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Boosting public investment for recovery

Cohesion Policy Alliance - News 2021

CEMR calls for investment-friendly EU economic governance reform


The COVID-19 crisis exposed vulnerabilities in Europe’s economic governance and the need to rethink how EU rules support long-term, sustainable investment at all levels of government. In its 2022 position, the Council of European Municipalities and Regions (CEMR) argues that the reform of the EU’s economic governance framework is a vital opportunity to unlock local and regional investment capacity.

Local and regional governments, which account for 45% of public investment in the EU, were heavily impacted by the crisis. While they expanded essential services and supported communities, they also faced falling revenues and limited fiscal space. CEMR warns that without urgent reform, municipalities risk being held back from investing in vital green, digital, and social transitions.

CEMR proposes several key changes:

  • Strengthen multi-level governance: Local and regional voices must be involved in economic coordination, including through a reformed European Semester with mandatory application of the partnership principle.
  • Recognise investment as a priority: The new framework must distinguish between current spending and long-term, sustainable investment to avoid penalising municipalities for future-oriented projects.
  • Grant borrowing flexibility: Local and regional borrowing for structural investments should not be constrained by national debt calculations under the Stability and Growth Pact.
  • Establish a European municipal and regional bank: This new facility within the EIB would support local investment, particularly through pooled resources and tailored green or social bonds.
  • Support local capacity building: Municipalities need the tools and skills to plan and deliver strategic investments, especially in health, care, and infrastructure.

CEMR also highlights the importance of maintaining local leadership in the implementation of National Recovery and Resilience Plans. Without adequate autonomy, funding, and engagement, the EU’s sustainable recovery goals, particularly those of the Green Deal, risk being delayed or derailed.

Ultimately, CEMR calls for a governance framework that enables, not restricts, local ambition, empowering municipalities and regions to invest in the future of Europe’s communities.

Read the position paper here

For more information, contact:

European Semester

European Parliament - News

A conversation with MEP Schuster on the future of the European Semester


While EU member states enjoy financial support from the Union’s largest ever package of economic support, the so-called the “EU’s Recovery and Resilience Facility”, we spoke to MEP Joachim Schuster about his views on the reform of the “European Semester” formulating economic policy recommendations for all EU Member States.

The implementation of Member States’ recovery and resilience plans will drive their reform and investment agenda for the years ahead. For its part, the European Semester, with its broader scope and multilateral surveillance, will usefully complement the implementation of the recovery and resilience plans.

The European Semester process has been overturned by the Recovery and Resilience Facility (RRF). Why is the debate around the European Semester so important now and what is at stake? 

The Commission has allotted a strong role to the European Semester in the Recovery Plan and therefore strengthened its importance for policy coordination at EU level. However, I am convinced that the effectiveness and success of the alignment of Member States’ investment and reform programmes will depend on the reform and simplification of the Semester as well as the increased ownership by the Member States when it comes to the implementation of the Country Specific Recommendations (CSRs). 

According to you, how should the future European Semester look like to become the main tool to relaunch growth and to allow strategic investments in the EU?

A reformed European Semester should build on the lessons learned from the Recovery and Resilience Facility (RRF) exercise and improve the existing mechanisms to establish a more transparent and democratic coordination process. This applies in particular to the definition of policy objectives in the European Semester and the CSRs, which needs the full involvement of the European Parliament and the Member States. A reform should also improve the cooperation between Commission and Member States in developing the needed reforms and investments on national level to achieve those policy objectives.

In the report “The European Semester for economic policy coordination: Annual Sustainable Growth Strategy 2021” you called for a more democratic European Semester in line with the principles of subsidiarity and proportionality. How could local and regional governments be better involved in the elaboration of the country specific recommendations? What role could the European Parliament play to ensure a more democratic process?

The involvement of local and regional authorities, as well as social partners and civil society would enhance the ownership of Member States but also foster tailor-made solutions for their reforms and investments. The Member States should therefore put in place arrangements for the participation of local and regional authorities during the whole Semester process. Moreover, the European Parliament should be stronger involved in setting economic policy priorities and economic governance decisions, and ensure social dialogue.

How can the European Semester ensure a clearer and increased role of local and regional governments in the use of the recovery funds, and especially in reaching the SDGs?

The RRF gives a bigger role to local and regional authorities in the preparation and implementation of the national plans. We need to safeguard that the Commission is ensuring their involvement according to the Regulation and establishes adequate mechanisms in the future economic policy coordination. The upcoming reform must transform the Semester into a governance tool that implements the EU´s social and environmental ambitions. It must also ensure that economic and budgetary targets are on equal footing with social and environmental targets.

