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Regional actors in economic governance 

EU Semester - News 2024

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. 

Read the position paper here 

For more information, contact: 

Making the EU semester inclusive

EU Semester - News

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


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: 

Extending social protection rights 

Youth employment - News

CEMR highlights challenges and priorities in ensuring fair access to social protection for all forms of employment 


In June 2017, the Council of European Municipalities and Regions (CEMR) responded to the European Commission’s first-phase consultation of social partners on access to social protection within the framework of the European Pillar of Social Rights. CEMR welcomed the initiative but emphasised that further detail is needed to ensure effective and fair implementation across Europe. 

CEMR underlined that while improving access to social protection is beneficial, implementation must remain balanced between workers’ rights and employers’ needs. The organisation cautioned that additional measures, such as parental leave provisions under the Work-Life Balance Directive, may create significant costs for local governments and should be carefully planned. 

A key challenge lies in ensuring similar social protection rights for similar work, while recognising that not all workers lacking access face the same risks. The main issue arises when individuals have no coverage at all, not when they are already protected through another job. 

For self-employed workers, CEMR identified several priority areas for EU action under social protection, including: 

  • sickness and accident-at-work benefits, 
  • old-age and invalidity benefits, 
  • maternity and paternity benefits. 

In terms of employment services, CEMR stressed the importance of strengthening guidance, counselling, training, and reintegration measures to support workers in transition. 

While CEMR agreed that all self-employed workers should, in principle, be included in such an initiative, it pointed out the particular difficulties faced by small and micro-businesses. A tailored approach is needed, with careful assessment of different employment types. 

CEMR reaffirmed that responsibility for social policy and social insurance design remains with Member States, and that self-governance by social partners must be respected. Any EU initiative on access to social protection should therefore act as a framework for guidance and support, while preserving national competencies and diversity. 

Read the position paper here 

For more information, contact: 

Shaping the future of cohesion

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CEMR outlines 14 key reforms for a more inclusive, place-based EU policy 


As the EU prepares the next programming period, the Council of European Municipalities and Regions (CEMR) is calling for a stronger role for local and regional governments in shaping and delivering cohesion policy. 

In a new position paper, CEMR presents 14 key recommendations to improve the way EU funds are managed on the ground, making them simpler, more flexible, and better suited to the needs of Europe’s territories. 

Key priorities include: 

  • A guaranteed budget for cohesion policy to meet EU goals like the Green Deal and the Sustainable Development Goals. 
  • Stronger partnerships between the EU, national, and local authorities, with clear responsibilities and joint agreements. 
  • Simpler rules and more flexibility to reflect local realities, especially in rural or less-developed areas. 
  • Improved access to funding through a “one-stop-shop” system and support for small municipalities. 
  • A new capacity-building tool to help local authorities manage and deliver EU funds more effectively. 

CEMR also warns against replacing grants with loans and calls for more manageable audits and controls, especially for small projects. 

Why it matters: 

Cohesion policy is a key pillar of EU solidarity, helping to reduce inequalities and support green and social transitions. But local governments often face too much red tape and too little say in how the funds are used. 

With these recommendations, CEMR urges EU institutions to design a place-based, inclusive cohesion policy, one that truly works with and for Europe’s territories. 

Read the position paper here 

For more information, contact: 

Revision of written statement directive 

Social Dialogue - News 2021

New obligations on short-term contracts could burden local employers 


As the European Commission considers revising the Written Statement Directive (91/533/EEC) to reflect the European Pillar of Social Rights, the Council of European Municipalities and Regions (CEMR) calls for a balanced and flexible approach that takes into account the realities of local and regional government employment. 

In its official response to the Commission’s first-phase consultation of the social partners, CEMR acknowledges that the Commission has correctly identified many relevant issues. However, it expresses concern that expanding the scope of the directive, particularly to cover all atypical and short-term work contracts, could result in disproportionate administrative burdens for local authorities. 

“The introduction of written statements for contracts under one month or eight hours would place a burden on employers that is not proportionate to the benefits for employees,” the response notes. 

CEMR stresses that: 

  • Most local government staff already fall under the existing rules; 
  • Local authorities need flexibility in handling casual and supply contracts, especially in sectors like education; 
  • Contractual elements should remain a matter for national decision-making, not EU regulation; 
  • There is a risk in conflating very different work arrangements, such as traineeships, digital platform work, and genuine self-employment. 

