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Backing local investment 

Local Investment

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


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

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

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

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

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

Read the position paper here 

For more information, contact: 

Simplifying EU funds for all 

Cohesion Policy - News 2023

Clearer rules and better access to cohesion funding 


Accessing EU funding shouldn’t be complicated and yet, for many local and regional governments, navigating the European Structural and Investment Funds (ESIF) remains a challenge. In its 2016 position paper, the Council of European Municipalities and Regions (CEMR) outlines concrete proposals to simplify EU cohesion funding, making it easier and more efficient for local authorities and other beneficiaries to participate. 

Key recommendations 

CEMR’s proposals focus on five main priorities

  1. Harmonising rules across funds 
    The current system is fragmented, with different rules for different funds and ministries. CEMR advocates for common procedures and a “one-stop-shop” that simplifies access, coordination, and application processes, particularly for multi-fund programmes. 
  1. More flexibility at the national and local levels 
    Local needs vary, but EU rules often limit how funds can be used. CEMR urges the EU to give Member States and local authorities greater flexibility to set priorities, so that funding can better address real challenges like broadband access, transport, and local infrastructure. 
  1. Streamlining controls and audits 
    Excessive checks and overlapping audits discourage smaller beneficiaries. CEMR calls for a more proportionate and risk-based approach, better coordination among audit bodies, and a clear distinction between fraud and honest mistakes. 
  1. Results-based funding 
    Rather than focusing on paperwork and compliance, funding should reward measurable outcomes. CEMR supports instruments like Joint Action Plans and Integrated Territorial Investments (ITIs), though they are still underused due to late or unclear guidance. 
  1. Clearer, timely guidance 
    Technical guidance should be available early in the process and in all EU languages. This helps local and regional stakeholders plan ahead and ensures they are not penalised by last-minute rule changes. 

Building trust through better governance 

At its core, CEMR’s message is about trust and responsibility. Local authorities should be empowered to manage funding within clear frameworks, with a focus on results, not red tape. Simplifying EU funds is not just about efficiency; it’s about ensuring that local communities can truly benefit from European solidarity. 

CEMR remains committed to working with EU institutions and Member States to make simplification a reality on the ground

Read the position paper here 

For more information, contact: 

A smarter EU urban agenda

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Simplification, coordination and local leadership for better urban policy


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

What’s needed for real impact?

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

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

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

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

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

Towards an inclusive global agenda

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

Read the position paper here

For more information, contact:

Towards a practical urban agenda

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


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

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

What an effective EU Urban Agenda should include: 

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

Aligning with global goals 

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

Moving from vision to action 

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

Read the declaration here 

For more information, contact: 

Smart and sustainable transport 

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Empowering municipalities to shape Europe’s mobility future 


As the EU reviews its 2011 White Paper on Transport, the Council of European Municipalities and Regions (CEMR) highlights one key message: local and regional governments are essential partners in delivering a competitive and sustainable European transport system. 

Key messages: 

  • Mobility is local – and diverse 
    Transport challenges and solutions often begin at the local level. But EU transport policy focuses too narrowly on urban centres. Rural, remote, mountainous, and island regions also need tailored support to ensure territorial cohesion. 
  • One-size-fits-all won’t work 
    Europe’s regions vary widely. EU goals must allow flexibility, especially for smaller municipalities, to adapt to their specific geographic, economic, and social conditions. 
  • EU action should add value, not burden 
    New initiatives must be based on solid evidence and real local benefit. More legislation is not the answer. Instead, local governments need support through guidance, training, financial tools, and sharing of good practices
  • “Soft targets” allow for smart solutions 
    Instead of rigid rules, the EU should promote voluntary targets, like increasing clean mobility or public transport use and leave room for local innovation. 
  • Invest in public transport and clean mobility 
    Cities need better access to EU investment for expanding sustainable public transport, encouraging cleaner vehicles, and supporting new technologies. 
  • Think beyond city borders 
    Integrated transport doesn’t stop at city limits. Cooperation between local and regional authorities is vital, especially for cross-border mobility and shared services. 
  • Policy coherence is a must 
    EU transport goals must align with other areas like energy, environment, digitalisation, and regional development. More coordination across EU institutions is needed to ensure a consistent and effective approach. 

What local governments need from the EU: 

  • No more red tape, just clear, flexible frameworks 
  • Better access to funding and R&D support 
  • Inclusion in decision-making and expert groups 
  • Support for cleaner vehicles and alternative fuels 
  • Help with digital tools and open data for smart mobility 

Conclusion: 
Local governments are not just users of transport policy; they are builders of mobility solutions. If the EU wants to meet its transport and climate goals, it must work with local and regional authorities, not around them. 

Read the position paper here 

For more information, contact: