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As the European Commission prepares to present its proposals for the next EU budget on 16 July, city leaders across Europe are calling for a strong, renewed Cohesion Policy that remains at the core of the EU’s investment strategy for 2028-2034.

In a new Eurocities policy statement – Empowering cities through Cohesion Policy in the future investment and reform plans – cities outline a clear roadmap for a more urban-focused policy, placing city governments at the heart of EU investment and helping to deliver the upcoming EU Policy Agenda for Cities.

City leaders state that Cohesion Policy must be reinforced, not reduced. It should work in tandem with new EU tools for competitiveness, while continuing to drive the Europe’s green, digital and social transitions. To deliver on this ambition, they call on the EU institutions to treat cities as strategic partners, co-designing, co-financing and co-governing EU investments that address shared challenges.

Specifically, the policy statement calls for the inclusion of a dedicated urban chapter in all national and regional plans and for at least 15% of shared management funding to be earmarked for urban priorities.

Failing to take these actions, say city leaders, would risk side-lining Cohesion Policy, Europe’s main tool for territorial development, at the very moment it is most needed. Without it, the EU may fall short in tackling social division and reducing the gap between the richer and poorer parts of Europe. At a time when industrial policy and defence are gaining prominence in the EU agenda, maintaining a strong Cohesion Policy is essential to ensure no place is left behind.

As the Commission prepares the first-ever EU Policy Agenda for Cities, the upcoming budget must demonstrate that the agenda is more than a political gesture. It must be a strategic commitment backed by dedicated resources and meaningful partnerships with cities.

“Any Cohesion Policy should start with cities at its core. A strong Cohesion Policy means we have a voice in Europe,” says Emil Boc, Mayor of Cluj-Napoca and Eurocities Shadow Commissioner for Cohesion Policy. “We need a direct allocation of funding for cities, and the EU budget must be increased to respond to cities’ priorities.”

Competitiveness and cohesion must go hand-hand

City leaders state that cohesion and competitiveness must go hand in hand. Cities, home to over 75% of Europeans, are uniquely positioned to translate EU priorities into real impact for people and places. While the EU is rightly boosting competitiveness through the Single Market and the European Green Deal, this must not come at the expense of cohesion.

Recent high-level reports from Enrico Letta’s on the future of the Single Market and Mario Draghi on European competitiveness call for bold reforms and investment, but these must be designed and implemented in close partnership with cities to ensure place-based results.

The Eurocities policy paper states that investments must continue to support values like inclusion, subsidiarity and democracy, especially as cities face escalating pressures from climate change, social inequality and geopolitical instability.

Cities as strategic partners, not just beneficiaries

The upcoming EU Policy Agenda for Cities is a key opportunity to strengthen EU-city collaboration, but cities must be treated as full partners. That means embedding urban priorities across all national and regional investment plans, starting with a mandatory urban chapter that reflects cities’ roles in delivering EU policy objectives and that includes a minimum 15% urban earmark in shared management programmes.

Eurocities calls for the EU to:

• Make the partnership principle a binding condition in Cohesion Policy and related EU investment tools.
• Require co-decision with cities in national investment and reform plans, not just consultation.
• Include reforms supporting decentralisation and local administrative capacity, backed by a dedicated urban strand in the Technical Support Instrument (TSI).
• Guarantee city involvement in programming and monitoring throughout the entire budget period.

“The future of Cohesion Policy must remain decentralised,” says Emil Boc. “We say a very clear no to centralisation, because centralisation will destroy the very soul of the Cohesion Policy. We need place based approach, shared management, and the multi-level governance of Cohesion Policy.”

Empowering local solutions and improving access

To address Europe’s shared challenges, from climate action to housing and sustainable mobility, cities need stronger support through territorial instruments and improved access to funding.

Cohesion Policy must continue to empower cities to deliver local strategies by scaling up tools such as Integrated Territorial Investments (ITI), Sustainable Urban Development (SUD), and Community-Led Local Development (CLLD). These instruments should be multi-fund by design, supported by clear national frameworks, and aligned with broader EU missions such as the EU Cities Mission and the new EU Policy Agenda for Cities.

At the same time, many cities, particularly those with fewer resources, continue to face barriers to accessing and managing EU funds, including fragmented rules and excessive administrative burdens. Eurocities calls for the EU to:

• Maintain and increase the urban earmark to at least 15% across cohesion programmes.
• Ensure local SUD strategies act as investment and reform platforms aligned with national plans.
• Scale up the European Urban Initiative (EUI) to €1 billion and strengthen links to mainstream instruments.
• Adopt a trust-based, flexible approach, including harmonised application procedures and legal clarity.
• Launch a single digital portal for all EU funding programmes relevant to cities.

Cities also need stronger direct support. Technical assistance should be increased and made available without national gatekeeping. The next budget must also allow easier fund combinations, enabling cities to build integrated investment across Cohesion Policy and other EU programmes.

“Equity must be at the core of Cohesion Policy. Every city, regardless of size, must have the opportunity to thrive,” states Sharon Dijksma, Mayor of Utrecht and Eurocities Shadow Commissioner for Cohesion Policy.    

Making multilevel governance a reality

Multilevel governance must become a structural feature of EU investment planning. While the partnership principle is enshrined in the Code of Conduct, it is not being enforced. Half of cities report that the principle was not applied meaningfully in the current period, and involvement has been even worse in implementing the Recovery and Resilience Facility.

Eurocities calls for the EU to:

• Treat partnership as a conditionality for both programming and implementation phases.
• Introduce a renewed Code of Conduct with stronger provisions and enforcement mechanisms.
• Ensure that cities and their associations are systematically involved in programme design, delivery and revisions.
• Create permanent national structures for coordination between local governments, national authorities and the European Commission.

An EU budget that works with cities

Europe cannot deliver on its green, digital and social goals without cities. The new Eurocities  policy paper presents a clear roadmap for embedding cities in the design and delivery of EU investment strategies. Cohesion Policy must evolve, but not at the cost of its foundational principles: solidarity, inclusion, subsidiarity, and place-based action. A strong Europe needs strong cities, and strong cities need a renewed Cohesion Policy.

“If Europe is to achieve its climate and social objectives, it must invest in its cities. Cohesion Policy is Europe’s most powerful tool for delivering on shared goals, and it must evolve to meet the challenges of the future,” adds Mayor Dijksma.

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Read the Eurocities policy statement Empowering cities through Cohesion Policy in the future investment and reform plans.