We want an EU budget that is #Fit4Future. And this can only be guaranteed by building resilient local communities which the EU can shape through improved public funding. We came together as the Local Alliance[1] – a coalition of Europe’s eight leading city and regional networks – to say this loud and clear in our latest policy paper. We call EU leaders to ensure the next EU budget becomes a strong, comprehensive tool for a just, resilient, climate-neutral and competitive Europe. 

 The local transformations we will go through in the coming years are as big as when cars appeared and radically changed the entire economy. The challenge is big, but solutions are already emerging. Building local resilient communities, grounded in a wise use of resources, is key to creating a better future for EU citizens. And this future can only be shaped by the EU with better public funding.

Claire Roumet, Director of Energy Cities.

Robust Multilevel Governance

The policy paper states that recognising local and regional governments as key partners in the implementation of the EU budget is essential to achieving a prosperous Europe, where people want to live, work and thrive. As Europe faces unprecedented challenges, including climate change and digital transformation, the Local Alliance makes it clear that closer collaboration across all levels of government is critical for success. 

Only a joint and coordinated effort across all levels of government, driven by a robust multilevel governance approach, can guarantee the effective mobilisation of capacities, funds, and partnerships to advance together.

Place-based Approach

An essential step is to recognise local and regional governments as key implementation partners, reinforce the place-based approach in the next EU budget to support the diversity of all territories, and ensure equal opportunities for citizens across Europe.

In the paper, the Local Alliance envisions an EU budget that acts as a long-term investment tool, bringing together public and private financing to support local projects that improve people’s lives. Central to this vision is the safeguarding of Cohesion Policy, the EU’s most effective means of ensuring balanced territorial development and tackling inequalities. 

The report says that local governments already implement 70% of the European Green Deal legislation and account for 69% of climate-related public spending. It states that strengthening multi-level governance and adopting a place-based investment strategy will ensure EU funds reach all territories. 

Recommendations

In the report, the Local Alliance calls for the next EU budget to:  

• Empower local authorities through improved partnership principles, including ex-ante conditionality requiring member states to consult them before accessing EU funds.

• Increase efficiency with multilevel governance: Avoid centralising planning and investment decisions to prevent delays and inefficiencies. Shared governance will improve fund absorption. Integrated Territorial Investments and cross border cooperation are also crucial for effective territorial strategies. 

• Broaden the definition of reforms: Include capacity building, technical support and multi-level governance to enhance public administrations’ preparedness.

• Simplify without compromising accountability: Streamline EU funding processes while maintaining transparency and conditionalities. 

• Guarantee that any future EU competitiveness fund remains accessible to cities and regions, so they can drive green innovation, decarbonisation and resilience, supporting Europe’s industrial transformation. 

For more information, read the full paper here. 

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[1] The members of the Local Alliance are: Association of Cities and Regions for sustainable Resource management (ACR+); The Council of European Municipalities and Regions (CEMR); Climate Alliance; Energy Cities; Eurocities; FEDARENE; ICLEI – Local Governments for Sustainability; POLIS.