Now that the Commission has re-launched the discussion around the reform of the EU economic governance system, which role do you think could the European Semester play in the coordination and management of the recovery funds? 

To recover from the pandemic and finance the climate-neutral and digital transformation, the Member States will need more fiscal flexibility even beyond the pandemic. I strongly welcome greater flexibility in the economic governance framework. However, it will only be accepted by all Member States and succeed if we come to a stronger binding economic policy coordination in Europe. Here, too, it is worth looking at the incentive-driven ratio behind the RRF, which could be a successful model for a reformed EU Semester: democratically set guidelines at EU level and involvement of the Member States in the elaboration of country-specific reforms. 

The European Semester, initially established as a pure instrument for fiscal surveillance has now included other policy areas, such as cohesion, green and social policies. Would you favour a reform of the Semester to ensure that the Green Deal or the results of the Social Scoreboard are duly taken into consideration?

Since the introduction of the EU governance system, we learned that it is not possible to pursue a successful economic policy based on fiscal surveillance alone. Therefore, I strongly support the Commission’s announcement to reform the European Semester and to convert it further into a tool to coordinate economic, social and environmental policies. The economic and fiscal policy should serve the Union objectives and principles such as the Green Deal, the SDGs or the European Pillar of Social Rights while ensuring financial stability in Europe.

As a German MEP, could you provide us more information on the state of play of the cooperation at subnational level in your country? How can a federal state such as Germany truly ensure the application of subsidiarity already in the design phase of national reforms?

In Germany, the principle of subsidiarity and the division of tasks and competences is enshrined in the constitution and is generally respected even in times of crisis. In political practice, this requires close cooperation between the federal government, the federal states and also the municipalities. The federal states and municipalities have a variety of formal and informal opportunities to participate in the process of shaping national reforms at early stage. In many areas, such as for the adoption of the RRF, the approval of the Bundestag and the Bundesrat (representative chamber of the Länder) is required for legislative projects to enter into force.

Ljubljana Agreement

Cohesion Alliance - News 2021

Green light for a renewed Urban Agenda for the EU


This is a major achievement of the Slovenian Presidency: EU Ministers responsible for Urban Development adopted the Ljubljana Agreement on 26 November 2021. By doing so, EU Member States and the European Commission commit to the continuation of the Urban Agenda for the EU and set new modalities for its implementation. CEMR has been closely associated with the preparation of this agreement. 

The ministerial meeting was attended by the European Commissioner for cohesion and reforms, Elisa Ferreira. She reiterated her support for the Urban Agenda and insisted on the need for changing paradigm towards a sustainable lifestyle, which is the objective of the Green Deal, and to which EU funds contribute. She also pointed the urban-rural linkages and inter-dependencies between urban centres and their surrounding rural peripheries “They need each other to develop in a sustainable way”. 

Together with Krzysztof Hetman, the Vice-Chair of the European Parliament REGI Committee, representatives of Eurocities and of the Committee of the Regions, CEMR spokesperson for territorial cohesion and regional councillor of Tuscany, Ilaria Bugetti seized this opportunity to recall the importance of synergies between EU funds, especially at urban and territorial level: “Synergy between Cohesion funds and Recovery Plans is needed. Never before the principle of proximity and territoriality has been so important in the interest of our citizens”. She emphasised the need for good cooperation between all levels in the programming of EU funds.

What does this agreement mean for local governement?

The Urban Agenda for the EU was launched in 2016 with the Pact of Amsterdam. It was the start of a completely new way of working on urban issues whereby cities of all sizes, ministries and European Commission’s directorate general gather together in thematic partnerships to discuss concrete issues such as public procurement, climate adaptation, digital transition or migrants integration.

Today with the Ljubljana Agreement, the Member States, the European Commission and local and regional governments representatives agree on a new work programme for the Urban Agenda. In this document some key aspects for CEMR are included:

The role of smaller and medium sized cities is clearly stated with the willingness to involve them in the thematic partnerships, and to better communicate on the achievements of the urban agenda. It is also worth noting that the role of national associations of municipalities and regions in supporting municipalities, but also to participate in the thematic partnerships is recognised. 

In 2022 the municipalities and regions will have to answer a call for interest to join future partnerships. The Commission will bring some dedicated support such as expertise or communication means. Member States in particular agree to bring additional financial or capacity to support the participation of smaller and medium sized municipalities in the partnerships.

Finally, the Ljubljana Agreement also includes the proposals of CEMR and Eurocities for four new themes: Cities of equalities; urban food; greening cities; sustainable tourism.

What’s next?

The French Presidency starting on 1st January 2022 agreed to launch two new partnerships on greening cities and sustainable tourism. First, an ex-ante assessment will be carried to better define the scope, relevance of the timeline and identify key stakeholders and EU policies relevant for these two themes. Then (mid or end 2022) a call for interest should be launched to select the cities who will join thematic partnerships. For the next themes (cities of equality and urban food), the process should be launched in 2023.

Additional links

press release

Ljubljana Agreement

Multi-annual work-programme for the Urban Agenda for the EU

CEMR tweet

Uncertainty amidst recovery 

Recovery - News 2022

Over a year into the pandemic, local governments are still missing long-term support


Local and regional finances are under pressure due to the consequences of the COVID-19 crisis: spikes in pandemic-related spending were paired with falls in revenue. More than a year after the coronavirus was declared, local and regional governments still lack long-term support from national governments.

This is revealed by the latest edition of the CEMR analysis of COVID-19’s impact on local and regional finances. The study draws on data from 18 local and regional government associations in 15 countries*, shedding light on recent trends in territorial finances. 

The situation in Europe’s towns, cities and regions is critical. “The scissor effect caused major problems for many : less income coming in, more expenditure going out. Not an ideal state of affairs!” said Flo Clucas, Councillor for Cheltenham (UK) and CEMR spokesperson on local finances. “What has become clear is that national governments must work with local and regional governments if lessons learned are to be better understood and applied.”

How COVID-19 led to increases in local and regional expenses

Absolute estimates of local and regional governments’ additional expenditures in 2020 range from €5 million to €10 billion depending on the country in question.

Most of the expenses were related to social care (housing, childcare and poverty alleviation), the purchase of protective equipment and enforcement of safety measures,  or additional support to local businesses, associations and cultural institutions. 

The decline in income due to lockdowns severely impacted local and regional finances. This was principally due to loss of local businesses taxes and fees, but also due to the decline in tourism.    However, these losses vary significantly according to countries’ local finance system – such as whether local governments depend primarily on own taxation or allocations from national taxes – and each territory’s economic profile.

What support from national governments?

National support to local governments ranged from additional transfer of resources to coverage of extra expenses (e.g., purchase of masks, protective equipment, etc.) or flexibility in procedures. According to CEMR’s survey, this represented an average of €2.9 billion in short-term support in each country. 60% of respondents declared that national support remains insufficient to compensate the budgetary deficits in the long run. 

Since the real impact of the COVID-19 crisis is likely to be revealed in the medium to long term, it is crucial that central governments regularly exchange with national associations of local and regional governments to anticipate the long-term economic and social effects.

In this respect, national recovery and resilience plans represent an opportunity to boost local and regional capacities to invest and deliver on their essential mission to their citizens. This is why we at CEMR call on national governments to fully involve cities, towns and regions in the implementation and assessment of national recovery plans.

At the EU level, the assessment of local and regional involvement must be a priority in the Commission’s mid-term review of the recovery plans in 2022 if it wants to make the green and digital transitions a reality on the ground.

*Austria (GEMEINDEBUND, STAEDTEBUND), Belgium (VVSG), Czech Republic (SMOCR), Denmark (LGDK), Estonia (ELVL), Finland (Association of Finnish Local and Regional Authorities), Germany (DST, DStGB), Luxembourg (SYVICOL), Netherlands (VNG), Portugal (ANMP), Serbia (SKGO), Slovenia (ZMOS), Spain (FEMP), Sweden (SALAR/SKR), United Kingdom (LGA, COSLA), Network of Associations of Local Authorities of South East Europe (NALAS).

Local finances hit by COVID-19

MFF and COVID recovery - News 2020

CEMR report reveals rising costs and falling revenues for local and regional governments during the pandemic, threatening public services and investments


As the COVID-19 pandemic swept through Europe, local and regional governments (LRGs) were on the frontlines, maintaining public services, managing emergency measures, and supporting vulnerable communities. A new analysis by the Council of European Municipalities and Regions (CEMR) sheds light on how this essential work came at a high financial cost, creating long-lasting challenges for municipalities and regions across Europe.

Based on a survey conducted among 40 national associations in 15 countries, the CEMR report highlights what it calls a “scissor effect”: rising local expenditure paired with declining revenue. While towns and regions had to invest in health, social care, education, and digital tools to respond to the crisis, income from taxes, public service fees, and tourism sharply declined.

Some countries, such as Sweden and Estonia, offered significant support to help offset these financial shocks. Others, including Portugal, provided little to no compensation. The situation varied widely, revealing major disparities in how LRGs were supported at the national level.

