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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.

EU values in the digital space 

Digital violence - News 2023

CEMR calls for a digital transition that works for all levels of government 


Local and regional governments must be fully equipped and supported in Europe’s digital transition. That’s the key message from the Council of European Municipalities and Regions (CEMR) in its response to the European Commission’s consultation on EU digital principles. 

As frontline providers of public services and facilitators of digital innovation, local and regional governments (LRGs) are key to making the digital decade a success. However, CEMR warns that this transformation must not impose new burdens or widen digital divides. 

“European initiatives must support, not sideline, local governments. Funding, training and collaboration are vital,” says the organisation. 

CEMR welcomes the goals outlined in the Commission’s “2030 Digital Compass,” especially the focus on digitalising public services. It highlights the importance of digital skills, cybersecurity, smart cities, and interoperability to help municipalities deliver inclusive and user-friendly digital services. 

Local authorities are already investing in e-government, innovation labs, and partnerships with start-ups. But CEMR calls for better coordination between national and EU levels to avoid duplication and ensure all regions, rural and urban alike, can benefit. 

CEMR also emphasises: 

  • The need to strengthen local democracy through inclusive digital participation; 
  • Protecting privacy and personal data under the “once-only” principle; 
  • Supporting socially responsible platforms in the sharing economy; 
  • Promoting open standards and seamless interoperability across administrations. 

The digital transition must not leave anyone behind. From investing in digital education to adapting services for vulnerable groups, local governments play a central role in ensuring a digital Europe that is fair, accessible, and democratic. 

Read the position paper here 

For more information, contact: 

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. 

Engaging in the European semester 

CEMR Conferences

CEMR–EPSU handbook helps local government social partners strengthen their role in EU economic governance 


The European Semester, launched in 2010 to coordinate EU Member States’ economic, financial, employment and social policies, increasingly shapes national reforms and public investments. For local and regional governments (LRGs) and their social partners, the Semester is not just about fiscal discipline, it now covers areas like health, education, taxation, social care, and the green and digital transitions, with direct implications for workers in the LRG sector. 

Recognising this impact, the 2018–2020 CEMR–EPSU joint project produced a Handbook for Social Partners. Its aim: to help LRG social partners navigate the Semester, build their capacity, and influence reforms more effectively. 

The handbook highlights the growing territorial dimension of the process: in 2019, 62% of all Country-Specific Recommendations (CSRs) had a direct or indirect local and regional impact. With future EU funds increasingly tied to Semester priorities, active engagement becomes crucial. 

Practical guidance is provided on how to engage across the Semester’s different phases: 

  • Awareness-raising and capacity building: Social partners should strengthen internal knowledge, build alliances, and establish direct contact with the national ministry leading the Semester and with the European Commission’s Semester Officer. Early and proactive engagement, including joint employer–worker positions on key issues, helps set the agenda. 
  • Country reports and fact-finding missions: In December–February, the Commission assesses national situations. LRG social partners can influence this by meeting fact-finding missions, submitting analyses, and ensuring that their priorities are reflected in reports. 
  • Implementation phase (April–July): As Member States draft their National Reform Programmes (NRPs) and receive new CSRs, social partners can contribute written submissions, highlight gaps, and propose reforms aligned with local needs. Examples from Sweden, Lithuania, and Spain show structured opportunities for input through consultation fora or tripartite councils. 
  • Follow-up phase (August–October): With reforms under implementation and budgets prepared, dialogue with national authorities and Semester Officers is vital to ensure LRG perspectives are integrated. 

The handbook stresses that the aim is not one-off consultations, but structured, regular dialogue between governments, the Commission, and LRG social partners. By organising themselves, building alliances, and proactively shaping priorities, local government employers and trade unions can ensure their voices count in one of the EU’s most influential policy processes. 

Read the study here 

For more information, contact: 

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 

For more information, contact: 

Localising sustainable goals after COVID19

Localising SDGs - News

How European territories are driving sustainable change amid the Covid-19 crisis 


The Covid-19 pandemic has been a profound shock for municipalities and regions across Europe. Faced with health emergencies, social disruption, and economic slowdown, local and regional governments (LRGs) had to adapt swiftly, protecting essential services, reallocating budgets, and reshaping priorities. Yet, despite the immense challenges, many local authorities did not abandon global commitments. Instead, they turned to the 2030 Agenda for Sustainable Development (SDGs) as a framework to guide recovery and long-term resilience. 

With over 65% of SDGs requiring local implementation, municipalities and their national associations play a decisive role in ensuring progress. Some cities temporarily slowed their SDG-related work, but others actively integrated the Goals into recovery strategies, using them to design inclusive, coherent, and sustainable policies. This approach has strengthened their credibility as leaders in “building back better.” 

National associations of local governments proved to be vital allies. By coordinating efforts, connecting municipalities with resources, and advocating at the national and European levels, they helped ensure that even small and rural communities could advance the SDG agenda. Importantly, awareness and commitment have grown: associations in countries where SDG uptake was once limited are now actively building knowledge, promoting peer learning, and pushing for recognition of local action. 

Another breakthrough is the rise of Voluntary Local Reviews (VLRs) and Voluntary Subnational Reviews, which showcase municipal achievements and give visibility to local actors on the international stage. This not only strengthens city diplomacy but also fosters a shared vocabulary and sense of purpose among local, national, and global partners. 

The Covid-19 crisis has underscored the transformative power of the SDGs: as both a roadmap for sustainable recovery and a catalyst for innovation in governance, partnerships, and service delivery. Still, achieving the Goals requires greater investment and mobilisation of resources. EU initiatives such as the Green Deal, cohesion funds, and Global Europe offer crucial opportunities to scale up local action, alongside new forms of public-private partnerships. 

In short, the SDGs are not an abstract global agenda, they are a practical tool for territories to rebuild stronger, fairer, and greener communities. Even in times of crisis, Europe’s municipalities and their associations are proving that sustainability is not just a long-term ambition, but an immediate necessity. 

Read the study here 

For more information, contact: 

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.

Energy performance in buildings directive

Green City - News Section

CEMR calls for flexible, well-resourced revisions to the EU Energy Performance of Buildings Directive (EPBD)


The European Green Deal aims to make Europe the first climate-neutral continent by 2050, with the revision of the Energy Performance of Buildings Directive (EPBD) as one of its cornerstones. Buildings account for a significant share of Europe’s greenhouse gas emissions, making energy efficiency and sustainable renovation crucial to the Fit for 55 package. In its response to the consultation on the EPBD revision, the Council of European Municipalities and Regions (CEMR) stresses the essential role of local and regional governments (LRGs) in ensuring a successful and fair transition. 

CEMR welcomes the ambition of the European Green Deal but underlines that success depends on proper implementation, adequate financial support, and respect for the principle of subsidiarity. Local and regional authorities are on the frontline of climate action, yet they need flexible frameworks rather than one-size-fits-all obligations. 

Among its key recommendations, CEMR highlights: 

  • Flexibility and subsidiarity: Member States and LRGs should be able to adopt integrated, territorial approaches to emissions reduction, focusing not only on building-level efficiency but also on neighbourhood and system-wide solutions. 
  • Life-cycle perspective: Regulations must take into account emissions from construction materials such as steel and concrete, as well as opportunities for circularity and reuse. 
  • Indicative, not mandatory standards: Minimum energy performance requirements and renovation targets should remain indicative to reflect local contexts, available resources, and socio-economic realities. 
  • Equal treatment of renewable energy: Energy produced on-site and energy delivered via carriers like district heating, renewable gases or electricity grids must be treated on the same footing. 
  • Financing and equity: Investment tools like ELENA must be adjusted to ensure accessibility, particularly for vulnerable households. Measures must avoid creating energy poverty or split incentives between landlords and tenants. 

CEMR also urges the Commission to reduce administrative burdens, ensure consistency between the EPBD, the Renewable Energy Directive (RED) and the Energy Efficiency Directive (EED), and reinforce cooperation across levels of governance. 

Europe’s climate-neutral future depends on a resilient and efficient building sector. Local and regional governments are central actors in achieving this transformation. To succeed, the revised EPBD must provide adequate support, flexibility, and resources while avoiding rigid, burdensome rules. By empowering municipalities and regions to act according to their local realities, the EU can ensure that the green transition delivers both climate impact and social fairness. 

Read the policy paper here 

For more information, contact: 

Localising the European semester

Localise EU Semester - News

CEMR-EPSU project shows local governments and social partners remain under-involved in shaping EU economic governance


The European Semester, introduced in 2010 to coordinate national economic, employment, and social policies across the EU, has become the backbone of EU economic governance. Its annual cycle guides Member States’ reforms and budgets under the Stability and Growth Pact and the Europe 2020 strategy. Yet, despite its importance, the role of local and regional governments (LRGs) and social partners in this process remains limited. 

A joint project by the Council of European Municipalities and Regions (CEMR) and the European Public Service Union (EPSU), carried out between 2018 and 2020, examined how and why subnational actors are involved in the Semester. It assessed the rationale for their participation (“why”), the mechanisms used in different Member States (“how”), and the quality of this involvement (“how well”). 

Findings suggest that while LRGs are increasingly acknowledged, their input often depends on existing national dialogue structures and the political will of central governments. Social partner organisations, particularly trade unions representing the local government sector, are even less involved, with national peak organisations rarely consulting their membership in depth before feeding into the process. 

The project also highlighted good practices: more systematic consultations, stable structures for dialogue, and efforts to ensure that recommendations (Country-Specific Recommendations, or CSRs) reflect local realities. However, in many cases, LRGs and social partners have little influence over the drafting and implementation of National Reform Programmes (NRPs), undermining ownership of the Semester. 

From a broader perspective, the research confirmed that EU recommendations are more likely to be followed when countries face strong market pressures, when reforms are tied to EU financial rules, or when smaller states seek EU legitimacy for their policies. But there is still a gap in understanding whether stronger involvement of LRGs and social partners leads to better implementation of reforms, a gap that future research should address. 

The report concludes that the Semester can only be effective if it becomes more inclusive. To strengthen ownership and impact, national governments and EU institutions must ensure that local and regional governments, as well as social partners, are systematically and meaningfully involved in shaping and implementing economic and social reforms. 

Read the study here 

For more information, contact: