Shaping the next EU Budget

Making Europe’s Budget work where it matters

The EU is currently shaping its 2028‑2034 budget – a decisive moment for the EU’s climate objectives, competitiveness agenda, and its democratic future. Energy Cities is campaigning to ensure the next EU Budget works for its cities and regions, and essentially for all of Europe’s people and places.

Why this budget matters

The Multiannual Financial Framework (MFF) is the EU’s seven‑year plan that guarantees financial stability and directs funding towards key priorities such as cohesion, innovation and sustainability. The 2028‑2034 Budget will be crucial for meeting the EU’s 2030 climate targets, staying on track for climate neutrality by 2050, and unlocking the massive local investments required to get there.

Yet, despite implementing over 70% of EU legislation, cities and regions are largely sidelined in the current proposal.

Energy Cities has joined forces with seven other networks of local and regional authorities through the Local Alliance to advocate for a stronger territorial dimension to the next EU Budget.

What’s at stake

The current MFF proposal, by sidelining cities and regions, risks undermining Europe’s ambitions, by:

Cutting cities off mid-stride towards climate neutrality

After years of encouraging cities to plan and invest in the climate transition, the proposal risks keeping funds at national level and depriving local authorities of the resources needed to deliver EU climate goals. Regions, cities and towns are co-pilots of Europe’s transformation – driving the clean energy transition, providing affordable housing, promoting sustainable mobility and building resilience to climate change. 

Overlooking the local dimension of competitiveness

Cities and regions shape the infrastructure, services, and skills that enable businesses and industries to thrive. Recognising local governments as investors and innovators strengthens Europe’s competitive advantage and evens out economic development across territories.

Undermining European democracy

By centralising decision-making at EU and national levels, the proposal is cutting off Europe’s direct link to its citizens via its local governments. For Europe to safeguard democracy, it needs to equip its cities and regions to deliver democracy daily with a budget of the people, for the people.

Our main demands

Reinforce the territorial approach across the MFF, with:
1. A mandatory Regional, Territorial or Urban Chapter
2. A territorial approach to the clean transition and decarbonisiation window of the European Competitiveness Fund
3. A target in the budget for territorial tools, such as Integrated Territorial Investments

Ensure smart conditionalities for municipalities

Create a programme for cities in the EU Facility

Maintain just transition support

Maintain solid partnerships and multilevel governance mechanisms

See the Local Alliance’s 10-point Action Plan

Make a difference…

The negotiations will run until the end of 2026, with finalisation expected by March 2027 at the latest. Member States are moving very quickly to define their positions in the Council.

To influence the negotiations, it’s crucial for local authorities to advocate at national level. Energy Cities has put together a toolkit to help local actors with their national advocacy efforts.

Mobilisation Toolkit – Coming Soon