The report also underscores the challenges LRGs faced in accessing EU support due to limited consultation, legal constraints, or complex procedures. Despite some flexibility under EU fiscal rules, many authorities remain uncertain about their mid- and long-term financial stability. The risk: cuts to investment in essential areas like climate action, digitalisation, housing, and public transport.

CEMR calls for a long-term rethink of how LRGs are financed and included in national and EU recovery plans. Municipalities and regions have proven their capacity to lead in times of crisis. To continue doing so, they need clear legal frameworks, financial autonomy, and a real partnership with national and European institutions.

The report is a clear reminder: Europe’s recovery depends on strong, resilient local and regional governments. Equipping them today is the key to building a more sustainable, inclusive, and future-proof tomorrow.

Read the study here 

For more information, contact: 

Rural development

Rural Development - News

Exclusive interview: Commissioner Dubravka Suica on the future of rural areas


On 30 June, the European Commission released the Communication “A long-term vision for the EU’s Rural Areas – Towards stronger, connected, resilient and prosperous rural areas by 2040”. The content of the communication is very comprehensive, ranging from the provision of public services in rural areas to digital solutions and the diversification of the economy. We spoke with the Vice-President of the European Commission and Commissioner for Democracy and Demography, Dubravka Šuica, about the challenges, objectives and next steps of this initiative.

What was the driver for the Commission in deciding to release this communication now and what will be its objectives? 

The demographic transition being experienced in the EU is felt in different ways in different regions, but there is no doubt that it has had a particular impact on our rural areas. The more remote rural areas in particular have experienced loss of population, ageing and challenges in provision of services and infrastructure. The COVID-19 pandemic only increased some of these gaps within the EU.

With this Vision we wanted to reach more than 137 million people living in around 80% of our territory and ensure that they can thrive in the areas they call home. 

This vision presents very concrete actions, which will immediately start contributing to creating jobs, upgrading infrastructure and mobility, attracting and retaining young talent.

Being a former mayor yourself, what do you think that are the most relevant aspects that will help local politicians address pressing challenges, such as demographic and economic decline in their rural territories and municipalities? 

The vision is very broad and implementation of the actions proposed in it requires involvement of all levels of governance: European, national, regional and local. We also need to engage the local civil society actors, associations and the business community. This is why the vision proposes the EU Rural Pact. 

As a former mayor, I know how important it is to build coalitions beyond the local community and this is why the overall objective of the vision is to create effective ways for engagement with multiple stakeholders. The EU Rural Pact will be a great opportunity for the mayors to exchange ideas and plan targetted projects with stakeholders who might otherwise be more difficult to reach.

The communication on long term vision for EU’s rural areas is just a first step: looking ahead to 2024, what are the next steps envisaged, both for the Commission and stakeholders?

By the end of this year the EU Rural Pact will be launched together with the Committee of the Regions. We will also start implementing the rural action plan that contains tangible and operative flagship projects to sustain rural areas. Altogether, we have nine flagships and 15 accompanying actions.

As an example, the first flagship project is the “rural revitalisation platform” that will predominantly support rural areas affected by population loss, ageing and a lack of economic opportunities while the flagship ‘rural digital futures’ proposes an integrated set of actions to boost the sustainable digital transformation of rural areas.

According to a recent Eurobarometer, 79% of EU citizens support the EU giving consideration to rural areas in public spending decisions and 65% of EU citizens think that the local area or province should be able to decide how the EU investment in rural is spent. To what extent will the new communication aim to influence how EU funds will be allocated in rural areas, in the upcoming years?

The Vision highlights the importance of achieving the full potential of rural areas. This can only be done with appropriate encouragement and support. The vision gives a clear message to all stakeholders, including national governments, on the importance of providing funding and a framework for support to the rural areas . Already last year I sent a letter to the Member States together with Commissioners Ferreira and Wojciechowski asking them to draw attention to rural areas in the preparation of the common agricultural policy strategic plans and the cohesion policy operational programmes. 

In addition, the Vision proposes a toolkit on access to, and optimal combination of, EU funding opportunities for rural areas. The toolkit will improve synergies and complementarities between funds and allow local residents to benefit from multiple funds.

How can the Next Generation Europe also contribute to the goal of revitalising rural and remote areas?  

Recovery and resilience facility, InvestEU, the European Investment Bank and other EU programmes can be used to promote activities in rural areas and we have invited the Member States to use these funds having the specific needs of rural areas in mind. 