While supportive of fair and transparent working conditions, CEMR does not currently support new EU-level legislation in the areas identified and advises further analysis of the impact on public employers. Should EU-level social partners initiate negotiations under Article 155 TFEU, CEMR affirms its willingness to support the process. 

Read the position paper here 

For more information, contact: 

Backing local investment 

Local Investment

Municipalities, cities and regions urge the EU to support long-term local investments through flexible financial rules


Municipalities, cities and regions are the backbone of Europe’s future prosperity. Their ability to invest in sustainable infrastructure and services is crucial for creating jobs, driving growth, and enhancing resilience. Yet, current financial and budgetary rules too often limit their capacity to invest for the long term. In response, POLIS, CEMR and EUROCITIES have come together to call on EU institutions to support local governments by creating more flexibility in investment frameworks. 

Representing thousands of local and regional governments across Europe, the three organisations underline that resilient territories must have the financial capacity to adapt and grow in the face of social, economic and environmental challenges. Quality local investments in services, mobility, housing and infrastructure trigger private investment and support sustainable economic recovery. 

To make this possible, they urge EU institutions to take key actions: 

  • Ensure local and regional investment is included in the European Commission’s future plans for economic governance. 
  • Encourage the European Parliament to highlight barriers to local investment. 
  • Call on the European Council to create leeway for local investments within the Stability and Growth Pact. 
  • Invite Eurostat to treat long-term investment debt differently from operating expenditure. 
  • Adapt EU funds and financial instruments, such as EFSI, to better fit local needs. 

As local leaders stress, the EU must adapt its financial rules to enable sustainable long-term investments. Whether it is modernising infrastructure, supporting mobility, or creating jobs, empowering local and regional governments to invest is crucial for Europe’s growth and cohesion. A more flexible approach to fiscal rules will ensure that Europe’s recovery and future prosperity start at the local level. 

Read the position paper here 

For more information, contact: 

State ofplay – energy union

Energy Transition - News

Becoming More Energy Efficient: CEMR’s Key Messages for the EU’s Legislative Review on Energy


As the European Union prepares to revise its energy legislation, the Council of European Municipalities and Regions (CEMR) is calling on the EU and national governments to place local and regional authorities at the heart of the energy transition.

Cities and regions across Europe are already taking bold steps to become more energy-efficient, reduce emissions, and build climate-resilient communities. But to succeed, they need enabling legislation, access to funding, and recognition of their existing efforts. The forthcoming reviews of the Energy Efficiency Directive, the Energy Performance of Buildings Directive, and the Renewable Energy Directive are key opportunities to strengthen local involvement and accelerate the green transition.

Four Key Messages from CEMR

1. Governance: Empower Local and Regional Authorities

CEMR urges EU institutions to embrace a shift towards inclusive, multi-level governance. Local and regional governments are no longer just implementers, they are now co-drivers of the energy transition. The EU must ensure that subnational authorities are directly involved in preparing and implementing national energy and climate plans. A bottom-up approach is not only more democratic but also more effective in engaging citizens and delivering tangible results on the ground.

Many local governments have already developed Sustainable Energy and Climate Action Plans through initiatives like the Covenant of Mayors. These efforts show that local leadership is essential to reaching EU targets for 2030, including a 40% reduction in greenhouse gas emissions and a 27% share of renewable energy.

2. Regulation: Promote Flexibility and Policy Integration

CEMR advocates for flexible regulations that acknowledge the diverse realities across Europe. While energy efficiency goals are shared, the path to achieving them must be adaptable to local contexts. The principle of subsidiarity must guide legislation, allowing local governments to balance economic, social, and environmental priorities.

Local authorities must also retain discretion in public procurement, especially when it comes to energy performance requirements. Instead of imposing rigid obligations, the EU should provide guidance and incentives, for instance, by supporting the use of life-cycle costing and encouraging innovation in decentralised energy systems.

3. Financing: Ensure Access to Funding

Ambitious targets demand robust financial support. Cities and regions need accessible and flexible financing tools to renovate public buildings, deploy renewables, and invest in low-carbon infrastructure. CEMR stresses the importance of tailored financial mechanisms, such as off-balance sheet financing and favourable loans supported by the European Investment Bank or Member States.

The EU must also address legal and procedural barriers to joint procurement and bundled investments across municipalities. Initiatives like the CITYnvest project show how collaboration can unlock innovative financing and accelerate energy-efficient renovation.

