WhatsEUp? A progress update on the battle over the EU’s long-term budget

The next EU budget has been at the heart of much of our advocacy work over the past year. When the European Commission unveiled its proposal a year ago, we took a first look at the battle ahead. Now, we take stock of the past year, what our advocacy has achieved, where the negotiations stand, and what comes next.

Red alert: centralisation ahead

Sensing the direction of travel, Energy Cities joined forces with other European networks (the Local Alliance) and the European Committee of the Regions to make the case for local governments ahead of the European Commission’s proposal for the EU’s next long-term budget, the Multiannual Financial Framework (MFF) for 2028–2034. Together, the networks published recommendations on competitiveness, reforms and multilevel governance.

In July 2025, the European Commission published its MFF proposal and, in many ways, turned the existing model on its head by proposing a double centralisation of EU funds, at both national and European level. The proposal removed several key funding earmarks for local and regional authorities, placed national governments at the centre of Cohesion Fund management, which had previously been more decentralised, and fragmented the LIFE programme.

Energy Cities and its partners responded quickly with a 10-point action plan, letters, events and media interventions. It was essential to make our voices heard and defend local governments’ access to the EU budget. In our view, this is a prerequisite for delivering the green transition – and, with it, the transition towards a more resilient Europe – at the pace we need.

The European Parliament and its MFF rapporteurs responded to our call and pushed hard for the Commission to revise its proposal. In November 2025, the Commission introduced a number of amendments. While these did not fundamentally change the structure of the proposal, they brought some small victories, particularly on multilevel governance. The Parliament then began working on the sectoral legislation, including the Competitiveness Fund and the National and Regional Partnership Plans (NRPPs).

Fighting on two fronts

At European level, the Local Alliance continued to push for improvements to the proposal, calling in particular for stronger multilevel governance, a more place-based approach and the preservation of a dedicated LIFE programme. These demands were put forward through a media campaign and open letters addressed to the Council and Members of the European Parliament. The Parliament has since finalised its report on the MFF, with proposals that broadly reflect our demands, particularly on the National and Regional Partnership Plans.

Energy Cities and the Local Alliance also proposed a series of amendments to key pieces of sectoral legislation, including the Competitiveness Fund and the National and Regional Partnership Plans (NRPPs). Negotiations on these texts are still ongoing in the Parliament and the Council. The Council finalised its work in the first half of 2026, while the Parliament is expected to do so by the end of the year. We remain hopeful that some of our recommendations on the sectoral funds will make it into the final agreements.

At the same time, national ministries have started thinking about and drafting their future National and Regional Partnership Plans. Energy Cities therefore developed a toolkit, country factsheets and a series of webinars to inform and mobilise its national partners and members, giving them the tools to take action at national and/or European level. Energy Cities has provided particular support to French cities involved in the EU Mission for 100 Climate-Neutral and Smart Cities.

The sprint to spring 2027

Trilogue negotiations on the sectoral legislation will begin once the Parliament has finalised its positions. But the Council is in a hurry: negotiations need to be wrapped up before the “big bang” of seven national elections in 2027 – in France, Poland, Spain, Greece, Italy, Finland and Estonia – risks throwing everything into flux.

Together with the Local Alliance, Energy Cities will continue to track the negotiations, make sense of what is happening and do its best to influence the outcome. But, to be honest, the debate is likely to focus on high-level issues such as European preference, excellence versus cohesion, own resources and climate targets, as well as the overall size of the budget. This will make it harder for us to get a hearing on issues that are nevertheless crucial: maintaining dedicated funding for sustainable territorial development; financing local innovation and investment in the energy transition; preserving a LIFE programme; and ensuring that the national plans include a dedicated territorial chapter.

Action at national level is therefore essential. Member States will have to submit a first draft of their National and Regional Partnership Plans to the European Commission in June 2027, followed by a final version before the programme launches in January 2028. The next 15 months will be critical to securing a meaningful place for local action in each plan – and ensuring that part of these funds actually reaches the local level to finance the green transition.

For its part, Energy Cities will focus on supporting its members at national level. Together with the Local Alliance, it will develop proposals and guidance on how to include strong territorial chapters in national plans. It will also work on defining programmes tailored to the green transition and the needs of cities within the directly and indirectly managed funds (sectoral programmes).

Want to engage in our efforts around the National partnership plans? Join our webinar with the Local Alliance on 20 October.