Skip to main content

Cohesion policy funds 2021-2027

European Town - News

Cities and municipalities in the driving seat for EU Cohesion Policy funds?


What is the common feature between the trolleybuses in Otsravian metropolitan area (Czech Republic), the local food businesses in Ljubljana Urban Region (Slovenia) and the traditional dance festival in Saint-Gervais-d’Auvergne (France)? They all benefited from the European Cohesion Policy through integrated territorial investments (ITI) or community-led-local development (CLLD).
 
Behind the term “EU Cohesion Policy” we can find a variety of programmes and fundings such as the European Regional Development Fund (ERDF), the European Social Fund (ESF) or the European Agricultural Fund for Rural Development (EAFRD) although the latter is now directly attached to the Common Agricultural Policy.
 
In practice, these funds reach thousands of towns, cities and regions, as well as other beneficiaries through the intermediation of “Managing Authorities” which can be national Ministries or Regions. But there are two lesser-known dimensions of these funds which are directly  implemented on the ground: the so-called ‘ITI’ and ‘CLLD’
 
ITI and CLLD
 
Integrated Territorial Investments (ITI) and Community Led Local Development (CLLD) are the main mechanisms used to implement European Cohesion Policy funding in an integrated and place-based manner. Using these tools to implement Cohesion Policy funds is a guarantee that local governments and local stakeholders will be closely associated in the design, implementation and monitoring of the EU funds they receive.
 
They can allow the use of different funds in an integrated way. For instance, a rural municipality interested in a social inclusion project could combine ESF and EAFRD in a single, comprehensive project.
 
On paper ITI and CLLD are great tools for local and regional governments… But how do they translate in practice?
 
In 2015, we delved into the analysis of the use of the ITI  in different Member States. A few years later, with the start of the new programming period 2021-2027, we reiterated the experiment to understand how these tools were used in practice in the previous period and what the lessons learned and changes in their implementations. Click here to read the full study.
 
To do so, CEMR reached out to some of its member associations to gather feedback on the implementation and planning of ITI and CLLD tools from the perspective of cities and municipalities.
 
Highly appreciated tools, but some difficulties in implementation remain
 
Overall, the many feedbacks we received were quite positive. ITI and CLLD are considered great instruments thanks to their adaptability to local needs and specificities. They empower local authorities, and by doing so help raise their capacities in managing EU funds. But they also strengthen multi-level dialogue between the local authorities and the Managing authorities (either the Ministry or the Region). Hence reinforcing the trust between the different governance levels.
 
All is not yet rosy either: some challenges remain for fully tapping into the potential of these tools such as the administrative burden still inherent to Cohesion policy funds in general. In CEMR’s new analysis, we also identified some recommendations to improve the uptake of ITI and CLLD in the current and future programming period.

Read the study here

For more information, contact:

Smarter building rules in Europe

Housing - News

EPBD revision: Local flexibility and long-term planning key to success, say CEMR and Housing Europe


EPBD revision: Local flexibility and long-term planning key to success, say CEMR and Housing Europe 

The Council of European Municipalities and Regions (CEMR) and Housing Europe have joined forces to publish a set of recommendations on the European Commission’s proposal to recast the Energy Performance of Buildings Directive (EPBD). While both organisations fully support the ambition to decarbonise buildings across the EU, they warn that the proposal must better reflect the realities on the ground. 

Local and regional governments, as well as providers of public, social, and cooperative housing, are critical actors in delivering the EU’s climate objectives. But a one-size-fits-all approach will not work. 

The joint position paper outlines three key recommendations: 

  1. Respect local differences through subsidiarity and adaptability 
    The EPBD must allow member states and local authorities to tailor building codes to their own context. Setting EU-level definitions for zero-emission buildings without a clear methodology risks creating uncertainty and undermining national efforts. Other areas, such as fire safety and asbestos removal, should remain the competence of national or local governments. 
  1. Provide a stable and realistic framework for renovations 
    Renovating buildings is a long-term process that requires careful planning. The proposed EPBD introduces tight deadlines and shifting labelling systems, making it nearly impossible for local authorities and property owners to comply effectively. CEMR and Housing Europe argue for a more predictable timeline that reflects labour shortages, market dynamics, and tenant affordability. 
  1. Support zero-emission construction with energy system flexibility 
    While new buildings must meet high standards, member states should retain the freedom to choose their energy sources. That includes not only on-site renewables, but also low-carbon energy from the grid, waste heat, and energy recovery, all in line with the EU waste hierarchy. 

