Municipalities, cities and regions urge the EU to support long-term local investments through flexible financial rules
Municipalities, cities and regions are the backbone of Europe’s future prosperity. Their ability to invest in sustainable infrastructure and services is crucial for creating jobs, driving growth, and enhancing resilience. Yet, current financial and budgetary rules too often limit their capacity to invest for the long term. In response, POLIS, CEMR and EUROCITIES have come together to call on EU institutions to support local governments by creating more flexibility in investment frameworks.
Representing thousands of local and regional governments across Europe, the three organisations underline that resilient territories must have the financial capacity to adapt and grow in the face of social, economic and environmental challenges. Quality local investments in services, mobility, housing and infrastructure trigger private investment and support sustainable economic recovery.
To make this possible, they urge EU institutions to take key actions:
- Ensure local and regional investment is included in the European Commission’s future plans for economic governance.
- Encourage the European Parliament to highlight barriers to local investment.
- Call on the European Council to create leeway for local investments within the Stability and Growth Pact.
- Invite Eurostat to treat long-term investment debt differently from operating expenditure.
- Adapt EU funds and financial instruments, such as EFSI, to better fit local needs.
As local leaders stress, the EU must adapt its financial rules to enable sustainable long-term investments. Whether it is modernising infrastructure, supporting mobility, or creating jobs, empowering local and regional governments to invest is crucial for Europe’s growth and cohesion. A more flexible approach to fiscal rules will ensure that Europe’s recovery and future prosperity start at the local level.
For more information, contact:
Advisor – Territorial Cohesion & Local Finances
