Innovation and Multi-Level Governance: Strategies to Enhance the Effectiveness of Cohesion Policy in Portugal Post 2030

Abstract

Effective multi-level governance is essential for maximizing the impact of EU Cohesion Policy, yet persistent challenges remain in ensuring coordination between European, national, regional, and local actors. In Portugal, the complexity of governance structures, overlapping competencies, and bureaucratic inefficiencies have often hindered the full potential of Cohesion Policy interventions. This paper examines how Portugal can improve the governance of Cohesion Policy post-2030 by fostering innovation, simplifying administrative processes, and enhancing stakeholder participation. The analysis begins by mapping the current governance framework of Cohesion Policy in Portugal, highlighting the main institutional bottlenecks and inefficiencies that limit the effectiveness of policy implementation. It then explores innovative governance approaches, including digital governance solutions, participatory decision-making models, and data-driven policy design, to improve policy coordination and efficiency. Drawing from international best practices, this research proposes concrete strategies for enhancing Portugal’s governance model, including strengthening regional and local capacities, adopting more flexible regulatory frameworks, and increasing transparency in decision-making processes. The paper also discusses how Portugal can advocate for EU-level reforms that promote more decentralized and territorially sensitive governance structures in the next programming cycle. By addressing governance challenges and embracing innovation, Portugal can significantly enhance theeffectiveness of Cohesion Policy, ensuring better-targeted investments and a more inclusive and participatory approach to regional development. This paper contributes to the debate by proposing practical solutions to strengthen the governance mechanisms that underpin future EU territorial policies.