Ultimately, the success of the EPBD will depend on how well it enables local and regional actors to deliver results. CEMR and Housing Europe are clear: the path to climate-neutral buildings must be ambitious but flexible, fair and grounded in local realities

Read the full policy paper here  

For more information, contact: 

Bringing Europe closer to its citizens 

EU Cohesion Policy - News

How ITI and CLLD strengthen local democracy, multi-level governance, and place-based development in EU cohesion policy 


The European Union’s Cohesion Policy is one of its most important instruments for promoting economic, social, and territorial cohesion across its member states. With nearly €392 billion allocated for 2021–2027, it tackles inequalities between regions while supporting a greener, more competitive, and more inclusive Europe. Central to this effort are Integrated Territorial Investments (ITI) and Community-Led Local Development (CLLD), two tools designed to put territorial needs and local actors at the heart of EU funding. 

Why integrated tools matter 

The foundations for a place-based approach were laid in the 2009 Barca Report, which argued that EU policy should focus on unlocking the potential of specific territories while addressing persistent exclusion. ITI and CLLD, introduced in 2014, operationalise this vision by giving local and regional governments a stronger role in programming, governance, and project implementation. 

These tools provide flexibility, enable cooperation across levels of government, and ensure that EU funds target the real needs of communities. For municipalities, regions, and their associations, they are among the most valued features of cohesion policy. 

ITI: Integrating strategies across territories 

ITI allows funding from several EU programmes to be combined in support of integrated strategies. It has been especially used for urban development, where at least 8% of ERDF funding is earmarked for sustainable urban projects. While designed to cover any functional area, urban, rural, or mixed, ITI is most common in metropolitan settings, where challenges like mobility, housing, and regeneration demand integrated solutions. 

CLLD: Communities leading the way 

CLLD builds on the LEADER approach to rural development, empowering local action groups of citizens, NGOs, and businesses to design and implement strategies. While most common in rural areas, it has the potential to strengthen participation and ownership in cities, too. CLLD fosters trust, encourages bottom-up innovation, and helps address the needs of vulnerable groups such as youth, migrants, or elderly people. 

What worked well 

CEMR’s analysis highlights several clear benefits: 

  • Flexibility and relevance – ITI and CLLD adapt EU funding to local needs. 
  • Capacity-building – local authorities gain expertise in managing EU programmes. 
  • Stronger governance – fostering trust and cooperation between local, regional, and national levels. 
  • Visibility of EU action – projects close to citizens showcase the value of EU funds. 
  • Community cohesion – encouraging cooperation among local actors and building metropolitan or regional identity. 

Persistent challenges 

Despite their value, integrated tools face obstacles: 

  • Administrative burden remains high, with complex procedures and slow fund absorption. 
  • Limited flexibility – strategies must still align with national operational programmes, sometimes restricting genuine local priorities. 
  • Time pressures – integrated projects require trust and participation, often at odds with the EU’s strict N+3 spending rule. 
  • Uneven use of PO5 (“Europe closer to citizens”) – some member states underfund this priority despite its direct link to ITI and CLLD. 
  • Urban uptake of CLLD – adapting the rural-focused model to cities remains difficult. 

CEMR recommendations 

Looking ahead, municipalities and regions urge the EU to: 

  • Maintain and strengthen integrated tools in cohesion policy. 
  • Simplify procedures at both EU and national levels, avoiding “gold-plating.” 
  • Clarify guidance on multi-funding, project selection, and the use of PO5. 
  • Exempt ITI/CLLD projects from the N+3 rule to allow more time for participatory approaches. 
  • Reintegrate the EAFRD into the Common Provision Regulation to ease multi-fund projects. 
  • Ensure meaningful local involvement in programming, implementation, and evaluation. 

