European Parliament backs cities and regions in EU budget negotiations

The European Parliament has sent a strong signal in support of cities and regions as negotiations unfold on the EU’s next long-term budget for 2028–2034. 

Earlier this month, the Parliament adopted a broader interim report setting out its overall position on the future EU budget across all major spending areas. That report established Parliament’s main political priorities ahead of negotiations on the next Multiannual Financial Framework (MFF), the EU’s seven-year budget. 

The sector-specific reports now being discussed build on that broader position by going into greater detail on individual parts of the future budget framework. One of the most closely watched is the report on the proposed National and Regional Partnership Plans (NRPPs), which could significantly shape the future role of cities and regions in managing EU funds. 

In its newly released draft report, the European Parliament calls for a stronger role for local and regional authorities in the design and delivery of future EU funding programmes. 

The risk of National Partnership Plans 

Under the European Commission’s proposal, the National and Regional Partnership Plans would become the main framework for organising several major EU funding programmes, including cohesion policy, agriculture and home affairs. Member States would prepare these plans nationally, which has led to many cities and regions to raise concerns that the proposal gives national governments too much control, with limited guarantees for involving local and regional authorities in decision-making. 

The European Parliament’s report addresses many of these concerns. Prepared jointly by the REGI, BUDG and AGRI Committees, it will help shape Parliament’s position in the wider negotiations on the budget. 

What the Parliament’s report got right 

With the Local Alliance – which brings together eight major networks representing more than 1,000 cities and regions across Europe – Energy Cities welcomes the Parliament’s position, as it reflects many of the recommendations we have put forward in recent months. 

In particular, we welcome Parliament’s call to strengthen the partnership principle and ensure genuine multilevel governance. In practice, this means involving cities and regions more meaningfully in decisions about how EU funds are designed, allocated and implemented. 

The report also recognises the importance of place-based approaches and territorial planning tools, including Territorial Just Transition Plans and Smart Specialisation Strategies. While the Commission proposed dedicated resources only to less Developed Regions, the Parliament is calling to reinstate dedicated funding for all categories of regions and for sustainable urban development, helping ensure that EU policies respond to the different realities and needs across Europe. 

These proposals would help avoid several risks linked to the current Commission proposal, including weakening the objectives of cohesion policy, reducing the role of local and regional authorities in delivering EU priorities, and limiting transparency and accountability in how funding decisions are made.  

What’s next 

As negotiations with the Council and the European Commission continue in the coming months, the Local Alliance calls on EU institutions to build on Parliament’s position and ensure that the future EU budget: 

• preserves a strong and properly funded cohesion policy as a cornerstone of European solidarity;  

• guarantees meaningful involvement of local and regional authorities through robust multilevel governance and partnership principles;  

• maintains a clear territorial dimension so that policies can respond to local needs and capacities;  

• and ensures transparency, accountability and accessibility in the design and implementation of the National and Regional Partnership Plans.  

The report also makes an important connection between the future budget and local climate and energy planning. It specifically refers to the Sustainable Energy and Climate Action Plans developed under the EU Covenant of Mayors for Climate and Energy. 

This recognition highlights the key role cities and regions already play in turning EU climate and energy objectives into concrete local investment projects. It also confirms that local plans and expertise should help shape future EU funding priorities. 

Members of the EU Covenant of Mayors Board recently conveyed this message directly to the report’s co-rapporteurs, and the Board’s mayors welcome Parliament’s strengthened position. 

As the legislative process moves forward, our networks remain committed to working constructively with EU institutions to ensure that the future EU budget strengthens – rather than weakens – Europe’s territorial cohesion, democratic governance and local transition efforts.