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As Europe continues to grapple with the long-term consequences of the COVID-19 crisis, the Council of European Municipalities and Regions (CEMR) highlights the vital role of local and regional governments during the pandemic and the urgent need for stronger multilevel governance and financial resilience.

From the earliest days of the pandemic, local and regional authorities were at the frontline: managing public health measures, ensuring social services, maintaining education and local transport, and supporting vulnerable groups. They also had to cope with increased expenditure while facing plummeting revenues, a phenomenon CEMR described as the “scissor effect.” Despite their efforts, many municipalities and regions received little compensation or recognition for their critical role.

In light of these challenges, CEMR has outlined ten key recommendations to ensure more effective responses in future crises and support long-term resilience:

Recognition of essential services
Local and regional governments must be acknowledged as essential actors in crisis management. Their competences, funding, and resources must be guaranteed and reinforced, with better alignment of policies across government levels.
Equal access to EU recovery tools
Municipalities and regions should be directly involved in shaping and implementing national recovery plans, particularly in the context of the Recovery and Resilience Facility. This means ensuring equal access to EU funds, simplification of procedures, and stronger monitoring mechanisms.
Flexible financial frameworks
The EU fiscal rules need to evolve. CEMR calls for more flexibility for local and regional governments in borrowing and investment, especially for long-term sustainable projects. Debt incurred for these purposes should be excluded from deficit calculations under the Stability and Growth Pact.
Stronger digital transition
The pandemic highlighted the digital divide across Europe. More investment is needed to strengthen local digital infrastructure and capacity, especially in rural and underserved areas. Local and regional authorities must play a central role in the EU’s digital transition.
Health, care, and social services
Municipalities and regions are often responsible for delivering or coordinating health and care services. They must be involved in national health policy planning, with proper resources and long-term investment to ensure quality and accessibility.
Support for local economies
Cities and regions played a key role in supporting local businesses and workers during the crisis. The EU and Member States must ensure that economic recovery policies reach the local level and that municipalities can take proactive measures to protect local economies.
Strengthening social cohesion
COVID-19 amplified existing inequalities. Local authorities are best placed to address social exclusion, support vulnerable groups, and reinforce community resilience, but need adequate funding and policy support.
Better governance
The pandemic exposed the weaknesses of top-down crisis responses. Multilevel governance, subsidiarity, and the partnership principle must be strengthened to ensure effective cooperation and faster, more tailored solutions.
Green recovery
Recovery funds and policies must prioritise sustainability. Local governments are already implementing the Green Deal at ground level, through sustainable mobility, energy-efficient buildings, and green public spaces. Their role must be formally supported in EU policy and funding instruments.
Crisis preparedness
Europe must develop better tools for future emergencies. This includes building the capacity of local administrations, sharing best practices, and ensuring municipalities have access to critical resources when crises hit.

Conclusion
The COVID-19 pandemic has been a stress test for European governance and local governments passed it with resilience and determination. Now, CEMR urges EU institutions and Member States to turn these lessons into action. By strengthening the role, autonomy, and resources of local and regional authorities, Europe can better prepare for the next crisis and deliver a fair, green, and inclusive recovery for all.

For more information, contact:

THOMAS Carol

Senior Adviser, Governance, Gender Equality, Local Democracy

GAUDRON Marine In EU budget, EU budget, Governance, Governance, Impact community Cohesion, Impact community Cohesion, Local finances, Local finances, Press, Publications, Territorial development

COVID impact on local finances

A Europe-wide snapshot of the pandemic’s fiscal impact on municipalities and regions, and what support is still missing

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The COVID-19 pandemic placed local and regional governments at the frontline of public health response in Europe. While ensuring safety, maintaining essential services, and supporting vulnerable populations, these governments were simultaneously burdened with spiralling costs and plummeting revenues. A survey conducted by the Council of European Municipalities and Regions (CEMR) in May 2020 offers critical insight into the financial distress faced by cities and municipalities across 17 European countries.

The survey reveals a dual pressure on local and regional finances: soaring expenditures, primarily for personal protective equipment, sanitation, and social support and sharp declines in revenue due to reduced economic activity. Tax revenues, municipal service fees, and income from the cultural and tourism sectors were severely impacted. For example, Bulgaria saw a 41% decrease in municipal income from its own sources, and Austria faced estimated municipal revenue losses between €900 million and €2 billion.

While local authorities acted swiftly, organising food deliveries, providing accommodation for healthcare workers, and ensuring online education, support from national governments was slow and often insufficient. Although a few countries, like Estonia and Germany, implemented meaningful aid measures, most national support was delayed, limited, or only promised in future budget cycles.

Many governments, like in France and Sweden, pledged support, but uncertainty remains about the long-term sustainability of subnational budgets. Furthermore, the varied structure of local financing systems across Europe means that the financial impact differs widely between countries and even among municipalities within the same country.

The CEMR report makes it clear: without timely and adequate support from national and European levels, local and regional governments risk losing the capacity to invest in recovery and sustainable development. To prevent a prolonged post-pandemic investment slump, EU funds, especially from the Recovery and Resilience Facility, must be made directly accessible to local authorities.

Only by empowering municipalities can Europe hope to achieve its long-term goals for resilience, cohesion, and sustainability. Now is the time for stronger multilevel cooperation and for the EU to acknowledge the central role of local and regional governments in shaping recovery.

Read the study here

For more information, contact:

Advisor – Territorial Cohesion & Local Finances

GAUDRON Marine In EU budget, EU budget, Impact community Cohesion, Impact community Cohesion, Local finances, Local finances, Press, Publications, Territorial development, Territorial development

Strong Budget, Strong Cohesion

CEMR urges EU leaders to secure an ambitious long-term budget that empowers local and regional governments

As EU leaders prepare to decide on the next Multiannual Financial Framework (MFF), the Council of European Municipalities and Regions (CEMR) calls for a robust budget and a cohesion policy that keeps local and regional governments at its core.

The need for an ambitious MFF

CEMR stresses that ambitious European goals, sustainable development, the Green Deal, and social inclusion, cannot be delivered without a strong budget. Any further cuts to cohesion policy, such as those recently proposed, would undermine Europe’s ability to meet its commitments. Local and regional governments, as the key actors implementing EU policies on the ground, rely on a timely agreement to ensure a smooth transition to the next funding period.

Just Transition and partnership

CEMR welcomes the creation of a Just Transition Fund to support regions in the shift towards a low-carbon economy. However, these new measures must come with additional funding, not at the expense of cohesion policy. Equally vital is the Partnership Principle, which guarantees that municipalities and regions are directly involved in programming and implementing EU funds. This principle must remain a cornerstone of cohesion policy.

Europe’s ambitions will only succeed if local and regional governments have the tools to deliver them. A strong MFF, safeguarded cohesion funding, and reinforced partnership are the foundations of a Europe closer to its citizens.

For more information, contact:

Advisor – Territorial Cohesion & Local Finances

GAUDRON Marine In EU budget, Impact community Cohesion, Impact community Cohesion, Local finances, Press, Publications, Territorial development, Territorial development

The future of EU cohesion policy

CEMR opens dialogue on reforming EU Cohesion Policy post-2020 to better support local and regional development

Read full statement here

The Council of European Municipalities and Regions (CEMR), representing over 100,000 local and regional authorities across Europe, has launched an early contribution to the debate on the future of EU Cohesion Policy. With discussions on the post-2020 Multiannual Financial Framework already underway, CEMR stresses the importance of adapting Cohesion Policy to ensure it continues delivering economic, social and territorial cohesion for all communities.

CEMR proposes three possible scenarios: maintaining the current system, introducing incremental improvements such as simplification and stronger partnerships, or pursuing a more fundamental reform through the creation of a single territorial development fund. These options aim to make Cohesion Policy more effective, accessible, and transparent.

At the core of its opening statement, CEMR outlines five guiding principles for reform:

Integrated and simplified – moving beyond silos towards more coherent funding instruments.

Inclusive – ensuring stronger bottom-up partnerships and local ownership.

Result-oriented – focusing on impact and outcomes rather than only expenditure.

Relevant and flexible – aligning priorities with territorial realities and avoiding excessive thresholds.

For all territories – safeguarding equitable support, especially for less developed regions.
This statement marks the beginning of a dialogue between CEMR, its members, and the EU institutions. By placing local and regional governments at the heart of the debate, CEMR seeks to shape a Cohesion Policy that is more integrated, inclusive and effective, ensuring no territory is left behind in the next programming period.

