This undermines the effectiveness of policy and the capacity for problem-solving at local level. The European Union should contribute to a more integrated trans-sectoral response to urban problems on the ground, in line with the principle of subsidiarity and modern governance practices. In this, the Commission should also encourage Member States to apply subsidiarity at home. The traditional focus on particular sectors proves inadequate in the light of the predominance of the service economy and the growing importance of human and social capital. Networking and clustering of activities have become more important than old-fashioned sectoral lines.
Partnership is the third principle.
This is not simply partnership of a vertical nature, from the local to the European level. There is certainly a need for urban authorities to have better access to the formulation and implementation of European policies. On this basis, we can expect that the Commission will present action mainly in the form of provision of urban policy tools, exchange of experience and development of European know-how, but also in the form of guidelines for the use of EU financial resources, especially for the Structural Funds, and in some cases, in the form of legislative acts. In this way the EU can be a catalyst of change in national urban policies and governance. Issues for action Preparation of the Action Plan in the Commission has not reached a definitive stage.