Territorial development 35

As the European Union shapes its long-term vision for rural areas, the Council of European Municipalities and Regions (CEMR) calls for a fresh, inclusive approach that recognises rural territories as vibrant, diverse, and essential to Europe’s sustainable future.

In a context shaped by post-COVID realities, demographic shifts, and the need for climate resilience, CEMR stresses that rural areas must no longer be seen as peripheral or left behind. Over 50% of Europeans live in rural or peri-urban territories, yet these areas still face gaps in investment, connectivity, and access to services.

CEMR’s position lays out a clear path forward:

Shift the narrative: Rural areas are not just agricultural zones in decline, but places of opportunity, well-being, and innovation. A positive and modern image must be promoted across all levels of government.

Invest in connections: Better transport links, broadband access, and energy infrastructure are key to rural inclusion. Public investment must step in where market failures persist.

Strengthen local governance: Municipalities and regions are best placed to tailor solutions to their rural communities. They must be true partners in designing and delivering EU and national policies.

Support rural services and quality of life: Equal access to health, education, culture, and mobility is crucial to prevent depopulation and ensure territorial cohesion.

Target EU funding more effectively: Cohesion Policy, CAP, Horizon Europe, and recovery instruments must better support rural-specific needs, with simplified access for small municipalities.

Foster youth engagement and gender equity: Making rural areas attractive for young people, women, and families will require tailored policies and investment in social infrastructure.

CEMR calls on the EU, Member States, and institutions like the OECD and Council of Europe to take these principles seriously and to build rural policies that are integrated, inclusive, and future-focused. From tourism and energy to local governance and public services, rural areas must be seen as full contributors to Europe’s social and territorial fabric.

For more information, contact:

Advisor – Territorial Cohesion & Local Finances

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

COVID impact on local finances

A Europe-wide snapshot of the pandemic’s fiscal impact on municipalities and regions, and what support is still missing

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The COVID-19 pandemic placed local and regional governments at the frontline of public health response in Europe. While ensuring safety, maintaining essential services, and supporting vulnerable populations, these governments were simultaneously burdened with spiralling costs and plummeting revenues. A survey conducted by the Council of European Municipalities and Regions (CEMR) in May 2020 offers critical insight into the financial distress faced by cities and municipalities across 17 European countries.

The survey reveals a dual pressure on local and regional finances: soaring expenditures, primarily for personal protective equipment, sanitation, and social support and sharp declines in revenue due to reduced economic activity. Tax revenues, municipal service fees, and income from the cultural and tourism sectors were severely impacted. For example, Bulgaria saw a 41% decrease in municipal income from its own sources, and Austria faced estimated municipal revenue losses between €900 million and €2 billion.

While local authorities acted swiftly, organising food deliveries, providing accommodation for healthcare workers, and ensuring online education, support from national governments was slow and often insufficient. Although a few countries, like Estonia and Germany, implemented meaningful aid measures, most national support was delayed, limited, or only promised in future budget cycles.

Many governments, like in France and Sweden, pledged support, but uncertainty remains about the long-term sustainability of subnational budgets. Furthermore, the varied structure of local financing systems across Europe means that the financial impact differs widely between countries and even among municipalities within the same country.

The CEMR report makes it clear: without timely and adequate support from national and European levels, local and regional governments risk losing the capacity to invest in recovery and sustainable development. To prevent a prolonged post-pandemic investment slump, EU funds, especially from the Recovery and Resilience Facility, must be made directly accessible to local authorities.

Only by empowering municipalities can Europe hope to achieve its long-term goals for resilience, cohesion, and sustainability. Now is the time for stronger multilevel cooperation and for the EU to acknowledge the central role of local and regional governments in shaping recovery.

Read the study here

For more information, contact:

Advisor – Territorial Cohesion & Local Finances

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

Just transition mechanism analysis

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

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

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

CEMR welcomes:

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

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

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

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

However, CEMR expresses concern over:

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

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

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

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

For more information, contact:

GRIFFON Axelle

Advisor – Environment and mobility

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

Strong Budget, Strong Cohesion

CEMR urges EU leaders to secure an ambitious long-term budget that empowers local and regional governments

As EU leaders prepare to decide on the next Multiannual Financial Framework (MFF), the Council of European Municipalities and Regions (CEMR) calls for a robust budget and a cohesion policy that keeps local and regional governments at its core.

The need for an ambitious MFF

CEMR stresses that ambitious European goals, sustainable development, the Green Deal, and social inclusion, cannot be delivered without a strong budget. Any further cuts to cohesion policy, such as those recently proposed, would undermine Europe’s ability to meet its commitments. Local and regional governments, as the key actors implementing EU policies on the ground, rely on a timely agreement to ensure a smooth transition to the next funding period.

Just Transition and partnership

CEMR welcomes the creation of a Just Transition Fund to support regions in the shift towards a low-carbon economy. However, these new measures must come with additional funding, not at the expense of cohesion policy. Equally vital is the Partnership Principle, which guarantees that municipalities and regions are directly involved in programming and implementing EU funds. This principle must remain a cornerstone of cohesion policy.

Europe’s ambitions will only succeed if local and regional governments have the tools to deliver them. A strong MFF, safeguarded cohesion funding, and reinforced partnership are the foundations of a Europe closer to its citizens.

For more information, contact:

Advisor – Territorial Cohesion & Local Finances

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

The future of EU cohesion policy

CEMR opens dialogue on reforming EU Cohesion Policy post-2020 to better support local and regional development

Read full statement here

The Council of European Municipalities and Regions (CEMR), representing over 100,000 local and regional authorities across Europe, has launched an early contribution to the debate on the future of EU Cohesion Policy. With discussions on the post-2020 Multiannual Financial Framework already underway, CEMR stresses the importance of adapting Cohesion Policy to ensure it continues delivering economic, social and territorial cohesion for all communities.

CEMR proposes three possible scenarios: maintaining the current system, introducing incremental improvements such as simplification and stronger partnerships, or pursuing a more fundamental reform through the creation of a single territorial development fund. These options aim to make Cohesion Policy more effective, accessible, and transparent.

At the core of its opening statement, CEMR outlines five guiding principles for reform:

Integrated and simplified – moving beyond silos towards more coherent funding instruments.

Inclusive – ensuring stronger bottom-up partnerships and local ownership.

Result-oriented – focusing on impact and outcomes rather than only expenditure.

Relevant and flexible – aligning priorities with territorial realities and avoiding excessive thresholds.

For all territories – safeguarding equitable support, especially for less developed regions.
This statement marks the beginning of a dialogue between CEMR, its members, and the EU institutions. By placing local and regional governments at the heart of the debate, CEMR seeks to shape a Cohesion Policy that is more integrated, inclusive and effective, ensuring no territory is left behind in the next programming period.

For more information, contact:

Advisor – Territorial Cohesion & Local Finances

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

Cohesion policy at risk

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

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

Protecting territorial and partnership principles

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

Ensuring flexibility and capacity

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

Avoiding harmful reductions

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

Conclusion

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

For more information, contact:

Advisor – Territorial Cohesion & Local Finances

GAUDRON Marine In EU budget, Impact community Cohesion, Impact community Cohesion, Impact community Society, Press, Publications, Territorial development, Territorial development

Protecting regional solidarity funds

CEMR warns against budget cuts and calls for strong, ambitious cohesion policy at the heart of Europe’s future

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At its Policy Committee meeting in Bilbao (11 June 2018), the Council of European Municipalities and Regions (CEMR) adopted a declaration on the European Commission’s proposal for the Multiannual Financial Framework (MFF). While the proposals maintain cohesion policy interventions in all European regions, CEMR highlights serious concerns about the reduced ambition and risks for Europe’s territories.

Risks of a reduced budget

The proposed 7% cut to cohesion policy represents more than a financial adjustment: it risks undermining the EU’s ability to deliver on key priorities such as climate action, social inclusion and economic development. CEMR stresses that cohesion policy is not just another programme, but an objective enshrined in the EU Treaties and central to the Union’s DNA.

Safeguarding cohesion and partnership

CEMR calls for cohesion policy to remain focused on territorial, economic and social cohesion, not diluted by unrelated measures such as public administration reforms. It also warns that new provisions risk weakening integrated territorial development by creating further divisions between funding streams such as the ERDF and ESF+. At the same time, local and regional governments must not be penalised for decisions taken at national or EU level within the European Semester.

A modernised but ambitious approach

CEMR welcomes efforts towards simplification, flexibility and sound financial management. However, the organisation insists that modernisation cannot come at the cost of ambition. Local and regional governments, the main investors in cohesion policy sectors, must be closely involved in shaping and implementing programmes through strong partnership agreements.

Looking ahead

As negotiations continue, CEMR urges that the future cohesion policy reflect the EU’s broader commitments, including the Sustainable Development Goals, climate action and the European Pillar of Social Rights. Europe’s capacity to meet these challenges depends on empowering its municipalities and regions, placing them at the heart of the European project.

For more information, contact:

Advisor – Territorial Cohesion & Local Finances

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

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.

For more information, contact:

BENNIS Hamza

Officer – Employment, Digitalisation and Public Services

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

Shaping the future of cohesion

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.

For more information, contact: