Don’t repeat Recovery and Resilience Facility mistakes: local governments must shape EU’s long-term budget
As the European Commission prepares to unveil its proposal for the post-2027 Multiannual Financial Framework today, Wednesday (16 July), attention is turning to how the EU will shape its long-term investment strategy.
What is at stake is not just the amount of funding, but how and with whom those resources will be planned and implemented.
At the EU annual budget conference in May, EU Commission President Ursula von der Leyen made a shift in tone.
For the first time, she spoke not only of “national” plans, but of “national and regional partnerships for investments and reforms.”
This is more than a semantic change, but words must be followed by action. Without concrete steps, even the most inclusive language risks remaining just words.
The new proposed investment architecture is set to build on lessons from the Recovery and Resilience Facility (RRF). But unless a key flaw of the RRF is addressed — namely, the lack of involvement of local actors — the same mistakes will be repeated.
If we want these partnerships to succeed, they must be co-created with the local and regional governments that will implement them. From green mobility to housing and digital infrastructure, success also depends on getting the governance right.
Luckily, we do not need to start from scratch. The word “partnership” recalls an existing model: the Partnership Agreements used in the Cohesion Policy. These already require member states to involve local and regional governments in shaping investment strategies.
In countries like Poland and Portugal, it has led to investments aligned with real local needs—revitalising industrial areas, developing green transport—showing that when local actors are at the table, EU funding delivers real impact.
But this is about more than funding. As the EU aims to pair investments with reform, multilevel governance must become a central principle of the reform agenda itself. We are therefore calling for:
1. A co-creation approach that underpins new investment and reform partnerships, with transparent and structured mechanisms to involve local and regional governments in shaping priorities, both at the national level and within EU processes such as the European Semester.
2. Multi-level governance must be embedded in the reform dimension of these partnerships, ensuring that Member States not only consult but also empower local and regional governments to act as both planners and implementers.
3. A funding model that respects the principle of subsidiarity, with flexible, bottom-up approaches and less stringent thematic concentration decided at the Commission level to avoid the repetition of the challenges recalled in the mid-term revision of the RRF.
The EU stands at a turning point. The next long-term budget is a chance to move towards a more democratic, grounded, and effective policymaking, or to repeat the mistakes of the past. Let’s not miss this chance. Let’s make partnership the rule, not the exception.
Signatories:
Christopher Schnaudigel is co-president of the Council of European Municipalities and Regions (CEMR), vice-president of the German Section of CEMR (RGRE), and president of the county of Karlsruhe (German County Association)
Ľubica Karvašová is an MEP, vice-chair of the Committee on Regional Development, Renew Europe coordinator in REGI Committee
Vladimir Prebilič is an MEP, rapporteur on Simplification of the Cohesion Policy, Greens/EFA Coordinator in the REGI Committee.
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This opinion article was published on EU Observer on 15 July 2025. You can read it here
CEMR launched the European Partnership Hub to strengthen inter-municipal cooperation between Ukraine and the EU
At the Ukraine Recovery Conference (URC) in Rome 2025, and in the context of the Coalition for Sustainable Municipalities, CEMR Secretary General Fabrizio Rossi announced the launch of the European Partnership Hub – a practical response to the Berlin Call to Action and a next step in connecting Ukrainian and European municipalities.
This Hub will serve as the operational secretariat of the Bridges of Trust (BoT) Community — a pan-European network that brings together local and regional governments and key stakeholders to strengthen inter-municipal cooperation between Ukraine and the EU, promote decentralisation, build local resilience, and support Ukraine’s path towards EU integration.
This announcement marks a new milestone following last year’s launch of the Matchmaking Platform — an innovative tool that connects Ukrainian cities with other municipalities across Europe to support cooperation and unlock targeted funding.
Connecting, consolidating, and coordinating to maximise efforts
“We know that partnerships don’t work on their own, they need coordination, shared purpose, and long-term support”, reminded CEMR Secretary GeneralFabrizio Rossi to ministers, mayors and partners who attended the Ukraine Recovery Conference in Rome.
Objectives of the European Partnership Hub: – Expand and connect: link local and regional governments through the Matchmaking Platform and other digital tools, while activating sectoral networks and national associations. – Build capacity: provide tailored services to support partnerships through targeted funding, joint projects, project guidance, and mentoring, addressing Ukraine’s recovery needs. – Boost synergies: ensure coordinated support among actors, programmes and existing initiatives, and maximising collective impact.
