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GAUDRON Marine
In Energy, Latest, Local finances, Local finances, Publications

Sustainable local finances in Europe

Sustainable local finances - News 2022

CEMR releases landmark study on local finances in European countries

Discover the online tool

People depend on quality local public services and infrastructure every day. Reliable buses, insulated public housing, good schools or clean energy: all of these and more depend on healthy and sustainable local public finances to be developed and maintained.

That’s why the Council of European Municipalities and Regions (CEMR) is releasing a fully-fledged online report and tool entitled Local Finances and the Green Transition in Europe. This one-of-a-kind study provides data and analysis on the trends in local and regional finances in 40 European countries over the past 10 years. The study offers a bird’s eye view of both changes in subnational finances and the remarkable diversity of national situations.

“This report is essential reading for policymakers, politicians and academics. Only by understanding local public finances and unlocking futher investments can we achieve the sustainable and resilient societies our people and planet need”, said CEMR Secretary General, Fabrizio Rossi, who added: “If this report shows one thing, it is that well-funded municipalities, counties and regions are essential to taking care of our people and realising the environmental transition“. 

Revealing figures and trends as observed over the last decade

The study reveals for instance that despite making up 25% of all public spending, local and regional governments finance 54% of all public investment. This reflects the leading role of municipalities and regions in investing in areas such as energy efficient housing, smarter public transport and local environmental protection. The climate and energy transition will only happen by working with local and regional governments.

Also noteworthy is that subnational government debt is at a manageable level in the 36 countries where comparative data was available. In fact, local debt is low and stable, a mere 4.8% of GDP on average. By way of comparison, general government debt increased by the middle of the decade to 67% of GDP (and to 81% in 2020).

While browsing through the online study, you will also come across a special section on the impact of the EU’s €720-billion post-COVID recovery plan on local and regional governments. This chapter looks in particular at the implications for the green transition and territorial cohesion.

The data shows clearly that the share of green transition among the main RRF spending areas is higher in the decentralised countries. Stronger local and regional governments can support more recovery and resilience programmes and actions.

A dynamic and interactive online tool

“Local Finances and the Green Transition in Europe” is available as an interactive online tool  as well as in PDF  format. The online tool contains:

The study is currently only available in English. The French version is under development.

The study was launched on 10 November 2022 at the occasion of a seminar bringing together representatives of many of CEMR’s member associations, the OECD, KDZ and the study’s co-author Gábor Péteri.

For more information:

GAUDRON Marine
In Impact community Cohesion, Latest

Next Generation EU

Cohesion Policy - News

State of Play – Recovery and Resilience Facility

In 2020, faced with the unprecedented Covid-19 pandemic, European Union (EU) leaders and the European Commission put in place an equally unprecedented response package: Next Generation EU. It allows the EU to borrow large amounts of funding from the financial markets and to allocate these to Member States. The Next Generation EU’s centrepiece, the Recovery and Resilience Facility (RRF), provides grants and loans over a period of 5 years, amounting to €724 billion (in current prices) in total, to support the rebound of EU economies following the pandemic.

EU Member States have been required to submit national Recovery and Resilience Plans (RRPs), which outline their respective investment and reform strategies for using the RRF financing. The RRPs should outline a 5-year reform and investment strategy and set the pace of transformation needed for robust and fair digital and sustainable transitions. Member States have recently been given the opportunity to adapt their national plans to consider the new challenges thrown up by the war in Ukraine and its impact on the cost of energy supplies.

Local and Regional Governments’ involvement

Since early on in the process, CEMR and the European Committee of the Regions (CoR) have worked together to push for the fullest and most meaningful involvement of local and regional governments (LRGs), both in the design and the implementation of the Recovery and Resilience. An initial study produced jointly by the CoR and CEMR and published in January 2021 highlighted the early efforts of LRGs to be involved in the preparation of the RRPs.

The results demonstrated the extensive problems experienced by LRGs, the lack of consultation on their national RRPs and even on the occasions where they were consulted, their contributions were often overlooked.

In May 2022 CEMR and CoR prepared a follow-up study, to explore the extent to which the situation had evolved positively and whether or not LRGs felt that their involvement in the implementation of the RRPs had improved. The results of this follow-up study were more mixed but the general feeling was that LGRs were concerned that the lack of partnership arrangements in delivering the RRPs was leading to less effective delivery of the RRPs on the ground.

Current developments

Member States are advancing with the implementation of their national recovery plans, setting out both new investments and reforms, and consequently a considerable amount of RRF funds have now been disbursed. It remains noticeable however, that a significant amount of the loans available remain unrequested by Member States. While there is potential for synergies between cohesion policy and the RRF, there is also the potential for overlap and a competition for funding due to insufficient coherence between the different instruments. Concerns are growing that prioritising the RFF could lead to a reduction of cohesion resources after 2027. There are growing calls for the opening of a serious debate on how to ensure coherence among different EU cohesion instruments, as well as which approach can deliver on EU objectives in a world where shocks have unfortunately become not only more frequent, but also more varied in nature.

At the start of summer 2022, the European Commission published its Review report on the implementation of the Recovery and Resilience Facility, setting out the Commission’s views on the performance of the RRF to date. This has since been followed by the first in a series of audits on the Recovery and Resilience Facility.

Based on a selected sample of six member States (France, Germany, Croatia, Greece, Spain and Italy), the European Court of Auditors (ECA) assessed the suitability of the RRFs for each of these countries, the guidance provided to each Member State and compliance with the RRF regulation. Overall the ECA’s felt that the Commission’s assessment was generally appropriate, given the complexity of the process and the time constraints. However, the ECA highlighted a number of weaknesses in the process and that risks to the implementation of the RRF remain.

The CoR too is preparing an opinion on the implementation of RRF following its earlier work and the publication of the European Commission’s Review report. We wait to see whether or not, a year on from its last opinion, the CoR now believes that the implementation of the RRF will enable important public funds to properly reach the needs of our communities, municipalities and regions. The CoR will adopt its opinion during the plenary session in February 2023.

GURI Durmish
In Bridges of Trust, Bridges of Trust, Circular Cities and Regions Initiative, Circular Cities and Regions Initiative, EU Covenant of Mayors, EU Covenant of Mayors, Green City Accord [closed project], Green City Accord [closed project], IncluCities [closed project], Inclucities [closed project], Latest, Living-in.EU, Living-in.EU, PLATFORMA, PLATFORMA, Projects and programmes, Projects and Programmes, Publications, Reference Framework for Sustainable Cities, Reference Framework for Sustainable Cities

CEMR projects overview  

CEMR’s externally funded projects foster cooperation, innovation, and sustainability across Europe 

Read full study

Through its externally funded activities, the Council of European Municipalities and Regions (CEMR) brings local and regional leaders together to exchange ideas, test solutions, and build stronger communities. These projects are more than initiatives: they are platforms where municipalities and regions collaborate on Europe’s most pressing challenges, from climate action to equality, from digitalisation to democratic participation. 

Overview of Projects 
CEMR’s portfolio of externally funded projects reflects its commitment to innovation, sustainability, and inclusion: 

  • Reference Framework for Sustainable Cities (RFSC) – Supporting sustainable cities with a practical tool to plan and assess policies. 
  • IncluCities – Advancing migrant integration through peer learning among municipalities. 
  • Circular Cities and Regions Initiative (CCRI) – Driving circular economy solutions for cities and regions. 
  • Green City Accord – Helping European cities commit to ambitious environmental goals. 
  • Covenant of Mayors – Uniting local leaders in climate and energy action. 
  • PLATFORMA – Strengthening international partnerships and decentralised cooperation. 
  • Bridges of Trust – Building ties between Ukrainian and European municipalities. 
  • EPSU (Local Digital) – Supporting local administrations in navigating digital transitions. 
  • EPSU (Third-Party Violence) – Tackling violence against public service workers. 
  • Go.Li.EU – Promoting youth engagement and European citizenship. 

Together, these projects illustrate how CEMR channels external resources into meaningful action. By bridging local realities with European priorities, they not only empower municipalities and regions but also shape a more sustainable, inclusive, and resilient future for all. 

Read the study here 

For more information, contact: 

GAUDRON Marine
In EU budget, Impact community Society, Latest, Projects and programmes, Publications

How to unlock EU funds

EU financing opportunities - News

A guide to help local and regional governments navigate 2021–2027 funding opportunities and prepare successful proposals 

Read full study

Accessing European Union funding can be complex, especially for municipalities and regions unfamiliar with project management procedures. To address this challenge, the Council of European Municipalities and Regions (CEMR) has developed a guide within its new External Funded Activities (EFA) Platform. The guide provides practical support for members, including information on funding opportunities, thematic priorities, and tips for writing strong proposals. 

The current Multiannual Financial Framework (MFF) 2021–2027, boosted by Next Generation EU, represents the EU’s largest-ever budget, totalling €2 trillion. More than half is dedicated to research, innovation, digitalisation, and climate action, while one-third supports cohesion policy. For local and regional governments (LRGs), this translates into significant opportunities to finance projects across diverse fields. 

The guide outlines how to navigate the Funding and Tenders Portal, the central entry point for EU calls. It explains how applicants can: 

  • Search funding opportunities and partners; 
  • Check eligibility; 
  • Submit proposals online; 
  • Manage reporting and compliance requirements. 

It also provides advice on preparing successful project proposals. Key recommendations include aligning projects with EU policy goals, ensuring sustainability and impact, and selecting experienced, committed partners. Strong project teams, clear narratives, and realistic budgets are critical for success. 

Finally, the guide emphasises capacity-building. CEMR encourages municipalities to build internal expertise, engage with partners early, and take advantage of available training and support services. 

By simplifying complex procedures, the CEMR guide aims to empower local and regional authorities to fully tap into EU funds and deliver projects that advance Europe’s priorities, from green transition to digital innovation. 

Read the study here 

For more information, contact: 

GRIFFON Axelle
In Call, Environment, Impact community Climate, Latest

Call for Proposals EUI

BoT Expertise - News 2023

First Call for Proposals EUI – Innovative Actions

Eligible authorities are invited to submit project proposals in the framework of the first EUI – Innovative Actions (EUI-IA) Call for Proposals. For this Call for Proposals, an indicative budget of EUR 50 million ERDF is allocated.

Each project can receive up to a maximum of EUR 5 million ERDF co-financing and project implementation should take place within a maximum period of 3,5 years.

For more information and to apply don’t hesitate to check out the website and the seminars that will take place until the end of the year.

GRIFFON Axelle
In Energy, Impact community Climate, Latest

Training Academy

Meeting - News section

Local leaders explore how to mobilise sustainable finance at local and regional level

More than forty local and regional leaders gathered on Friday (21 October) to learn more about sustainable finances during CEMR’s training academy.

Terms like “sustainable finance” or “Taxonomy” are part of the everyday Brussels jargon and are now trickling down to the local and regional levels. After the Paris Agreement in 2015, the European Commission launched an ambitious Sustainable Finance action plan for financing sustainable growth in 2018. At the heart of it is the EU Taxonomy, a classification instrument which attempts to define “sustainable” economic activities. In addition, private and public enterprises like municipal utilities will have to disclose environmental, social and governance information (so-called ESG factors) and report on the Taxonomy alignment.

The training provided territorial leaders basic scientific knowledge about the concept of sustainable finance. It explained the EU’s sustainable finance framework, focusing on the EU Taxonomyand explored the role of local and regional governments in mobilising climate finance. The participants also shared best practices and funding opportunities for projects and sustainable financial products.

In addition to a panel on the regulatory architecture of sustainable finance, participants had the opportunity to discover the OECD subnational climate finance hub which offers local and regional governments insightful data and a self-assessment tool. Finally, representatives from the European Investment Bank and MuniFin, a Finish municipal credit institution, showcased projects which were enabled by sustainable financial products like energy efficiency renovations of 622 houses in the French region of Picardie.

According to the OECD Subnational Government Climate Finance Hub, local and regional governments accounted for 63% of total climate –significant public expenditure in 2019. However, the local and regional elected representatives stressed the need to take more into consideration the limited technical, administrative capacities in municipalities and regional administrations. A clear and understandable regulatory framework as well as more technical assistance by experts would be necessary to implement sustainable projects to fully align public investments with the Paris Agreement.

You are interested in the subject and in Brussels? Join us on 10 November for our event: Local Finances in Europe – Unlocking investments for sustainable and resilient societies. Our study on Local Public Finances and the Green Transition will be launched, followed by a high-level policy debate on the EU economic governance framework. Register here!

GRIFFON Axelle
In Environment, Impact community Climate, Latest

EU Green Capital

Environment - News section

Which cities will be the European Green Capital 2024?

Which cities will be the European Green Capital and the European Green Leaf 2024? Discover the winners at the Awards Ceremony on 27 October, hosted by the City of Grenoble. 

The European Commission’s (European) Green Capital Award, recognises and rewards local efforts to improve the environment, and thereby the economy and the quality of life in cities. The Award is given each year to a city, which is leading the way in environmentally friendly urban living. The Award encourages cities to commit to ambitious goals for further environmental improvement.

PALA Francesco
In Impact community Society, Latest, Local democracy

Youth employment

Youth employment - News

European towns struggle to retain youth, fight unemployment

While youth unemployment across the bloc has decreased compared to last year, European towns are struggling to remain attractive to young people.

Youth unemployment in the EU is currently at 13.8% and has decreased compared to last year, but the rate varies from region to region, with the highest number of unemployed young people in the regions of Southern Europe.

In the Portuguese municipality of Mourão, a small town near the border with Spain, the youth unemployment rate is at 24.6%.

According to Mayor João Fortes, while many young people would like to stay, they end up moving to other cities where they find more job opportunities, such as Evora, Porto or Lisbon.

Ageing towns

“I really would like them to come [back] because we are ageing so much that we need young people to build their own projects, their own family,” Fortes told EURACTIV.

Other mayors are raising similar concerns regarding the impact of demographic changes on their municipalities.

Alexandros Paschalis, deputy mayor of Edessa, a small Greek town with a 45% overall unemployment rate, said the “city is getting older and older.”

“Most of the people who go to study don’t have the opportunity to come back to do the work they study for,” he said at a conference organised during the EU Regions Week, adding that local authorities often lack the tools to address youth unemployment.

The city of Klaipėda on the Lithuanian coast is also facing a similar challenge to retain local youth.

According to mayor Vytautas Grubliauskas, “the goal is not to stop them, but to do everything so they can come back.”

Building infrastructure

In Grubliauskas’ view, to reduce unemployment and retain young talents, regions and cities need to be “attractive from the infrastructural point of view.”

“It is not enough to only create jobs, we also need to have the adequate conditions in place,” including infrastructure to compensate for lower salaries, he said.

Youth unemployment in Klaipėda is lower than the European average and the overall unemployment rate, with just over 8% of the population between 16 and 29 years of age out of a job.

The mayor said the municipality is “approaching these challenges in a good way,” for instance cooperating with universities and NGOs. The city has also created a funding mechanism to attract specialists in the areas most affected by labour shortages, such as IT technicians, doctors, and teachers.

In his view, cities and regions have the responsibility to make sure both the city infrastructure and choice of jobs are attractive to young people. At the same time, he said professional guidance is critical to help young people understand their talents.

Training

At the EU level, the Commission is promoting vocational training to fill gaps in the labour market and give young people the skills needed to find employment.

However, the problem “cannot be solved in six months,” according to Andrea Glorioso, policy officer at the European Commission.

“Education policy takes a lot of time, in order to see the effect we need to have a bit of patience,” he said.

Meanwhile, the municipality of Mourão is trying to address the problem locally, giving young people the opportunity to carry out work experience in the municipality.

The idea is for them to develop competences the municipality does not have and for which it has to rely on external consultants.

“Why not try to teach these kids how to do it?” Fortes said.

“It will require time, obviously, but after that time perhaps we’re going to have the inside resources to manage these kind of tasks.”

This article was first published by EurActiv. Real the whole text.

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