PAPHOS — The European Union's executive arm unveiled two strategies on June 26, 2026, aimed at supporting the bloc's islands and coastal communities. The initiatives seek to improve transportation links, end energy isolation, and facilitate housing development.

These strategies were developed to replace existing piecemeal methods for addressing the challenges faced by these regions with a more comprehensive approach. Approximately 17 million people reside on more than 4,000 islands across the EU, with Ireland, Malta, and Cyprus being island member states. Additionally, around 95 million people live along the coastlines of 22 EU member states. Younous Omarjee, European Parliament Vice President, said regarding past oversights, "Islands have been overlooked in the past, but now that comes to an end."

Islands often experience higher costs for transport, housing, and public services due to their distance from mainland markets and reliance on air and maritime connections. "This is what we call the cost of insularity — a cost that millions of EU citizens and businesses pay every day, simply because of where they live and work," said Raffaele Fitto, European Commission executive vice president for cohesion and reforms. Coastal communities also face climate change impacts, demographic decline, a scarcity of affordable housing, and limited access to services. These communities contribute approximately 265 billion euros annually to the EU budget.

The strategy focusing on islands is structured around four main objectives: enhancing transportation and digital infrastructure, addressing climate change effects and energy requirements, tackling shrinking populations and housing shortages, and strengthening security and crisis preparedness. Projects such as desalination plants and housing initiatives will be prioritized for funding. "From the Baltic to the Mediterranean, islands are on the front line of geopolitical challenges," Fitto said in an interview.

The strategy for coastal communities aims to bolster their resilience to climate change and extreme weather through investments, in collaboration with the European Investment Bank. This strategy also proposes a blue carbon credit program to finance carbon-absorbing coastal wetlands, marshes, and mangroves. It promotes diversifying economic activities and creating new jobs to reduce reliance on single revenue sources. Additionally, the strategy includes the OceanEye project, designed to position the EU as a leader in ocean observation and research. It also supports dual-use technologies and vessels that can serve both fishing and tourism sectors. Details on specific projects that will receive funding are not yet available; funding proposals are expected from member states after the EU's new budget is unveiled.