Europe’s mayors and business leaders have stated their commitment to work together to drive a competitive and sustainable future for Europe, build thriving urban economies with better jobs, and implement the objectives of the new EU Clean Industrial Deal.
However, to achieve these ambitious goals, they are calling on the EU and national governments to better support public-private partnerships, and strengthen cooperation between all levels of governments.
They also make it clear that the EU must provide the resources and direct funding they need to carry out essential improvements such as workforce reskilling and the introduction of clean technology.
These were the messages presented at the European Commission’s Mayors’ Business Forum in Brussels last week, where local government and business leaders gathered to discuss how Europe’s cities and regions can be transformed into hubs of competitiveness, prosperity and sustainability.
Among the mayors in attendance were Natalia Chueca, Mayor of Zaragoza and Eurocities Shadow Commissioner for Industry and competitiveness, and Ricardo Rio, Mayor of Braga and Eurocities Shadow Commissioner for Local Europe.
Speaking at the event, Ricardo Rio, Mayor of Braga, stated: “It is important to create conditions for cities to have more responsibilities, more decentralisation, more resources, and to do what they do best, which is to achieve results in their territories.”
Cities as innovators of industrial transformation
At the meeting, city and business leaders highlighted the essential role of cities in creating new markets for clean industry by promoting low-carbon materials and products in key sectors such as transport, building and energy.
They underscored the importance of revitalising local economies through strengthened manufacturing, workforce skills and sustainable production, while also highlighting the importance of AI, digital twins, and smart city technology for the implementation of the green and digital transition.
Mayors called on EU and national leaders to strengthen investment in net-zero technologies through joint procurement and demand-supply matching, and to make cleantech more affordable by simplifying funding and streamlining regulations.
“At a time when cities are already immersed in implementing the green transformation, we must be given access to processes that accelerate this transformation and enable our city governments to be more competitive,” said Natalia Chueca, Mayor of Zaragoza.
The importance of EU Cohesion Policy
During discussions, Ricardo Rio emphasised the need for the EU budget after 2027 to ensure that cities have direct access to EU funding and a stronger role in shaping European policies. He highlighted the risk of overlooking the crucial role that cities play in driving Europe’s economic strength.
“When we look at the global development that the European Union has to proceed with, we must ensure a multi-level governance perspective that creates conditions for cities to have a much stronger role, not just in advising policies but also in implementing them,” said Mayor Rio.
He underlined the importance of the EU’s Cohesion Policy as a fundamental investment tool for cities, pointing out that cities must be fully recognised as enablers of innovation and industrial transformation, rather than mere beneficiaries of EU funding.
Highlighting Braga’s efforts in sustainable construction and mobility, the mayor stressed the importance of aligning city strategies with business sector needs to support innovation and long-term economic growth.
“One of the greatest advantages that cities have is their capacity to mobilise many stakeholders, citizens, businesses, and academia,” said Rio. “By fostering innovation and working together, we can truly drive Europe’s industrial and environmental transformation.”
Cities are a magnet for investment, companies, and highly qualified young people
“We need standardised regulations and fair competition”
Natalia Chueca, Mayor of Zaragoza, reinforced the importance of city governments in driving Europe’s competitiveness. She stated: “Cities are a magnet for investment, companies, and highly qualified young people. We need to be open to sustainable policies and create conditions for businesses to thrive.”
She explained that cities provide the critical infrastructure that businesses and industries rely on and play a direct role in skills development, cluster formation and investment attraction.
Zaragoza’s success in attracting major investments, such as Amazon Web Services and Microsoft, was presented as an example of how cities can leverage sustainability and innovation to enhance their global attractiveness.
Mayor Chueca also made it clear that excluding cities from the EU Competitiveness Fund would weaken markets and limit Europe’s ability to create high-value, future-proof jobs. She stated: “We need clear, standardised regulations and fair competition across cities and regions to ensure a balanced economic future.”
EU perspective on urban investment
Echoing the mayors’ concerns, Kadri Uustal, Head of Unit for Cities, Communities and People at the European Commission, stated that cities must have the necessary resources and policy support.
Cities are where Europe’s ambitions become reality
She explained that cities are key players in implementing the EU’s climate and competitiveness goals. “There is still plenty of financial capacity,” said Uustal. “If you’ve got mature projects, go and find your regional programme, or your national programme. This is relevant funding that cities should take advantage of.”
She pointed out that the EU’s upcoming Competitiveness Fund should include direct access for cities, as their decarbonisation efforts are key demand drivers for clean industries.
“Cities are where Europe’s ambitions become reality,” explained Uustal. “The investment needs of cities must be met with streamlined funding, ensuring that they remain at the forefront of Europe’s digital and green transitions.”
Business insights on sustainable investment
Esther Rommel, Regional Minister of North Holland, shared a success story from her region: a circular deal on secondary construction materials developed through collaboration between municipalities, businesses and project developers.
She urged city leaders to embrace circular economy principles, saying: “This circular deal is a ground-breaking initiative that promotes circularity in the construction sector. We need to think of buildings as material banks and standardise circular demolition and harvesting principles across Europe.”
She called for cities across Europe to adopt similar models to promote the reuse of materials and reduce raw material consumption.
Providing insight from the perspective of European business, Cristian Gheorghe, from Prysmian Cables and Systems, highlighted the need for business to become “true partners with cities.”
“Too often, local administrations act as regulators rather than collaborators,” said Gheorge. “For business investment, cities must improve infrastructure, streamline bureaucracy and provide a clear regulatory framework.”
For business investment, cities must improve infrastructure and streamline bureaucracy
Gheorge highlighted the importance of partnerships between local governments, businesses, and academia to ensure a skilled workforce aligned with industry needs.
An urban vision for a prosperous Europe
The event concluded with a call for continued collaboration between cities and businesses, emphasising that sustainable urban development and industrial competitiveness must go hand in hand to secure Europe’s future economic resilience.
Ricardo Rio, Mayor of Braga, summed up the discussions by stating: “If we want to assure success, we need less bureaucracy, better procurement processes and stronger partnerships.
“Cities should have direct access to European funding, which would allow them to drive innovation and industrial transformation more effectively.”
_____
Find out more about the discussions at the 2025 Intelligent Cities Challenge Conference & Mayors-Business Forum, organised by the European Commission.
All photos in this article are copyright of Julie de Bellaing https://juliedebellaing.be/