Conclusion 

ITI and CLLD have proven their worth as vehicles for place-based development, democratic participation, and closer cooperation between Europe and its citizens. While challenges remain, strengthening these tools is essential for making the EU’s cohesion policy more visible, more inclusive, and more responsive to local realities. 

Read the study here 

For more information, contact: 

Sustainable local finances in Europe

Sustainable local finances - News 2022

CEMR releases landmark study on local finances in European countries


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:

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 


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: 

CEMR report of 2021 

Meet Local Leaders - News

Report on the publications, knowledge-sharing, advocacy and communications in 2021 


The Council of European Municipalities and Regions (CEMR) is pleased to present its 2021 Activity Report, which provides an overview of the organisation’s main actions and achievements over the year. Guided by the 2021–2030 multiannual strategy and the 2021–2022 work programme, CEMR focused its work on four objectives: 

  1. Policies and advocacy 
  1. Knowledge sharing and capacity-building 
  1. Pan-European campaigns and visibility 
  1. Internal organisation and sustainability 

All actions were aligned with the aim of advancing the Sustainable Development Goals (SDGs) across Europe’s territories. 

Shaping European and Global Agendas 

Throughout 2021, CEMR actively influenced European initiatives and alerted members to upcoming developments affecting local and regional governments. Activities included: 

  • Monitoring EU initiatives on recovery, resilience, and international cooperation. 
  • Engaging in structured dialogues on cohesion policy, rural development, disability rights, and urban development. 
  • Providing input that shaped OECD analyses, Council Conclusions, and the European long-term vision for rural areas. 
  • Publishing position papers and resolutions on gender equality, migration, the Fit for 55 energy package, water, and digitalisation. 

At the international level, CEMR deepened cooperation with UCLG, the Global Taskforce, OECD, and the Congress of Local and Regional Authorities. 

Building Knowledge and Capacity 

To strengthen understanding of EU policies and empower members to act, CEMR: 

  • Produced publications and webinars, including a new edition of the TERRI Report on decentralisation reforms. 
  • Organised workshops on member participation in national and European processes. 
  • Delivered capacity-building through externally funded projects in areas such as EU funding, climate adaptation, gender equality, migration, and SDG implementation. 

Raising Visibility and Engaging Citizens 

2021 was also a year of celebrations: 

  • 70th anniversary of CEMR and the 15th anniversary of the Equality Charter brought together 500 participants online. 
  • Pan-European campaigns were launched for Europe Day, SDG Day, and equality, highlighting the voices of local leaders and women in politics. 
  • CEMR ensured visibility for its spokespersons through social media, interviews, videos, and participation in international events. 

In numbers: 

  • Over 120 articles published in English and French. 
  • More than 650 tweets reaching 1 million views. 
  • 14 newsletters delivered to the network. 

Strengthening Internal Organisation 

CEMR took concrete steps to become a more sustainable, inclusive, and resilient organisation: 

  • Two online Policy Committee meetings gathered 170 elected representatives to adopt policy positions and validate the strategy. 
  • A new Secretary General selection process was launched. 
  • Internal processes were modernised with digital templates, e-signatures, and reduced paper use. 
  • Staff received training on project management, budget monitoring, public speaking, and team collaboration. 

Milestones and Campaign Highlights 

  • Advocated for local governments to be included in post-COVID recovery plans (#CohesionAlliance). 
  • Shared local leaders’ visions for the Conference on the Future of Europe
  • Continued the #Power2Her and #LocalEquality campaigns on gender equality. 
  • Helped secure recognition of the multilevel cooperative model in the Glasgow COP26 agreement

2021 was a year of adaptation, resilience, and influence for CEMR. Despite the challenges of the pandemic, the network succeeded in shaping European debates, amplifying the voice of local and regional governments, and strengthening internal capacities. With a stronger foundation and renewed strategy, CEMR continues its mission to empower Europe’s municipalities and regions to lead sustainable change. 

Read the study here

For more information, contact:

Recovery & Resilience Facility funds 

RRF Consultation - News

Local and regional governments warn of weak involvement, risks of fund misallocation, and limited ownership of recovery plans 


The Recovery and Resilience Facility (RRF) is the EU’s largest ever economic support plan, launched in response to the COVID-19 crisis. While national governments designed National Recovery and Resilience Plans (NRRPs) to guide investments and reforms until 2026, a new consultation by the Committee of the Regions (CoR) and the Council of European Municipalities and Regions (CEMR) highlights a persistent problem: local and regional authorities (LRAs) remain sidelined in the process. 

Weak involvement in preparation and governance 

The survey, conducted in early 2022 among 26 associations across 19 EU member states, shows that most LRAs had little to no influence on defining objectives, reforms, or investments. Compared with 2021, dialogue with national governments slightly improved, but respondents stress that these consultations had minimal impact on final plans. Governance of the process remains largely top-down. 

Mixed views on the plans’ content 

Respondents were broadly positive about the NRRP’s contribution to the green (37% earmark) and digital transitions (20% earmark). However, they expressed doubts about the plans’ ability to advance territorial cohesion, one of the RRF’s six pillars. The interplay between NRRPs and other EU funds such as the ERDF or Cohesion Fund also remains unclear and inconsistent, raising fears of overlaps and inefficient spending. 

Implementation: low ownership, high risks 

When it comes to implementation, optimism is scarce. Only a handful of LRAs reported having a meaningful role in monitoring, adapting, or co-managing projects. Ownership is strikingly low, despite LRAs’ frontline role in pandemic response and recovery. The main barriers identified were a lack of political will at the national level and tight or unsuitable formats and timelines, rather than a lack of local capacity. 

These shortcomings translate into serious risks: 

  • Failure to meet milestones and targets 
  • Misallocation of funds 
  • Increased territorial disparities 
  • Public distrust in the EU and national institutions 

Calls for stronger EU-level monitoring 

To improve outcomes, respondents strongly supported enhanced dialogue between the EU and local/regional representatives and the creation of an early warning mechanism to flag delays or problems in implementation. 

Conclusion 

Two years after the pandemic outbreak, Europe’s recovery is underway, but its governance remains overly centralised. The CoR-CEMR consultation warns that without meaningful involvement of local and regional governments, the RRF risks missing its objectives, weakening both recovery efforts and citizens’ trust in the European project. 

Read the study here 

For more information, contact: 

Investing in Europe’s future 

Investing in Europe - News

A new EU growth model must empower local services, boost resilience and deliver sustainable investments 


The war in Ukraine and the aftermath of the COVID-19 crisis have placed Europe at a critical crossroads. These overlapping challenges are testing the strength of our democracies, economies and social fabric and call for a bold rethinking of Europe’s economic governance. 

In response, the SGIs Network, bringing together key public service stakeholders, has issued a joint declaration ahead of the Tripartite Social Summit on 23 March 2022. The message is clear: to manage the transition and strengthen the EU’s resilience, Europe must urgently shift towards a more forward-looking, inclusive and investment-oriented growth model. 

A new economic framework 
The current EU fiscal rules are no longer fit for purpose in the face of permacrisis. The declaration calls for a reformed fiscal architecture that reconciles debt sustainability with long-term, growth-enhancing investments. This includes distinguishing productive investments, such as in green infrastructure, digitalisation, healthcare and education, from unproductive spending. 

Empowering local action 
Local and regional governments are essential to achieving a green, digital and fair transition. The declaration stresses the need for their full involvement in implementing the National Recovery and Resilience Plans (NRRPs) and accessing the Next Generation EU funds. Without this multilevel approach, the EU risks missing the full potential of its recovery strategy. 

From temporary response to permanent capacity 
As the NGEU package and current EU budget cycle expire in 2026–2027, the declaration urges leaders to prepare for a longer-term fiscal and investment strategy. A permanent common fiscal capacity will be vital to address future shared challenges, from climate change to geopolitical instability, and avoid deepening inequalities between territories. 

The call from the SGIs Network is not just for more funding, but for better governance and greater solidarity. It is a reminder that investing in public services, social cohesion and local resilience is not a cost. It is the foundation of a stronger, united Europe. 

Read the declaration here 

For more information, contact: 

Empowering local Europe 

European Town - News

CEMR unveils its vision for stronger, inclusive and sustainable territories across Europe


The Council of European Municipalities and Regions (CEMR) has launched its political manifesto calling for a more inclusive, resilient, and citizen-driven European Union. With over 41 national associations of local and regional governments behind it, the manifesto sets out a roadmap to bring Europe closer to its citizens, starting from the ground up. 

At its heart are six concrete proposals to reinvigorate European democracy: from establishing permanent citizen panels and annual Europe Day debates in schools, to relaunching town twinning and creating an Erasmus-style programme for civil servants. 

CEMR also stresses that a strong Europe must leave no one and no place behind. It calls for renewed efforts to tackle territorial disparities, address depopulation, and ensure that public services, from education to health, are accessible to all citizens, no matter where they live. 

The manifesto also focuses on key priorities for the coming decade, including: 

  • Citizen participation through inclusive local democracy; 
  • Empowered local climate action, as cities and regions lead Europe’s green transition; 
  • Fair and coordinated migration policies, with strong local support for integration; 
  • Digital transformation that bridges the urban–rural divide; 
  • New forms of town-to-town partnerships, especially beyond the EU’s borders; 
  • And financial means to invest in sustainable local infrastructure and innovation. 

CEMR’s proposals emphasise the urgent need for deeper recognition of local and regional governments in European decision-making. This includes a stronger role for the Committee of the Regions, the creation of a local chamber, and systematic consultation of representative associations like CEMR when shaping EU legislation and strategies. 

By calling for a Europe that is democratic, sustainable, and close to its people, the manifesto is a bold invitation to reimagine the Union from the local level up, with municipalities and regions playing a central role in shaping the continent’s future. 

Read the position paper here 

For more information, contact: 

Boosting public investment for recovery

Cohesion Policy Alliance - News 2021

CEMR calls for investment-friendly EU economic governance reform


The COVID-19 crisis exposed vulnerabilities in Europe’s economic governance and the need to rethink how EU rules support long-term, sustainable investment at all levels of government. In its 2022 position, the Council of European Municipalities and Regions (CEMR) argues that the reform of the EU’s economic governance framework is a vital opportunity to unlock local and regional investment capacity.

Local and regional governments, which account for 45% of public investment in the EU, were heavily impacted by the crisis. While they expanded essential services and supported communities, they also faced falling revenues and limited fiscal space. CEMR warns that without urgent reform, municipalities risk being held back from investing in vital green, digital, and social transitions.

CEMR proposes several key changes:

  • Strengthen multi-level governance: Local and regional voices must be involved in economic coordination, including through a reformed European Semester with mandatory application of the partnership principle.
  • Recognise investment as a priority: The new framework must distinguish between current spending and long-term, sustainable investment to avoid penalising municipalities for future-oriented projects.
  • Grant borrowing flexibility: Local and regional borrowing for structural investments should not be constrained by national debt calculations under the Stability and Growth Pact.
  • Establish a European municipal and regional bank: This new facility within the EIB would support local investment, particularly through pooled resources and tailored green or social bonds.
  • Support local capacity building: Municipalities need the tools and skills to plan and deliver strategic investments, especially in health, care, and infrastructure.

CEMR also highlights the importance of maintaining local leadership in the implementation of National Recovery and Resilience Plans. Without adequate autonomy, funding, and engagement, the EU’s sustainable recovery goals, particularly those of the Green Deal, risk being delayed or derailed.

Ultimately, CEMR calls for a governance framework that enables, not restricts, local ambition, empowering municipalities and regions to invest in the future of Europe’s communities.

Read the position paper here

For more information, contact: