Impact community Cohesion 106

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 Impact community Cohesion

Cohesion Alliance

Cohesion and partnership must be the driving force for European recovery

The #Cohesion Alliance – an EU-wide alliance of 12,000 signatories calling for a stronger cohesion policy after 2020 – welcomes the European Commission’s revised 2021–2027 EU budget and Recovery Plan proposals including the extension of the current cohesion programmes with increased flexibility and additional funding.

However, the Alliance urges the European Commission and Member States to ensure the involvement of cities, municipalities and regions and maintain a strong focus on cohesion in all recovery measures, aimed at rebuilding the economy, fostering sustainability and strengthening the territorial and social fabric of our Union, including in the European Semester process.

The EU’s Multi-Annual Financial Framework (MFF) and Recovery Plan must focus on cohesion as a fundamental value of the European Union, to pursue major challenges such as the European Green Deal, the Sustainable Development Goals, the European Pillar of Social Rights as well as the digital transformation. In the current crisis, cities, municipalities and regions need the direct support of a strong cohesion policy more than ever to prevent widening territorial disparities and an asymmetric recovery as Member States have different financial means to address the current economic and social challenges.

The #CohesionAlliance welcomes the European Commission’s proposal to ensure the role of Cohesion policy as a strong EU long-term investment policy, as well as the investment of 55 bn EUR (2018 prices) through REACT-EU to provide an effective response to the COVID-19 pandemic and its social and economic consequences. The extension of the current Operational Programmes will allow for a quick implementation of crucial investment.

In addition, the increased flexibility for transferring resources between funds and the widening of scope to support the health services, tourism and culture sectors as well as to provide working capital to SMEs will help local and regional governments invest money where it is most needed, provided that it fully respects the cohesion core principles.

The Alliance is nevertheless concerned that without consideration for the diverse needs of regions, cities and municipalities as well as strong involvement of local actors, the Recovery and Resilient Facility – which is the most powerful investment tool of the EU recovery plans – is at risk of failure. For now, most measures are only directed to Member States without clarifying how much say local and regional authorities would have in revising programmes and in spending resources.

The strong link of the Facility to the European Semester and to country specific recommendations can lead to a further centralisation of the recovery plans. The Alliance urges all EU and national institutions – and in particular EU Reforms and Cohesion Commissioner Elisa Ferreira – to take the needed steps to ensure that the national plans for recovery and resilience comply with the Partnership Principle, respond to the real needs of citizens and businesses and allow for stronger and more structured involvement of local and regional authorities.

The #CohesionAlliance partner organisations have put forward their priorities in a new draft declaration affirming cohesion as a fundamental value of the European Union and a key objective for all its policies and investment. The partners of the Cohesion Alliance 2.0 will launch the new declaration during their next meeting in early June.

Advisor – Territorial Cohesion & Local Finances

GAUDRON Marine In EU budget, EU budget, Governance, Governance, Impact community Cohesion, Impact community Cohesion, Latest, Local finances, Local finances, 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

GRIFFON Axelle In Climate, Climate, Energy, Energy, Environment, Environment, Impact community Climate, Impact community Climate, Impact community Cohesion, Impact community Cohesion, Latest, Publications, Territorial development, Territorial development

Just transition mechanism analysis

The Just Transition Mechanism urges stronger local partnerships and clearer funding priorities

The EU’s ambition to become the first climate-neutral continent by 2050 is taking shape through the European Green Deal and its financing arm: the Just Transition Mechanism (JTM). In its policy analysis, the Council of European Municipalities and Regions (CEMR) acknowledges the value of this tool while calling for stronger local engagement and better alignment with existing cohesion funds.

The JTM, made up of the Just Transition Fund, a dedicated InvestEU scheme, and a public sector loan facility via the EIB, aims to support the territories most affected by the transition to a green economy, particularly those dependent on carbon-intensive industries.

CEMR welcomes:

The creation of new financial tools tailored to the social and economic impacts of decarbonisation, especially the Just Transition Fund, with its €7.5 billion proposal.

Inclusion of the JTF in Cohesion Policy, which ensures the application of the partnership principle and opens space for dialogue with local and regional governments in the design of transition plans.

The focus on NUTS 3 level, allowing targeted support to local realities and better alignment with community needs.

Technical assistance and peer exchange platforms can empower municipalities to replicate successful models and accelerate climate-neutral transitions.

However, CEMR expresses concern over:

Budget uncertainty: With Member States resisting increases to the EU’s overall budget, there’s a risk the JTF will simply reallocate existing cohesion funds, limiting its added value.

Overlap with existing cohesion goals: Much of the JTF’s focus, green investment, upskilling, and digitalisation, is already covered by current ESIF priorities (PO2 and PO4). Its distinct impact must be clarified.

Thematic constraints on cohesion funds: Requirements to reallocate ERDF and ESF+ funds to the JTF may reduce resources available for other local development priorities.

For CEMR, local and regional governments must remain central actors in this transition. Their involvement is key not only in planning and implementation but also in ensuring that no territory is left behind as Europe moves toward a greener, fairer future.