In addition as proposed in the Long Term Vision for Rural Areas all of the future EU policies will be screened for effects on the rural areas through the process of rural proofing proposed in the Vision.  Beyond financial support, the Vision creates a momentum motivating action for the benefit of the rural areas from a range of stakeholders. 

There is a growing perception that rural areas are low down the EU’s priority list. According to the Commission’s public consultation, 56% of inhabitants of rural areas felt left behind. How can the Conference on the future of Europe contribute to cope with this feeling? How can we ensure the relevance of the debate on the future of Europe for citizens, especially those in rural territories? 

In launching the Long Term Vision for Rural areas, the European Commission has made a clear commitment to prioritise the well-being and prosperity of rural areas, looking at them in a way that goes beyond the traditional view of agriculture. The multiple actions proposed in it will touch the lives of many in our rural areas to help address this sense of being left behind. 

The Conference on the Future of Europe is designed to engage and include all of our citizens, also those who are sceptical towards EU and who feel left behind. It is an opportunity for the rural actors to express their views and have their voices heard primarily by taking the initiative to organise their own events and to feed them into the multilingual digital platform or through the conference panels and plenary,. 

How do you envisage local elected representatives – other than those representing the Committee of the Regions – , being able to exploit this opportunity to be present in the Plenary of the Conference on the future of Europe? How can their inputs effectively contribute to the debate at the level of EU institutions? 

The Committee of the Regions is co-ordinating to ensure a balanced participation of these elected representatives, who are not sitting members of the Committee of Regions. The members of the will debate recommendations from European and national Citizens’ Panels and input from the multilingual digital platform with citizens, national and European Members of Parliament and representatives of civil society organisations, social partners and other stakeholders. All of these inputs can be shaped by the local representatives’ points of view and the local representatives should engage with all of these levels to ensure their contributions are heard.

Cohesion Alliance

Cohesion Alliance - News 2021

The EU recovery will not be effective without a solid cohesion policy built in genuine partnership with European cities and regions


EU-wide coalition urges EU institutions and national governments to promote synergies between the recovery instruments and the structural funds to maximise the impact of European action. 

The COVID-19 crisis has shown that cohesion policy is needed now more than ever to strengthen resilience in Europe, protect citizens, bring the recovery to every corner of the European Union and leave no one behind. Since its creation in October 2017, the #CohesionAlliance – an EU-wide alliance of 12,000 signatories advocating for a stronger cohesion policy – has managed to avoid dramatic budgetary cuts after 2020, keep a cohesion policy for all regions in the Union and put forward simpler and more flexible rules. During a videoconference dedicated to the new course of the #CohesionAlliance, its founding members renewed their commitment to join forces and keep cohesion policy as a EU top priority. The #CohesionAlliance will be vigilant that the partnership principle will be fully applied by Member States in the design and implementation of the cohesion policy 2021-27. Coherence and synergies between the recovery instruments and the structural funds are of paramount importance to avoid overlaps and maximise the impact of the European action.

Two months after the entry into force of the new cohesion policy regulations for the period 2021-27, the #CohesionAlliance took stock of the results of its activity so far and outlined its future commitments, based on the renewed Declaration 2.0 adopted in July 2020. The #CohesionAlliance’s work will be focused on the successful implementation and delivery of cohesion policy without further delays in the spirit of genuine partnership and in synergy with other instruments, thereby promoting the concept of cohesion as an overall and fundamental value of the European Union. 

Local and regional authorities highlighted the urgent request to extend the flexibility measures introduced last year to mobilise EU structural funds and state aid in the fight against COVID-19. This issue was also raised in an exchange of letters with president Ursula von der Leyen, who acknowledged the budgetary constraints that many regional and local authorities may be currently facing due to the pandemic. With regards to the potential extension of a 100% co-financing rate for structural funds, the Alliance’s partners strongly appreciated the Commission’s commitment to closely monitor the situation closely and consider further action if deemed appropriate. 

The discussion showed that the #CohesionAlliance’s mission is far from over. The European recovery must start from citizens on the ground, and it won’t be successful if their voices and the ones of local and regional politicians – who are closest to their needs – are not taken into account by EU institutions and national governments.   

During her intervention, Commissioner for Cohesion Policy and Reforms Elisa Ferreira said: “Cohesion has to remain a cornerstone of the Recovery. It is in the aftermath of crises that asymmetries grow. The Cohesion Alliance is more necessary than ever. The Partnership Agreements for Cohesion 2021-2027 will be instrumental. We have to speed up their negotiation, but quality cannot be compromised. I count on your support to also ensure that the implementation of our other policies and instruments is not spatially blind and supports the long term development of all regions. I’ve asked Member States to be mindful of the territorial dimension in preparing their Recovery and Resilience Plans, both in consulting and engaging with regional stakeholders as well as in the implementation phase. We will only achieve our objectives by making sure that our instruments work in the same direction. Promoting Cohesion cannot be the responsibility of Cohesion policy alone. That is why we must mobilise all the relevant actors, including local stakeholders and citizens as full partners, making sure that the new green and digital priorities work for all.”

Younous Omarjee, chair of the European Parliament’s Committee on Regional Development, declared: “It is essential that the recovery funds go as a priority to the least-developed regions and to the ones most affected by the economic and social consequences of the Covid-19. I call on Member States to involve regions and cities as much as possible and to ensure that these funds go to the ground as close as possible to the needs. I also call on Member States to be consistent. Short-term recovery and longer-term cohesion policy are two sides of the same coin and must serve the same purpose. If short-term recovery is not consistent with the longer-term objectives set by cohesion funds, then the economic, social and territorial disparities will only deepen and all our efforts for the long term will be destroyed.”

VOICES FROM THE #COHESIONALLIANCE: 

Apostolos Tzitzikostas, President of the European Committee of the Regions (CoR) and Governor of the Region of Central Macedonia (GR), said: “The #CohesionAlliance’s efforts contributed to avoid major budgetary cuts after 2020 and promote cohesion as guiding principle for the EU’s recovery plans. Now, we need to turn our focus towards programming and implementation. To do this, we need to carefully consider key aspects like the application of the partnership principle in the new programmes; the impact of Covid-19 related measures and the consequences of their shutting down – a topic we addressed in a fruitful, exchange of letters with President Von der Leyen; the rural and urban dimensions of cohesion policy; and the synergies between cohesion and the Recovery and Resiliency Facility.”

Ilaria Bugetti, spokesperson for territorial development of the Council of European Municipalities and Regions (CEMR) on Cohesion and Councillor for the Tuscany Region (IT), said: “In the programming phase of EU cohesion funds, we could still see cases where local and regional governments were not properly involved, either due to insufficient time for consultation or inadequate contact at the ministerial level. We must overcome the remaining barriers in the years to come for the implementation and monitoring of the funds. The work of the Cohesion Alliance is then far from over!”

Cees Loggen, President of the Conference of Peripheral Maritime Regions (CPMR) and Regional Minister of the Province Noord-Holland (NL), said: “Unprecedented delays could materialise under future cohesion policy due to late adoption of legislation. Regions will feel the brunt. They are prevented to start spending while regional economies are desperate for investments to support the recovery. We urge the Commission to facilitate a smooth implementation of cohesion programmes and participation of regions in recovery plans, as synergies between funds bring results closer.”

Karl-Heinz Lambertz, President of the Association of European Border Regions (AEBR) and Member of the Parliament of the German-speaking Community in Belgium, said: “Cross-border cooperation is an essential element of the EU’s cohesion policy. What happens around the Union’s internal borders has a major impact on the Union’s ability to respond to the major challenges of our time. The EU’s capacity to act would be considerably strengthened if the cross-border cooperation mechanism proposed by the Commission is finally adopted by the Council.” 

Kata Tüttő, member of Eurocities and Deputy Mayor of the City of Budapest (HU), said: “The forthcoming investments through EU’s cohesion policy will be more important than ever. It will be crucial to finance the projects and reforms that can bring all Europe’s cities and regions on the path for green and just recovery. As local leaders, we have a central role in making sure this money is targeted where it is most needed and where it benefits people the most. We can be invaluable partners to the EU when the partnership principle is fully implemented in all parts of the EU. Investing in Europe’s urban areas will support the longer-term resilience of Europe and help all of us stand stronger in the face of future crisis.”

Jean-Claude Marcourt, Chair of the Conference of European Regional Legislative Assemblies (CALRE) Working Group ‘European legislation and public investments’ and President of the Parliament of Wallonia (BE), said: “Cities and regions must have the ambition to strengthen the cohesion of their territories, to reduce disparities and inequalities while raising economic, social and environmental standards in compliance with the democratic values and principles that are the founders of a prosperous and sustainable European Union.” 

Magnus Berntsson, President of the Assembly of European Regions (AER) and Vice President of the Region Västra Götaland (SE), declared in the margins of the conference: “The new Cohesion Policy can be truly transformative for rural communities across Europe. The AER is fully committed to working together with national governments and the European Commission to deliver a Cohesion Policy that builds back better for rural regions; ensuring that they are better connected, more resilient, vibrant and prosperous by 2040.”

Rural development

Rural Development - Press

EU develops its vision for rural areas alongside local governments


Good news! The long-awaited EU’s long-term vision for rural areas towards 2040 was finally presented this week by the EU Commission’s Vice President, Dubravka Suica, and Commissioners for Cohesion, Elisa Ferreira, and for Agriculture, Janusz Wojciechowski.

Today, rural areas are home to almost 30% of Europe’s population (137 million people in total) which covers 80% of the EU’s territory. However, their situation is a cause for concern: depopulation and the decline of public services are driving alienation and political discontent across our continent.

With this new vision, the EU executive aims to ensure stronger and connected rural areas through mobility and digital solutions, areas more resilient to climate change and economic crisis and prosperous rural areas through diversified economy.

With no doubt, the EU is part of the answer, but it has to involve towns and regions as drivers for long-term territorial development. Here in short is what is planned: 

What place for local and regional governments?

The Commission aims to mobilise public authorities at all levels and rural stakeholders, with the launch of a Rural Pact by the end of 2021. It invites the different levels of government to design a strategy and an action plan addressing the challenges faced by rural areas.  

We need to ensure that Europe’s towns and regions will be at the centre of this strategy. In this regard, the creation of a “Rural revitalisation platform” represents a great step forward as the one-stop shop for rural communities, project holders and local governments offering guidance on funding opportunities and visibility for successful projects. 

According to the communication, a special focus will be put on the collection of best practices specifically for rural municipalities and regions, around sustainable multimodal mobility, energy transition and climate adaptation. 

At CEMR we have advocated a change in narrative towards more positive messages that promote assets of the countryside, from a cultural and tourism viewpoint, but also through economic diversification. It is a great step ahead that EU’s vision is clearly aligned with this recommendation and that it recognises the diversity of rural areas, calling for locally designed solutions. 

An EU Rural action plan to implement the vision 

The Commission also proposed a Rural action plan to implement its vision around some flagship initiatives. But in terms of funding, it doesn’t propose new financing sources beyond the European Agricultural Fund for Rural Development (EAFRD), the Cohesion Policy funds, the Recovery and Resilience Facility and InvestEU. Therefore, the Commission also intends to develop a toolkit on access to and optimal combination of EU funding opportunities in rural areas, accessible to local and other stakeholders. 

There is a need for more consistency between various EU policies and their impact at the local level. This is why we welcome the introduction of a “Rural proofing” mechanism to analyse any potential impact that EU policies may have on rural jobs, growth and sustainable development as part of the Better Regulation Agenda. 

As of now, all EU policies will be reviewed through a rural lens, the Commission is creating a rural observatory in 2022 to better understand and analyse economic, social and demographic trends in rural areas. 

Citizens support local decision making

A recently published Eurobarometer shed light on citizens’ concerns around the situation of rural areas. Some of the results resonate clearly with CEMR’s recommendations to revitalise the countryside: 

– 79% of EU citizens support the EU giving consideration to rural areas in public spending decisions

– 65% think that the local area or province should be able to decide how the EU investment in rural areas is spent

– 44% mentioned transport infrastructure and connections as a key need of rural areas

Nest steps

By mid-2023 the Commission will take stock of the achievements and highlight remaining gaps and funding needs. In 2024, it will come up with recommendations for the upcoming Commission’s budget (2028-2032).

For CEMR also our work will continue. Save the date for our session “Rural connections” on 14 October (11.30 – 13.00) during the European Week of Regions and Cities. We will discuss how to achieve the vision’s objective through mobility and digital innovation. 

Rural Areas and EU Funds

Rural Europe - News

How can local and regional governments in rural areas access EU funds, identify key challenges, and provide recommendations for improvement 


Rural areas are central to Europe’s territorial, social, and economic cohesion, but they often face persistent challenges, from ageing populations and digital divides to restricted access to services. Recognising this, the European Commission is developing a long-term vision for rural areas. In this context, the Council of European Municipalities and Regions (CEMR) has examined how local and regional governments (LRGs) in rural areas access and use EU funds, an essential tool for addressing local needs and unlocking development potential. 

In March 2021, CEMR conducted a targeted survey among nine national associations of municipalities across the EU to assess how effectively rural LRGs are utilising EU funds. The results point to a clear mismatch: while EU funding is recognised as highly relevant for rural areas, its actual use by LRGs remains limited in many cases. 

The European Agricultural Fund for Rural Development (EAFRD), European Regional Development Fund (ERDF) and European Social Fund (ESF) are considered the most relevant, and most used, by rural LRGs. However, other important programmes like LIFE, Erasmus+, and Connecting Europe Facility are seen as underused, despite their potential relevance. Several barriers contribute to this situation, including overly complex administrative requirements, lack of technical capacity in small municipalities, and limited awareness of support mechanisms. 

The analysis also reveals a concerning gap between the perceived importance of rural challenges and the effectiveness of EU funds in addressing them. While EU funding appears helpful in tackling issues like poverty, pollution, or lack of services, it is perceived as inadequate in dealing with demographic decline, public transport gaps, or the rise of populism, issues at the heart of rural fragility. 

CEMR’s study further shows that some Member States provide national or regional support to help rural LRGs access EU funds, but awareness and coordination are often lacking. There is also difficulty in combining different EU funding streams, such as CAP and cohesion funds, limiting the efficiency of investment. 

CEMR’s findings point to the need for a new narrative on rural areas, one that recognises them as drivers of opportunity, not merely recipients of aid. To make this vision a reality, EU funds must be more accessible, tailored, and coherent with rural priorities. This includes simplifying administrative processes, improving communication, and better aligning funding objectives with on-the-ground realities. 

As the EU shapes its long-term vision for rural areas, the voice of local and regional governments must be heard. They are not only implementers of EU policy, but they are also essential partners in building vibrant, resilient rural territories. A stronger focus on their role will be crucial to ensuring no place is left behind. 

Read the study here 

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Cohesion Alliance

Cohesion Policy Alliance - News 2021

EU-wide coalition urges national governments to involve regions and cities in the preparation of post-COVID recovery plans and to avoid a “vaccine divide” in Europe


On the eve of the European Council meeting, the #Cohesion Alliance – an EU-wide alliance of 12,000 signatories advocating for a stronger cohesion policy after 2020 – calls upon member states to work in partnership with local and regional governments in the design, implementation and governance of national recovery and resilience plans.

The Cohesion Alliance also urges national parliaments to ratify the decision on own resources as soon as possible, allowing the European Commission to borrow up to EUR 750 billion on the capital markets to address the negative effects of the COVID-19 crisis. Moreover, the Alliance warns EU leaders against the risk of a competition for vaccines, as this would increase inequalities between European regions, cities and villages.  

Local and regional governments have been on the frontline of the health crisis from the outset, and will play a key role in delivering a fair, sustainable and resilient recovery across Europe. However, as member states prepare their national recovery plans, it has become clear that in many countries our regions, cities and municipalities, as well as our socio-economic partners, are not being meaningfully involved in the planning process. 

Europe’s recovery will only be as resilient as the recovery in all its regions, villages, towns and cities. Their needs are diverse, and an effective recovery is only possible if we acknowledge and address the numerous challenges and divides faced by all of Europe’s territories, from the rural and most isolated areas to the most urbanized, from islands to mountainous regions, sparsely populated and border regions. Investments need to match territorial needs. Without a real say for local and regional governments in the design, implementation and governance of the national recovery and resilience plans, there is a serious risk that many regions will be left behind. Local and regional governments are responsible for a third of public expenditure and half of public investment in the EU. The recovery will simply not happen without them on board.

European solidarity means proving with action that cohesion is a fundamental value for the EU. We therefore call upon all member states to work in partnership with local and regional governments, socio-economic partners and civil society in the design, implementation and governance of national recovery plans which are to be submitted to the European Commission by the end of April. We underline the need to fully respect the principles of partnership and multilevel governance, and for a place-based approach in this process.  

The Cohesion Alliance welcomed the creation of the EUR 750 billion recovery instrument Next Generation EU, also known as the Recovery Plan for Europe, as an historic moment for the European Union. Now it is time to translate the most powerful investment plan ever deployed by the EU into action. However, too many member states have yet to ratify the decision on own resources, the piece of legislation that would enable the European Commission to borrow up to EUR 750 billion on the capital market to address the consequences of the COVID-19 crisis. Its swift ratification by all EU countries is key to boost the recovery in Europe with fresh money. National parliaments must therefore ratify the decision as soon as possible.

Finally, European solidarity means working together to deliver a truly European vaccination campaign. A fragmented campaign benefits no one and would jeopardize the recovery by widening inequalities between Europe’s regions. This is why, ahead of the European Summit, the Cohesion Alliance warns EU leaders against the risk of a competition for vaccines on the ground. We call for close coordination between the EU, regional and national governments to make sure that the needs and expectations of all our citizens are met. 

We must put all our efforts into avoiding a ”vaccine divide” that would increase inequalities between our regions, cities and villages.