With the Hub and the Matchmaking Platform, every city or region can find the right partner, develop joint projects, access funding, join a vibrant network and actively contribute to Ukraine’s sustainable recovery and European future.
The European Partnership Hub is possible thanks to the support of the European Union and its member states Germany, with the leadership of the Federal Ministry for Economic Cooperation and Development, Denmark, France, Poland and Slovenia through U-LEAD with Europe and other supporters on European level as Alliance of Cities and Regions for the Reconstruction of Ukraine and many CEMR national association.
CEMR and SGI Europe meet Commissioner Raffaele Fitto
On the margins of the conference, CEMR Secretary General Fabrizio Rossi, together with SGI Europe, met with European Commission Vice-President and Commissioner for Cohesion and Reforms, Raffaele Fitto. The meeting was an opportunity to reaffirm the strong support of both organisations for a Cohesion Policy that continues to deliver on its Treaty-based mission: reducing regional disparities and supporting Europe’s most disadvantaged areas.
CEMR and SGI Europe acknowledged the importance of adapting the EU budget to current challenges while underlining that the future of Cohesion Policy must remain anchored in solidarity, flexibility, accessibility, and effectiveness. As the EU enters a new institutional cycle, both organisations reiterated that reform must reinforce—not replace—the core mission of Cohesion Policy.
“Local governments must be at the heart of the EU’s international partnerships”
UCLG President, Jan van Zanen, met with EU Commissioner Jozef Síkela: “Local governments must be at the heart of the EU’s international partnerships”
In a bilateral meeting on 10 June UCLG President and Mayor of The Hague Jan van Zanen met with the European Commissioner for International Partnerships Jozef Síkela at the occasion of 10 years of strategic partnership agreements between key associations of local and regional governments with DG INTPA (2015–2025), to advocate for a stronger role of local and regional governments (LRGs) in EU development cooperation – and to secure long-term support for decentralised cooperation in the next EU budget.
The delegation of CEMR and PLATFORMA, led by Mayor van Zanen, and including CEMR Secretary General Fabrizio Rossi, found promising common ground with the Commissioner. Both sides agreed that the goals of the Global Gateway strategy and the objectives of the EU international action – from sustainable development to infrastructure investment – can only be met by empowering the actors who are closest to the people: local governments.
“Mayors and local leaders are not just implementers. They are political actors, democratically elected and accountable to their communities“, Mayor Jan van Zanen said. “They have a unique role to play in achieving the EU’s goals – but they need the means and the recognition to do so“.
Commissioner Síkela acknowledged the critical contribution of cities and regions to the EU’s Global Gateway strategy and international partnerships. As a former Czech Minister of Industry and Trade and a representative of the liberal “Mayors and Independents” party, Síkela expressed strong political sensitivity to the added value of local and regional leadership in global cooperation.
They also called for improved dialogue with EU Delegations on the ground, clearer distinction between LRGs and civil society organisations in EU instruments, and tailored, realistic and impactful calls for proposals.
Beyond financial tools, CEMR and PLATFORMA emphasised the importance of political recognition of the role of local and regional governments and their associations and networks in the implementation and governance of the Global Gateway strategy. As Europe’s largest network of municipalities and regions, CEMR highlighted the importance of structured policy dialogue and inclusive governance – especially in fragile contexts where local actors are often the last line of defence of democratic values, and provision of basic public services to the local populations.
The exchange with Commissioner Síkela comes ahead of the “2025 Cities and Regions for International Partnerships” conference, scheduled for December, where the Commissioner is invited to continue the dialogue with the presidents of five key associations, signatories of a strategic partnership agreement with DG INTPA.
As the EU begins to shape its upcoming budget cycle, the message from Europe’s mayors and local leaders is clear: for EU development cooperation to succeed, and for the Global Gateway strategy to deliver on its ambition as a value-based offer to partner countries, the local level must be included.
As the European Union prepares to shape its next urban strategy, CEMR has published a new input paper calling for a truly inclusive EU Agenda for Cities — one that recognises the vital role of Local and Regional Governments (LRGs) in shaping Europe’s future.
LRGs are the first responders to many of Europe’s most pressing challenges. From tackling the energy crisis to investing in sustainable mobility and managing public services, cities and regions are not just implementing EU policies — they are innovating, adapting, and delivering results on the ground. Their proximity to citizens places them in a unique position to foster trust, ensure inclusive governance, and respond effectively to the evolving needs of their local communities.