For more information, contact:

GRIFFON Axelle

Advisor – Environment and mobility

GAUDRON Marine In EU budget, EU budget, Impact community Cohesion, Impact community Cohesion, Latest, Local finances, Local finances, 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

BANOS DE GUISASOLA Eva In Impact community Climate, Impact community Climate, Impact community Cohesion, Impact community Cohesion, Impact community Labour, Impact community Labour, Impact community Society, Impact community Society, Latest, PLATFORMA, PLATFORMA, Publications

Global goals into local action

How local and regional government associations turn global goals into local action

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The 2030 Agenda for Sustainable Development and its 17 Goals are often seen as a global framework, but their success depends on local action. Nearly two-thirds of the SDGs must be implemented at the local level, making municipalities, regions, and their associations crucial actors in bringing this agenda to life.

Local and regional government associations (LRGAs) act as bridges between citizens and higher levels of governance. They support awareness-raising, provide technical expertise, and advocate on behalf of local governments at the national, European, and international levels. Their proximity to communities allows them to translate abstract global objectives into tangible improvements in daily life, from better public services and climate action plans to gender equality policies and local economic development.

Since the first CEMR-PLATFORMA study in 2018, the role of associations in localising the SDGs has grown significantly. Many are now actively involved in monitoring, reporting, and international advocacy, including through contributions to the UN’s High-Level Political Forum. Voluntary Local Reviews (VLRs) and decentralised cooperation projects have become powerful tools to highlight progress, inspire others, and ensure that local voices are heard on the global stage.

At the same time, challenges remain. Municipalities and their associations still struggle with limited resources, lack of data, and uneven awareness across regions. In particular, gaps persist between Northern/Western Europe, where SDG implementation is more advanced, and Central/Eastern Europe, where awareness and uptake are still developing. To make the 2030 Agenda truly transformative, multi-level collaboration and inclusive partnerships are essential.

Despite these hurdles, LRGAs continue to push boundaries. By fostering cooperation between cities and regions, they strengthen international solidarity, enhance capacity-building, and adapt services to better reflect sustainability goals. They are not only localising the SDGs but also giving them credibility and momentum in Europe and beyond.

In short, associations of towns and regions are proving that the SDGs are more than a global vision: they are a practical tool for creating sustainable, inclusive communities, driven by partnerships and citizen engagement.

Read the study here

Check the infographic here

For more information, contact:

BANOS DE GUISASOLA Eva

Senior Advisor – Global Agendas, SDGs & Climate

GAUDRON Marine In EU budget, Impact community Cohesion, Impact community Cohesion, Latest, Local finances, 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

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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, Latest, Local democracy, Local democracy, 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, Impact community Labour, Impact community Labour, Impact community Society, Impact community Society, Latest, Public services, Public services, Publications

The future of public services

Simpler EU rules needed to empower local service delivery

Local and regional governments are central to ensuring quality public services across Europe, from transport to childcare and broadband. Yet complex EU rules on competition and procurement are increasingly challenging their ability to deliver these services effectively.

That’s the core message of the Council of European Municipalities and Regions (CEMR)’s position paper, Strong Public Services through Local Governments.

As Europe reflects on its future, CEMR urges policymakers to recognise local governments not as a problem, but as part of the solution. From climate action to social cohesion, local services are key to implementing EU goals on the ground. However, this contribution risks being undermined by overregulation and limited local autonomy.

“European rules should enable, not obstruct, local governments in meeting community needs,” the paper argues.

CEMR highlights the need to:

Respect subsidiarity and local self-government;

Simplify procurement and state aid procedures;

Allow local authorities to support their economies through ‘buy local’ criteria;

Improve legal clarity for public-public cooperation;

Reform litigation-heavy procurement processes.

Despite burdensome procedures, cross-border procurement remains rare, pointing to a mismatch between regulatory effort and actual impact. A more flexible, proportionate system would support innovation and help local governments better serve their communities.

For more information, contact:

BENNIS Hamza

Officer – Employment, Digitalisation and Public Services

GAUDRON Marine In Impact community Cohesion, Impact community Cohesion, Latest, Publications, Territorial development

Cohesion policy at risk

CEMR outlines 10 key messages on the future of cohesion policy and calls for stronger territorial and partnership approaches

The Council of European Municipalities and Regions (CEMR) has set out ten key messages on the European Commission’s proposals for the future of cohesion policy. While welcoming steps towards simplification, CEMR warns against funding cuts, weakened territorial approaches and the exclusion of rural development from cohesion policy.

Protecting territorial and partnership principles

CEMR stresses that the Partnership Principle must be enforced across all regulations, ensuring that local and regional governments have a meaningful role in designing and implementing programmes. Equally, the territorial approach should not be sidelined but mainstreamed across all policy objectives of cohesion policy, including ESF+ and CAP rural development.

Ensuring flexibility and capacity

The proposals must safeguard the possibility of multi-fund approaches such as Community Led Local Development (CLLD) and Integrated Territorial Investments (ITI). Local and regional governments also need more flexibility to set investment priorities according to local needs, backed by sufficient resources for capacity building and technical assistance.

Avoiding harmful reductions

CEMR warns that cohesion policy risks losing its integrated character if funding is fragmented or reduced. Particular concern is raised over cuts to European Territorial Cooperation (INTERREG), which plays a vital role in fostering cross-border, transnational and interregional cooperation.

Conclusion

CEMR calls on EU institutions to ensure that the next Multiannual Financial Framework preserves cohesion policy as a strong, place-based instrument, rooted in partnership and territorial development, capable of addressing Europe’s diverse challenges.

For more information, contact: