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BENNIS Hamza
In Employment, Employment, EU budget, EU budget, Impact community Cohesion, Impact community Cohesion, Impact community Labour, Impact community Labour, Local finances, Local finances, Press, Publications, Territorial development

Regional actors in economic governance 

EU Semester - News 2024

CEMR–EPSU report maps current involvement of local and regional actors in EU economic governance

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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: 

GAUDRON Marine
In Impact community Cohesion, Impact community Cohesion, Local finances, Local finances, Press, Publications, Territorial development

Backing local investment 

Local Investment

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

Read full letter here

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: 

GRIFFON Axelle
In Climate, Climate, Energy, Energy, Environment, Environment, Governance, Governance, Impact community Climate, Impact community Climate, Local finances, Local finances, Press, Publications

State ofplay – energy union

Energy Transition - News

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

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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:

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