that has compounded longstanding economic weaknesses, according to a European Parliament research briefing published on September 17.
The nine affected EU member states — Finland, Estonia, Latvia, Lithuania, Poland, Slovakia, Hungary, Romania and Bulgaria — include many remote and sparsely populated areas that were already struggling with weaker growth, limited access to services and poorer connections to major economic centres, says the briefing, "EU eastern border regions: Adapting cohesion policy to a changing security landscape". Russia's war in Ukraine has added new pressures, including higher security costs, refugee arrivals and disruption to cross-border economic links.
Some regions have suffered a sharp reduction in investment, trade and economic activity, including tourism, while new economic barriers and job losses have emerged, the briefing said. Areas bordering Russia and Belarus have also faced heightened security risks, including hybrid threats and the "instrumentalisation of migration", while some have lost long-established cross-border cooperation partners because of the war.
The pressures are particularly difficult for regions with already weak demographic and economic foundations. Many are mountainous or sparsely populated and face labour shortages and limited access to healthcare and other public services. The briefing noted that crises such as the pandemic and the war had highlighted how restrictions on cross-border movement and sudden refugee inflows could place additional strain on local administrations.
Transport connectivity remains another obstacle. Despite progress towards technical interoperability, rail links across EU borders remain incomplete, while differences between national administrative and legal systems can make joint projects and disaster preparedness more difficult.
The OECD has argued that the regions need a long-term approach that addresses their economic and social attractiveness as well as security. Its 2025 report on Europe's eastern border regions called for greater investment in infrastructure that can serve both civilian and military purposes, including roads, railways, border crossings and logistics hubs.
It also warned that security considerations should not crowd out longer-term socioeconomic objectives. Regional policies should instead address demographic decline, skills shortages and quality of life alongside defence and resilience, including through measures to recognise foreign qualifications, provide language training and support refugees with caregiving responsibilities.
The European Parliament briefing said eastern border regions also had significant potential if policies were adapted to local conditions. Their industrial, agricultural and natural-resource bases, as well as their proximity to neighbouring countries, could support new cross-border value chains and investment in the green and digital transitions.
A 2024 ESPON study found that some peripheral regions had demonstrated what it called "exaptive resilience", by reallocating resources and drawing on local networks and capabilities to adapt to shocks. The study identified local actors and networks, supportive institutions and investment in skills, infrastructure and capacity as key factors.
The European Commission has responded with a strategy adopted in February covering five areas: security and resilience; growth and regional prosperity; local strengths; connectivity; and people. The strategy is intended to address both immediate security concerns and longer-term problems such as depopulation and labour shortages.
Commissioner for Cohesion and Reforms Raffaele Fitto has stressed that policies should be tailored to individual regions rather than applied uniformly. The strategy is based on "a place-based approach and multi-level governance", Fitto said when presenting it in February, adding that solutions should be "tailored, not one-size-fits-all".
The Commission has proposed an EastInvest investment platform that could provide up to €28bn by the end of 2027 through lending and advisory support from European and national development banks. It is intended to finance infrastructure, renewable energy, innovation and regional connectivity.
The EU has also redirected existing cohesion funding towards the regions. Following the 2025 mid-term review, €5.6bn is due to be redirected to eastern border regions from the wider €34.6bn reallocation of cohesion funds towards priorities including competitiveness, defence, housing, water management and energy infrastructure.
Poland and Slovakia have so far reallocated the largest amounts, with allocations in each exceeding €1bn, according to the briefing. Other measures include support through the Just Transition Fund and Interreg, while additional financing is available for programmes covering regions bordering Russia, Belarus or Ukraine.
The European Parliament has also pushed for stronger cross-border cooperation. In 2025 it endorsed the BRIDGEforEU agreement, creating a mechanism through which regional and local authorities can flag administrative and legal obstacles to cross-border infrastructure, public services and economic projects.
But the briefing said important uncertainties remained. The Commission's proposed 2028-2034 EU budget does not include a dedicated funding line for eastern border regions, instead proposing targeted support through wider EU programmes covering areas such as border management, security, military mobility and dual-use infrastructure.
The extent of that support will depend on negotiations over the next EU budget, while questions also remain over whether local authorities have sufficient capacity to implement existing programmes and access the available financing. The European Parliament is preparing its own report on strengthening territorial resilience and cross-border cooperation in the eastern border regions.
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