‘Cohesion policy – the driving force in implementing the EU agenda for cities’

This report stems from the awareness that cities and urban areas are the economic, social and productive heart of the European Union today.

Around three quarters of Europeans live in urban areas, and cities are precisely where the main challenges facing Europe are concentrated: access to housing, economic competitiveness, energy pressure, social inclusion, security, mobility, resilience and the digital transition. At the same time, cities are also the places where most EU policies are concretely implemented and where innovative solutions can emerge that can be replicated across the EU.

The report welcomes the new EU agenda for cities presented by the European Commission, recognising the value of a policy framework that aims to strengthen the urban dimension of EU policies. In particular, it recognises the central role played by cohesion policy and EU instruments dedicated to sustainable urban development, which have helped to support investment, innovation and resilience in urban areas in recent years.

The report also highlights the important results already achieved through the midterm review of cohesion policy proposed by the European Commission, which allowed Member States to quickly adapt to the priorities that have emerged in recent years. In particular, the reallocation of resources to strategic areas such as affordable housing, the energy transition, infrastructure, water management, competitiveness and resilience has made it possible to strengthen support to EU cities and citizens in a context of overlapping crises and new economic and social pressures.

While welcoming the Commission’s approach, the report highlights the need to further strengthen the role of cities in EU governance. Local and regional authorities cannot be seen solely as implementers of EU policies – they must be recognised as genuine actors in making those policies. Cities are the level of government closest to citizens and the places where a significant proportion of EU investment is concretely implemented.

For this reason, the partnership principle and multilevel governance need to be applied more concretely and effectively, ensuring a structured and permanent involvement for cities in EU decision-making processes, including in the framework of the future national and regional partnership plans.

The report also expresses concern that the current proposal for national and regional partnership plans does not sufficiently acknowledge the urban dimension and does not provide adequate assurances for the involvement of cities in the planning and implementation of investments. However, it is essential that Member States ensure the effective involvement of urban authorities, so that EU priorities can be adapted to the concrete needs of these areas through a truly place-based approach.

One of the central topics addressed by the report is the housing crisis, which is now one of the main social and economic emergencies in European cities. The growing difficulty in accessing affordable housing is exacerbating social and territorial inequalities, negatively affecting labour mobility, economic competitiveness and social cohesion. To this end, the report welcomes the European affordable housing plan announced by the Commission and supports the need to mobilise both public investment and private capital, including through public-private partnerships and cohesion policy instruments.

In this context, we would like to stress the importance of the ‘right to stay’ principle, also recently showcased by the Commission, understood as the right for people to continue living, working and building their future in the areas they call home.

The issue of housing concerns a broader dimension, including access to services, the quality of social relationships and the possibility for people to participate fully in community life.

Ensuring accessible housing, quality services, economic opportunities and efficient infrastructure is essential for strengthening social cohesion and for combating territorial exclusion, youth social withdrawal and depopulation.

These conditions are a fundamental prerequisite for addressing the demographic challenge facing many European cities, supporting the formation of new families, encouraging young people to stay in the regions and helping to create a more favourable environment for the birth rate and generational renewal.

Relational cohesion and community-based social well-being must therefore be integrated into urban strategies, with the planning and maintenance of community-based infrastructure as a structural component and not as a residual element. Cities must be empowered to provide sustainable and accessible living conditions, especially for young people, families and vulnerable groups.

The report also highlights how the housing issue needs to be addressed through an integrated approach, including both the construction of new housing and the upgrading of the existing building stock, while respecting the characteristics unique to each area and the principles of the new European Bauhaus. Given their proximity to the concrete needs of citizens, cities must play a central role in the design and implementation of these strategies.

In addition, the report stresses the importance of ensuring quality essential urban services, including transport, education, healthcare, employment and safe public spaces. Cities are key hubs for mobility, economic productivity and access to opportunities, but they have to deal with increasingly significant challenges related to urban congestion, security, and pressure on public infrastructure. For this reason, the report supports targeted investments in sustainable mobility, multimodal hubs and efficient and accessible public transport systems.

Urban security, both real and perceived, is another central element. The quality of urban design and public infrastructure can significantly contribute to enhancing public safety and the liveability of cities, including through accessible public spaces, adequate lighting and safe transport, especially for vulnerable individuals and women, who are often victims of aggression. A safe city promotes social cohesion, democratic participation and quality of life.

The report recognises the role of sport as a tool for promoting health, social inclusion and youth participation, and highlights the importance of ensuring accessible and quality sports infrastructure in cities of all sizes.

It also emphasises the role of innovation, digitalisation and new technologies in the future of European cities. The use of artificial intelligence and advanced digital tools can help improve urban planning, energy efficiency, healthcare delivery, traffic monitoring and management, air quality, and public service management, making cities smarter, more sustainable and more resilient. At the same time, it is crucial that the development and use of artificial intelligence maintains a human-centric approach, placing the individual, citizens’ rights and the improvement of quality of life at the heart of technological innovation.

It is also essential to support research into and the development of advanced solutions for the prevention and management of natural disasters and extreme climate events, which are increasingly affecting areas of Europe. Investing in urban resilience and the adaptive capacity of cities is a strategic priority for keeping the public safe and developing these areas in a sustainable manner.

Another key aspect concerns strengthening the administrative capacity of cities, especially small and medium-sized ones, which often face greater difficulties in accessing EU funding and planning action to be taken. The report therefore stresses the need to cut red tape, simplify procedures and improve coordination between EU instruments and programmes, avoiding fragmentation and overlaps. In this context, the idea of an EU platform dedicated to cities is welcomed. This instrument should evolve towards a fully-fledged EU one-stop shop for urban authorities that is capable of concentrating in a single access point all available funding opportunities at EU level, technical assistance services, capacity building activities and tools for exchanging good practices. The aim should be to accompany local administrations throughout the life cycle of projects, making it easier to turn ideas into concrete action for the benefit of the public. There should be a particular focus on small and medium-sized cities, island cities and rural areas, which face additional challenges and often have limited administrative capacity and encounter more difficulties in accessing EU funds.

The report also supports the strengthening of EU instruments dedicated to urban development, such as the European Urban Initiative and URBACT, recognising their value in supporting innovation, capacity building, exchange of good practices and cooperation between European cities. There must be a particular focus on small and medium-sized cities, which are an essential part of the European territorial fabric but often have less administrative and financial capacity. In this context, promoting networks of cities and joint projects can facilitate access to EU funds and strengthen territorial cooperation.

To conclude, the report reiterates that the future cohesion policy and the multiannual financial framework 2028-2034 will need to ensure adequate resources for the urban dimension. Cohesion policy continues to be the main EU investment tool in support of cities and must maintain a strong territorial dimension, capable of responding to the specific characteristics and concrete needs of these areas.

In this context, the Commission proposal is an important starting point, but the urban dimension will need to be further strengthened in future EU financial instruments. In particular, we stress the need to ensure an adequate level of earmarking for cities in the framework of the future national and regional partnership plans and the EU Facility as well, in order to avoid the flexibility provided by the new financial architecture from leading to a reduction in urban development investments.

The report therefore calls on Member States to show greater ambition in allocating resources dedicated to urban policies, recognising the strategic role played by cities in social cohesion, European competitiveness, and innovation.

Finally, it is crucial to simplify access to EU funds, reducing fragmentation and overlaps between financial instruments, in order to enable local authorities, especially small and medium-sized cities, to make more effective use of the opportunities available.