Europe’s cities have invested over €15 billion in the past six years to boost social inclusion, reduce inequality and improve essential services. These efforts have enhanced housing, healthcare, childcare and employment support, directly benefiting over 100 million people.
However, rising costs, ageing populations, the housing crisis, and growing skills shortages continue to put city budgets under pressure.
In response, city leaders are calling for stronger, targeted EU backing to sustain and scale up their efforts to tackle social challenges. This includes direct EU funding and a central role for cities in shaping the next EU Action Plan for the European Pillar of Social Rights (EPSR).
The Eurocities’ report – A new urban compass for the European Pillar of Social Rights – presents several proposals to ensure the EU’s next Action Plan for the ESPR is more ambitious and responsive to the needs of city governments.
Key recommendations include a place-based social policy, using territorial impact assessments, introducing urban-level indicators, and giving cities a stronger role in shaping EU social policy.
Recommendations include:
- A place-based EPSR Action Plan: Cities must be co-creators of the plan, which should include indicators such as energy poverty, transport poverty and housing affordability.
- Ending homelessness by 2030: The EU must scale up support to help cities achieve this goal, introducing a clear EU Council recommendation and renewing the mandate of the European Platform on Combatting Homelessness (EPOCH).
- Tackling the housing crisis: The EU’s upcoming affordable housing initiative must align with EPSR objectives, including reforms to state aid rules and more investment in social and affordable housing.
- Reinforcing the EU Child Guarantee: The Child Guarantee’s national plans must actively involve cities, and a more ambitious EU target to end child poverty should be adopted.
- Ensuring better skills for inclusive cities: The EU should work together with cities to implement an ambitious Union of Skills that tackles critical labour and skills gaps in local economies and services.
- Mainstreaming mental health issues: Mental health policy should be integrated across all principles
of the new Action Plan, not just Principle 16, as mental well-being is closely linked to social protection,
employment, housing, and inequality.
