Cities’ involvement in the EU’s Agenda for Cities should not be optional

The Agenda sets the direction forward but leaves it up to Member States to involve cities – here’s how to improve it.


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Author

Daniele Sormani

Publication date

December 4, 2025

With the inauguration of the EU’s new Commission one year ago, President Ursula von der Leyen tasked the new Commissioner for Cohesion and Reform, Rafaelle Fitto, with proposing a “bold agenda for cities”. Energy Cities welcomed this initiative, recognising in it an opportunity—if well-coordinated with the next long-term EU Budget (MFF)—to give municipalities the political weight, capacity, and resources they need to implement the EU’s policies on the ground. 

Yesterday, the awaited EU Agenda for Cities was finally published. By taking stock of existing EU initiatives and instruments, the agenda clarifies what has already been achieved for cities and towns, which financial support is available, the main challenges that remain, and the pathway forward. It also frames EU city policy within the upcoming Multi-annual Financial Framework (MFF).  

However, while some positive aspects are present, crucial elements are still absent, raising the risk that the agenda could become a dead letter. Energy Cities advances concrete proposals to avoid it. 

Tackling fragmentation and supporting small and medium-size cities: going in the right direction 

While the Agenda contains a dry repertoire of EU policies for cities already in action and the main challenges they have to face, some elements must be emphasised.  

Firstly, Energy Cities welcomes the explicit reference to small and medium-sized municipalities, which often lack the financial and human resources of larger cities. Targeted support mechanisms and finance for these towns represent a first step in the right direction

As fragmentation has long hampered an efficient use of EU funding and opportunities, we commend the creation of the EU Cities Portal – a single, userfriendly gateway where cities can locate all funding opportunities, guidance documents and reporting tools. This will reduce duplication, improve transparency for applicants and funders, ease civil servants’ workloads and raise the overall quality of delivery

Another positive development is the highlighting of the Covenant of Mayors as a flagship example of an integrated approach. Energy Cities has long supported the Covenant of Mayors initiative, which shows how coordinated ambition translates into measurable emissions reductions. The agenda’s recognition of the Covenant as a template for the broader EU urban energy strategy validates the hard work of over 11 000 municipalities striving for climate neutrality in an integrated and multi-disciplinary manner. 

Finally, Energy Cities welcomes that the perspective EU Facility – within the forthcoming long-term EU Budget (MFF) – will be open to local authorities, allowing them to develop innovative projects and strengthen capacity building for sustainable urban development. This aligns precisely with the calls made by Energy Cities and the Local Alliance for a dedicated urban chapter in the EU Facility

The Agenda is lacking real courage and vision to put municipalities at the core of EU policy 

Together, these measures lay the groundwork for a more cohesive, well-funded urban policy. However, the Agenda remains a list of what has been done and what the EU is doing well, but essentially lacks political vision and will.  

For example, while the Agenda’s final part aims to align the Multiannual Financial Framework (MFF) with urban realities, several gaps remain, jeopardising its concrete application. 

Without real involvement of local authorities, policies cannot be realistic or effective. Yet the agenda and MFF discussions only mention the possibility of involving them, leaving Member States free to decide whether and how to do so

Regional chapters and territorial approach are the missing pieces 

To bridge this gap, we call for embedding a mandatory regional chapter within the National and Regional Partnership Plans (NRPPs). This chapter would be overseen by subnational authorities—regions, provinces or equivalent bodies—reflecting each country’s administrative reality

A dedicated urban subsection would pinpoint the specific challenges cities face (housing shortages, climate pressures, etc.) and outline the reforms and investments required. Crucially, the chapter would spell out which EU funds are accessible to cities, municipalities and groupings of municipalities, and would emphasise simplification of application and disbursement procedures to prevent smaller localities from being left behind. 

The mandatory chapter would also detail how integrated territorial investments, community-led local development and other territorial tools—as envisaged in Article 74(4) of the proposed Regulation—will be deployed at the local level, accompanied by a clear financial allocation for each regional and territorial chapter. This ties funding streams to concrete, place-based actions

Finally, the thematic focus of each chapter should mirror the competences of the managing subnational authority, zooming in to the subregional level and explaining how the plan will support local authorities in delivering public services and implementing reforms. This guarantees that territorial considerations, funding streams and territorial tools are fully aligned with the needs of cities and municipalities across the Union

Beyond the regional chapter, every sectoral and geographical chapter must systematically integrate a strong territorial dimension. Accordingly, we urge that the subregional level be mandatorily included in the territorial analysis and design of all measures, wherever relevant

This mandatory regional chapter and territorial approach are the missing pieces that will make EU urban policy truly inclusive, ensuring no city—large or small—lacks the resources and support needed to achieve climate neutrality

Energy Cities calls for mandatory regional chapters and a territorial approach for the MFF, paving the way for a resilient, climate-neutral local Europe.

A Mandatory Territorial Chapter is amongst the demands we have as the Local Alliance – a coalition of Europe’s leading local and regional governments – for the next MFF. See the Local Alliance’s full 10-point Action Plan to make the next EU Budget work for cities and regions.