For more information, contact:

Advisor – Territorial Cohesion & Local Finances

BORDELOT Federica In EU budget, EU budget, Governance, Governance, Local democracy, Local democracy, Press, Publications

Europe’s democratic future

The 2019 European elections highlight progress in participation, diversity, and gender balance, but also the need for stronger local involvement in shaping EU policies

The European elections of May 2019 marked a turning point for democracy in the European Union. With more than 400 million citizens called to vote, turnout reached 51%, the highest since 1979, signalling renewed interest in EU politics. Yet, the debate within the Council of European Municipalities and Regions (CEMR) underlined that more must be done to sustain citizen engagement and strengthen local governments’ role in shaping European policies.

The new European Parliament is more diverse than ever, reflecting a broader range of political views. This diversity will influence the Union’s legislative agenda and policy outcomes. Progress has also been made on gender equality, with women now making up 40% of Members of the European Parliament, up from 36% in the previous mandate.

Still, challenges remain. Increasing citizens’ interest in Europe requires targeted outreach, particularly towards young people, through communication channels they use and trust. Local and regional governments are key to bridging the gap between European institutions and citizens’ daily lives. Strengthening their role in the EU’s decision-making process is essential for the effective preparation, financing, and implementation of policies.

Looking ahead, the new Parliament is expected to continue work on the Multi-Annual Financial Framework (MFF) and embed the Sustainable Development Goals into EU legislation. A gender-balanced approach in filling top positions within both the Parliament and the European Commission is also vital to ensuring fair and inclusive representation.

The 2019 elections opened a new chapter for the European Union. Higher participation, improved gender balance, and a more diverse Parliament are encouraging signs, but further efforts are needed to build trust, foster inclusion, and give local governments a stronger voice. By working together, the EU and its citizens can ensure that Europe’s democratic future is both representative and resilient.

For more information, contact:

BORDELOT Federica

Director – Policy & Impact

BENNIS Hamza In Employment, Employment, EU budget, EU budget, Impact community Cohesion, Impact community Cohesion, Impact community Labour, Impact community Labour, Local finances, Local finances, Press, Publications, Territorial development

Regional actors in economic governance

CEMR–EPSU report maps current involvement of local and regional actors in EU economic governance

The European Semester, created in 2010 in response to the financial crisis, is the EU’s annual cycle for coordinating Member States’ economic, social, employment, and budgetary policies. Its aim is to align national reforms with shared EU objectives, including stability, sustainable growth, and the Europe 2020 strategy.

While central governments and EU institutions remain the main players, the process increasingly affects local and regional governments (LRGs) and their social partners. From public finance and taxation to health, social care and employment, many Semester reforms directly touch the responsibilities of municipalities and regions, as well as the working conditions of the sector’s employees.

The joint CEMR–EPSU project “Localising the European Semester” (2018–2020) set out to better understand and strengthen this involvement. The first deliverable, a background report published in February 2018, provided an overview of the Semester’s development, evidence of how LRGs and social partners are engaged, and identified important gaps in knowledge.

Key findings from the report include:

Limited evidence of structured involvement: While LRGs are often consulted through existing dialogue structures, their influence remains inconsistent across Member States. For social partners, involvement is even less systematic, with sectoral trade unions and employers’ organisations often sidelined in favour of peak-level organisations.
Impact remains unclear: Academic studies assess when countries follow Semester recommendations, for example, during election cycles, under market pressure, or when backed by EU enforcement. However, little research exists on whether reforms are more likely to succeed when LRGs and social partners contribute.
Need for deeper analysis: The extent to which local governments and sectoral social partners shape National Reform Programmes (NRPs) is largely undocumented. Equally, it remains uncertain whether peak organisations fully represent the concerns of the local government sector in national consultations.
Opportunities for good practice: Where involvement does occur, it is often tied to long-standing structures for social dialogue or intergovernmental coordination. The challenge is to turn sporadic consultation into regular, structured dialogue with clear impact.

The report concludes that strengthening the role of LRGs and their social partners in the Semester is both necessary and possible. By documenting experiences, identifying good practices, and pressing for meaningful engagement, the CEMR–EPSU project aims to ensure that the voices of local governments, employers and workers are better reflected in one of the EU’s most powerful policy coordination tools.

For more information, contact:

BENNIS Hamza

Officer – Employment, Digitalisation and Public Services

BENNIS Hamza In Employment, Employment, EU budget, EU budget, Impact community Labour, Impact community Labour, Press, Publications

Making the EU semester inclusive

Final declaration of the CEMR–EPSU project calls for stronger involvement of local governments and social partners in the European Semester

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The European Semester, once primarily a tool for economic coordination, has evolved into a wide-ranging policy process that shapes social legislation, EU funding priorities, and the implementation of the European Pillar of Social Rights and the Sustainable Development Goals. Yet, its democratic legitimacy remains limited, with insufficient involvement of local and regional governments (LRGs) and their social partners.

From 2018 to 2020, CEMR and EPSU ran the joint project Localising the European Semester with the support of the European Commission. The initiative explored ways to better involve sectoral social partners of local and regional governments in the Semester cycle. Its findings confirm that around 80% of Country Specific Recommendations have a territorial impact, making the engagement of municipalities, cities and regions essential for their effective implementation.

The project demonstrated a growing interest from social partner organisations in contributing to the Semester. However, practices across Member States remain inconsistent, and consultation processes are often too formal to be effective. CEMR and EPSU therefore call for clearer standards and stronger mechanisms to ensure meaningful participation.

Key recommendations include:

Guaranteeing that the views of local and regional social partners are fully taken into account.
Setting EU-wide quality standards for inclusive consultation processes.
Providing dedicated fora and visibility for sectoral social partners in the Semester cycle.
Establishing an ad-hoc grant to support information and consultation at the national level.
Ensuring the Semester becomes an inclusive framework for achieving the SDGs.

CEMR and EPSU underline that municipalities, cities and regions are vital socio-economic actors, delivering investments, growth and high-quality services. To strengthen the legitimacy and impact of the European Semester, EU institutions and national governments must involve them, and their social partners, much more closely. Only by doing so can the Semester live up to its promise of supporting sustainable and inclusive development across Europe.

Read the declaration here

For more information, contact:

BENNIS Hamza

Officer – Employment, Digitalisation and Public Services

GAUDRON Marine In EU budget, EU budget, Impact community Cohesion, Impact community Cohesion, Press, Publications, Territorial development, Territorial development

Simplifying EU funds for all

Clearer rules and better access to cohesion funding

Accessing EU funding shouldn’t be complicated and yet, for many local and regional governments, navigating the European Structural and Investment Funds (ESIF) remains a challenge. In its 2016 position paper, the Council of European Municipalities and Regions (CEMR) outlines concrete proposals to simplify EU cohesion funding, making it easier and more efficient for local authorities and other beneficiaries to participate.

Key recommendations

CEMR’s proposals focus on five main priorities:

Harmonising rules across funds
The current system is fragmented, with different rules for different funds and ministries. CEMR advocates for common procedures and a “one-stop-shop” that simplifies access, coordination, and application processes, particularly for multi-fund programmes.

More flexibility at the national and local levels
Local needs vary, but EU rules often limit how funds can be used. CEMR urges the EU to give Member States and local authorities greater flexibility to set priorities, so that funding can better address real challenges like broadband access, transport, and local infrastructure.

Streamlining controls and audits
Excessive checks and overlapping audits discourage smaller beneficiaries. CEMR calls for a more proportionate and risk-based approach, better coordination among audit bodies, and a clear distinction between fraud and honest mistakes.

Results-based funding
Rather than focusing on paperwork and compliance, funding should reward measurable outcomes. CEMR supports instruments like Joint Action Plans and Integrated Territorial Investments (ITIs), though they are still underused due to late or unclear guidance.

Clearer, timely guidance
Technical guidance should be available early in the process and in all EU languages. This helps local and regional stakeholders plan ahead and ensures they are not penalised by last-minute rule changes.

Building trust through better governance

At its core, CEMR’s message is about trust and responsibility. Local authorities should be empowered to manage funding within clear frameworks, with a focus on results, not red tape. Simplifying EU funds is not just about efficiency; it’s about ensuring that local communities can truly benefit from European solidarity.

CEMR remains committed to working with EU institutions and Member States to make simplification a reality on the ground.

For more information, contact: