As negotiations on the EU’s next seven-year budget reach a crucial stage, Europe’s mayors are sending a clear message to EU leaders: cities are your strongest allies in delivering EU priorities.
Cities turn European goals into reality, from affordable housing and climate action to mobility, social inclusion, innovation and resilience. But current budget proposals risk side-lining local governments, with a lot of urban funding expected to flow through National and Regional Partnership Plans, without a guaranteed role for cities.
City leaders are therefore calling for the budget to have an Urban Delivery Package, including urban chapters in national plans, dedicated funding for sustainable urban development, stronger multilevel governance and access to future instruments such as the European Competitiveness Fund.
This message is increasingly reflected in the European Parliament’s emerging position, which recognises that cities’ must be supported by the next EU budget.
The focus now turns to the European Council, meeting this week in Brussels, with city leaders calling on national governments to back the Parliament’s position and keep cities at the heart of EU investment.
“EU funding is key to making change happen,” says Sharon Dijksma, Mayor of Utrecht. “Cities must be present in the negotiations, including at national level. National governments know that they need cities.”
What is at stake
The EU’s next long-term budget for 2028 to 2034, known as the Multiannual Financial Framework (MFF), will set the Union’s financial and political direction for the years ahead.
The European Commission’s current budget proposals mark a significant shift in EU priorities, with more focus on competitiveness, defence and strategic autonomy, and growing pressure on place-based instruments such as Cohesion Policy.
Cities must be present in the [EU budget] negotiations, including at national level.
Cities are concerned this shift could reduce the funding available for local investments in areas that directly affect people’s lives, including housing, climate action and public transport.
That is why, in May, city leaders met European Commissioners and MEPs in Brussels to present a clear position: without cities, Europe cannot deliver. They called for direct involvement in future funding plans and safeguards to ensure EU investment reaches the places where it is needed.
Parliament backs cities’ position – now focus moves to Council
Following this Eurocities-led advocacy effort, cities’ messages are now strongly reflected in the European Parliament’s emerging position on the budget. The Parliament’s draft stance supports several priorities long defended by cities, including territorial chapters with a clear urban dimension and 11% earmarking in the European Regional Development Fund for sustainable urban development.
For Croatian MEP Gordan Bosanac, this shows that city advocacy is working. “The European Parliament is opening the door to a more place-based and democratic EU budget,” he explains. “Now we need to make sure this progress is not weakened in the next phase of negotiations.”
The next test is the European Council, where member states will shape their response to the future budget. Ahead of this week’s Council meeting, the Local Alliance, including Eurocities, sent a letter to national leaders calling for stronger partnership, clear territorial investment and safeguards to ensure local governments can access the funding they need to deliver.
“The Council must now build on the direction set by Parliament,” says Mayor Dijksma. “If Europe wants results, cities must be part of the decisions from the beginning.”
The European Parliament is opening the door to a more place-based and democratic EU budget.
Cities as engines of transformation
For city leaders, EU funding is not only about investment. It is about giving cities the tools they need to deliver lasting improvements for their residents.
“In Zagreb, Cohesion Policy has not just been a financial instrument,” says Tomislav Tomašević, Mayor of Zagreb. “It has been an instrument for transformation.” The city has used EU funds to support integrated urban change, from air quality and public transport to wider climate and social priorities.
But Tomašević warns that without the right safeguards, cities risk being sidelined in the next budget. “If there is no money for cities, everyone loses,” he states.
Daniel Sazonov, Mayor of Helsinki, says the next EU budget must also recognise cities as engines of competitiveness, innovation, skills and the green transition. “This is not only about Cohesion Policy,” he explains. “It is about taking a strategic approach to supporting cities.”
This is why Eurocities is calling for future instruments, including the European Competitiveness Fund, to clearly recognise local authorities as eligible beneficiaries and implementation partners.
For Aziliz Gouez, Vice-President for European Affairs in Nantes, the territorial dimension is just as important. EU funding can help connect urban centres with surrounding areas, supporting cooperation across municipalities and addressing shared challenges such as inclusion and informal settlements.
At a time of rising polarisation, she says, Europe must avoid dividing urban and rural areas. “We need to demonstrate cooperation, solidarity and a common narrative.”
If there is no money for cities, everyone loses.
A budget that delivers
For Europe’s city leaders, it is clear that their continued advocacy efforts through Eurocities are making a difference, but the outcome is not secured.
Looking to the months ahead, with the final budget expected in December, this work will become ever more critical. Without continued political pressure, the progress made by cities and reflected in the European Parliament’s position could be diluted.
The message from cities is not simply that they need more money. Europe needs a budget that can deliver, one that involves cities from the start and ensures EU funds reach the places where European priorities become reality.
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These messages were shared by city leaders and MEPs during a discussion on the next EU budget at the Eurocities Annual Conference 2026 in Utrecht on 8-10 June, exploring how local leaders can help secure a stronger urban dimension in the next phase of EU budget negotiations