Yet too often, EU policies are developed without fully engaging the very authorities responsible for delivering them. Over 70% of EU legislation is implemented at the local and regional level. Despite this, subnational governments still lack a formal role in shaping that legislation.
CEMR’s paper sets out a vision for a new EU Agenda for Cities that is not only inclusive of every territory — from smaller municipalities to major metropolitan areas — but also equipped with the governance mechanisms, funding tools, and institutional recognition to deliver real impact.
Key proposals include:
Establishing a permanent, structured process for multi-level governance consultations for any new EU regulation proposal that could have an impact on LRGs.
Using the “reforms” component of the next EU structural investment policy to ensure LRGs have the capacities (financial, technical, human) to implement EU regulations.
Streamlining and simplifying access to EU funding, and including a 15% earmark for sustainable territorial development in the next EU budget period, CEMR also calls for greater alignment between EU funding opportunities and local realities, simplifying access and strengthening the administrative capacity of subnational governments. As the paper makes clear, the time has come to transition from fragmented engagement to a systemic approach that incorporates local and regional voices at every stage of the EU policy cycle — from design to implementation.
The new EU Agenda for Cities presents an opportunity to bridge the gap between ambition and implementation. With the right tools and governance in place, LRGs can power Europe’s green and digital transitions, drive economic resilience, and make the promise of inclusive, sustainable communities a reality for all.
CEMR will present these ideas at the Cities Forum in Krákow, taking place from 17 to 19 June 2025. Our Secretary General, Fabrizio Rossi, will join the discussion on the Agenda with the Executive Vice-President of the European Commission, Raffaele Fitto.
CEMR contributions to the European Commission consultation on the EU budget
From 12 February to 6 May, the European Commission opened a public consultation to collect feedback on its roadmap towards the next Multiannual Financial Framework. The Council of European Municipalities and Regions (CEMR) shared the following key messages for a reformed EU budget in partnership with Local and Regional Governments (LRG).
1 – From the ground up: multi-level governance at the core
A rebalanced governance model—one that embeds LRGs in the planning, not just the implementation, of EU investment priorities. The next MFF must strengthen multi-level governance processes at both the EU and national levels to ensure that EU funding addresses the real and diverse needs of European municipalities and regions.
2 – Smarter funding: simpler, more flexible, more accessible
CEMR calls for a simplified and harmonised approach when it comes to access to fundings with reduced bureaucratic burdens, a unified rulebook across funds, and streamlined audit systems. Strict thematic concentration and fragmented administrative processes have made EU funds difficult to access and adapt at local level. Flexibility from the programming stage will allow further predictability, essential for beneficiaries’ uptake of the funds.
3 – Cohesion and competitiveness, hand in hand
CEMR underlines that cohesion and competitiveness are not contradictory goals. A fair and inclusive EU budget must tackle regional disparities while strengthening the single market. High-quality local public services are essential for a competitive Europe and must be properly supported by the MFF.
Therefore, the next budget must:
Strengthen LRGs’ capacities, boost small and medium enterprises (SMEs) competitiveness, and expand access to essential digital and green services.
Recognise LRGs as strategic actors in shaping local economic development and regional attractiveness for start-ups and businesses.
Strengthen the public workforce: labour shortages are holding back LRGs’ ability to deliver innovation and services—this must be urgently addressed.
4 – Local action, global impact
Empowering LRGs through a decentralised management of EU funds will not only align investments with local priorities but also unlock greater impact, from social cohesion to digital transformation. Supporting local supply chains, the circular economy, and skills development across all regions will be critical in achieving Europe’s digital and green transitions. The next MFF must contribute to the achievements of SDGs, both in Europe and through international cooperation. The EU’s budget has a key role in closing the gender gap, enhancing democracy and transparency and inclusive societies. At the international level, LRGs and their associations are untapped assets for the EU’s external action agenda. Their role must be elevated in initiatives like the Global Gateway and Team Europe, including as key actors in fragile contexts, decentralisation reforms, and infrastructure sustainability.
Find here CEMR contributions to the open public consultations:
CEMR creates the “Guess EU” game to celebrate Europe Day
This year marks the 75th anniversary of the Schuman Declaration – the historic moment that set Europe on the path toward peace, prosperity, and unity.
To celebrate, CEMR is challenging you to a game that puts your EU knowledge to the test.
Introducing “Guess EU” – our special Europe Day game created with Open Guesser. Do you think you know where EU-funded projects have made an impact? Take a guess and find out how well you really know your Europe!
From green mobility in Italy to digital innovation in Latvia, the EU is everywhere – and now it’s your turn to explore it in a whole new way.
Main conclusions of the EU Budget event at the European Parliament
As the European Commission lays the groundwork for the next Multiannual Financial Framework (MFF) beyond 2027, the role of Local and Regional Governments has taken centre stage in Brussels. On 24 April, CEMR joined forces with Members of the European Parliament Vladimir Prebilič and Ľubica Karvašová to organise the high-level event “EU Budget: What Does the Future Hold for Multi-Level Governance?”
The discussion comes in the wake of the Commission’s strategic communication, “The Road to the Next Multiannual Financial Framework”, which signals a potential shift in the architecture and the approach to the EU budget. What will the future EU budget look like, and how will EU funds be managed and by whom? These and other questions were discussed in this event, taking place at the European Parliament.
Strong calls for local and regional involvement
During the opening session, Vladimir Prebilič synthesised the next steps for the MFF proposal, focusing on the centralisation trends and the need to keep the regions at the centre of the design and implementation of Cohesion Policy, which must retain its long-term rationale and not be used for short-term crises.
His view was echoed by L’ubica Karvašová‘s discourse, who underlined the need for the EU to work on both a global pillar, with defence and trade policies, and a socio-economic pillar, where Cohesion Policy is at the forefront.
CEMR Co-President Christoph Schnaudigel recalled the central role of the Local and Regional Governments in the implementation of Cohesion Policy, and thus the need to be co-designers.
Aligning EU priorities with local and regional needs
The first panel discussed the interactions between EU-level priorities and local and regional governments’ investment priorities in view of the next long-term budget.
Florentine Hopmeier, Deputy Head of Cabinet of Commissioner Serafin, confirmed that Commissioner Serafin is touring Europe to meet beneficiaries of EU funds and collect as much feedback and proposals as possible, but also insisted that the immediate challenge lies in the successful delivery of the current programming period. She recalled the difficult financial context lying ahead, with new priorities to be funded, together with the need to repay NextGeneration EU. The Commission must therefore work on the assumption of more constrained financial resources available. Hopmeier insisted on the need for more flexibility and the lessons learned from the Recovery and Resilience Facility (RRF), including the new approach linking investments and reforms. Finally, she concluded by reaffirming the Commission’s willingness for Local and Regional Governments to be involved and for the continuation of the Partnership Principle even in the presence of a single national plan.
Maria Teresa Fabregas Fernandez, Director of the Task Force on Reform and Investment at the European Commission, came back on the lessons learned from the RFF, highlighting the added value of the holistic approach linking investments on EU priorities to reforms improving the impact of investments. She confirmed that the Commission has been warning Member States to involve Local and Regional Governments when reforms affect subnational authorities.
Ester Borràs, from the Catalan government Delegate to the EU, warned about the risks of centralising decision-making with a single plan. She called for simplification, while recalling that centralisation is not simplification, and for harmonisation in the now fragmented EU funds.
L’ubica Karvašová concluded the panel by suggesting a focus on impact rather than performance, and a two-tiered single plan: a national tier and a second tier for individual regional plans, using the Integrated Territorial Investment (ITI) model. She also pleaded for the institutions to reach a bigger budget in view of the increased investment needs of the Union, and emphasised that investments in social and educational infrastructure also contribute to competitiveness.
Ensuring efficient implementation of the EU’s investment policy
The second panel on ensuring both rapid and efficient implementation of the EU’s investment policy opened with Vasco AlvesCordeiro, Chair of the European Committee of the Regions’ (CoR) COTER Commission, presenting the CoR’s priorities for the next MFF, which can be summarised as “flexibility with predictability“. These include ceilings and rules to allow for the reallocation of funds, simplifying the work of managing and auditing authorities, and the need for qualitative criteria to assess the results of cohesion policy. Finally, he stressed the need to maintain the long-term investment perspective of cohesion policy.
Kadri Uustal, Head of Unit for Cities, Communities and People at DG REGIO in the European Commission, provided additional information on the upcoming “ambitious policy agenda for cities”, as it will aim at supporting cities, not only in the framework of the Cohesion Policy, but even beyond. One of the first challenges for this will be to bring clarity to beneficiaries on the different programmes and initiatives targeting cities. Uustal explained that the Commission is also exploring a better involvement of cities in EU legislation, given the important role of subnational governments in the effective implementation.
