Cities and regions call for a place-based EU budget with an open letter to the EU leaders

As negotiations on the EU’s next long-term budget enter a crucial phase, mayors and local leaders from across Europe are urging national leaders to ensure that cities and regions remain central to EU investment.

Ahead of the European Council meeting on 18 – 19 June, the Local Alliance – a coalition of the Europe’s leading networks of local and regional governments representing more than 1,800 cities, 60 regions, 60 energy agencies and 42 national associations – has issued an open letter to Heads of State and Government. In addition to the presidents of the eight networks, the letter was signed by over 50 cities, networks and agencies, calling on the Council to support key recommendations put forward by the European Parliament for the future EU budget.

Local and regional governments translate EU priorities into concrete projects, services and investments that improve the daily lives of their citizens. From expanding public transport and protecting water quality to modernising schools, hospitals and social housing, most EU priorities are implemented locally.

This is why the Local Alliance has consistently called for the next EU budget to be place-based, grounded in multilevel governance, and designed to deliver our shared European goals, including competitiveness and the green transition. 

The coalition therefore welcomes the adoption of the European Parliament’s recent interim report on the Multiannual Financial Framework (MFF), and the draft reports on the European Competitiveness Fund and the National and Regional Partnership Plans.

Ahead of the Council meeting, the open letter urges national leaders to uphold the Parliament’s key positions, including:

• On the overall EU budget: Clearly define budget allocations for key programmes serving local and regional governments – including Cohesion Policy, the European Regional Development Fund (ERDF), the European Social Fund (ESF) and LIFE. This would prevent uncertainty and competition with other priorities like the Common Agricultural Policy. Mayors also call for safeguards to ensure local beneficiaries are not penalised when EU funds are suspended at Member State level due to rule-of-law concerns.
• On the National and Regional Partnership Plans (NRPPs): Require mandatory regional and territorial chapters in national plans, make multilevel governance a core principle, allocate resources to strengthen administrative capacity, and protect integrated territorial and urban development tools through dedicated ERDF funding.
• On the Competitiveness Fund: Maintain support for territorial innovation with dedicated mechanisms, provide predictable funding streams specifically for local and regional investment pipelines, and explicitly recognise local authorities as eligible beneficiaries and implementation partners.

The coalition stands ready to provide practical evidence from cities and regions and to contribute to a structured dialogue on implementation.

Local authorities turn Europe’s competitiveness and cohesion goals into tangible results for businesses and citizens on the ground.

Cities and towns are already building a more resilient energy future, through renovation, decarbonisation and local energy infrastructure projects, one building and one neighbourhood at a time.

The next European budget should recognise this role by making us full partners in the design and delivery of EU programmes, and by investing directly in the place-based projects that strengthen our communities and economies.

Mohamed Ridouani, President of Energy Cities and Mayor of Leuven

Read the letter