Rethinking EU budget design to empower local and regional governments post-2027
The Council of European Municipalities and Regions (CEMR) highlights the critical role of local and regional governments in shaping Europe’s future Cohesion Policy and the next Multiannual Financial Framework (MFF). Municipalities, cities and regions are at the frontline of delivering essential services, from transport to education and climate adaptation, while also being major drivers of public investment. Yet, the upcoming EU budget debates risk sidelining their role, particularly with the disappearance of the Treaty objective for Territorial Cohesion.
CEMR calls for a strong, ambitious Cohesion Policy that maintains at least one-third of the EU budget and embeds key principles such as partnership, multi-level governance, and place-based development. Simplification is a top priority: fewer funds, a single set of rules for beneficiaries, and reduced administrative burdens would make EU resources more accessible and effective. Importantly, local and regional governments must be clearly recognised as beneficiaries and implementing partners to ensure funds reach citizens directly.
A place-based and integrated territorial approach should be at the core of future instruments, designed bottom-up with local authorities defining priorities. CEMR stresses that Cohesion funds must not be redirected towards large corporations without strategic planning, but rather reinforce local and regional capacity for innovation, sustainability, and economic growth.
For the post-2027 EU budget, the message is clear: no successful European project without local and regional governments at its heart. Territorial cohesion, simplified rules, and genuine partnership are essential to delivering a fair, sustainable, and effective Cohesion Policy.
For more information, contact:
Advisor – Territorial Cohesion & Local Finances
