Functional approaches: the new frontier

In recent years, functional approaches have taken centre stage in cohesion policy. Tools such as Integrated Territorial Investments (ITIs) as seen, for example, in Poland, and Community-Led Local Development (CLLD) increasingly operate beyond administrative boundaries. Some Interreg programmes have also embraced functional area thinking. Such approaches tend to be mainstreamed at the transnational level with the adoption of macro-regional strategies. Reflecting these developments, the European Commission recently released a Toolkit on Functional Approaches, highlighting their advantages for territorial development. 

The value of functional area delineation 

Functional approaches serve multiple objectives. They can help design more effective and cost-efficient policies, promote integrated development by capitalising on synergies and economies of scale, and strengthen resilience in the face of growing uncertainties. These benefits emerge from carefully structured, evidence-informed processes of stakeholder cooperation. 

Traditional functional approaches – such as Functional Urban Areas (FUAs) and Local Labour Market Areas (LLMAs) – typically use commuting flows as a proxy for functional delineation. More recently, in 2023, the European Commission’s Joint Research Centre introduced a methodology for delineating Functional Rural Areas (FRAs). These define rural systems based on access to key services and the spatial role of rural centres. FRAs are particularly valuable for international comparisons, given their consistent, transparent delineation. 

Governance across administrative boundaries in response to global trends 

Yet the limitations of such generic functional geographies are becoming more evident. Functional relations between places are being reshaped by major transitions and global megatrends such as for example: 

• The shift from carbon-intensive to green industry is creating new geographies of energy supply, skills development, and industrial symbiosis. 

• Biodiversity conservation and climate change adaptation demand a rethinking of ecological connectivity, natural habitat distribution, and water resource resilience. 

• Demographic ageing, increasing chronic illness, and shortages of healthcare workers prompted new spatial configurations in healthcare provision. 

Addressing these challenges calls for functional approaches that are solution-oriented. Their goal is to convene relevant territories and actors to tackle complex, cross-sectoral problems. In many cases, looking and acting beyond administrative boundaries appears as a necessity in the face of emerging challenges. 

While evidence on functional interdependencies is critical, it does not determine the exact shape of a functional area. These areas are often co-constructed by actors through dialogue and practical cooperation, with their contours reflecting institutional, social, and policy readiness as much as geography. 

Opportunities for Interreg Europe projects 

Many Interreg Europe projects engage with challenges that require collaboration across administrative boundaries, rooted in functional interdependence. For instance: 

On industrial transition: 

• JETSKIR explores integrative approaches to just transition and upskilling in industrial regions. 

• TRIS promoted systemic uptake of industrial symbiosis strategies. 

On climate change, biodiversity, and water: 

• GreenLUPO examines land use policies through the lens of ecological connectivity. 

• Gov4Water strengthens water resource governance, while BIGDATA4RIVERS highlights the need for enhanced data for river basin management. 

On health system transformation: 

• HUMAN supports the shift towards inclusive, affordable, human-centred healthcare through digital innovation. 

• One Health Gov informs policy frameworks that integrate environmental, economic, and public health concerns. 

These examples illustrate how Interreg Europe projects engage with territorial implications of emerging trends that generate new types of territorial interdependencies.  

This opens a valuable opportunity: policymakers involved in Interreg Europe projects could be encouraged to make their functional implications more explicit. Reflecting on how their work fits within or reshapes functional territories could enhance their strategic impact and relevance for policy design. It may also help them access EU Cohesion Policy funding by better aligning their approaches on territorial integrated approaches promoted by the EC. 

Cross-project reflection on functional approaches could also help regions facing multiple, interlinked challenges. Unlocking synergies across policy fields requires more than isolated action; it depends on recognising shared geographies and cooperating accordingly. This significantly improves the cost-efficiency of cooperation across administrative boundaries for localities and regions. The objective is ideally to identify multi-purpose functional area cooperations that deliver results without burdening involved actors excessively. Keywords for successful functional approaches are therefore pragmatism, openness to change and result orientation.