In the Eurocities policy statement – A Strong Cohesion Policy Promoting Urban Transformation – city leaders state the need for a robust EU Cohesion Policy that is tailored to their specific needs and is properly financed in the post-2027 EU budget.
As the EU’s main public investment policy, Cohesion Policy supports cities through a range of critical and innovative projects focused on areas such as urban mobility, green infrastructure and social resilience.
However, with shifting EU priorities, there are concerns that cohesion funding is under threat in upcoming EU budget discussions, potentially reducing resources for cities and regions and stalling Europe’s urban transformations.
In the policy statement, city leaders urge newly appointed EU leaders to work in partnership with city leaders to develop the next Cohesion Policy, utilising their expertise in implementing cohesion funds to drive the twin green and digital transition and bring concrete benefits to the people of Europe.
They highlight four essential pillars that must be retained and improved in Cohesion Policy to ensure real and lasting change: strengthening multi-level governance, fostering trust-based partnerships, ensuring urban authorities’ roles in cohesion programs, and simplifying the EU budget for more direct local impact.
Background: a crucial policy for cities
Cohesion Policy, Europe’s most significant investment tool for cities, underpins projects ranging from green infrastructure and digitalisation to public transportation and social services.
Brno, for example, received over €200 million during the 2014-2020 period, which it used to implement projects related to urban transport, energy efficiency, and social infrastructure. With €122.2 million in support, Milan received significant positive impacts, with the funds supporting numerous projects, including the development of sustainable transport systems and energy-efficient buildings.
Meanwhile, Barcelona has used cohesion funding to transform streets into pedestrian-friendly superblocks, improving urban liveability through cohesion funding, while Gothenburg has restored natural wetlands for flood resilience.
However, despite its clear benefits, Cohesion Policy faces potential cuts as the EU explores reallocations in the next budget. The shifting political focus towards industry and geopolitics has put cohesion policy on the sidelines, while some national governments have started to promote a more centralised approach to EU investments, a step already seen in the NextGenerationEU recovery plan.
Four pillars of strength
The Eurocities policy statement emphasises four pillars as fundamental to making the Cohesion Policy more effective and responsive to urban needs. These pillars outline the collaborative, inclusive, and streamlined approach necessary for cities to lead Europe’s transformation.
Stronger multi-level governance for strategic collaboration: A strengthened framework for multi-level governance can help Cohesion Policy adapt to the specific needs and potential of diverse urban areas, supporting place-based solutions that address local challenges more effectively. Looking ahead, adopting a mission-oriented framework, as seen in initiatives like the EU Mission on Climate Neutral and Smart Cities, can help further align city goals with broader EU ambitions while promoting integrated territorial development and building public-private partnerships.
Reinforced, trust-based partnerships: Cohesion Policy can only be delivered effectively through real partnerships between the EU, national governments and territories. The current approach to the partnership principle is an important step forward but it lacks broad implementation. Reinforcing this principle means fostering trust-based relationships that enable cities to use their unique expertise and capacity to implement local projects. As key implementers to over 1,000 sustainable urban development strategies through cohesion funding, but also as managing authorities and intermediary bodies, cities have proven their ability to manage funds and drive sustainable initiatives.
Consistent roles for city authorities in EU Cohesion programmes: Cohesion policy is the EU’s primary investment vehicle for urban growth, social cohesion and resilience. Despite this, city authorities’ involvement varies across cohesion-related programs, with earmarked resources for sustainable urban development under the European Regional Development Fund not always reaching out to cities, or worst – with no earmarked resources across other programmes like the European Social Fund Plus. A consistent role across all cohesion programmes would allow cities to continue advancing in key areas like sustainable urban development and social inclusion, leveraging cohesion policy to tackle local issues in innovative ways.
A simplified, more integrated EU budget: For cities to make the most of cohesion funding, an integrated, accessible EU budget is critical. By simplifying funding rules and adopting flexible funding models, such as lump-sum payments, cities can better allocate resources to locally relevant projects. A streamlined approach would also support more integrated multi-fund strategies, empowering cities to use cohesion resources in alignment with their unique budgetary needs and long-term plans.
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