CEMR co-president Christopher Schnaudigel recalled that Cohesion Policy is part of the EU treaties and must therefore remain a priority. He also warned that “we cannot achieve competitiveness without investing in the regions”. He recommended that Local and Regional Governments are closely associated in the drafting of the single national plans, pointing to the existing Partnership Agreements in the current Cohesion Policy framework as the model to follow in order to develop an investment plan that is both consistent at the national level, and fit for purpose at local and regional levels.
Vladimir Prebilič started by recalling the benefits Cohesion Policy has brought to the many territories where it has been invested. He then shared insights from his ongoing work as rapporteur on the Committee on Regional Development in the European Parliament for the report on simplification of the Cohesion Policy funds. As solutions to be explored, he proposed improved and more systematic territorial impact assessments, a single set of rules for funding, and a stronger distinction between errors and fraud in auditing.
Alva Finn, Executive Director of the European Liberal Forum, former member of the Commission’s expert group on the future of Cohesion Policy, suggested a full rebranding of the Cohesion Policy to increase its effectiveness and by in from citizens. Cohesion Policy is still the largest and most successful investment policy in the world, but it does need to be updated, using, for instance, smart conditionality. She advocated for cross-border and inter-European infrastructures to connect Europe and suggested integrating the place-based approach with a people-based one.
In closing remarks, Karvašová called for co-responsibility, building on Cohesion Policy to fight Euroscepticism and gaining people’s support for the European project. This message was supported by Prebilič‘s appeal to the democratic decision-making model and by Schnaudigel, who concluded by recalling CEMR’s position paper on the subject and the launch of CEMR’s new campaign on the topic.
Cohesion Policy mid-term review: is the glass half empty or half full?
The rationale for the Commission’s latest communication “A modernised Cohesion Policy: the mid-term review” is clear and compelling: the operational programmes of the Cohesion Policy funds were negotiated four years ago: before a global pandemic, before the paradigm shift of massive EU joint borrowing, and before Russia’s war of aggression on Ukraine and its dramatic impact on inflation and cost of living.
As Executive Vice President Raffaele Fitto reminded Members of the European Parliament’ Regional Development Committee on 9 April: the world has changed, and so too must the Union’s priorities and policies.
This new proposal – yet another amendment to Cohesion Policy regulations in the last five years – intends to offer new spending possibilities for Managing Authorities. It does so by creating new specific objectives, expending the scope of eligible expenditures and beneficiaries in line with five new key priorities identified by the Commission:
Competitiveness and decarbonisation of industry
Defence and security
Affordable housing
Water resilience
Energy transition
These are undeniably pressing issues: Mayors have long raised awareness on the housing crisis, and recent dramatic floods across Europe highlighted the urgency of climate-resilient water management systems.
At the same time, it also reflects the new Commission’s political priorities: competitiveness and defence. One could be satisfied that including them within Cohesion Policy underlines the role of local and regional governments in fostering Europe’s competitiveness, driving strategies for local economic development and creating attractive environment for business to settle in European municipalities and regions.
And yet…
Despite its forward-looking intention, the mid-term review feels like a glass half empy or half full: the proposal does open new funding possibilities, to be used on voluntary basis by Member States or regions – depending on who the managing authority is. But the potential uptake of the amendments, at this advanced stage of the programming period, is likely to be limited – raising questions on the real added value of the entire proposal. It is also a risk to undermine previously agreed priorities with the addition of new eligible activities and eligible beneficiaries – with very attractive conditions (pre-financing, 100% co-financing from the EU), but without any additional budget.
The Commission seems haunted by its initial decision to reduce the timeline for completion of programmes to two years (N+2) after the end of the period, down from the current programming period N+3 rule. This despite the assurance of Managing Authorities that they are still on track to spend all their budget – based on decades of experience managing Cohesion policy funds. For the Commission, it is still not fast enough. With this new proposal, the Commission not only opens new eligible investment areas, but also further opens the door to large enterprises, notably defence companies to apply to Cohesion Policy funding, without requiring justifications on how these beneficiaries will contribute to the economic, social and territorial cohesion where they are located, thanks to EU funded investments.
And this last point could be the most dramatical change to Cohesion Policy as we know it. While the uptake of this new reform is likely to remain low given that most of the funds are already committed, it should be seen as a preview of the Commission’s proposal for the next budget period: It is the return of “EU structural investment policy” except that the focus will be much less on the treaty objectives of economic, social and territorial cohesion, but more on the political priorities of the moment. Less on the partnership principle and multi-level governance, more on the private sector that has the capacity to spend large sums fast.
This communication is not reassuring in terms of respect for the multi-level governance and partnership principle. As we saw with the Recovery and Resilience Facility, it’s not enough to mention “in partnership with national, regional and local authorities”. The Commission must put in place methodologies and binding requirements for the multi-level governance to actually take place. Yet in this mid-term review, the Commission does not even encourage Member States and managing authorities to discuss the reprogramming opportunities together with the stakeholders.
Lessons learned
A serious structural investment policy cannot afford to be subject to constant regulatory changes within a programming period. Real flexibility should not come from the Commission’s possibility to periodically change its own political priorities; but from the very design of the programmes where investments priorities would be defined from a bottom-up perspective, driven by local and regional governments who best understand their territories’ long-term and specific needs.
While the EU certainly define broad strategic goals such as decarbonisation of the society, increasing competitiveness of all European territories or strengthening the resilience of public administration at all levels; it must avoid overly narrow thematic concentrations that limit the investment opportunities in municipalities and regions, and are not always fit for purpose on the ground.
Only then can the next EU budget deliver both on common European objectives and the unique needs of each territory.
The future of the EU budget is at a crossroads. As the European Commission launches consultations on the post-2027 Multiannual Financial Framework (MFF), local and regional governments across Europe, represented by CEMR, are calling for a fundamental change: an EU budget that is inclusive, decentralised, and truly aligned with the needs of cities, municipalities, and regions.
This requires that future national plans and investment priorities in each Member State are not imposed from the top-down, but shaped through meaningful consultations with local and regional governments, just as the Partnership Principle ensures in Cohesion Policy. Only in this way can EU investments be fit for purpose and truly serve the people it is intended to benefit.
CEMR’s newly releasedposition paper on the post-2027 MFF sets out a clear vision for a reformed EU budget that strengthens multi-level governance and empowers local and regional governments as essential partners for effective spending of the EU budget on the ground. With growing social and economic inequalities, the need to accelerate climate adaptation, and increasing geopolitical instability, Europe cannot afford to sideline local and regional governments—the very actors that implement over 70% of EU policies on the ground.
National plans must include mandatory consultations to local and regional governments
The roadmap on the next MFF confirmed the European Commission’s ambition to establish single national plans for reforms and investments based on priorities defined at European level. The European Commission mentions the Recovery and Resilience Facility (RRF) as a good example of an instrument linking investments and reforms and points out that two thirds of the EU budget (Cohesion Policy funds and the Common Agricultural Policy) could in the future be implemented according to the RRF approach. In this context, CEMR issues a final warning to the European Commission: the RRF model failed to ensure effective multi-level governance. CEMR found that, since consultation with local and regional governments was not mandatory, it simply did not occur in most of the Member States.
The European Commission must ensure that national plans and the definition of investment priorities in each Member State are developed through meaningful consultations withlocal and regional governments, similar to the Partnership Principle in Cohesion Policy. This is the only way to guarantee that EU investments are fit for purpose and meet the real needs of the population.
“The EU is more than its institutions and the 27 states—it belongs to its people, municipalities, cities, and regions. Decisions based solely on macroeconomic trends risk disconnecting it from citizens” — Gunn Marit Helgesen, CEMR President.
CEMR key priorities for the post-2027 EU budget
CEMR’s position paper, backed by national associations of local and regional governments across Europe, contains concrete proposals to reform the post-2027 EU budget and enhance its effectiveness:
Empowering municipalities, cities and regions not only as implementers but also as planners The Partnership Principle should be made mandatory across all EU-funded programmes to ensure that the funds effectively reflect the actual needs of local and regional governments.
Decentralising the Cohesion Policy Strengthening the capacity of local and regional governments to manage EU funds will ensure that investments address real local needs and promote balanced territorial development.
Diversifying EU instruments as part of the ambitious policy agenda for cities From shared management funds to increased direct funding, it would allow EU investment to reach local and regional authorities of all sizes, from all types of territories, both urban and rural.
Simplifying and easing EU funding mechanisms to reduce administrative burdens for both Managing Authorities and beneficiaries. CEMR proposals for simplification include: a single set of rules for beneficiaries across the different funds; flexibility in thematic concentration to allow place-based definition of priorities, hence accelerating funds disbursement; and a labelling of auditing processes as compliant with EU rules to avoid multiplication of auditing.
Enhancing synergies among EU funds. The next MFF must improve coordination between different EU funding instruments to maximise impact at the territorial level.
Take part in the public consultation
Local and regional governments must not be sidelined in shaping the post-2027 EU budget. The European Commission’s consultation must not be reduced to a bureaucratic exercise or a mere checkbox. Consultations alone are not enough. The next EU budget regulations must include a mandatory requirement to involve local and regional governments in defining the investments that will meet the real needs of the population.
Use this public consultation —open until May 7 2025— to demand a real seat at the table and a budget that truly serves our communities. A stronger, more inclusive Europe starts from the ground up. Speak up before it’s too late.
Europe of the regions is dead, long live Europe of the industries
If you were still a “Europe of the regions” believer in spite of all the signs in the direction of re-nationalisation of European policies; the latest communication from the European Commission “A Competitiveness Compass for the EU” could leave the impression that it is the final blow to the idea that the European project also takes place at the local level, closer to the citizens.
There had been many warning signals: in the last years, the EU has changed the “delivery model” of its funds towards a de facto recentralisation. After the National CAP Strategic Plans, the National Social Climate Plans and the National Recovery and Resilience Plans, there was not much doubt anymore that the European Commission is looking to simplify the life of its own administration, with a single contact point in Member States, preferably budget Ministries. Then, however the Member States decide to organise and draft the national plans, in consultation or not with the subnational government levels and the most relevant stakeholders, this is outside of the Commission’s remit.
Mayors, counties or regions’ local leaders know the best their local ecosystem and the development opportunities in their territories. The Competitiveness framework should rely on them and suggest not another centralised national plan, but territorial competitiveness plans, ensuring a broad territorial coherence of investments for growth and competitiveness. Yet, the few mentions of local and regional governments in the communication are to say that they should play their part in the simplification efforts and acceleration of administrative procedures at the service of the private sector.
With the new Competitiveness Compass, the Union at least reaffirms a common European objective that governments, at all levels, should follow. And there is a broad consensus that industrial renewal, research and innovation, transitioning to low carbon economies are all very important priorities that could contribute to improving life of Europeans – because that is the end goal, right? But there is one element critically missing for this vision to become true: a territorial vision.
Start-ups, universities, research labs, factories, all still need to be physically located somewhere: in a municipality, city, region. Somewhere with access to a fast broadband, somewhere with efficient mobility and transport solutions for employees commuting, receiving or shipping products, somewhere with good public services, ensuring a quality of life that would attract or retain the skilled workforce needed, and somewhere the taxes on these economic activities may contribute to a municipality’s revenues and therefore effectively benefit the entire local community[1].
And while the communication clearly identifies the need for public investments to de-risk and unlock private investments, it is completely overlooking the major role of local and regional governments to drive public investments. Subnational governments are responsible for 53% of the total public investment in the EU[2], and yet they are increasingly required to contribute to the fiscal consolidation efforts of Member States, steadily reducing their investment capacities.
One of the major risks with a complete lack of territorial vision, is the major downside of the Single Market: the concentration of capital, wealth and work forces in a few already attractive places, leaving entire regions behind the competitiveness run. The Cohesion Policy was created especially to prevent this type of concentration and channel EU public investments in places that would otherwise fail to attract businesses, investments or researchers.
And the Competitiveness Compass is probably just a foretaste of what the Commission is preparing for the entire architecture of EU funds in its next multi-annual financial framework. Writing in the communication “The Multiannual Financial Framework (MFF) proposal will be the opportunity to further streamline access to and simplify EU funding instruments – currently fragmented over too many programmes – across the board”, the Commission is confirming the leak and rumours in the direction of having a single national plan (yes, another one) for all currently shared management fund (i.e. all Cohesion Policy funds, and the Common Agricultural Policy). This could be a worst-case scenario: investments and reforms priorities decided at top European level that make no sense for the people and the places where the funds are spent. This is already happening with the European Semester[3].
The only solution to reconcile the overarching European goal of competitiveness, and the actual needs and priorities of Europeans wherever they want to live, is to enshrine multi-level governance in the competitiveness agenda and the upcoming long-term budget of the EU.