4. International Cooperation: Strengthen Global Partnerships

CEMR, together with its PLATFORMA partners, champions international cooperation among local and regional authorities. Building on the legacy of strong local governance, these partnerships support low-carbon development worldwide.

CEMR also plays an active role in global advocacy through forums like the UNFCCC COPs and Habitat summits. The international community is increasingly recognising the value of local action, and European cities are leading the way.

Conclusion

CEMR stands ready to support the EU’s energy transition, but success hinges on empowering local and regional governments. With the right governance, flexible regulation, accessible financing, and global collaboration, the EU can deliver a just, effective, and locally driven pathway to a sustainable energy future.

Read the position paper here

For more information, contact:

Simplifying EU funds for all 

Cohesion Policy - News 2023

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

  1. 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. 
  1. 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. 
  1. 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. 
  1. 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. 
  1. 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

Read the position paper here 

For more information, contact: 

A smarter EU urban agenda

Head Banner - RFSC

Simplification, coordination and local leadership for better urban policy


As cities and towns face rising challenges, from ageing populations to climate adaptation, the EU Urban Agenda must evolve to support them effectively. In its 2015 position paper, the Council of European Municipalities and Regions (CEMR) sets out key proposals to make the Urban Agenda a useful and inclusive tool for all local governments, regardless of size or geography.

What’s needed for real impact?

1. A clear roadmap with local voices at the table
An EU Urban Agenda should not be a top-down project. It must be developed in partnership with local governments and their associations, with a well-defined timeline and concrete actions.

2. Territorial impact across all policies
Policies across all EU institutions, not just DG REGIO, should consider local impacts. A strong territorial dimension in EU policymaking can ensure smarter regulation with less administrative burden.

3. Recognising cities of all sizes
Urban policy should reflect the reality of Europe’s diverse territories, including small and medium-sized towns and functional areas, not just major cities.

4. Easier access to EU funds
More streamlined, locally managed funding for urban development will empower municipalities to lead the changes they are best placed to deliver.

5. Innovation without rigid standards
While innovation is key, any urban indicators (e.g. for “smart cities”) should remain voluntary, flexible, and designed with local input, not imposed through rigid benchmarks.

Towards an inclusive global agenda

CEMR also calls for stronger involvement of local authorities in shaping the EU’s input into international processes, including the Habitat III conference and the global New Urban Agenda. Cities and towns are where global challenges meet real-world solutions, and local voices must shape the global conversation.

Read the position paper here

For more information, contact:

Towards a practical urban agenda

Supporting local action through partnership, flexibility, and smarter EU policy


As Europe’s cities and towns face growing challenges, climate change, demographic shifts, and rising inequalities, an EU Urban Agenda can help better connect European policies to realities on the ground. But for it to succeed, it must be built with local and regional governments at its core. 

In 2015, the Council of European Municipalities and Regions (CEMR) outlined key principles to guide this agenda: partnership across all levels of government, flexible tools for diverse local contexts, and a shift toward policies that empower action rather than add complexity

What an effective EU Urban Agenda should include: 

  • Real partnership with local authorities 
    Local and regional governments must help shape EU policies and programmes that affect them. A working method, like the “partnership principle” used in cohesion policy, should apply across all relevant EU initiatives. 
  • Territorial impact assessments 
    EU policies should be tested for their effects on local areas before they are adopted. This helps ensure relevance and reduces administrative burden. 
  • A broad, inclusive definition of “urban” 
    The Agenda must reflect Europe’s diversity. It should apply to small towns, medium-sized municipalities, and functional urban areas, not just large cities. 
  • Better access to funding and simpler frameworks 
    Urban development tools should be easier to navigate. Local governments must retain flexibility to act based on their needs, not top-down templates. 
  • Space for innovation, without rigid standards 
    Cities should be encouraged to innovate through voluntary tools like the Reference Framework for Sustainable Cities or the Smart Cities and Communities Initiative, while avoiding binding indicators or labels. 

Aligning with global goals 

CEMR also highlights the importance of involving local authorities in shaping Europe’s contribution to global urban strategies, such as the UN’s Habitat III and the Sustainable Development Goals. Local governments are closest to citizens and best placed to deliver results on the ground. 

Moving from vision to action 

CEMR welcomed steps by the EU presidencies in 2015–2016, including pilot initiatives and declarations recognising the role of small and medium-sized cities. But to make the Urban Agenda real, the EU must ensure that cities and towns are partners, not just stakeholders and that policies support, rather than complicate, their work. 

Read the declaration here 

For more information, contact: