Promoting sustainable urban development in Europe : achievements and opportunities.
Date: 2011-05-31
Institutions: Directorate-General for Regional and Urban Policy
Subjects: deprived urban area, regional policy, sustainable development, town, urban area

Promoting sustainable 
ur ba n development in Europe
ACHIEVEMENTS AND OPPORTUNITIES

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Promoting sustainable 
ur ba n development in Europe
ACHIEVEMENTS AND OPPORTUNITIES

With over 70% of Europeans living in urban areas, cities and metropolitan areas are the motors of economic growth 
and home to most jobs. They play a key role as centres of innovation and the knowledge economy. 
At the same time, urban areas are the frontline in the battle for social cohesion and environmental 
sustainability. The development of disadvantaged urban areas is an important step in unleashing economic powers 
by creating more cohesive and attractive cities.

Promoting sustainable urban development is a key element of European Cohesion Policy seeking to exploit 
Europe's full economic potential. Building on the experience and strengths of the URBAN Community Initiative 
and the European ‘Acquis Urbain’, Member States and regions have the possibility to design, program 
and implement tailor-made, integrated development operations in all European cities. 
This brochure takes stock of what has been achieved so far. By reﬂ ecting on the key principles of integrated urban 
development, by giving examples from across the European Union and by sketching a few paths forward, 
the brochure provides both guidance for the less-experienced and inspiration for the well-experienced. 

Inforegio
Consult the Inforegio website for an overview of EU European Regional Policy: 
http  : //ec.europa.eu/regional_policy/ 

regio-info@ec.europa.eu

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European Commission, Directorate-General for Regional Policy
Unit C2 – Urban development, territorial cohesion 
Władysław Piskorz
Unit B1 – Information, communication, relations with third countries
Raphaël Goulet
41, avenue de Tervueren, B-1040 Brussels
Fax: +32 2 29-66003
regio-info@ec.europa.eu
http://ec.europa.eu/regional_policy
© European Communities, 2009
April 2009
Reproduction is authorised provided the source is acknowledged
Printed in Belgium
The texts of this publication do not bind the Commission.
The opinions expressed in this publication are those of the author
and do not necessarily reﬂ ect the views of the European Commission.
Photos: Cover © Eva Serrabassa/iStockphoto.com
Inside: p5 and p6 © DG REGIO; p7 © Alexander Ferstl; p8 © Nottingham Tram Consortium 2005; p10 © DG REGIO; p12 © EC; p13 © URBACT Joint Technical Secretariat, France; 
p15 © DG REGIO; p16 © DG REGIO; p17 © Nottingham Tram Consortium 2005; p19 © Alexander Ferstl; p20 © EG DU Entwicklungsgesellschaft Duisburg mbH; p21 © DG REGIO; 
p22 © DG REGIO; p23 © City of Venice; p24 © DG REGIO; p25 © DG REGIO; p26 © EC; p27 © IIUE - The International Institute for the Urban Environment ; 
p28 © Ramnicu Valcea Municipality; p29 © DG REGIO; p30 © DG REGIO; p31 © DG REGIO; p33 © DG REGIO; p35 © DG REGIO; p36 © EC; p37 © Wolf-Christian Strauss, Berlin; 
p38 © Alexander Ferstl; p42 © EC; p44 © Nottingham Tram Consortium 2005; p45 © DG REGIO; p46 © ELAt (the Eindhoven-Leuven-Aachen triangle); p47 © EC; p48 © EC; 
p49 © Leibniz Institute of Ecological and Regional Development; p50 © DG REGIO.
DOI 10.2776/85168

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Promoting sustainable 
ur ba n development in Europe
ACHIEVEMENTS AND OPPORTUNITIES

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TABLE OF CONTENTS    

chapter 1  

STRENGTHENED CITES, GROWING REGIONS 
Milestones in Cohesion Policy support for urban development 

Chapter 2  

THE ROLE OF CITIES AND URBAN POLICIES 
FOR SUSTAINABLE DEVELOPMENT IN EUROPE 
Developing more balanced and harmonious settlement 
patterns in Europe 

Cities as drivers of regional development 

Growth – stagnation – decline: Policy responses 
to the diverse challenges in European cities 

Getting disadvantaged neighbourhoods back on track 

Special challenges in and for the new Member States 

How Cohesion Policy instruments can contribute to 
good urban governance at all levels 

Chapter 3  

TOWARDS A COMMON EUROPEAN METHODOLOGY 
FOR SUSTAINABLE URBAN DEVELOPMENT 
Developing a city-wide vision that goes beyond each project 

Achieving more: The integrated approach as an added value  

Getting things done: Financing and investing with lasting eﬀ ects 

Getting things done: Creating strong local and regional partnerships 

07

09

17

17

18

18

19

21

21

25

26

30

35

38

Getting things done: Proﬁ ting from knowledge and exchanging experience 40

Getting things done: Monitoring the progress 

Key elements of sustainable urban development  

Chapter 4  

PERSPECTIVES ON THE FUTURE DEVELOPMENT 
OF EUROPEAN CITIES 
Cities in the context of globalisation 

Cities, demographic change and migration 

Increasing energy eﬃ  ciency, tackling climate change 
and combating urban sprawl 

A common vision for the future development of European cities 

GLOSSARY 

FOOTNOTES 

42

43

45

45

47

49

51

53

57   

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FOREWORD

Cities and metropolitan areas are the motors of economic growth and home to most jobs. They play 
a key role as centers of innovation and the knowledge economy. At the same time, urban areas are 
the frontline in the battle for social cohesion and environmental sustainability.

European regions largely proﬁ t from the cities' enormous potentials for increased competitiveness and 
employment. With over 70% of Europeans living in urban areas, cities are at the heart of Cohesion 
Policy interventions seeking to exploit Europe's full economic capacities. To facilitate or to indeed start 
this process, cities often need support in overcoming existing obstacles to growth. The development 
of disadvantaged urban areas is often an important step in unleashing economic powers by creating 
more exclusive and attractive business environments. 

Cohesion Policy plays and will continue to play an important role in this complex system. Indeed, the 
role of city-focused operations and strategies expands in the new 2007-2013 programming period 
as the urban dimension is now fully integrated into the Cohesion Policy operational programmes. 
Building on the experience and strengths of the URBAN Community Initiative, Member States and 
regions have been given the possibility to design, program and implement tailor-made, integrated 
development operations in all European cities. 

Danuta Hübner
Commissioner for Regional Policy

Two generations of URBAN Community Initiative programmes have demonstrated the value of this 
integrated approach in around 200 cities across Europe. Elements such as cross-sectoral coordination of actions, strong horizontal partnerships, 
increased local responsibilities and the concentration of funding on selected target areas constitute key success factors of the URBAN Community 
Initiative, and a common European ‘Acquis Urbain’. The current programming period takes up this successful approach, and suggests spreading 
this methodological concept to cities and regions across Europe. Therefore, it is also at the core of the JESSICA initiative for loan-based operations in 
cities and the URBACT programme for sharing best practice on integrated urban development.

I am convinced that promoting sustainable urban development is essential at all political levels. Member States and regions, in fact the European 
Union as a whole, need sustainable and cohesive cities for having a stable and consistent basis for developing future strategies – and for designing 
policy responses to major economic and social challenges. With this publication the Commission takes stock of what has been achieved so far. By 
reﬂ ecting on the key principles of integrated urban development, by giving examples from across the Union and by sketching a few paths forward, 
this brochure provides both guidance for the less-experienced and inspiration for the well-experienced.  I believe that this publication gives some 
good reasons for making urban development an important topic in all European regions. 

My hope is that this brochure will encourage, inform and inspire those who, like me, believe that cities are vital for Europe’s progress and that Europe 
is crucial for the cities’ success.

Danuta Hübner
Commissioner for Regional Policy

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CHAPTER  

     STRENGTHENED CITES, GROWING REGIONS

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CHAPTER   1

The dynamics of cities in Europe1

•    Currently over 70% of Europeans live in urban areas. Most of 
the EU’s population, just over 60%, live in medium-sized cities 
with more than 50 000 inhabitants. There are around 6 000 
towns or cities with over 5 000 people and almost 1 000 cities 
with over 50 000 people in the EU, in which economic, social 
and cultural activity is concentrated. However, only 7% of the 
EU-27 population live in metropolises of over ﬁ ve million 
(against 25% in the US)2.

•    Cities are engines of economic growth for Europe: those with 
more than one million inhabitants generate 25% more Gross 
Domestic Product (GDP) than the EU average, as well as a 40% 
higher GDP than their home nation’s national average. In virtu-
ally all EU Member States, urban areas are the chief producers 
of knowledge and innovation.

•    Because they concentrate economic added value, urban areas 
are the chief producers of knowledge and innovation. As drivers 
of competitiveness, cities are the platforms of technological 
innovation and multinational activities, ranging from primary 
research at universities to cutting-edge research for high-tech 
businesses.

•    The service sector is the most important source of employ-
ment in European urban economies. For example, in London, 
Paris, Berlin, Madrid and Rome the service sector accounts for 
between 80% and 90% of total employment.

Cities – a motor for economic growth.

STRENGTHENED CITIES, 
GROWING REGIONS

Cities play a vital role for the development of European regions. 
They are key to increasing the European Union’s worldwide com-
petitiveness. Cities are home to the majority of jobs, ﬁ rms and higher 
education institutes and their action is decisive in bringing about 
social cohesion. They are also the focal point of innovation, entrepre-
neurship and economic growth, areas in which the EU has ambitious 
objectives. Where cities and neighbourhoods are strong, the regions 
around them show stronger growth and are more competitive.

Since 2005, the renewed Lisbon Strategy for Growth and Jobs has 
made a strong contribution to Europe’s economic growth3. In the 
context of Cohesion Policy, this means for example that between 
2007 and 2013 certain proportions of the Policy’s €347.41 billion 
budget (35.7% of the total EU budget) will be earmarked for invest-
ments that boost economic growth in the EU’s Member States, 
regions, towns and cities4. 

European cities are key to reaching the Lisbon goals, since they act 
as the motors for regional growth, innovation and employment 
creation5. It is crucial that towns and cities of all sizes become or 
remain attractive, both to residents and businesses. This is important 
not only for big agglomerations and global nodes, but also for small 
and medium-sized towns, since their health is often crucial for the 
well-being of their regions. Their capacity to innovate and create 
new economic opportunities is a prerequisite to ensuring that these 
regions do not lose out in global competition. Furthermore, strong 
regional economies, driven by competitive cities, are better able to 
aﬀ ord social inclusion and to maintain and protect the physical and 
natural environment.

In times of economic crisis, cities must use their innovative and 
integrative potential to play a proactive role. Indeed, diﬃ  cult cir-
cumstances might even open up opportunities for them to intro-
duce structural reforms and accelerate the necessary adaptation 
to changing economic and social realities, which – under normal 
conditions – would be more diﬃ  cult to achieve.

All over Europe, cities are a nexus for needs and opportunities. 
They oﬀ er exceptional possibilities for economic development, 
social inclusion and well-being, and they have unique cultural and 
architectural sites. At the same time, pockets of deprivation (social 
exclusion, poverty and crime) still persist. The disparities within 
cities are often much larger than the regional or national average 
performance might indicate.

As economic development can only be sustainable when it is ac-
companied by measures designed to reduce poverty, social exclusion 
and environmental problems, the integrated approach not only 
encourages growth and jobs throughout Europe, but also pursues 
social and environmental objectives6. 

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“ Cities play a vital role for the development 
of European regions „ 

The beneﬁ ts of economic growth should be extended to the poorest 
and most vulnerable in society. Social cohesion, and tackling pov-
erty, joblessness and social alienation are all important EU priorities. 
The less-favoured social groups include not just the poor and the 
long-term unemployed, but also immigrants, ethnic minorities and 
young people in deprived areas. Inclusion in the labour market and 
aﬀ ordable access to basic services are therefore speciﬁ c goals for 
EU Structural Funds. Towns and cities play a decisive role in bring-
ing about social cohesion7. This is particularly true for cities that 
are exposed to problems of social exclusion and social inequalities 
between diﬀ erent groups of people.

Moreover, politicians of all nationalities and political parties recognise 
the importance of urban issues. Successive presidencies of the EU 
have recognised urban issues, particularly at the Informal Ministerial 
Meetings on Urban Development in Lille in 2000, in Rotterdam in 
November 2004, in Bristol in December 2005, in Leipzig in May 2007 
and in Marseille in November 2008. These were occasions when 
Ministers from around the EU forged a new culture of cooperation 
on urban aﬀ airs with the European Commission, the European 
Parliament, the Committee of the Regions and other European 
Institutions. On the strength of this cooperation, they committed to 
supporting the development of strong European cities and regions, 

Greening the city – economic development must 
be sustainable.

The diversity across and within European cities  – some facts and ﬁ gures8

•   The patterns of ‘urban population change’ in European cities are complex and very diverse. In the period from 1996-2001, a third of 
cities grew at a rate in excess of 0.2% per year; a third saw their populations remain stable (rates of population changing between 
-0.2 and 0.2%), and a third experienced a notable decline in population.

•   Highly qualiﬁ ed people are over-represented in cities, as are those with very low-level skills and qualiﬁ cations. Cities oﬀ er exceptional 
possibilities for economic development, social inclusion and well-being and have unique cultural and architectural sites. At the same 
time, pockets of multiple deprivation (i.e. social exclusion, poverty and crime) are still apparent. The disparities within cities are often 
much larger than the regional or national average performance may suggest.

•   Unemployment rates tend to be higher in cities, although the concentration of jobs in cities is even stronger than that of residents 
and many of Europe’s main employment centres are within cities. Europe’s largest cities are truly economic powerhouses. However, 
within cities, between city districts, very large diﬀ erences in unemployment rates remain visible.

•   Together with natural population growth, migration is a crucial determining factor for urban population change. The share of ‘new-
comers’ in European cities (i.e. people that have moved to the city in the previous two years) varies widely across Europe. A high 
proportion of newcomers (5% or more) can be observed in cities in for example Ireland, France, Denmark and Germany.

•   Many cities located in the EU face problems related to inner-city decay. This is the result of development during which the historical 
core of the city gradually lost its traditional role and where both economic activity and many original inhabitants moved towards 
more outer-lying areas. This trend has led to urban sprawl, exacerbated by weak urban-planning mechanisms.

•   Cities throughout the EU are facing pressures and challenges related to road congestion, air and noise pollution. These problems 
have been aggravated by, amongst other things, the steady growth of many southern European cities in recent years (e.g. Athens, 
Thessaloniki, Madrid, Barcelona, Lisbon and Porto). 

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1

CHAPTER

based on new and sustainable strategies. With the ‘Leipzig Charter 
on Sustainable European Cities’, they recommended:

(cid:132)  making greater use of integrated urban development policy 
approaches (by creating and ensuring high-quality public spaces, 
modernising infrastructure networks and improving energy 
eﬃ  ciency, proactive innovation and educational policies);

(cid:132)  paying special attention to deprived neighbourhoods within the 
context of the city as a whole (by pursuing strategies to upgrade 
the physical environment, strengthen the local economy and 
local labour market policy, instigate proactive education and 
training policies, and promote eﬃ  cient and aﬀ ordable urban 
transport).

Building on the experience of previous Community initiatives and 
programmes to support urban development and regeneration 
(like the URBAN Community Initiative), this process of creating new 
development strategies has led to the emergence of a common 
European ‘Acquis Urbain’.

Cohesion Policy plays, and will continue to play, an important role in 
this process of supporting the development of Europe's towns and 
cities. This role has expanded in the 2007-2013 programming period, 
as the urban dimension is now fully integrated into programmes and 
projects that are co-ﬁ nanced by the European Regional Development 
Fund (ERDF). This has given Member States and regions the possibil-
ity to design, programme and implement tailor-made, integrated 
development operations in all European cities on the basis of the 
so-called ‘integrated approach’9. An approach of this kind combines 
elements such as cross-sectoral coordination of actions, strong 
horizontal partnerships, increased local responsibilities and the 
concentration of funding on selected target areas that form the key 
elements of this common European ‘Acquis Urbain’10.

The integrated approach is in line with the renewed Lisbon Strategy 
of 2005, which followed the goal of the EU becoming the most 
competitive and dynamic knowledge-based economy in the world, 
capable of sustainable economic growth with more and better jobs 
and progressing towards economic and social cohesion by 2010, 
through the renewal of Europe’s competitiveness. This approach 
aims at increasing Europe’s growth potential and its productivity 
and strengthening social cohesion, building on the Strategy's three 
dimensions (economic, social and environmental aspects)11. 

The environmental and sustainability aspects of the integrated 
approach build on the 2001 European Sustainable Development 
Strategy (the ‘Göteborg Strategy’). Dealing with multiple aspects 
of sustainable development, the Strategy proposes measures to 
tackle threats such as climate change, poverty, social exclusion and 
the ageing population, as well as issues such as public health and 
transport. On the basis of a review of the Göteborg Strategy that 
started in 2004, the European Council adopted the EU Sustainable 
Development Strategy (SDS) in June 2006. Themes that are crucial to 
towns and cities are also key priorities under the SDS: climate change 

and clean energy, sustainable transport, sustainable consumption 
and production, conservation and management of natural resources, 
public health, social inclusion, demography and migration as well 
as global poverty12. 

Milestones in Cohesion Policy support 
for urban development

Although there is no legal basis for urban policy in the treaties es-
tablishing the European Union (EU) and the European Communities 
(EC), the EU has a long tradition of being active in the ﬁ eld of urban 
development and regeneration and has taken on a major role in 
supporting cities and regions in their quest for competitiveness and 
cohesion. It is widely recognised that there is a strong need to take 
into account the urban dimension of EU policies and especially of 
Cohesion Policy. That is because not dealing with urban issues at 
a European level and the absence of a common understanding of 
urban development policies at European level, a European ‘Acquis 
Urbain’, would endanger the achievement of the objectives of the 
EU’s Lisbon and Sustainable Development Strategies.

Over the last two decades, the EU has produced a number of major 
political documents, Community initiatives and programmes to 
support urban regeneration, innovation in urban policy and the 
exchange of experience and good practice; in addition, the pace 
and complexity of change has quickened13. The initiatives and pro-
grammes mainly focus on four political objectives: 

(cid:132)  Strengthening economic prosperity and employment in towns 

and cities;

(cid:132)  Promoting equality, social inclusion and regeneration in urban 

areas;

(cid:132)  Protecting and improving the urban environment, in order to 

achieve local and global sustainability; 

(cid:132)  Contributing  to  good  urban  governance  and  local  em-

powerment.

“ Cohesion Policy plays, and will continue 
and cities „ 

to play, an important role in this process of 
supporting the development of Europe's towns 

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knowledge and innovation in urban development and regenera-
tion. The URBAN Initiative aimed at drawing up and implementing 
innovative strategies for regeneration in small and medium-sized 
towns and cities or of run-down urban neighbourhoods in larger 
cities. In addition, URBAN sought to enhance and exchange knowl-
edge and experience from sustainable urban regeneration and 
development in the EU.

The URBAN I and II Community Initiatives have put the integrated ap-
proach into practice in around 200 cities around Europe18. They mainly 
focused on physical regeneration of deprived urban neighbour-
hoods, local economic development, environmental issues, mobility 
and public space, local employment and cultural initiatives.

Between 1994 and 1999, the URBAN I Initiative ﬁ nanced programmes 
in 118 urban areas with a total of €900 million of Community assist-
ance. Around 3.2 million people lived in the supported areas and 
projects focused on the rehabilitation of infrastructure, job creation, 
combating social exclusion and environmental improvements19. 

Between 2000 and 2006, the URBAN II Initiative continued this ef-
fort and commitment to support European cities in their search for 
the best development and regeneration strategies. A total of €730 
million was invested in sustainable economic and social regenera-
tion in 70 urban areas throughout Europe with the support of this 
Community Initiative20.

Resulting in a common European ‘Acquis Urbain’ and URBAN main-
streaming, the URBAN Community Initiatives emphasised a concen-
tration of funding on selected target areas, the increased involvement 
of citizens and local stakeholders (shared responsibility), as well as a 
stronger ‘horizontal’ coordination of urban regeneration measures as 
main elements of an integrated approach towards urban develop-
ment. This approach is continued in the period 2007-2013. 

Clearing up run-down neighbourhoods.

Social and economic regeneration is part of the 
package.

There have been several key milestones in Cohesion Policy to support 
urban regeneration and sustainable urban development14:

The Urban Pilot Projects 1989-1999
The Urban Pilot Projects marked a signiﬁ cant development in urban 
policy and were designed to pave the way for many far-reaching urban 
regeneration projects15. The Urban Pilot Programme was initiated by the 
European Commission after various networks, such as the ‘Quartiers en 
Crise’ European Regeneration Areas Network16, had received funding 
from the RECITE I Programme17 to exchange know-how and innova-
tion and develop new European standards in urban policy. During the 
period 1990 to 1993, a total of 33 Urban Pilot Projects were launched. 
They were implemented in 11 Member States. Some were sustained 
beyond the funding period while others acted as catalysts for further 
regeneration in the target areas concerned.

In July 1997, the Commission approved the Second Phase of the 
Urban Pilot Programme. Out of the 503 proposals that were received 
from local authorities, 26 projects from 14 Member States were se-
lected for funding during the period July 1997 to December 1999. 
They focused mainly on the following topics:

(cid:132)  Economic development in areas with social problems;

(cid:132)  Environmental action linked to economic goals;

(cid:132)  Revitalisation of historic centres;

(cid:132)  Exploitation of the technological assets of cities.

The URBAN Community Initiative 1994-2006
Two  generations  of  URBAN  Community  Initiative  programmes 
have followed the Urban Pilot Programme and they have certainly 
been the most inﬂ uential EU measure in creating and disseminating 

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1CHAPTER

Canarias

Guyane

Guadeloupe
Martinique

Réunion

Açores

Madeira

Urban Pilot Projects and URBAN I and II programmes in the EU-15

REGIOgis

Urban Pilot Projects (1989-1999)

URBAN I programmes (1994-1999)

URBAN II programmes (2000-2006)

0

1 000Km

© EuroGeographics Association for the administrative boundaries

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“ For the ﬁ rst time in the history of Cohesion 
funding „ 

Policy, all cities are potential beneﬁ ciaries of ERDF 

important to capitalise on these opportunities in the coming years. 
The ERDF Operational Programmes make provision for a great variety 
of actions, with far-reaching scope, clearly responding to widely vary-
ing needs on the ground and the diﬀ erent economic backgrounds 
and historical contexts of Europe's cities. More urban operations will 
be involved in Cohesion Policy projects in 2007-2013 than in previous 
programming periods. Over half of all ERDF Operational Programmes 
contain an explicit urban dimension, while around one quarter of 
all OPs have introduced speciﬁ c urban priority axes25.

In the 2007-2013 ERDF Operational Programmes, three diﬀ erent 
groups of measures can be identiﬁ ed26. The ﬁ rst group aims to 
promote the regeneration of deprived and disadvantaged urban 
neighbourhoods (‘URBAN-type actions’). A second group of meas-
ures relates to sustainable urban development in various thematic 
ﬁ elds: increased competitiveness, innovation, job creation, physi-
cal rehabilitation of urban areas and city centres, improvement of 
urban infrastructures such as transport and waste-water treatment 
as well as housing in new Member States. The third group aims to 
promote a more balanced, polycentric development. It seeks to 
develop networks of cities and to create links between economically 
strong cities and other urban areas, including small and medium-
sized cities. Other actions can relate to metropolitan governance 
or urban-rural linkages.

In over 300 Operational Programmes of Cohesion Policy that are 
ﬁ nanced by the ERDF in the period 2007-2013, around 3% of total 
planned EU investment is clearly earmarked as urban (around €10 
billion). In absolute terms, in comparison to regions that fall under 
the Regional Competitiveness and Employment Objective, almost 
three times more money will be invested in cities and towns in 
regions that fall under the Convergence Objective. Around one 
third of the Operational Programmes under the European Territorial 
Cooperation Objective address urban governance related to cross-
border agglomerations, transnational urban systems and improved 
territorial governance27. 

The URBACT Programme 2002-2013
With the Urban Development Network Programme, URBACT, the 
tradition of the RECITE Programme has been continued to support 
the exchange of know-how and experience between key players 
in urban policies across Europe28. The objectives of the URBACT 
Programme are:

(cid:132)  To provide an exchange and learning tool for policy decision-
makers, practitioners and other actors involved in developing 
urban policies;

(cid:132)  To learn from the exchanges between URBACT partners that 

share experiences and good practice;

(cid:132)  To disseminate good practice and lessons learned from exchanges 

between European cities;

Linking Berlin to Germany’s smaller cities will help 
ensure a more balanced development.

The ‘URBAN mainstreaming’ of 2007-2013
For  the  programming  period  2007-2013,  and  with  the  end  of 
the Community Initiatives, the guiding principles of the URBAN 
Community Initiative were included in the regulatory framework 
for the Operational Programmes (OPs) of the Convergence and 
Regional Competitiveness and Employment Objectives (‘mainstream-
ing’)21. This important change allows for an integration of diﬀ erent 
sectoral and thematic policies in all cities throughout Europe in 
the context of the Lisbon Strategy, the Sustainable Development 
Strategy and other EU priorities. It means that Member States and 
regions can continue to apply the successful integrated approach 
of the URBAN Community Initiatives and invest in towns and cities 
through ‘mainstream’ Cohesion Policy Programmes22. For the ﬁ rst 
time in the history of Cohesion Policy, all cities are potential beneﬁ -
ciaries of ERDF funding23.

By now, European regions and Member States have already de-
veloped their Operational Programmes, which provide a basis for 
the strategic use of EU Structural Funds in 2007-2013. A substantial 
part of the Operational Programmes include a strong element of 
sustainable urban development, which builds on experience gained 
in this ﬁ eld in Europe in recent years24. The Operational Programmes 
ﬁ nanced by the ERDF may also include information on the approach 
to sustainable urban development, the list of cities chosen for ad-
dressing urban issues and the procedures for sub-delegation to 
urban authorities.

To date, the opportunities oﬀ ered by the new regulatory framework 
have been well exploited by regions and Member States and it will be 

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“ The URBACT II Programme focuses 
knowledge „ 

clearly on taking advantage of and spreading 

(cid:132)  To  support  city  policy-makers,  practitioners  and  Managing 
Authorities of Operational Programmes in deﬁ ning action plans.

The URBACT I Programme that was conducted between 2002 and 
2006 under the URBAN II Community Initiative was open to all towns 
and cities that had implemented either an Urban Pilot Project or an 
URBAN I Programme. In 2004 it was opened to all cities from the new 
Member States, as they needed guidance and knowledge to confront 
the vast challenges they were facing in urban development. A total 
of €24.76 million was made available, of which €15.9 million came 
from the European level and €8.86 million from the Member States. 
In total URBACT I rallied 217 cities to work in 38 projects. 

With the URBACT II Programme, the EU has expanded its support for 
exchange between European cities during the programming period 
of 2007-2013. With its total budget of almost €69 million (of which 
77% is co-ﬁ nanced by the European Regional Development Fund), 
the URBACT II Programme will ﬁ nance a total of 46 thematic networks 
and 14 working groups. To date, after a ﬁ rst round of calls for propos-
als in 2007/2008, 21 thematic networks and six working groups have 
already been approved for funding under the URBACT II Programme. 
These projects involve 253 partners, of which are 181 cities (some of 
them being involved in two projects simultaneously).

Bringing together national authorities, regional authorities and 
cities from the 27-EU Member States, Norway and Switzerland, the 
URBACT II Programme is focused on improving the eﬀ ectiveness 
of urban development policies in Europe and strengthening the 
common concept of integrated urban development. With a view to 
actively contributing to the implementation of the (renewed) Lisbon 
and Sustainable Development (Gothenburg) Strategies, URBACT II 
concentrates on themes such as entrepreneurship, innovation, the 
knowledge economy, employment and environmental issues. Each 
URBACT II project is linked to one of the three main themes:

(cid:132)  Cities, Engines of Growth and Job Creation;

(cid:132)  Cities, Social Inclusion and Governance;

(cid:132)  Cities and Integrated, Sustainable Development.

The URBACT II Programme focuses clearly on taking advantage 
of and spreading knowledge. Several new features facilitate this 
sharing of information:

(cid:132)  The active involvement of Managing Authorities in URBACT II 
thematic networks and working groups (to date, already more 
than 200 Managing Authorities across Europe are aﬃ  liated with 
the projects, highlighting their interest in working together with 
cities on urban issues);

(cid:132)  The obligation for each participating city to set up a ‘Local 
Support Group’ to widen and deepen the involvement of local 
key players in area-based regeneration;

(cid:132)  The obligation for all participating cities to develop a ‘Local 
Action Plan’ for at least one target area in order to manage the 
transfer of knowledge into actual implementation.

1

CHAPTER

Sharing knowledge at the URBACT annual conference.

The Regions for Economic Change Initiative
Since 2006, the Regions for Economic Change Initiative (RFEC) has 
aimed to speed up the implementation of sound ideas. It seeks to 
strengthen exchange of experience and best practice in innovation 
among European regions by introducing new ways to stimulate not 
only regional but also urban networks like the URBACT projects29. 
Under the European Territorial Cooperation Objective, the initiative 
allows good innovative ideas to be disseminated rapidly into the 
Operational Programmes under the Convergence and Regional 
Competitiveness and Employment Objectives. One special feature of 
the Regions for Economic Change Initiative is the option of granting a 
so-called Fast Track Label to regional or urban networks. This label is 
given to networks which intend to make a vital contribution to one of 
the 30 priority themes of the Initiative and provide a smooth testing 
ground for policy ideas, and which have expressed their interest in 
working closely with Managing Authorities and Commission Services 
and have (ﬁ nally) been assessed by the European Commission.

The Fast Track Networks (FTN) can address one of the following 
seven themes among the 30 under the RFEC which are covered by 
the URBACT Programme:

(cid:132)  Managing migration and facilitating social integration;

(cid:132)  Integrating marginalised youth;

(cid:132)  Building healthy communities;

(cid:132)  Designing integrated policies on urban transport;

(cid:132)  Developing sustainable and energy-eﬃ  cient housing;

(cid:132)  Achieving sustainable urban development;

(cid:132)  Re-using brownﬁ eld and waste disposal sites.

Every year, the most innovative regional projects in Europe that 
would also be inspiring to other regions are awarded by the European 
Commission with a prize, the so-called RegioStars. From 2010 on, the 
RegioStars Awards will also include a special category for innovative 
urban projects, the so-called CityStars (website: http://ec.europa.eu/
inforegio/innovation/regiostars_en.htm).

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C a n a r i a s 

G u y a n e 

G u a d e l o u p e 
M a r t i n i q u e 

R éu n i o n 

A ço r e s 

M a d e i r a 

0 

1 00 0  K m 

© E u r o G e o g r a p h i c s A s s o c i a t i o n f o r t h e a d m i n i s t r a t i v e b o u n d a r i e s 

REGIOgis

R e g i o n s f o r E c o n o m i c C h a n g e : U R B A C T I I F a s t T r a c k N e t w o r k s 
Distribution of the networks’ partner cities and their regions, as covered
by their respective ERDF OPs (March 2009)

Building Healthy Communities - urban health network

HerO - Heritage as Opportunity: Sustainable management strategies for vital, historic urban landscapes

MILE - Managing migration and integration at local level

OpenCities - Openness and the competitive advantage of diversity

RegGov - Regional governance of sustainable integrated development of deprived urban areas

UNIC - Urban Network for Innovation in Ceramics

URBAMECO - The urban, social, economic and cultural regeneration of public housing estates in urban areas

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1CHAPTER

Social Aspects, Economic Aspects, Civic Involvement, Training and 
Education, Environment, Travel and Transport, Information Society 
and Culture and Recreation. With its broad collection of comparable 
data for European cities, the audit delivers a sound statistical basis 
for urban policy-making.

By 2010, the ‘Urban Atlas 2008-2010’ will oﬀ er detailed digital maps 
of more than 300 Urban Audit areas based on satellite images. The 
objectives are to facilitate the comparison of diﬀ erent urban areas 
in the EU and to provide a better insight into the urban structure of 
the EU. At the local level the Urban Atlas will provide city planners 
with up to date spatial information on land use and land cover, of-
fering new tools to assess risks and opportunities and to monitor 
development trends in their wider regions.

“ Regions for Economic Change seeks 
European regions „ 

to strengthen exchange of experience 
and best practice in innovation among 

RegioStars will be joined by CityStars in 2010.

The Urban Audit
Launched by the European Commission in 1998, the Urban Audit 
aims to enable assessment of the state of individual EU cities and 
to provide access to comparative information from those cities30. 
Following a pilot project for the collection of comparable statistics 
and indicators for European cities, the ﬁ rst full-scale European Urban 
Audit took place in 2003, for the then 15 Member States of the EU. 
In 2004, the project was extended to the 10 new Member States 
plus Bulgaria, Romania and Turkey. Under EUROSTAT coordination, 
the work of the Urban Audit involves all national statistical oﬃ  ces 
as well as some of the cities themselves.

The second full-scale Urban Audit took place between 2006 and 
2007 and involved 321 European cities in the EU-27, along with 42 
additional cities in Norway, Switzerland, Croatia and Turkey. The Urban 
Audit contains data across the following domains: Demography, 

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CHAPTER  

        THE ROLE OF CITIES AND URBAN POLICIES 

FOR SUSTAINABLE DEVELOPMENT IN EUROPE

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   2

CHAPTER

the implementation of the Territorial Agenda was adopted in the 
Azores in November 2007.

With its recommendations for an integrated spatial-development 
policy, the Territorial Agenda of the EU aims to harness the potential 
of European regions and cities for sustainable economic growth 
and more jobs. One of the Agenda’s priorities is to strengthen bal-
anced development and innovation through the networking of 
cities and city-regions. This is also underlined by the Leipzig Charter 
on Sustainable European Cities, which likewise stipulates the need 
to promote balanced territorial organisation based on a European 
polycentric urban structure34.

Under Cohesion Policy, the Community strategic guidelines on 
cohesion for the period 2007-2013 state that the promotion of ter-
ritorial cohesion should be part of the eﬀ ort to ensure that all of 
Europe’s territory has the opportunity to contribute to the agenda 
for growth and jobs35. Strategic guidelines on rural development 
also highlight the contribution made to Territorial Cohesion by af-
ﬁ liated programmes36.

To follow up on this process, the European Commission published 
the ‘Green Paper on Territorial Cohesion – Turning territorial diversity 
into strength’ in October 200837. The Green Paper launched a debate 
on territorial cohesion with a view to widening the understanding 
both of the concept and its implications for policy, cooperation 

Bringing cities closer with better transport links.

THE ROLE OF CITIES AND URBAN POLICIES 
FOR SUSTAINABLE DEVELOPMENT 
IN EUROPE

This chapter addresses the importance of cities and urban policies in 
achieving sustainable economic, social and territorial development 
at all levels throughout Europe. After an assessment of economic 
and population settlement patterns in Europe, the focus will switch 
to the role of cities as drivers of regional economic development in 
the face of diverse challenges (for example in the ﬁ eld of disadvan-
taged neighbourhoods). Particular attention will be drawn to the 
special challenges of new Member States and the role Cohesion 
Policy instruments can play in contributing to good governance 
at the various levels.

Developing more balanced and harmonious 
settlement patterns in Europe 

Compared to other parts of the world, the EU has a uniquely diversi-
ﬁ ed population settlement pattern. There are around 5 000 towns 
(population between 5 000 and 50 000) and almost 1 000 cities 
(population above 50 000) in the EU, in which economic, social and 
cultural activity is concentrated. Only 7% of the EU-27 population 
live in cities of over ﬁ ve million inhabitants (against 25% in the US)31. 
However, in the EU, economic activity is far more concentrated then 
the population, notwithstanding the fact that economic activity has 
become more evenly spread in the past ten years both across the 
EU (due to high growth rates in some Member States) and within 
EU Member States. 

Although concentration of economic activity brings economic gain, 
due to clustering of speciﬁ c activities and increasing returns, it also 
causes problems such as congestion, high property prices, social 
exclusion, urban decay (including crime and social unrest), pollution, 
unemployment, below average GDP and the creation of areas with 
untapped growth potential. 

Territorial cohesion – transforming diversity 
into an asset
Over the last ten years, city planners have had to completely change 
their thinking on how cities grow and what ultimately constitutes 
good development. This change was sparked in 1999 when the EU 
Ministers responsible for spatial planning and regional development 
adopted the European Spatial Development Perspective (ESDP)32. 
This landmark initiative not only initiated transnational coopera-
tion programmes (strand B of INTERREG) and the creation of the 
European Spatial Planning Observatory Network (ESPON), it was 
also a starting point for further discussion between EU Ministers. 
This led to the adoption of the Territorial Agenda of the EU at the 
Informal Ministerial Meeting on Urban Development and Territorial 
Cohesion in May 2007 in Leipzig33. The ﬁ rst Action Programme for 

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CASE
STUDIES

Promoting cohesion: Lithuania’s Operational Programme

The European Commission approved the ‘Promotion of Cohesion’ Operational Programme for Lithuania in July 2007, to last until 2013. 
The main objective of the programme is to improve living standards throughout the country, from both an economic and social point 
of view. This is to be achieved by creating the conditions necessary for local development to be strengthened, ensuring accessible, 
high-quality public services of healthcare, education, employment promotion institutions, non-institutional social services and services 
to the disabled, as well as by improving the environment, with a special emphasis on improving energy eﬃ  ciency. 

The programme is expected to support 100 integrated urban development projects in economic growth centres, help 200 development 
projects in problematic territories, improve rural business conditions and employment through 100 development projects, provide 
assistance to more than 300 healthcare, vocational training and social services and provide signiﬁ cant support to the modernisation 
of the country’s social and technical infrastructure.

http://www.ﬁ nmin.lt/web/ﬁ nmin/home
http://ec.europa.eu/regional_policy/atlas2007/index_en.htm

and coordination. Alongside this, it addresses the need to deal with 
gaps between diﬀ erent categories of cities and disparities between 
cities located in regions with diverging rates of socio-economic 
development. 

The Green Paper on Territorial Cohesion identiﬁ es distances between 
urban centres and towns as a practical issue and reminds policy-
makers that they can overcome problems through better transport 
infrastructure, developing fast internet connections and ensuring all 
parts of the population can access services such as higher education, 
training facilities and healthcare. Solutions such as these can result 
in more productive and specialised national, regional and urban 
economies, which are accompanied by higher levels of GDP per 
head, increased employment and greater research, development 
and innovation.

Cities as drivers of regional development

Cities play a key role as drivers of regional economies and economic 
development38. They are the centres of jobs, businesses, higher edu-
cation institutions, innovation and entrepreneurship. As important 
partners in the pursuit of sustainable growth and jobs, towns, cities 
and metropolitan areas also play a crucial role in removing obstacles 
to growth and jobs, such as social exclusion and environmental 
degradation. In addition, European cities attract investment and 
employment by oﬀ ering economic opportunities and a high qual-
ity of life. Facing the challenge of city competition, many cities are 
beginning to work closely with their surrounding authorities and 
administrations to form ‘city-regions’. City-regions can oﬀ er a good 
framework for authorities to work together across a large urban 
area to coordinate developments and complex actions, to deliver 
integrated transport, or to address skills shortages.

In the current funding period of Cohesion Policy (2007-2013), some 
Operational Programmes are building on the key role of cities in 
order to improve urban accessibility (transport and mobility) and 
regional links between the city and the region. Successful regions 
have successful 'core cities' at their heart. Importantly, the 'city-region' 
relationship can be mutually reinforcing if there are positive part-
nerships that can capture the full beneﬁ ts for both the city and the 
region. In a sense, this mutual city-region relationship is based on 
the belief that surrounding areas provide the resources to drive the 
economic growth within urban areas – from which the surround-
ing areas also beneﬁ t. It also links to the aim of territorial cohesion, 
which is the harmonious development of all places, where people 
are equipped to make the most of local and regional assets.

Typically, urban and rural areas are tied together by markets for 
labour, manufactured goods, services and agricultural produce. In 
the context of a globalised economy, where manufactured goods, 
agricultural produce, services and, indeed, skills are traded far from 
the centre of production, these local economic relationships may 
seem less important. However, ﬂ ows within urban-rural areas remain 
a vital ingredient of prosperity, both through the supply of human 
capital and workers’ demand for services.

Growth – stagnation – decline: 
Policy responses to the diverse challenges
in European cities 

Urban management throws up all sorts of varied and conﬂ icting 
interests. Whilst some cities are growing, others are facing stagna-
tion or even decline. Economic growth is often accompanied by 
congestion and pollution, pressures on the housing market and a 
lack of aﬀ ordable housing – which can push families into suburban 
areas and contribute further to urban sprawl. Population loss, on 

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“ Never has there been a greater need for 
and work in partnership and dialogue „ 

city authorities to adopt an integrated approach 

CASE
STUDIES

Providing new impetus: European 
support for a new business zone in 
Slovenska Bistrica

Covering 336 km², Slovenska Bistrica is one of the largest of 
the 210 municipalities in Slovenia. But it is also one of the 
least favoured. The dominant industries in the district are 
food and manufacturing (especially wood), metal production 
(aluminium) and construction. These account for two-thirds 
of its total economic activity. It is a region with many assets, 
starting with the still very aﬀ ordable prices per square me-
tre for commercial investment, as well as housing and the 
extensive public infrastructure. There is also no shortage 
of skilled workers in the region, with 250 000 inhabitants, 
11 000 students and 110 000 workers.

European support to create a new business zone started 
in 2004, and work was completed in February 2006. The 
Bistrica Business Zone covers 270 000 m² and has created 
211 new jobs (73 directly and 138 indirectly in the city and 
its surroundings). It is close to the motorway and bus routes 
and extends across a ﬂ at, unpolluted site not prone to ﬂ ood-
ing. This makes it ideal for the construction of facilities. A 
new waste-management plant is also being built nearby. 
The business zone oﬀ ers both large and small plots of land 
that can also be incorporated, depending on investors’ 
requirements. The arrival of new companies conﬁ rms that 
the authorities were right to support the local economy. 
Unemployment in the city has fallen from 24% in 1994 to 
14% today, coupled with an increase in GDP.

http://www.slovenska-bistrica.si/
http://ec.europa.eu/regional_policy/projects/stories/
index_en.cfm

CHAPTERR2

urban populations and can attract industry, businesses, tourism 
and workforces. Being a mix of architecture, infrastructure 
planning  and  urban  planning,  high-quality  public  spaces 
should be understood as ‘the sum of all the cultural, economic, 
technological, social and ecological aspects inﬂ uencing the 
quality and process of planning and construction’;

(cid:132)  Modernising infrastructure networks. This approach is about 
achieving a high-quality and aﬀ ordable urban transport system 
that includes a network linking the city to the region, as well as 
providing and improving supply networks such as waste-water 
treatment and water supply;

(cid:132)  Improving energy eﬃ  ciency, including the eﬃ  cient use of natural 
resources, economic eﬃ  ciency and the energy eﬃ  ciency in new 
and existing buildings;

(cid:132)  Proactive innovation and educational policies.

An attractive city is a more competitive city. 

the other hand, poses questions concerning the maintenance and 
provision of infrastructure and the cost of providing quality public 
services for a declining numbers of users. Never has there been a 
greater need for city authorities to adopt an integrated approach 
and work in partnership and dialogue.

Recognising this, EU Ministers responsible for urban development 
included all the principles of good urban management in the Leipzig 
Charter on Sustainable European Cities39. They recommended mak-
ing greater use of integrated urban development policy approaches 
and considered the following strategies for action to be crucial for 
strengthening the competitiveness of European cities:

(cid:132)  Creating and maintaining high-quality public spaces. Public 
spaces play an important role in the living environment of 

Getting disadvantaged neighbourhoods 
back on track 

All European cities have problems with social polarisation and the 
accumulation of social, environmental and economic problems in 
disadvantaged neighbourhoods. These areas exist even in cities 
such as London, Vienna or Paris, despite their economic success 
and growth. In other regions these areas are part of wider structural 
problems. 

Once an area has been stigmatised, it is very diﬃ  cult to change its 
image. Today’s regeneration projects should try to establish links 
between deprived urban areas and regional and city-wide growth. 
Disadvantaged neighbourhoods need to become part of the overall 
development programme, where every district is becoming more 

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CASE
STUDIES

The RegGov Fast Track Network

NEW FORMS OF REGIONAL AND LOCAL GOVERNANCE FOR A SUSTAINABLE REGENERATION OF DEPRIVED URBAN AREAS

RegGov is a thematic URBACT network of 10 cities accompanied by their Managing Authorities. With the active participation of the 
cities of Duisburg (Germany), Södertälje (Sweden), Halandri (Greece), Belovo (Bulgaria), Satu Mare (Romania), Nijmegen (Netherlands), 
Ruda Slaska (Poland), Siracusa (Italy) as well as Köbánya and Nyíregyháza (Hungary) and the associated Managing Authorities, the 
network will establish new forms of learning and cooperation between the local and the regional level. 

The project’s focus is to develop innovative forms of vertical and horizontal cooperation in regenerating deprived urban areas. For 
this purpose, each of the participating cities will develop – with the support from the network partners – a long-term Integrated 
Local Action Plan for at least one deprived neighbourhood. In most cases, this plan will serve as a model for a wider use in future 
urban policy in the participating cities and regions. This will also include the creation of a Local Support Group in each city, to 
promote acting in partnership and with the involvement of all key players who can contribute to a sustainable neighbourhood 
development.

Network activities are focused on new and clear forms of support activities for achieving more eﬃ  cient and trustworthy coopera-
tion between cities and their Managing Authorities, in the implementation of objectives related to the development of deprived 
urban areas as deﬁ ned in the Operational Programmes. Networking activities also includes exchange and joint learning activities 
between the participating Managing Authorities, to improve their skills and practice in implementing this new task with a view 
to supporting urban regeneration at the regional level.

http://urbact.eu/reg_gov 

The Urban Pilot Projects and the URBAN I and II Community initiatives 
had already included speciﬁ c measures to tackle these problems at 
city level. Thanks to the URBAN mainstreaming in the funding pe-
riod 2007-2013, the recommendations and principles of the former 
urban programmes are now incorporated in the Structural Funds 
Regulations and the Community strategic guidelines, which al-
lows them to be inserted into the Operational Programmes of the 
Member States and their regions and to spread them across the EU. 
These recommendations and principles are based on long-standing 
experience with the URBAN I and II Community initiatives, which has 
shown that the most successful programmes identify and include 
areas of opportunity with the potential for growth, as well as areas 
with serious problems. Disadvantaged urban areas do not only need 
short-term and ad hoc measures. In particular they also need long-
term comprehensive strategies that provide a strong and reliable 
framework and overall vision for a period of at least ﬁ ve years.

At a regional level, networks between cities and urban target areas in 
various cities and regions can have a clear added value for individual 
local operations and strategies. There is plenty of experience of this, 
especially in Germany, the Netherlands, Italy, France and Spain. The 
exchange of information and providing training opportunities can 
contribute to successful programmes. Cross-border, transnational 
and interregional programmes have also contributed signiﬁ cantly 
over recent decades to the creation and dissemination of know-how 
and innovation across Europe. 

competitive and strong community identities are forged. This in turn 
can make deprived urban areas interesting for private investors. 

Recognising this, in the Leipzig Charter the EU Ministers responsible 
for urban development recommended paying special attention to 
deprived neighbourhoods within the context of the city as a whole. 
They considered the following strategies for action to be crucial for 
disadvantaged urban neighbourhoods:

(cid:132)  Pursuing strategies for upgrading the physical environment (e.g. 

building stock and housing standards);

(cid:132)  Strengthening the local economy and local labour market policy 
(e.g. create and secure jobs and training and facilitate the start-
up of new businesses);

(cid:132)  Proactive  education  and  training  policies  for  children  and 

young people;

(cid:132)  Promotion of eﬃ  cient and aﬀ ordable urban transport that links 

those neighbourhoods to the city and the region as a whole.

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CHAPTERR2

CASE
STUDIES

Support for Cities: Fostering expertise 
and knowledge on integrated urban 
development

The URBACT I Programme has supported the pursuit of 
integrated strategies in the new Member States through its 
‘Support for Cities’ Initiative41. This initiative was intended to 
help them develop integrated urban projects and strategies 
under the new round of Cohesion Policy 2007-2013. It has 
made available to the cities a number of project managers 
and experts who can provide guidance in deﬁ ning their 
urban development strategy. Cities could call on EU expertise 
as they planned their applications for funding within their 
Operational Programmes, or to improve the implementa-
tion of projects and strategies. The initiative was conducted 
between September 2006 and June 2007, involving 43 cities 
across eight EU Member States and 31 external experts from 
across Europe. The experts worked with the cities to provide 
support on developing integrated urban projects or strate-
gies around a range of problems identiﬁ ed by the cities.

http://urbact.eu/ﬁ leadmin/corporate/pdf/
Urbact.EN.pdf 

long-standing tradition of urban policy at national and/or regional 
level, whereas cities in many new Member States did not have such 
support. In the Operational Programmes that include actions in 
urban development, Technical Assistance may contribute to the 
necessary increase in capacity building, guidance, know-how and 
expertise in the new Member States40.

How Cohesion Policy instruments can contribute 
to good urban governance at all levels

As shown above, urban development policies play an important 
role in achieving sustainable economic, social and territorial devel-
opment at European, national, regional and local levels. Cohesion 
Policy instruments support this sustainable development by fostering 
sustainable urban development policies and sound urban govern-
ance at diﬀ erent levels.

At European level, Cohesion Policy contributes to achieving other 
overarching Community priorities, such as those ensuing from 
the Lisbon Strategy and the Integrated Guidelines for Growth and 
Jobs42. The Community strategic guidelines on cohesion contain 
the principles and priorities of Cohesion Policy and suggest ways 
the European regions may take full advantage of the EU’s Structural 
Funds. The Member States draw up their Cohesion Policy priorities on 

Special challenges in and for the new 
Member States

Most of the new EU Member States are facing special challenges 
when it comes to urban development and regeneration. In most 
cities of the new Member States (apart from Malta and Cyprus), 
local authorities became the owners of all former state property, 
after the opening of their borders and the fall of the former political 
systems. Cities suddenly found themselves in the role of owners and 
landlords, with signiﬁ cant structural problems to overcome. In addi-
tion, most cities in new Member States have seen their populations 
dwindle during the recent decade, due to out-migration to other 
Member States, and in particular to the older ones. Coping with all 
these challenges required entirely new systems of local administra-
tion and ways of actively engaging with the population – which in 
most cases had not been used to being involved and taking some 
degree of responsibility in these policy ﬁ elds under previous politi-
cal systems. Speciﬁ c challenges related to shrinking cities also had 
to be addressed.

In addition, severe economic restructuring has resulted in a tre-
mendous loss of employment opportunities, creating a burden 
on public resources and support. At the same time, there is an 
urgent need for investment in industrial areas (such as brown-ﬁ eld 
regeneration) and the housing stock, as well as physical, technical 
and social infrastructure. 

Moreover, many cities in new Member States have not enjoyed 
satisfactory conditions in which to develop integrated urban devel-
opment strategies, as is recommended by EU Cohesion Policy. While 
cities in the old Member States beneﬁ ted from two generations of 
URBAN programmes and the common development of an ‘Acquis 
Urbain’, cities in the new Member States could never beneﬁ t from 
this Community instrument or learn from the URBAN experience. 
In addition, cities in the old Member States often beneﬁ ted from a 

Deprived areas can become areas for growth. 

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“  Cohesion Policy 2007-2013 takes particular 
European regional development „ 

account of the fact that urban areas are motors 
of economic change and the key element in 

(cid:132)  To promote experience-exchange networks; 

(cid:132)  To develop ﬁ nancial engineering mechanisms to achieve the 

maximum leverage eﬀ ect with Structural Funds.

The Structural Funds Regulations 2007-2013 oﬀ er a broad range of 
tools that provide national, regional and local actors with incen-
tives for innovation and progress in the ﬁ eld of urban development 
and good urban governance46. The provisions include the involve-
ment of cities, local authorities and citizens in the preparation, 
implementation, monitoring and evaluation of the Operational 
Programmes47. This should be the general rule when designing 
and implementing urban operations. Further opportunities are the 
sharing of responsibilities, strategic planning and programming, as 
well as a strong concentration of funding on strategic urban target 
areas. Furthermore, the Community strategic guidelines on cohe-
sion 2007-2013 clearly advocate a multi-disciplinary or integrated 
approach and the involvement of key partners in the cities and local 
authorities for urban actions. In particular, the use of the capacity-
building programmes foreseen for the new Member States would 
be useful for this purpose.

Creating new jobs and supporting business.

the basis of Community strategic guidelines. Their aim is to ensure 
that Community priorities are better integrated into national and 
regional development programmes.

The Community strategic guidelines on cohesion 2007-2013 recom-
mend that Cohesion Policy should not only stimulate growth and 
jobs, but should also pursue social and environmental objectives43. 
The guidelines identify three overarching objectives44:

In a published analysis of the Operational Programmes co-ﬁ nanced 
by the European Regional Development Fund (2007-2013), two ele-
ments of special importance for achieving multi-level governance 
in urban development have been identiﬁ ed:

(cid:132)  Improving the attractiveness of Member States, regions and 

(cid:132)  Activities to move from the sectoral approach to a holistic and 

cities as places to invest, to work and to live; 

integrated approach;

(cid:132)  Encouraging innovation entrepreneurship and the growth of 

the knowledge economy; 

(cid:132)  Creating more and better jobs. 

Cohesion Policy 2007-2013 takes particular account of the fact that 
urban areas are motors of economic change and the key element 
in European regional development. Local authorities are the key 
partners in regional and urban development and in the implementa-
tion of the Lisbon and Sustainable Development Strategies. In this 
context, the European Commission has set out a range of ﬁ elds 
that need attention and can help to support cities in championing 
European growth, cohesion and stability. Examples include45: 

(cid:132)  To  make  cities  more  attractive  through  transport  facilities, 

services, environment and culture;

(cid:132)  To strengthen the relations between urban, rural and peri-

urban areas; 

(cid:132)  To strengthen the role of cities as growth centres, to promote 
entrepreneurship, innovation and the knowledge economy and 
to support small and medium-sized enterprises (SMEs); 

(cid:132)  To improve employability and to reduce the disparities between 
districts, on the one hand, and social groups, on the other;

(cid:132)  To combat delinquency and the feeling of insecurity; 

(cid:132)  To improve governance of urban interventions;

(cid:132)  European  Groupings  of  Territorial  Cooperation  (EGTCs)  as 
opportunities for the re-organisation of cooperation between 
cities, especially in cross-border agglomerations48.

As part of the European Territorial Cooperation Objective, the Regions 
for Economic Change Initiative allows good innovative ideas to be 
tested and rapidly applied to the Operational Programmes under 
the ‘Convergence’, ‘Regional Competitiveness and Employment’ and 
‘European Territorial Cooperation’ Objectives. In doing so, the initia-
tive also stimulates better cooperation and coordination between 
local and regional levels.

As part of the URBACT projects, the envisaged strong links be-
tween city administrations and (regional or national) EU Managing 
Authorities can therefore beneﬁ t both sides. Managing Authorities 
beneﬁ t from better prepared project applications, while cities can 
directly communicate and interact with their responsible funding 
authorities. Jointly prepared Local Action Plans are crucial reference 
documents for both sides. This ‘two-way-bridge’ is one key element 
of the Region for Economic Change Initiative.

Successful regional development foresees the need for cities to be 
closely tied to development in the rest of their region. The European 
Spatial Development Perspective, the Territorial Agenda of the EU, 
the Community strategic guidelines on cohesion and the Green 
Paper on Territorial Cohesion have increased awareness of how 

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CHAPTERR2

CASE
STUDIES

MILE: Managing Migration and Integration at Local Level

MILE is an URBACT II Fast Track Pilot Network that is part of the Regions for Economic Change Initiative. The project has established a 
thematic network of 10 cities and their regions, based on the need to develop an integrated exchange programme on the theme of 
‘Managing Migration and Integration in Cities and Regions’.

The project’s overall aim is to assist cities and regions in actively addressing and improving practice related to issues of migration and 
integration within their regional Operational Programmes. The overall goal is to assist partner cities in developing and identifying 
good-practice project proposals for possible funding from ERDF, ESF and other EU or national sources of funding. To realise this overall 
objective, the project develops and delivers an Action Learning Sets transnational exchange programme (ALS) for over 90 key actors 
from partner cities and the involved ‘sister regions’. The aim is to ensure close involvement and cooperation in the learning exchange 
between practitioners, policy-makers and programme managers, focusing on three speciﬁ c sub-themes that reﬂ ect the priorities 
identiﬁ ed by partners:

1. Enterprise support and development;
2. Active inclusion measures for labour market access;
3. Access to key services (education, housing, health) and intercultural dialogue.

Even though the MILE network is still being set up, its member cities and regions are already starting to beneﬁ t from it. In the City of 
Seville, for example, the Local Action Plan that has been produced as part of this Fast Track Network has already entered its realisation 
phase and some of the activities have been integrated into the city’s mainstream services. Close cooperation between the participating 
cities and Managing Authorities, as well as support from the European Commission have, also led to high-quality project develop-
ment – which has strongly supported the chance for ﬁ nancial resources to be provided to the projects from the European Structural                        
Funds in the participating regions.

http://urbact.eu/mile/

Managing Authorities through their Operational Programmes, re-
quires structured and well-developed cooperation between the 
national, regional and local levels. Funding and cooperation can 
particularly be used to achieve a comprehensive regeneration of mul-
tiply deprived urban areas, where social gains and sustainable urban 
development are foreseen and planned right from the start. 

The next chapter will examine the drive towards a common European 
methodology for urban development, one that can foster such a 
sustainable development in Europe.

balanced development across a region can bring communities closer 
together. There is a growing recognition of the need to promote 
cooperation, dialogue and partnership between the diﬀ erent levels 
of government, organisations and the people implementing policy 
on the ground. Quality of life can improve when urban development 
is spread out across a region and both economic growth and social 
gains are achieved. 

The drive to make cities more competitive is much more successful 
if cities and their regions join forces and work in strategic alliances 
as city-regions, developing new and innovative forms of regional 
governance. The use of European funding, administered by the 

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CHAPTER  

        TOWARDS A COMMON EUROPEAN METHODOLOGY 

FOR SUSTAINABLE URBAN DEVELOPMENT

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3

CHAPTER

TOWARDS A COMMON EUROPEAN 
METHODOLOGY FOR SUSTAINABLE 
URBAN DEVELOPMENT

Over recent decades, urban planning has evolved from being a 
merely technical discipline into something much more complex, 
where politicians and stakeholders want urban development to 
meet the needs of cities and people. Many years of practical ex-
perience have delivered valuable elements of good practice and 
recommendations for urban policy that meet the challenges in 
European cities. There are at least ﬁ ve dimensions or features that 
can be identiﬁ ed49:

(cid:132)  A move away from individual sectors towards wider integration 

within the local or regional economy;

(cid:132)  A shift from government to governance, i.e. the tendency of 
central governments to confer certain duties to lower levels of 
government, such as provinces, regions, cities, city districts and 
neighbourhoods (referred to as ‘decentralisation’). Together 
with the privatisation of governmental tasks, this involves the 
participation of a larger number of diﬀ erent policy partners, 
organisations and individuals (governance);

(cid:132)  An increasing focus on empowering the inhabitants of cities 

and speciﬁ c neighbourhoods;

(cid:132)  A shift from universal policies to more focused, area-based 

policies;

(cid:132)  Growing attention paid to the eﬀ ectiveness of policies.

A common methodology for sustainable urban development has 
begun to take shape over the last decade and has been generated 
following the emergence of a European ‘Acquis Urbain’, which builds 
on the experience gained while supporting integrated and sustain-
able urban development. This methodology is also in line with the 
policy principles and recommendations laid down in the Leipzig 
Charter on Sustainable European Cities50. The ‘Acquis Urbain’ is based 
on the following cornerstones51: 

(cid:132)  The  integrated  and  cross-sector  approach  of  the  URBAN 

Community Initiatives;

(cid:132)  The new instruments of urban governance, administration and 
management, including increased local responsibilities and 
strong horizontal partnerships, successfully tested by the URBAN 
Community Initiatives;

(cid:132)  A targeted selection of towns, cities and eligible areas and the 

concentration of funding;

(cid:132)  Networking, benchmarking and the exchange of knowledge 
and know-how, building on the positive experience and results 
of the URBACT I Programme.

Pursuing the European political goals of both the Lisbon and the 
Sustainable Development Strategy, the integrated approach empha-
sises genuine partnership, cooperation, governance and networking 

Urban planning is about meeting the needs of people.

on the level of regions and cities. The need for and added value of a 
common methodology is underlined by the various challenges that 
cities face these days, ranging from uneven settlement patterns on 
a European level to social, economic and environmental problems 
in disadvantaged urban neighbourhoods. 

This chapter explains the main principles and elements of good 
practice and successful strategies that may indicate the way towards 
a common European methodology for sustainable urban develop-
ment. They are illustrated with concrete examples.

“  Urban planning has evolved from being a 
and people „ 

merely technical discipline into something much 
more complex, where politicians and stakeholders 
want urban development to meet the needs of cities 

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situation in the area and worse than the perception held by the local 
community of their area. This stigmatisation of neighbourhoods 
usually leads to serious obstacles to successful regeneration and it 
discriminates against local residents in the housing and labour market. 
To overcome this, a new approach of ‘neighbourhood branding’ is 
being developed and realised in many European cities.

A city-wide vision brings beneﬁ ts to all 
neighbourhoods.

Developing a city-wide vision that goes beyond 
each project

Successful urban development projects demonstrate how urban 
operations can be of beneﬁ t to the wider local district and the 
region. For a long time, urban development strategies focused 
on analysing problems. This has changed in recent years. It is now 
acknowledged that a district or city can identify its own untapped 
potential for achieving sustainable revitalisation in a regional context. 
Such potential needs in turn to be included in long-term strategies 
for urban sustainable development. 

The principle of identifying the untapped potential of people and 
places applies for entire cities as well as for individual neighbourhoods 
and areas within cities. Even the most deprived neighbourhoods 
have something to oﬀ er for the development of their surrounding 
city. The local community and stakeholders in investment projects 
must be brought together to create a dynamic and wide-ranging 
vision for the future, where each group contributes to the overall 
impact of the strategy.

Deprived  urban  neighbourhoods  can  create  a  new  image  for 
themselves. They very often suﬀ er from a bad image in their cities 
and regions – an image that does not accurately reﬂ ect the true 

CASE
STUDIES

URBAN II in Turin

INVENTING A NEW FUTURE FOR A DEPRIVED URBAN AREA

The URBAN II programme area in Turin (Italy) lies on the southern outskirts of the city, near to the industrial complex of Fiat Miraﬁ ori. 
The district needed intensive urban regeneration – not only of the public housing stock, but also the low-quality public and green 
areas. There was also a need to identify new central functions and to reintegrate the peripheral district characterised by social and 
physical decline in the whole urban system of Turin. 

The regeneration and development model developed for this URBAN II initiative was designed to break the deadlock that the neigh-
bourhoods had faced for many years. An analysis of current conditions, conducted through a continuous process of consultation 
with local stakeholders participating in the Social Table and the Forum for Local Development, led to the deﬁ nition of a jointly agreed 
integrated development strategy. To focus energies on the future development of the area, particularly on the cooperation of partners 
and local stakeholders, three key slogans have been developed to guide the entire process:

• Find a new centre!
• Get things going again!
• Find a new focus!

With regard to process innovation and the sustainable results of such European projects, one of the most important achievements of 
this initiative is the ‘Forum for Local Development’, established in the target area. This Forum is required to for eﬀ ective monitoring of the 
Programme. Representatives from local associations and businesses are invited to take part in its activities. It includes all the social and 
economic partners that joined the Programme at the preparatory stage and is open to all people and entities, whether public under-
takings, private companies, non-proﬁ t organisations, district committees or other groups interested in following its development.

http://www.comune.torino.it/urban2/eng_vers/area.html 

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3
“  Experience shows that area-
embedded in local and/or regional policies „ 

based approaches are more eﬃ  cient 
and deliver more results when they are 

CHAPTER

CASE
STUDIES

The IMAGE Project

NEIGHBOURHOOD BRANDING FOR DEPRIVED URBAN AREAS

Many post-war inner-city housing estates across Europe face 
a number of physical, economic and social challenges. In 
recent years it has become evident that physical regenera-
tion alone cannot tackle these problems alone and needs to 
form part of a wider package of integrated neighbourhood 
renewal solutions. Improving the image of an area is a key 
element of integrated-development programmes.

The IMAGE Project, funded by INTERREG III B, has been 
working on new concepts around image enhancement. 
'Neighbourhood branding' is an important element of the 
following schemes, all involved in the IMAGE Project: Europark 
(Antwerp, Belgium), Barton Hill (Bristol, United Kingdom), 
Poptahof (Delft, Netherlands), Ballymun (Dublin, Ireland) 
and Schwamendingen (Zurich, Switzerland). Communities 
and stakeholders are involved in the development of their 
brand, which is being incorporated into existing local ac-
tion plans.

The approach was developed and tested in the ﬁ ve high-rise 
residential areas of Europark (Antwerp), Barton Hill (Bristol), 
Poptahof (Delft), Ballymun (Dublin), and Schwamendingen 
(Zurich). Signiﬁ cantly, project actions were integrated into 
existing local regeneration strategies, emphasising the de-
velopment of a neighbourhood brand by involving the 
community. The positive impact of this project was one of 
the reasons that IMAGE was picked out as one of the 11 star 
performers of the 99 INTERREG III B projects.

http://www.image-project.org 

Promoting horizontal priority policies: 
Expanding the formula for success
Urban policies are usually implemented in carefully marked out 
areas and aim to involve all relevant local stakeholders and actors. 
Their cooperation is a key factor for success and this process can 
be reinforced by targeting speciﬁ c groups in the area concerned 
and the co-ﬁ nancing of programmes by the European Social Fund 
(ESF). Where the ERDF and the European Social Fund are combined, 
regeneration measures invest in places and simultaneously invest 
in people and skills, thereby expanding their market and personal 
opportunities for the future. 

Experience shows that area-based approaches are more eﬃ  cient 
and deliver more results when they are embedded in local and/or 
regional policies. This allows targeting of speciﬁ c policies within a 
city, an agglomeration or a region and going beyond the boundaries 
and limitations of an individual area. This is particularly true where 
the following policies are integrated in a regeneration programme 
at local and/or regional level:

• Strategic land-use policies 
Local authorities must be clear how they want land to be developed 
and be able to think strategically for the future when negotiating 
with potential investors. This is currently an important topic in many 
of the EU’s new Member States where, in the rush to convert to 
market economies, investment has been accepted at any price. Local 
authorities hesitated to impose too many prescriptions, fearing that 
this would slow down the process of foreign investment and growth. 
Today however, there is a growing awareness that such disorganised 
urban development will have high costs for the future. 

• Equal Opportunity Policies 
Experience in various European countries has shown that cities can 
and do achieve more if they create equal opportunities for all citizens 
within each project. Social inclusion and non-discrimination policies 
which support eﬀ orts to combat poverty and social exclusion, take 
action against discrimination, enhance the integration of disabled 
people and improve equal opportunities for women and men 
can help cities to face the challenges linked to globalisation and 
changing social realities.

• Environment Policies 
All urban operations face the challenge of protecting the environment 
and promoting more responsible use of natural resources. Each 
project is subject to speciﬁ c measures and checks to make sure 
they are in line with general environmental objectives. However, 
the common experience of many cities and regions is that a well-
designed regional policy on environmental objectives will encourage 
individual projects to achieve maximum gains.

• Demographic Policies 
Although demographic development is still evolving as a policy 
area, it has great signiﬁ cance. Given the challenges of creating 
balanced and sustainable urban development, including housing 
and infrastructure, it makes sense to ensure that these measures 

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CASE
STUDIES

Integrated waste management in Ramnicu Valcea

In the Romanian city of Ramnicu Valcea, the Instrument for Structural Policies for Pre-Accession (ISPA) has been used to install an 
ecologically sound and eﬃ  cient waste-treatment system with European co-ﬁ nancing. 

The city has a population of 120 000 inhabitants. It is at the heart of a region renowned for its spas and health resorts and has a rich 
historic and cultural heritage. It is a popular tourist destination and an important industrial centre. Problems had arisen with waste 
management in the area. The lack of an eﬃ  cient system to manage household waste (at least 20% of inhabitants lack regular waste-
disposal services) had led to an increase in the number of dumps situated near inhabited areas. Waste was gathered and stockpiled in 
a tip situated 12 km from the city centre, on the banks of the Olt, leading to the river becoming polluted.

In 2000, the local authorities of Ramnicu Valcea presented a proposal to the European Commission, entitled ‘Integrated waste manage-
ment in Ramnicu Valcea’, and put together a partnership with the German cooperation agency (GTZ). In November 2001, the European 
Commission approved a subsidy of some €11 million for the project under ISPA, for the following activities:

•   improving the waste-collection system, by implementing selective collection; providing bins and special containers for recyclable 
and dangerous waste; and organising a media campaign and providing sources of information (website, a household guide, etc.);

•   closing the Raureni tip, which was opened in 1978 and no longer complied with updated environmental, health and safety 

standards;

•   creating a new recycling centre at Feteni, in accordance with European directives, with a 1 000 000 m3 capacity and a life expectancy 

of 19 years;

•   constructing a composting station where biodegradable waste will be treated and turned into fertiliser.

http://www.primariavl.ro/
http://ec.europa.eu/regional_policy/projects/stories/index_en.cfm

Mid- and long-term plans for urban 
development and renewal 
Development plans must be drawn up with a long-term perspective, 
including milestones for measuring progress along the way. In this 
respect, the timing of diﬀ erent projects is crucial. Here are some of 
the timing challenges for a successful integrated urban development 
strategy:

• Knowing how to leave 
Public policies and funding schemes, which are necessary to support 
integrated development, are time-limited and do not always coincide 
with the actual development of an urban area. It is important to 
have an exit strategy, preparing for the time after the end of public 
funding, so that the beneﬁ ts of a development programme do not 
grind to a halt. 

• Being aware of politics
Changes in administrations following local elections can sometimes 
aﬀ ect or slow progress in urban development, such as certain projects. 
Long-term strategies that may have just started might then have to 
be changed. Planning and funding should aim to take into account 
the impact of politics and design development strategies accordingly. 
Furthermore, a strong political commitment at local level is necessary 
to move things forward and to involve partners at local and regional 
level, and sometimes also at the national or European level.

carry on meeting the needs of the population over the long term. In 
order to cope with demographic change, be it a growing or shrinking 
population, the ageing of society or immigration, policy-makers must 
look carefully at what tomorrow’s generation will require rather than 
simply responding to the problems they see today. 

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3

CHAPTER

CASE
STUDIES

Youth of Bristol pool energies to design their urban environment

The district of Hartcliﬀ e and Withywood in the English city of Bristol (United Kingdom) is undergoing much needed regeneration. 
The area bears many of the hallmarks of deprivation, challenging social issues, high levels of unemployment and a number of 
underdeveloped public spaces. The major redevelopment scheme brought together professionals from various ﬁ elds. Discussions 
between like-minded individuals within The Architecture Centre, Bristol, The Glasshouse, London, Bristol City Council and the 
Hartcliﬀ e Community Campus led to the creation of ‘Spacemakers’. Together they came up with the idea of involving disadvan-
taged young people in shaping their local environment.

Those who got involved went through a lengthy preparation period, so they could play their role as Spacemakers. This included a 
three-day, tailor-made course on the design of public spaces, during which young people learnt about regeneration issues, public 
speaking, planning and negotiating. They also visited four major parks in the UK and others in the Netherlands to help them develop 
their views and ideas about the features they liked and might want to incorporate into their own park.

Having chosen a site from ten local spaces available for development, the group worked with the project artist, experimenting with 
possible designs and features. They then selected a landscape architect from 17 diﬀ erent candidates, which involved them having 
to provide each of the three short-listed applicants with a presentation about the project and their priorities for the park. Following 
this stage, much of the practical work was carried out by the project manager and landscape architect; but the Spacemakers kept 
people informed of developments. They produced ‘ﬂ yers’ and prepared models, plans and displays, which they presented to local 
residents and funding bodies, including Bristol City Council oﬃ  cials and elected members.

In the end, a public space was created that contained many elements and opportunities proposed and selected by the young 
people involved. This includes a futuristic shelter, a slide and water channel. In addition, the choice of materials was based on 
their observation of vandalism in other public spaces and thus indicated a clear preference for what the young people called 
‘indestructible’ materials.

http://www.bristol.gov.uk/
http://ec.europa.eu/regional_policy/projects/stories/index_en.cfm

• Meeting short-term and long-term expectations
The patience of local communities may be sorely tested if they 
have to wait a long time for improvements as a result of the local 
authorities being subject to strict legal requirements and the limits 
of public funding. If people locally do not see any quick progress 
‘on the ground’, they tend to lose the motivation to be involved. 
Therefore, successful strategies aim for a mix of activities, with tan-
gible results over the short and long term. Neighbourhood Funds, 
which can be spent by the residents themselves, may be particularly 
useful in these situations. 

Similar diﬀ erences in expectations can occur where there is coopera-
tion between the public and the private sector. Cities often ﬁ nd that 
investors’ short-term expectations are a problem, because planning 
procedures take far too long to keep private investors interested. 
Many European cities have improved their management and govern-
ance systems to accelerate the planning process. At the same time, 
private investors have as much to gain as public ones from a sound, 
long-term planning strategy, allowing them to assess the potential 
gains from their investment in a particular location. 

Today’s policy must plan for their tomorrow. 

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“  The challenge of integrated urban 
conditions improve „ 

development is to promote competitiveness 
and social inclusion, whilst improving both the 
built and the natural environment, so that living 

derelict buildings and land. Another example is environmentally 
friendly transport systems, which must cover not only passenger 
services but also alternative modes of transport, such as provisions 
for bikes. In addition, these systems must also take into account 
factors such as energy eﬃ  ciency, renewable energy, noise levels 
and air pollution. 

The changing face of urban development
Urban development in Europe has gone through various ‘waves’ of 
change and re-deﬁ nition over the years. The ﬁ rst urban regeneration 
projects in the 1960s in Germany, France and the United Kingdom 
centred around slum clearance, with the demolition of existing 
buildings and structures and construction of entirely new areas. 
This left many European cities with large mono-structured, often 
pre-fabricated housing estates, which have since created many 
new problems. 

In the 1970s, the emphasis was more on creating both physical struc-
tures and social structures in neighbourhoods (this is still very much 
the case in new Member States). This approach allowed for moderni-
sation and careful development of existing buildings and structures. 
It placed a higher value on the cultural heritage of European cities 
and used this as a starting point for shaping the future. 

However, policies during this period were still biased towards new 
building, and the results show us that the beneﬁ ts are limited. In 
areas suﬀ ering from deprivation, new buildings did not necessarily 
meet the needs of the local population. They were still cut oﬀ  from 
the rest of city life and economic growth, vandalism was prevalent 
and these communities felt no lasting sense of development. 

It taught policy-makers that elements of job creation must be inte-
grated into redevelopment strategies at an early stage. Modernisation 
and construction works could be used to employ and train disad-
vantaged local people. Therefore many schemes of ‘Local Work for 
Local People’ have been implemented across Europe. They have 
helped to create an added value for local people and improved 
their chances of being integrated in the labour market. 

As the urban policies of EU Member States, towns and cities have 
progressed, the local economy has become increasingly important. 
As a result of economic change and a general restructuring in in-
dustrial and commercial structures, both small and medium sized 
enterprises (SMEs) and large companies have been oﬀ ered new 
and diﬀ erent prospects. They are a key part of the economic future 
of regions, cities and neighbourhoods. For example, SMEs are well 
suited to projects aimed at integrating ethnic minorities within an 
urban economy. ERDF-funding, often combined with ESF-funding, 
has created numerous innovative solutions all over Europe – many 
of them under the URBAN I and URBAN II Community Initiatives. 
This has signiﬁ cantly improved the impact of urban development 
and regeneration in European cities. 

Operational Programmes (OP) at national or regional level are a good 
way forward, as they allow for sustainable mid- and long-term strate-
gies. An OP puts development programmes within the framework 
of a mid-term regional planning strategy and also provides them 
with a reliable ﬁ nancial background. Many new Member States have 
chosen to co-ﬁ nance Integrated Urban Development Plans (IUDPs) 
within the ﬁ rst implementation phase of the current programming 
period. Project applications are only accepted for funding if such 
plans have been submitted. 

Achieving more: The integrated approach 
as an added value

The challenge of integrated urban development is to promote 
competitiveness and social inclusion, whilst improving both the built 
and the natural environment, so that living conditions improve. This 
is a key determinant of the quality of life in urban areas and also a 
deciding factor in attracting business. 

The complexity of integrated urban development becomes clear 
when diverse measures are harnessed to bring about beneﬁ ts that 
go beyond the actual development project. For example, the pro-
vision of green space must be seen along with the renovation of 

Using the past to shape the future.

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CHAPTER

Core elements of an integrated approach 
To achieve both competitiveness and social cohesion within urban 
development and regeneration strategies and programmes, a variety 
of features must be incorporated. These include economic growth 
and jobs, environmental aspects such as energy eﬃ  ciency and cli-
mate change, social exclusion, poverty, crime, integration of migrants 
and ethnic minorities, gender equality, demographic change, urban 
sprawl, architecture, culture and good governance. These diﬀ erent 
aspects are analysed in this and the next chapter.

Migrants and ethnic minorities must be fully integrated into 
urban communities to achieve social cohesion in our cities. 

Most of the URBAN I and URBAN II programmes have shown that 
innovative integrated approaches can have valuable positive ef-
fects that go far beyond the immediate improvements achieved in 
a neighbourhood. They have often been testing grounds for new 
local procedures, new forms of cooperation and the participation of 
many diﬀ erent groups in project design and management.

Both the Commission Communication on Cohesion Policy and cities 
of 200652 and the Leipzig Charter on Sustainable European Cities of 
200753 recognise the problems in reaching the goals of integrated 
development. Both documents highlight how the diﬀ erent features 
mentioned above must be taken into account at every level. When 
all the contributory factors are channelled in the same direction, 
new growth brings lasting economic and social change with better 
environmental safeguards. We will now look at how these diﬀ erent 
measures can be built into a successful programme.

CASE
STUDIES

Successful stimulation of business 
activities in four deprived areas of 
Strasbourg

The districts of Meinau, Neuhof, Musau, Port du Rhin, to the 
south of Strasbourg (France) and the 37 000 inhabitants 
living there, are experiencing a host of diﬃ  culties that are 
also common to many suburbs. Unemployment, poverty 
and failure at school are all factors that contribute to social 
exclusion and insecurity and are detrimental to local eco-
nomic development. There is little in the way of business 
networks at the heart of housing estates, which have poor 
facilities and services. The high failure rate of SMEs there is 
combined with the advanced age of their owners. They have 
diﬃ  culty accessing regional or national public assistance 
mechanisms, whose selection criteria and procedures are 
inappropriate to the local context.

In order to support the economic and social revitalisation 
of the city’s southern districts, the European URBAN II pro-
gramme for the Urban Community of Strasbourg (CUS) has 
focused on a strategy that combines territorial structuring 
eﬀ ects and community stimulus measures. The conclu-
sions of a survey of 226 SMEs led to the introduction of a 
new support mechanism for small businesses, crafts and 
local services in the southern districts. Aimed at businesses 
with fewer than 20 employees, it provided aid for tangible, 
intangible, property and movable property investments 
through three types of intervention: conversion, produc-
tive investments (machinery and software) and support for 
reopening a business. 

On 11 April 2006, this URBAN project earned Strasbourg 
the ﬁ rst prize in the French economic press competition 
‘Economic initiatives’ in the ‘Enterprises and territories’ cat-
egory. A few months later, the foreseen objectives were 
surpassed and the CUS negotiated a new annual budget 
with the region, which as a result increased to €70 000. At 
the end of September 2006, the assistance fund had already 
beneﬁ ted 14 businesses. In terms of jobs, the project has so 
far resulted in the maintaining of 83 positions, plus 11 cre-
ated. The project itself employs 12 people, who oversee its 
implementation. Since it is applicable to all types of local 
activity, the assistance has the advantage of giving support to 
investments in businesses and providing services to people, 
which are in turn a signiﬁ cant source of jobs.

http://www.investir-strasbourg.com/
http://ec.europa.eu/regional_policy/projects/stories/
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“  Cities can develop and strengthen the 
regeneration projects „ 

local economy through urban development and 

Successful integration of sectoral policies: 
Using regeneration to integrate businesses and 
strengthen the economy 
Cities can develop and strengthen the local economy through urban 
development and regeneration projects. Again, there are many dif-
ferent opportunities open to those in authority54.  By getting closer 
to local people, cities can help entrepreneurs target new markets 
and deﬁ ne their needs for business support services. They can work 
with businesses to identify specialist organisations oﬀ ering eﬃ  cient, 
comprehensive business support.

arrange business loans and micro-credits, or oﬀ er grants and tax 

incentives. In addition, cities can take on an entrepreneurial role and 

actively develop enterprises based on the opportunities identiﬁ ed. 

They can also work with businesses to identify new markets and 

encourage small-scale private investment. As a major purchaser, the 

city can have an important impact on local enterprises. 

Successful integration of sectoral policies: 
Integrating training and employment objectives
Cities are not powerless when it comes to creating new training 

Cities have a big role to play in providing diﬀ erent types of ﬁ nance 
to local businesses. They may become part of guarantee schemes, 

and employment opportunities. Integrated urban development 

policies at national, regional and local level are a great starting 

CASE
STUDIES

CASE
STUDIES

A successful Urban Pilot Project 
in Bilbao

FROM A HOUSING AREA TO AN ECONOMICALLY VIBRANT 
NEIGHBOURHOOD

The Urban Pilot Project in Bilbao (Spain) focused on the 
area of Otxarkoaga, a peripheral neighbourhood of the city 
that was built in the 1950s in response to Bilbao’s housing 
shortages and industrial boom. Isolated from the rest of 
the city and aﬀ ected by the decline of Bilbao’s industrial 
base, the district was suﬀ ering from a range of economic 
and social problems.

The Urban Pilot Project addressed the issues facing the 
neighbourhood through an integrated package of measures 
targeted at three diﬀ erent problem areas: the environment, 
commercial development and the overall lack of economic 
activity.

Amongst the measures to improve the environment was the 
development of a recycling centre dedicated to the repair 
and recovery of various items, such as household appliances 
and furniture from all over the city and beyond. In order to 
further stimulate employment and economic activities, the 
project ﬁ nanced training courses for employees working in 
shops, including management training, information technol-
ogy skills and customer services. In addition, comprehensive 
rehabilitation of the commercial shopping centre was un-
dertaken to improve access, enhance the overall appearance 
and extend the surface area to allow the centre to diversify. A 
crucial part of this action was the creation of an Association 
of local commercial enterprises.

http://ec.europa.eu/regional_policy/urban2/urban/
upp/src/bullet12.htm 

Raising entrepreneurial spirit in 
disadvantaged local communities 
in Brussels

Setting up a business is certainly not a game. There is, how-
ever, a fun way to learn about entrepreneurship, one that 
has been used by Groupe One, a non-proﬁ t organisation 
in Saint Gilles located near the Gare du Midi/Zuidstation 
in one of the rundown urban areas of Brussels (Belgium), 
where various economic and social handicaps result in high 
unemployment rates, thus warranting support from the 
URBAN II Community Initiative.

This method originated in South Africa and is based on an 
interactive business simulation game that places participants 
in a business environment. This ‘learning by doing’ method 
allows them to evaluate their responsibilities and learn from 
their mistakes, and it encourages them to be creative in 
their endeavours. 

‘J'entreprends@Bruxelles’ has been operational since January 
2005 following a development and test phase, and at the 
end of 2006 had provided a total of 465 hours of training 
to 828 people from secondary schools, higher education 
institutions, NGOs, vocational and social integration bod-
ies and people with business projects. The vast majority 
reported they were very satisﬁ ed with the training. It is not 
possible to measure the programme’s impact in concrete 
terms, as in many cases it provides participants with a form 
of ‘economic literacy’ which may bear fruit in future in un-
predictable ways.

http://www.groupeone.be/
http://ec.europa.eu/regional_policy/projects/stories/
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environmental gains are concerned „ 
“  New habits start at home as far as 

point for using cities’ own local labour force. There is a broad range 
of options open to local authorities as they put regeneration pro-
grammes into action: 

(cid:132)  Cities can work with public and private business partners to 
create jobs that have a long-term future. The most successful 
cities do this by taking a city-wide approach to training needs, 
thereby overcoming labour-market barriers. They work towards 
developing  a  stronger  social  identity  in  deprived  areas  by 
identifying the potential of their local population. 

(cid:132)  Cities can close the gap between social services and employment 
policies  to  support  the  transition  from  social  beneﬁ ts 
dependency to entering the labour market. Here they should 
take speciﬁ c account of the needs of minorities, young people 
and women. 

(cid:132)  Cities can use new technologies to increase access to educational 
resources and help to build life-long learning strategies. This 
may oﬀ er new options for those who have slipped through the 
formal education system and build bridges between schools, 
training establishments and employers. 

(cid:132)  Cities can anticipate trends in the labour market and the local 
economy and use this knowledge to ﬁ ll skill gaps for employers. 
Along with training, cities can oﬀ er mentoring support and bring 
in business leaders who can inspire entrepreneurship among 
groups who are poorly represented in the economy.

(cid:132)  Cities can use their spending power to create jobs for local 
people. As major investors and employers, cities can ensure 
that the recruitment and training policies of large institutions 
create employment opportunities for disadvantaged groups 
or areas.

Environmental protection is one strand of urban 
policy’s integrated approach. 

3

CHAPTER

Successful integration of sectoral policies: 
Environmental protection
New habits start at home as far as environmental gains are con-
cerned. Problems may be global, but changes in policies locally have 

CASE
STUDIES

Environmental sustainability as a 
driving force in urban regeneration: 
An Urban Pilot Project in Falun and 
Borlänge (Sweden)

This Swedish Urban Pilot Project aimed to establish the 
principle of environmental sustainability as a driving force 
for change and regeneration in medium-sized towns. The 
neighbouring towns of Borlänge and Falun are located be-
tween Sweden’s populated south and the sparsely popu-
lated northern interior. This area has suﬀ ered the eﬀ ects of 
industrial decline.

The Urban Pilot Project provided a platform for cooperation 
between the two neighbouring towns, to work towards 
sustainability at a local level. The aim was to stimulate sustain-
able development through research linked to the support of 
new environmental practice. The project aimed to persuade 
existing companies to incorporate environmental technology 
into their working practice, as well as support new business 
activity in areas with growth potential in the ﬁ elds of ecol-
ogy, the environment and energy. By integrating a range of 
measures, the project provided a focal point where synergies 
and interrelated activities could be developed.

The medium-term aim of the project was for sustainability 
to become a standard concept in urban regeneration and 
local economic development, as well as in the minds of 
everyday citizens. 

The project’s focal point was the ‘Dalarna Natural Resource 
Centre’ (NRC), located in the Vassbo area, halfway between 
Falun and Borlänge. The NRC has four main functions. It coordi-
nates the cities’ environmental activities and hosts three speciﬁ c 
institutions: a ‘European Urban Research Park’, an ‘Economic 
and  Technology  Centre’  and  a  ‘Centre  for  Environmental 
Information’. The Information Centre supports the region’s SMEs 
in improving their environmental practice and also stimulates 
the transfer and use of environmental technology within the 
private sector and nurtures the establishment and growth of 
new SMEs in the environmental sector, thus supporting the 
economic restructuring of the area.

http://ec.europa.eu/regional_policy/urban2/urban/upp/
src/phase210.htm

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much to oﬀ er in terms of changing hearts and minds at regional 
and national level. If urban development and regeneration policies 
systematically include an environmental strategy, the beneﬁ ts are 
wide-ranging.

Regarding the energy eﬃ  ciency of housing stock, cities can oﬀ er 
incentives for home-owners and housing companies to comply with 
contemporary environmental standards that deliver eﬃ  ciency gains. 
A similar environmental approach to constructing and renovating 
public buildings and local infrastructure can ensure that a city has 
truly ‘green’ credentials to oﬀ er to its residents. This can be extended 
to its transport system and public services. Cities can also place more 
emphasis on improving the quality of their public open spaces. 

Upgrading the environmental standards in public buildings, espe-
cially schools, can be used as a practical illustration for environmental 
education. In addition, cities can oﬀ er a vision of more responsible 
use of natural resources. Sourcing products locally, for example, 
reduces transport costs and promotes regional products. Finally, 
cities are more attractive if the public transport system is clean and 
eﬃ  cient and if alternative modes of transport, such as cycling, are 
well provided for.

Successful  integration  of  sectoral  policies: 
Integrating social capital to promote city life

An area will be attractive partly because of the people who live there. 
Impressive buildings and infrastructure will not by themselves yield 
permanent beneﬁ ts if the abilities and commitment of local people 
are not used to develop local identity and a sense of community. 
But how can these social assets be incorporated into successful 
development programmes?

Cities can establish and support neighbourhood associations, which 
can then be a focus for local participation in regeneration. These 
associations can also empower residents to take on formal roles on 
behalf of local people, such as running committees on areas of inter-
est, taking part in planning discussions and representing people in 
local political life. Cities can aim to reach marginalised groups within 
the community and decide on targeted support to encourage their 
involvement in local development.

Neighbourhood Funds can be used to involve residents in designing 
and running their own projects within a limited budget. Their practi-
cal involvement, through local associations, allows very speciﬁ c local 
priorities to be pursued and keeps people more committed over time 
(see the section Financial ways of empowering neighbourhoods). 

Successful integration of sectoral policies: 
Developing transport and mobility
Integrated development plans are well suited to delivering trans-
port infrastructure and increasing mobility. City authorities must 
be imaginative and think strategically to ensure that all sectors of 

the local population beneﬁ t. For example, transport infrastructure 
must be planned in the context of regional and national networks. 
Cities should ensure that their plans become part of an integrated 
transport network at metropolitan or city-regional level, where land 
use, planning and construction are coordinated on a bigger scale. 

CASE
STUDIES

Innovative forms of public transport in 
the Dutch province of Flevoland

Until recently, the province of Flevoland (Netherlands) – eco-
nomically the poorest in the country – suﬀ ered from a poor 
regional public-transport system. There was a lack of buses in 
the evenings and weekends, some lines had been suspended 
and many inhabitants could not access public transport near 
their homes. At the same time there was a greater need for 
public transport, owing to the ageing population and an in-
crease in the number of handicapped individuals and those 
with illnesses.

Conscious of the social and economic role of public transport 
as well as its environmental beneﬁ ts, the Dutch authorities 
devised a national policy to provide a better match for the 
requirements of eﬃ  ciency, availability and security in public 
transport. This gave rise to a new concept: ‘A la carte’ public 
transport. Its ﬂ exible formula combines a taxi-style service with 
traditional public transport. With one telephone call, an itiner-
ary is organised on request to take the traveller where he or 
she requires, including places inaccessible to public transport 
lines. People can therefore travel from door to door or attend 
sporting or cultural events, making use of the best possible 
combination of diﬀ erent means of transport. They get all of this 
for prices only slightly higher than (or in some cases equal to) 
those charged on the usual public transport lines and in any 
case signiﬁ cantly lower than the average taxi fare.

The concept, simple in principle and sophisticated in practice, 
is entirely geared towards people’s real needs. The ﬁ rst ERDF 
subsidy was given to the ‘Mobimax’ project set up in the sub-
urban region of Noordoostpolder, which began in April 2000. 
October 2001 saw the start of the ‘Public transport on demand’ 
scheme in Dronten, which was also co-ﬁ nanced by the EU. The 
new formula has been very successful and the number of users 
has exceeded expectations. As a result, in April 2005 ‘Regiotaxi 
Flevoland’ was set up to take over from preceding projects, this 
time without assistance from the ERDF.

http://www.ﬂ evoland.nl/
http://ec.europa.eu/regional_policy/projects/stories/
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“  Urban development programmes should 
the start „ 

include a long-term ﬁ nancial strategy right from 

City authorities can be pro-active in designing transport services that 
are cleaner, more aﬀ ordable and more eﬃ  cient. New investment in 
public transport provides an opportunity to adopt greener technol-
ogy. Authorities may also decide to encourage more fuel-eﬃ  cient 
cars or target congestion problems. It is important that the whole 
population should have access to jobs and services. People who do 
not own cars, such as the elderly, young people and the disabled, 
need to be able to travel independently and safely around their city, 
and should therefore be provided with attractive public transport. In 
addition, connections between key points around the city should be 
part of strategies to increase mobility and facilitate freight transport 
and logistics. Access to airports is particularly relevant to some cit-
ies in new Member States. Cities can use urban development plans 
to boost alternative means of transport, including cycle lanes and 
pedestrian areas.

Successful integration of sectoral policies: 
Cultural values and activities
Cultural diversity is a rich resource that should be celebrated in cit-
ies – including an area’s physical cultural heritage, cultural traditions 
and the knowledge of local residents. Multi-cultural urban societies 
have the potential to contribute to new development of urban 
neighbourhoods in many ways:

(cid:132)  Culture is a key factor in maintaining collective self-esteem and 
encouraging more active citizenship. It can place a local area ‘on 
the map’ and promote its unique identity within a city.

(cid:132)  Cities can use cultural support activities to establish new local 
associations and build a better image in a deprived area. As the 
area gains popularity, people view it as a more attractive place 
to live and one that may even have tourist potential. 

(cid:132)  Cities can use the cultural background of deprived urban areas 
to generate new market opportunities, providing local people 
with new training and employment. 

(cid:132)  Cultural activities can particularly beneﬁ t the involvement 
of women in society. Where cultural assets are given a more 
prominent role, there are natural ways to include women in 
the economic life of an urban area. 

Getting things done: Financing and investing 
with lasting eﬀ ects

Securing ﬁ nance for urban development clearly requires very detailed 
planning and negotiation. Urban development programmes should 
include a long-term ﬁ nancial strategy right from the start, where 
funding is planned and secured for at least ﬁ ve to 10 years. This is 
crucial for success, giving security to the programme throughout its 
duration. It also makes it more independent of electoral cycles and 
possible changes in local political majorities and preferences.

3

CHAPTER

Using culture to generate wealth.

Experience has shown that shorter planning periods were inadequate 
in most cases, as any lasting progress needs several years to take 
eﬀ ect, especially if all relevant local stakeholders are to contribute. 
It also takes time for the local community to become involved and 
reach the point where the citizens are really integrated into the 
social and economic context of their surrounding city and region 
and actively play their part in developing it.

Making private capital work for cities

In terms of how ﬁ nance is structured, successful urban development 
and regeneration cannot be done with public funding alone. It has 
become increasingly important to get the private sector involved and 
to acquire private capital, especially for large development projects 
such as the reuse and redevelopment of redundant industrial or 
military sites.

Cities are aware that there are deals to be struck with the private 
sector. Companies receiving planning permission are often also being 
handed the opportunity to make sizeable proﬁ ts. These days, more 
and more public authorities are generating ‘planning gain’, realising 
that they do not have to give such chances away for nothing. Many 
European cities now routinely ask private investors to contribute to 
urban development – generally on the basis of respective urban-
planning legislation – and lay down their conditions for planning 
permission in a contract.

Clever finance is flexible: An example from the 
new Member States
Revolving funds are a way of selling limited levels of assets to gener-
ate funds for ongoing development projects and ensure that ﬁ nance 
covers a long-term perspective. Below is an example of how the 
principle works.

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“  [JESSICA] promotes sustainable 
urban areas „ 

investment, growth and jobs in Europe’s 

enterprises in the EU regions. In its ﬁ rst phase, JEREMIE consisted 
of an evaluation of the supply of ﬁ nancial engineering products 
in the Member States and regions of the EU and an assessment 
of potential needs. The second phase of JEREMIE intervenes in 
the programming of actions for the period 2007-2013. Where 
Managing Authorities of Structural Funds programmes wished 
to beneﬁ t from the JEREMIE framework, they would decide to 
allocate resources from the programme to a holding fund. The 
holding fund could be a suitably qualiﬁ ed ﬁ nancial institution 
at national level. It is also envisaged that, under the JEREMIE 
framework, the Managing Authorities can ask the European 
Investment Fund (EIF) to carry out the holding fund tasks when 
the programme allocates a grant to it, which would also facili-
tate the levering-in of additional loan capital from the EIB. The 
holding fund will organise calls for expressions of interest from 
ﬁ nancial intermediaries and will also evaluate, select and accredit 
them. These ﬁ nancial institutions can oﬀ er many diﬀ erent types 
of ﬁ nance, including venture or seed capital, start-up grants, mi-
cro credits, technology transfer funds and guarantee funds. 

Access to ﬁ nance made easier by the JEREMIE initiative.

(cid:132)  JESSICA (Joint European Support for Sustainable Investment in City 
Areas) is a European Commission initiative (DG Regional Policy) 
in cooperation with the European Investment Bank (EIB) and 
the Council of Europe Development Bank (CEB) to promote 
sustainable investment, growth and jobs in Europe’s urban 
areas. The JESSICA initiative enables the Managing Authorities 
of Structural Funds programmes to take advantage of outside 
expertise and have greater access to loan capital, including 
loans for social housing where appropriate, as well as beneﬁ t 
from a strong leverage eﬀ ect by attracting sizeable amounts 
of private funding. Where a Managing Authority wished to 
participate in JESSICA, it would contribute resources from the 
programme, while the EIB, other international ﬁ nancial institu-
tions, private banks and investors would contribute additional 
loan or equity capital as appropriate. Since projects will not be 
supported through grants, programme contributions to urban 

Many cities in the new Member States have become owners of large 
housing stocks, after the change in their political systems, and there-
fore have big potential assets at their disposal. Instead of selling all 
the best elements of that housing stock and keeping only the most 
unattractive parts, as has happened in the past, many cities have 
learned that is far better to sell oﬀ  only limited parts of that stock. 
The income generated can become a revolving means of ﬁ nance for 
further modernisation, rather than an instant source of revenue to 
other parts of the economy. Over time, further sales of high-quality 
housing could continue to generate income for future maintenance 
and modernisation in the local authority’s housing stock.

Such an approach could help to keep high-quality housing within 
local authority ownership, for households in need, and at the same 
time provide them with money to keep this housing in good condi-
tion. The same principle can also apply to the development of former 
military sites, now in the ownership of local authorities. 

Securing long-term funds as part of 
Regional Policy
Since urban development has been integrated into the mainstream 
Operational Programmes, European Structural Funds have taken on a 
new relevance for integrated urban development projects. Member 
States and regions can now include speciﬁ c provisions for sustainable 
urban development in their Operational Programmes, providing a 
very stable ﬁ nancial framework over many years. These funds allow 
for a combination of both short-term funding for time-limited tasks 
and integrated development concepts with a long-term ﬁ nancial 
perspective until 2013. 

The Four J’s
At European level, four initiatives have been launched for Cohesion 
Policy programmes in the period 2007-2013 to improve access to 
ﬁ nance55: 

(cid:132)  JASPERS (Joint Assistance in Supporting Projects in European Regions) 
involves a partnership between the European Commission (DG 
Regional Policy), the European Investment Bank (EIB) and the 
European Bank for Reconstruction and Development (EBRD). The 
main objective of JASPERS is to provide assistance to Member 
States in the complex task of preparing proposals for large 
projects supported by EU funds (costing more than €25 million 
for environmental projects and more than €50 million in trans-
port and other areas). This measure will provide comprehensive 
assistance for all stages of the project cycle, from the initial 
identiﬁ cation of a project through to the Commission Decision 
to grant assistance and speed up the overall process. 

(cid:132)  JEREMIE (Joint European Resources for Micro to medium Enterprises) 
is an initiative of the European Commission (DG Regional Policy) 
together with the European Investment Bank (EIB) and the 
European Investment Fund (EIF) to promote increased access to 
ﬁ nance for the development of micro, small and medium-sized 

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3

CHAPTER

available in Europe to satisfy unmet demand. Micro-ﬁ nance is an 
important facility for urban investment, as many small, targeted 
types of funding add up to a broader picture of dynamic change. 
To ﬁ nd more capital for micro-credit providers, this initiative 
proposes setting up a micro-fund in a new facility. This would 
help ﬁ nance the loan activities of micro-ﬁ nance institutions, 
which can also expect to attract contributions from a range of 
investors and donors. The EIB and the EIF will run this facility, 
which will conduct market analysis, establish guidelines and 
promote training courses in particular to develop mentoring 
capacity, essential for good micro-credit operations. Financial 
support would come from the existing technical assistance 
budget of the Structural Funds (ERDF). The JASMINE team will 
liaise with Micro-Finance Institutions and the EIF to help them 
improve their procedures and become more credible in the 
ﬁ nancial sector. These small lenders can use the expertise of 
the JASMINE team to check that they are requesting enough 
technical support, seed capital and operational capital. The 
JASMINE team will also examine their business plans prepared 
for the EIF and will make proposals to the ﬁ nancing board.

Combining funding programmes
There are many examples in Europe to show that cities can equally 
beneﬁ t and work successfully in urban regeneration and develop-
ment, if they are also provided with national funds for urban devel-
opment. In addition, combining several complementary funding 
programmes and bundling money from diﬀ erent levels for integrated 
operations can make it easier for cities to use co-ﬁ nancing from EU 
Structural Funds.

Financial ways of empowering neighbourhoods
A relatively new ﬁ nancial instrument in urban regeneration is the 
development of so-called Neighbourhood Budgets, or Funds, which 
have become increasingly popular in German and Dutch urban 
policy. Their creation stems from two fundamental observations. 

Firstly, urban regeneration requires the full support and coopera-
tion of local communities. Often though, citizens living in multiply 
deprived urban areas have had many negative experiences, leaving 
them with a feeling of frustration and powerlessness. It may be hard 
to win back their trust and motivate them to become involved in 
urban regeneration. This process can be facilitated if they have ac-
cess to limited budgets that they can spend on their own priorities 
to bring immediate improvement and change. 

Secondly, Neighbourhood Funds can help to bridge the gap be-
tween short-term gains and long-term perspectives, with small 
but rapid improvements that directly beneﬁ t local residents. This is 
helpful in keeping local people motivated to be involved in large-
scale regeneration projects, because it can be hard to reconcile the 
speed with which local authorities can act and the expectations of 
local people.

CASE
STUDIES

Cities on the cutting edge of 
development

A JOINT EFFORT AT ALL LEVELS OF STATE TO SUPPORT INTEGRATED 

NEIGHBOURHOOD DEVELOPMENT

The German Socially Integrative City Programme is a targeted 
and joint eﬀ ort on the part of all levels of state (national 
government, regional governments and local authorities) 
to combat urban deprivation and social exclusion, calling 
on integrated approaches to neighbourhood development. 
The aim is to combine and integrate investment and non-
investment measures from various EU, federal and Länder 
programmes focusing on urban renewal to produce a cen-
trally managed programme.

The participating municipalities must draft a long-term, 
district-oriented, integrated action plan as a basis for Socially 
Integrative City implementation. Key elements of success 
are the pooling of resources, having the right motivation 
and involving all the local key players, as well as the estab-
lishment of new management systems and organisational 
structures to create sustainable solutions for the integrated 
regeneration of deprived urban areas.

http://www.sozialestadt.de/en/programm/ 

development funds will be in the form of revolving ﬁ nance to 
make the investment more sustainable and trigger signiﬁ cant 
leverage eﬀ ects. The programme contributions will be used to 
ﬁ nance loans provided by the urban development funds to the 
ﬁ nal beneﬁ ciaries, backed by guarantee schemes established 
by the funds and participating banks themselves. No state 
guarantee for these loans is involved, so they will not have a 
negative impact on public ﬁ nance and debt.

(cid:132)  JASMINE (Joint Action to Support Micro-Finance Institutions in 
Europe) aims to make small loans, or micro-credit, more widely 

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“  Successful and sustainable development 
partnerships „ 

of urban areas requires strong local and regional 

future in their community. When that is the case, ﬁ nance from 
outside the community yields solid rewards through local people 
who take up the reins of promoting their area as a place to live and 
thrive economically. 

Getting things done: Creating strong local and 
regional partnerships

Successful and sustainable development of urban areas requires 
strong local and regional partnerships. There are many reasons to 
form such partnerships in order to achieve good results that take 
account of many policy priorities. Public resources are limited, so 
there is an urgent need to secure work with the private sector to 
access suﬃ  cient ﬁ nance and to bring in new expertise. 

Partnerships also allow more know-how to be brought into the op-
eration. This is especially valuable when public political know-how is 
combined with the private sector’s entrepreneurial know-how  and 
residents’ local know-how. Furthermore, the involvement of local 
people in designing and implementing projects can help create a 
stronger sense of ownership and responsibility. This is important 

CASE
STUDIES

Prague Smíchov: Private investors 
as generators of neighbourhood 
revitalisation

Until recently, Smíchov (Czech Republic) could have been 
described as a traditional inner-city working class neigh-
bourhood facing lack of investment and deterioration of 
housing stock, the economic diﬃ  culties of deindustrialisation 
(factories being closed down) and a socially disadvantaged 
population (working class population with a relatively high 
proportion of Roma, for example).

Much private investment has ﬂ owed into the redevelopment 
of abandoned factories and putting them to new uses, the 
refurbishment of existing building stock, improvements 
in transport and the regeneration of public spaces. Public 
authorities have encouraged revitalisation in several ways, 
notably by deﬁ ning a common framework for local devel-
opment initiatives and by appending infrastructural invest-
ments. For example, private investors have purchased the 
land from Prague City and transformed it into an attractive 
and economically active part of a modern city. A synergy 
between private and public interests seems to have worked 
in rejuvenating Smíchov.

http://www.eukn.org/eukn/

CASE
STUDIES

Getting the local community involved

THE ‘SMALL PROJECTS FUND’ IN GRAZ

Projects completed all over Europe have shown that the 
long-term and active cooperation and commitment of local 
communities can receive a signiﬁ cant boost if a fund is of-
fered that allows the local communities to receive ﬁ nancial 
support for their own project ideas.

The City of Graz (Austria) has established such a fund as 
part of its URBAN II programme. It allowed all local citizens, 
enterprises and associations to develop their own ideas for 
revitalising the area and obtain funding for implementing 
their ideas following a simple application procedure. The 
project ideas that received ﬁ nancial support from this fund 
were selected by a jury made up of four members of the 
district council, four proactive citizens and a representative 
from the local authorities’ URBAN team.

http://www.urban-link.at/english.php 

Social capital and neighbourhood finance: 
A powerful combination 
Investing in the skills and commitment of local people is crucial for 
a project’s success. At some point in the future, the area will lose 
the beneﬁ t of public intervention and the local community will then 
have to continue the regeneration process. If people have gained 
enough conﬁ dence, expertise and commitment during the period 
of EU funded schemes, they will move from mere participation to 
being at the heart of developing innovative solutions to confront 
the challenges of their area. 

Neighbourhood Budgets can have a powerful eﬀ ect when made 
available to local people who are empowered to build a better 

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when public funding comes to an end and local people and stake-
holders take on the role of maintaining the improvements, promoting 
their areas and attracting business investment. 

In early examples of partnership schemes, there was a strong focus 
on ‘Public Private Partnerships’, in general due to a pressing need 
to raise additional ﬁ nancial resources. There have been many suc-
cessful examples of this56. 

Subsequently, it emerged that residents and non-proﬁ t-making 
organisations representing certain target groups need to be brought 
into the picture as well. Therefore, the focus today is not only on Public 
Private Partnerships, but also on comprehensive Local Partnerships, 
where everybody who can contribute to the success of regeneration 
is actively involved.

The direct involvement of cities and local authorities in the program-
ming, design and delivery of urban development programmes was 
also a successful element in many URBAN programmes57. For the 
2007-2013 programming period, partnership with and the involve-
ment of local and urban authorities during the preparation, imple-
mentation, monitoring and evaluation of Operational Programmes 
is explicitly deﬁ ned in Article 11 of General Regulation 1083/2006 
on the Structural and Cohesion Funds58.

Communicating well at all levels 
The very nature of partnerships is to strengthen the horizontal 
dimension of policies. However, there are also new moves in urban 
governance to improve vertical cooperation, whereby local, regional 
and national bodies work more eﬀ ectively together.

Because the EU Regional Policy Operational Programmes also contain 
urban priorities, measures or actions, the Managing Authorities in 
the Member States also become responsible for ﬁ nance from EU 
Structural Funds. Cities and regions must therefore communicate 
well in order to make the best use of funding. A number of recent 
Cohesion Policy instruments, such as the Regions for Economic 
Change Initiative or the URBACT II Programme, guide participating 
regions and cities in fostering their cooperation and spreading 
know-how and experience gained from all over Europe. 

National authorities also have much to gain by ﬁ nding good vertical 
cooperation with their cities and of exchanging knowledge with each 
other. For many years now, Dutch, German and British urban policy 
has demonstrated how important is the added value of coopera-
tion between the diﬀ erent levels. The URBAN Community Initiative 
has also led to new forms of vertical cooperation between national 
governments and their cities in Member States such as Spain and 
Italy. This cooperation has provided these countries with a greater 

CASE
STUDIES

The City of Duisburg: An example of strong local and regional cooperation

The City of Duisburg is situated in the Ruhr area in North Rhine-Westphalia (Germany), which has been strongly aﬀ ected by the 
processes and challenges of economic restructuring over the past few decades. This has led to numerous neighbourhoods and 
areas characterised by deprivation and segregation.

In order to develop and implement innovative integrated and sustainable solutions, the City of Duisburg created the Duisburg 
Development Company (EG DU) in 1999. The task of the EG DU is to play a part in the improvement of the economic, social and 
housing structures in the Duisburg neighbourhoods particularly aﬀ ected by problematic situations that involve urban planning, social 
policy or intercultural aﬀ airs. The tasks speciﬁ c to each neighbourhood are derived from the individual action programmes, speciﬁ c 
to each situation, whose implementation and further development have been entrusted to the EG DU by the City Council.

To tackle the problems in the diﬀ erent areas of responsibility in a systematic and subject-related fashion, an interdisciplinary team 
of architects, economists, youth and community workers and administration experts works just below management level. This 
team provides advice and carries out activities on behalf of the neighbourhood oﬃ  ces set up locally.

The EG DU implements integrated revitalisation strategies in several of the city’s deprived urban areas. It has also created a city-wide 
platform for urban development to oversee development in the entire city and its neighbourhoods and to design an early-warning 
system in the event of negative development in speciﬁ c areas, which will allow early intervention.

The city-wide cooperation of all key players is embedded in a successful regional cooperation. This is formed by regional networks 
of North Rhine-Westphalia’s cities, which are co-ﬁ nanced by the regional ministry responsible (MBV NRW) and allow key players in 
urban regeneration from all cities in the region to exchange examples of good practice and learn from each other. In addition, the 
regional ministry takes a very pro-active approach in working in partnership with the cities in the ﬁ eld of urban development – not 
acting as a remote authority, but as a partner in project development and implementation with a strong presence in the cities and 
an equally strong involvement in the relevant city networks and exchange processes. 

http://www.eg-du.de 

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“ The URBACT Programme supports the 
key players in urban policies across Europe „ 

exchange of know-how and experience between 

The INTERREG IV C Programme is another cooperation programme 
that provides funding for all regions of Europe plus Switzerland and 
Norway (regional and local public authorities) to exchange and 
transfer knowledge and good practice. Being part of the 2007-2013 
European Territorial Cooperation Objective and building on the 
INTERREG III C Programme that ran from 2000 to 2006, INTERREG IV C 
enables regional and local (urban) actors across Europe to exchange 
experience, know-how and knowledge through interregional coop-
eration. This will also help to ensure that good practice, for example 
in the ﬁ eld of urban development policies, will be transferred and 
integrated in the mainstream Operational Programmes of the EU 
Structural Funds 2007-2013. This process is also fostered by the 
Regions for Economic Change Initiative.

CASE
STUDIES

RAPIDE: Regional Action Plans for 
Innovation Development and Enterprise

This INTERREG IV C project, led by the South West England 
Development Agency (the United Kingdom), deals with 
the role of the public sector in stimulating innovation in 
regions, in particular helping small businesses bring innova-
tive products to the market more quickly. By focusing on the 
good practice already identiﬁ ed in partner regions, gathered 
under the various national and European development pro-
grammes, the partners aim to develop robust and workable 
action plans for each region to implement. 

For each of the participating regions, a Local Action Plan 
will be developed as part of this project. Close coopera-
tion with the responsible Managing Authorities will also be 
sought to ensure that lessons learnt from this international 
partnership will be included in the implementation of the 
regions’ Operational Programmes and their use of European 
Structural Funds.

Thirteen partners from 11 Member States will thus stimulate 
innovation in regions, increase economic growth and as 
a result contribute directly to the EU’s agenda for innova-
tion and the knowledge economy. Within the Regions for 
Economic Change Initiative, the project will beneﬁ t from Fast 
Track assistance from the European Commission.

http://www.rapidenetwork.eu 

CASE
STUDIES

The German Austrian 
URBAN-Network

ACTIVE EXCHANGE AND LEARNING BETWEEN CITIES

The German Austrian URBAN-Network ensures active 
exchange of experience and know-how between the 
cities funded by the EU’s URBAN Community Initiative 
and thus enhances implementation of the URBAN pro-
grammes. In addition to concrete local projects, one of 
the intentions of URBAN has been to foster an active 
exchange of experience between and beyond the funded 
towns and cities.

The German Austrian URBAN-Network has organised this 
type of horizontal and vertical exchange of experience 
and information between all public actors involved in 
the URBAN Community Initiative in Germany and Austria. 
It is now continuing this targeted exchange between 
German and Austrian cities beyond the ﬁ xed duration of 
the URBAN Community Initiative. The main objective of 
the network is to facilitate an intensive exchange of ex-
perience, the development of integrated approaches for 
resolving similar problems, the dissemination of informa-
tion about relevant town renewal activities at EU, national 
and regional level as well as political awareness-raising 
and publicising of the integrated URBAN approach.

http://www.deutscher-verband.org/
http://www.eukn.org/eukn/

impetus for solving problems and meeting new challenges using 
partnerships at national, regional and local level.

Getting things done: Proﬁ ting from knowledge 
and exchanging experience

As Member States and their cities and regions act in partnership 
with EU authorities, signiﬁ cant streams of ﬁ nance can be unlocked 
through EU Structural Funds. This is now an essential source of ﬁ -
nance for the urban policies of the Member States, but it also brings 
an equally important gain through the transfer of know-how and 
good practice. 

At European level, the URBACT Programme supports the exchange 
of know-how and experience between key players in urban policies 
across Europe59. To date, after a ﬁ rst round of a call for proposals in 
2007/2008, a number of 21 thematic networks and six working groups 
have been approved for funding under the URBACT II programme. 
These projects involve 253 partners, of which 181 are cities.

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CHAPTER

Canarias (ES) 

Guadeloupe  Martinique 

Réunion

Guyane (FR) 

Açores (PT)

Madeira 

URBACT II projects (March 2009) 

Thematic networks 

Lead partner 

Partner 

Working groups 

Lead partner 

Partner 

0 

1 0 0 0 K m 

© EuroGeographics Association for the administrative boundaries

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“  Where public resources are scarce and 
the best possible impact „ 

subject to conﬂ icting demands, everyone needs 
to know that resources are being used to achieve 

CASE
STUDIES

Evaluating progress
A EUROPE-WIDE EVALUATION OF THE URBAN I COMMUNITY 

INITIATIVE

At the end of the ﬁ rst round of the URBAN Community 
Initiative, a comprehensive Europe-wide evaluation study 
was commissioned. Its main objectives were to analyse the 
impact of the Initiative as a catalyst for lasting improvements 
in socio-economic conditions for inhabitants in the pro-
gramme areas, identify the Community added value obtained 
as a result of this Structural Fund investment, identify lessons 
from the ﬁ rst round of URBAN programmes for the following 
programming period and the general commitment of the 
EU in this policy area. 

The evaluation was based on an assessment of 118 URBAN 
programmes and ﬁ ve Urban Pilot Projects. The methodology 
involved desk research, structured interviews with stakehold-
ers, case studies, street surveys and the informed judgements 
of members of the international evaluation team.

http://ec.europa.eu/regional_policy/
sources/docgener/evaluation/urban/
urban_expost_evaluation_9499_en.pdf

It was a very ambitious evaluation exercise, but it proved its worth 
through the very valuable recommendations that resulted for the 
design and implementation of all following URBAN II programmes. 
It has also had an impact on the general debate concerning urban 
policy in Europe and the future role of the EU in this ﬁ eld. 

Some cities and regions have even gone a step further by carrying 
out their own monitoring of the implementation of their URBAN 
programmes. These assessments measure progress at certain points 
in the programmes’ life cycles and also track achievements at regular 
intervals. This allows certain projects to be redirected to improve 
performance on a continuous basis and to provide ongoing coach-
ing and support. 

Striving to capture new information 
In the current programming period 2007-2013, a number of (new) 
criteria for the assessment of integrated urban development schemes 
could be applied by all stakeholders involved in urban initiatives 
and operations – building on the experience gathered in previous 
programmes and in URBAN I and II. The ﬁ ndings and results of previ-
ous initiatives suggest that the following questions could be asked 
during an assessment of future integrated projects and strategies 
in the ﬁ eld of urban development and regeneration:

(cid:132)  Do the initiatives for urban regeneration promote competitiveness 
in  all  European  regions  and  cities,  with  an  impact  on  the 

Getting things done: Monitoring the progress

Where public resources are scarce and subject to conﬂ icting de-
mands, everyone needs to know that resources are being used to 
achieve the best possible impact. It is important to monitor the 
achievement of objectives and to manage progress, so that all those 
involved in implementing policies can see how to improve their 
eﬀ ectiveness. This process can generate helpful lessons for other 
projects through regional, national and European dissemination of 
ﬁ ndings and elements of good practice. Over recent years, various 
forms of evaluating urban policy have emerged. Here they are il-
lustrated in the context of the URBAN Community Initiative.

Pre-project (ex-ante) evaluation has been a general feature of URBAN 
programmes. Successful and pre-selected applications have always 
gone through an ex-ante evaluation, to check how speciﬁ c problems 
that are identiﬁ ed for a certain area interrelate and how speciﬁ ed 
objectives will be met. Ex-ante evaluations have, in many cases, led 
to improvements in the integrated programmes and a more suc-
cessful project design right from the start. 

Mid-term evaluation has equally been a standard tool in all URBAN 
programmes. Each of the funded programmes has gone through 
a mid-term review that has led to a comprehensive consultation 
process. The ﬁ ndings and recommendations of the mid-term reviews 
have provided a basis for a structured debate with all the key local 
players and stakeholders. The regional authorities, as well as the 
European Commission, have been directly involved in that debate, to 
make sure that the ﬁ ndings and lessons learnt were shared amongst 
all those involved. The practical consequences of these mid-term 
evaluation exercises were taken into account during the ﬁ nal phase 
of implementation. 

Ex-post evaluations have been carried out for individual URBAN 
programmes and have been of crucial importance at European level. 
At the end of the URBAN I Community Initiative, a comprehensive ex-
post evaluation of all URBAN I programmes throughout Europe was 
carried out60. This involved the European Commission, representatives 
from the Member States and a wide range of bodies at local level. 

Monitoring projects and policies makes them more 
eﬀ  ective.

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CHAPTER

surrounding neighbourhood, city and/or region that goes 
beyond the individual project? 

Successful approaches to urban regeneration and development do 

not divide problems and potential along the lines of administrational 

(cid:132)  Do the urban operations create conditions where social inclusion 
and improved competitiveness can be achieved together? 

(cid:132)  Do the urban initiatives empower deprived groups, with a special 

focus on the inclusion of ethnic minorities?

(cid:132)  Do the urban operations contribute to European environmental 
objectives – especially with regard to a reduction in the use of 
energy and the protection of the natural environment?

or political responsibilities, but treat and use them in an integrated 

and comprehensive way. This means in practical terms that the main 

topic of physical regeneration needs to be seen in context alongside 

social, economic, environmental and cultural aspects of urban life 

and development. This approach also requires the public and the 

private sector to work together, to cooperate with aﬀ ected local 

communities and to involve them in collaborative action. 

(cid:132)  Do the urban initiatives ensure that equal opportunities for men 

Financing must be secured over the mid-long term and include 

and women are embedded in urban policies? 

(cid:132)  Do the urban development programmes take the challenges of 
demographic change into account – especially with regard to 
the fact that our urban societies are going to change dramatically 
in terms of age structure and ethnic composition? 

(cid:132)  And ﬁ nally, do the urban initiatives go further than individual 
projects, by establishing new and innovative forms of urban 
policy at local and regional level? 

Key elements of sustainable urban 
development 

Following the common European ‘Acquis Urbain’, sustainable urban 
development is reached best through integrated urban development 
plans developed around long-term visions for cities and neighbour-
hoods in their regional context. Area-based integrated development 
plans work best if they are embedded in city-wide strategies and sup-
ported by policies that are geared towards speciﬁ c target groups. Plans 
can have a much higher impact if they look beyond the problems and 
capitalise on the potential of the area and the local population61. 

contributions from all stakeholders that have a vested interest in 

urban development strategies. The creation of revolving funds can 

help local authorities to be pro-active and inﬂ uential over longer 

periods of time. The creation of Neighbourhood Funds can signiﬁ -

cantly support and improve the motivation of local communities 

to get and stay involved and to develop a sense of ownership for 

the development and regeneration process. 

European Structural Funds and ﬁ nancial engineering tools such 

as JASPERS, JEREMIE, JESSICA and JASMINE can provide valuable 

additional ﬁ nance for urban operations. Strategic mid-term and 

long-term urban development plans should allow suﬃ  cient time 

initially to get all partners involved. They should also design an Exit 

Strategy at an early stage to make sure that positive developments 

continue beyond the period of public-investment programmes. 

Monitoring and evaluation should be an integral part of each devel-

opment plan. If they are jointly agreed and developed and backed 

up with clearly deﬁ ned milestones, they allow measurement of 

progress, achievement and underachievement. This can then form 

the basis of any adjustments in policy to achieve the best possible 

use of all resources.

What are the key elements of sustainable urban development?

•   Developing a city-wide vision that goes beyond each project and is embedded in the city-regional context (analysis of target 

areas; strategy building; deﬁ ning long- and medium-term objectives, priorities, measures and projects);

•   The integrated approach as an added value (strong ‘horizontal’, cross-sectoral coordination of urban regeneration measures and 
physical urban renewal as the main elements of an integrated approach to sustainable urban development, covering aspects of 
local economic development, business and employment, education, training and qualiﬁ cation, social inclusion, culture, environ-
mental measures, urban mobility and high-quality public spaces; strong ‘vertical’ coordination with all relevant levels, coherence 
with European, national and regional objectives);

•   Financing and investing to achieve a lasting impact; concentration of resources and funding on selected target areas;

•   Creating strong local and regional partnerships (increased involvement of citizens and local and regional stakeholders, including 
the private sector; shared responsibilities, implementation bodies); new instruments of urban governance, administration and 
management;

•   Capitalising on knowledge, exchanging experience and know-how (benchmarking, networking);

•   Monitoring the progress (ex-ante, mid-term and ex-post evaluations, set of criteria and indicators).

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CHAPTER  

     PERSPECTIVES ON THE FUTURE DEVELOPMENT 

OF EUROPEAN CITIES

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   4CHAPTER

In November 2008, the European Commission presented a con-
sultation paper entitled ‘Regions 2020 – An assessment of future 
challenges for EU regions’62. In the prospective Regions 2020 analy-
sis, the Commission sketches out future challenges in the ﬁ elds of 
globalisation, demographic change, climate change and energy. 
The document identiﬁ es and assesses the regional eﬀ ects of these 
four future policy challenges in the medium-term perspective of 
2020, as they will have a signiﬁ cant impact on Europe’s economies 
and societies and on decisions on where the EU should direct future 
eﬀ orts. In addition, Regions 2020 illustrates which regions are most 
vulnerable to these challenges, highlighting the potential pattern of 
regional disparities that globalisation, demographic change, climate 
change and energy will generate. The ﬁ ndings and predictions of 
Regions 2020 will be an important input in the design of Cohesion 
Policy after 2013.

In the context of Regions 2020, this last chapter shows why cities need 
to address the themes of globalisation, demographic change (includ-
ing migration), climate change and energy, and it gives examples of 
how they are currently doing this. The perspectives on the future 
development of European cities also underline the necessity and 
added value of a common European methodology for sustainable 
and integrated urban development.

Cities in the context of globalisation

The ongoing process of globalisation and the exchange of people, 
goods, services and ideas create both new opportunities and eco-
nomic, social, environmental, energy and security challenges63. New 
opportunities include greater trade ﬂ ows that induce economic 
growth. An increase in economic activity and productivity will also 
lead to increased employment, market opportunities for producers 
and entrepreneurs as well as demand for skilled labour. Consumers 
beneﬁ t from globalisation through lower prices and a wider choice 
of goods. On the downside, regions and local ﬁ rms throughout the 
EU will feel a competitive pressure to restructure and adjust their 
economies due to globalisation. This situation promotes continuous 
innovation in products and human capital and may have a negative 
eﬀ ect on wages, especially for low-skilled labour. 

Cities are confronted with the need to restructure, modernise and 
facilitate continuous knowledge-based innovation if they are to 
confront the challenges of globalisation. They have to anticipate 
and facilitate the transition in economic structure from traditional 
industrial sectors towards new service-oriented and knowledge-
based economies. Cities need to modernise and diversify their 
economic infrastructure by creating the conditions for business 
and in particular SMEs and they also need to promote cooperation 
networks with enterprises and research institutes.

At the same time, cities have to cope with the physical brownﬁ elds 
of structural changes as well as the social eﬀ ects of globalisation 

PERSPECTIVES ON THE FUTURE 
DEVELOPMENT OF EUROPEAN CITIES

Urban development and regeneration is a dynamic policy area with 
many interesting dimensions. The history of EU support for urban 
operations shows the shifts that have occurred in the approach 
to urban development and how EU policies have moved from 
primarily funding structural projects to multi-faceted programmes 
which incorporate economic, social, environmental and territorial 
priorities. 

The better towns and cities are understood, the more practical and 
far-reaching urban policies can become. There have been many 
useful lessons drawn from the experience of integrated urban de-
velopment and regeneration programmes all over Europe. Current 
national, regional and local programmes and projects are designed 
to build on these, and to contribute to the policy debate.

Nevertheless, major challenges remain. All cities are subject to the 
eﬀ ects of globalised markets, structural economic change and the 
impact of climate change. There are also new challenges for EU sup-
port for urban development, which require imaginative solutions 
and ﬂ exible thinking that involve all levels of government and local 
management. They particularly cover issues concerning the quality of 
the urban environment. Innovation is well underway and an intense 
debate and exchange of experience between European cities and 
regions needs to continue over the coming years.

Investing in training will help cities meet the 
challenge of gloablisation.

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“ Cities need to address the themes of 
migration), climate change and energy „ 

globalisation, demographic change (including 

CASE
STUDIES

ELAT: Eindhoven, Leuven, Aachen Technology Triangle

In forming ELAT, the cities of Eindhoven (Netherlands), Leuven (Belgium) and Aachen (Germany) developed and implemented a 
successful project to strengthen their position in the global market. As a high-tech location situated away from the larger centres of 
Utrecht, Brussels and Cologne, the transnational triangle oﬀ ers leading skills and know-how in IT, biotechnology, life sciences, nanote-
chnology and car manufacturing. The region hosts the R&D centres of global players (Philips, Ford, Ericsson and Microsoft), research 
institutes (RWTH Aachen, Research Centre Jülich, FH Aachen) and universities (KU Leuven and TU Eindhoven). Those making up the 
partnership realised that by joining forces they could create a critical mass by using cooperation as a means to becoming a major 
region for technology.

Co-ﬁ nanced by the INTERREG III B programme, project partners helped entrepreneurs get their proposals ‘investment-ready’, raising 
awareness about potential investors in the Triangle area and identifying avenues for securing seed money and early-stage ﬁ nancing. 
As well as developing a 30-year Joint Transnational Innovation Strategy and Innovation Action Plan, the ELAT developed its bench-
marking according to the European Innovation Scoreboard and produced an inventory of technology and business clusters, networks 
and communities.

It encouraged technology and business communities to stimulate new business development and supported ﬁ rm growth by iden-
tifying synergies and complementarities. Coaching entrepreneurs and improving access to investors was key to getting start-ups to 
survive and prosper. The project focused on ﬁ nancial issues, particularly pre-seed, seed and early-stage ﬁ nancing, to make ﬁ nancial 
structures more robust. The project’s Entrepreneurial Course Programme encouraged cooperation between schools and universities, 
to produce high-proﬁ le practical studies on how to capitalise on entrepreneurial skills.

In March 2005, a joint declaration of intent between the government of the Netherlands and the government of the State of North 
Rhine-Westphalia (Germany) was signed to strengthen strategic cooperation in the areas of science, technology and innovation. This 
led the Dutch Ministry of Economic Aﬀ airs to launch a SWOT analysis of the most important cross-border clusters with Germany and 
Belgium, identifying high-tech systems and materials, food and nutrition, life sciences and medical technology.

http://www.elat.org

Because of a concentration of dynamic economic activity and a large 
share of highly skilled workforce, these regions should be able to 
respond relatively easily to the challenges of globalisation. Several 
European cities have also developed strong networks with other 
cities and successfully compete on global markets (see for example 
the case study on the ELAT network). However, particular attention 
should be paid to the negative eﬀ ects of concentrated economic 
activity, such as congestion, urban sprawl and the pressure on natural 
resources and the ecosystem.

Under the URBACT II Programme, European cities also work together 
and exchange experience in urban development networks in or-
der to successfully compete on global markets. Examples of these 
networks include:

(cid:132)  UNIC (Urban Network for Innovation in Ceramics)65;

(cid:132)  OPENCities  (Openness  and  the  Competitive  Advantage  of 

Diversity)66;

(cid:132)  RUnUP (Role of Universities in Urban Poles)67.

on the local workforce. As the economy moves up the value chain 
into knowledge-based activities that require a highly qualiﬁ ed and 
ﬂ exible workforce, it is crucial for cities to harness the local labour 
market and invest in education and training, especially in an envi-
ronment where traditional social-security institutions are eroding. 
Cities therefore play an essential role in mitigating the asymmetric 
impacts of globalisation on disadvantaged, unemployed and low-
skilled people.

Both the opportunities and challenges of globalisation can be par-
ticularly felt in regions with urban centres and metropolitan areas64. 

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Cities, demographic change and migration

Together with globalisation, energy and the environment, the de-
mographic change and migration challenge is one of the most 
important issues confronting European cities and regions today 
and in the future.

Demographic change and the ageing society
European citizens are living longer and healthier lives. Although there 
are still diﬀ erences in average life expectancy across the Member 
States, the projections are that life expectancy will continue to rise 
in all countries in coming years. However, this longevity is combined 
with a long-term fall in the birth rate, causing the level of depend-
ence to rise. It is forecast that the ratio of retired people compared 
to those of working age will double by 2050. 

By 2050, there may also be 48 million fewer people aged between 
15 and 64, and 58 million more people over 65. From 2017 a shrink-
ing workforce will also have negative economic repercussions and 

“ The demographic change and migration 
and in the future „ 

challenge is one of the most important issues 
confronting European cities and regions today 

CHAPTERR4

reduce overall employment68. The European Commission has been 
working actively for several years to take forward this debate and in 
October 2006 laid down its proposals for a long-term policy response 
in a Communication, ‘The Demographic future of Europe – from 
challenge to opportunity’69. A key observation of this Communication 
is that the magnitude and rhythm of population trends vary signiﬁ -
cantly from country to country and from region to region.

Declining fertility rates and increasing life expectancy have a big 
impact on all areas of public policy. In general, although this does 
not apply everywhere in Europe, the (ﬁ nancial) requirements for 
pensions, social security services and health care systems are con-
tinuing to rise. Coupled with this fact is the long-term trend of rural 
depopulation, bringing further pressure on city services, while rural 
areas struggle to maintain their populations due to a declining and 
ageing population.

The URBACT II Active A.G.E. network (Managing Change: Impact of de-
mographic ageing for cities’ Active ageing, Gender and Employment 
policies) is currently developing an exchange of experience and 
know-how between the nine participating cities (from eight diﬀ er-
ent Member States) that face an ageing population. The aim is to 
develop eﬀ ective activation policies for older people70.

Migration and immigration: Cities as focal 
points of an arising challenge 
Immigration is a very complex phenomenon and a tremendous 
challenge for Europe’s cities and its local authorities, who are at the 
sharp end of integrating many diﬀ erent groups of people. Worldwide 
migration and international workforce mobility have increased 
considerably over recent decades. The challenge arises when the 
precise location of the out-migration or in-migration is spatially 
concentrated, as happens to be the case in many EU regions. The 
Urban Audit has shown that the population of non-EU residents in 
cities can be as high as 23% in France and 16% in Germany. 

The average non-national population in the EU Member States is 
about 5.5% of the total population. Immigrant workers bring a wide 
variety of skills and experience to their new country and there are 
often new market opportunities for them to exploit within their local 
community. EU funding has been used very eﬀ ectively by cities in 
supporting new ethnic businesses. On the downside however, there 
are greater hurdles for immigrants in entering the labour market, 
due to language and culture diﬀ erences. 

Keeping people active for longer is one of the main 
challenges for cities.

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CASE
STUDIES

Hakunen Family Centre: Opening its 
doors to immigrants – integration is 
all about meeting others

Finland has not been a traditional destination for immigrants 
from the South. But the town of Vantaa, near Helsinki, has 
tackled the challenge posed by the integration of foreigners 
head on: With the support of the European URBAN II pro-
gramme, it has created a Family Centre for immigrants. This 
centre oﬀ ers families various activities to introduce them to 
the society, which they have joined without any knowledge 
of its customs, codes or even language.

Finding out about the host society is above all about meeting 
its members. The initial idea for the project was to have a 
place, a shared hall where immigrant families could receive 
practical support long before diﬃ  culties began to build up, 
particularly with regard to their children’s education. These 
diﬃ  culties were primarily due to unemployment but also 
isolation, particularly of women. But in fact, the approach 
works both ways, Finnish people also have a lot to learn 
about these foreigners alongside whom they are living but 
never meet.

In  2005,  some  1 050  immigrants  and  1 200  people  of 
Finnish origin took part in activities at the Hakunen Centre. 
Established in 2004, initially for two years, the project contin-
ued in 2007 due to its success which can be highlighted by 
the variety of activities on oﬀ er: physical education, ‘family 
café’, a youth club, Finnish language classes, conferences, 
etc. The Centre also plays an important role by providing 
psychological assistance. Lastly, it keeps parents informed 
about the services available to them, from the nursery to 
the library, to play areas for children.

http://ec.europa.eu/regional_policy/projects/stories/
index_en.cfm

Cities and the impacts of demographic change 
and migration
Despite a general trend towards ageing populations, it is expected 
that European cities and metropolitan regions will gain population 
due to a high inward migration of working age population, and 
that Europe will remain the leading destination for international 
migration in general71. However, the outlook varies across Europe 
and it is expected that cities and metropolitan regions in several 
new Member States will continue to witness a decrease in popula-
tion. Therefore, cities and their regions will face a broad range of 
speciﬁ c challenges:

(cid:132)  The integration of migrants into the labour force and society;

(cid:132)  Adaptation of infrastructure;

(cid:132)  Social disparities and social polarisation;

(cid:132)  Increased ecological pressures in the region as a whole, due 

also to urban sprawl;

(cid:132)  Environmental problems in certain areas;

(cid:132)  A reinforcement of regional disparities in the economic growth 

potential.

Cities have to face the potential impacts of demographic change 
and provide answers to new and emerging problems. Growing cit-
ies tend towards suburbanisation, with all the attendant negative 
eﬀ ects of increasing land use, rising house prices, social segregation 
and growing traﬃ  c and congestion. In shrinking cities and scarcely 
populated areas with an ageing population and a decreasing share 
of an active population, housing, industrial and retail markets, it 
becomes more and more diﬃ  cult to provide services – not only for 
elderly and disabled people but also for young people and families 
(care, health and transport services, housing, education and training 
infrastructure, leisure facilities and cultural events).

It is worth repeating that, to achieve both competitiveness and social 
cohesion within urban development and regeneration programmes, 

There is also a growing awareness that successful integration eﬀ orts 
need to start at the earliest possible level, especially focusing on 
pre-school and school activities. It is here that the pre-conditions 
and chances for successful integration of ethnic minorities into 
social and economic life in particular are created. At the same time, 
the current situation in European schools shows that there is a real 
challenge for current and future local policy. In primary schools, the 
proportion of children from families with a migration background is 
far higher than 50% in many European cities and especially in many 
deprived urban neighbourhoods.

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people – they also attract business „ 
“  Sustainable cities do not only attract 

CHAPTERR4

all core elements of the integrated approach to urban development 
must be brought to bear in the context of globalisation, demographic 
change and migration. This clearly demonstrates the need for and 
the usefulness of a common European methodology for sustainable 
and integrated urban development, as described in the previous 
chapter. For example, the MILE URBACT II Pilot Fast Track Network 
assists cities and regions in actively addressing and improving prac-
tices in relation to issues of migration and integration within their 
regional Operational Programmes72.

Increasing  energy  eﬃ  ciency,  tackling  climate 
change and combating urban sprawl

Most cities are confronted with a common core set of environmental 
problems, such as poor air quality, high levels of traﬃ  c and conges-
tion, high levels of ambient noise, poor-quality built environment, 
derelict land, greenhouse gas emissions, urban sprawl, and the 
treatment of waste and waste-water73. Changes in lifestyle lie at the 
heart of many of these issues, as people have increased their use of 
resources over the years. Moreover, problems with the quality of the 
urban environment are closely linked to poverty and socio-economic 
conditions. These are a reminder of how urban policy must deal with 
wider economic factors. 

Energy efficiency and climate change
Climate change is a growing problem for cities. Local actions are 
important both in mitigation (slowing down the eﬀ ects of climate 
change) and adaptation (protecting ourselves against the eﬀ ects), 
placing cities at the forefront of climate-protection policies.

CASE
STUDIES

‘Green Keys’

URBAN GREEN AS A DOOR-OPENER TO SUSTAINABLE CITIES

The INTERREG III B project ‘Green Keys’ has focused on peo-
ple’s lack of appreciation of the value of green spaces, empty 
spaces and public areas for recreation, as well as the overall 
quality of life throughout Europe. It has aimed at providing 
measures to involve green-space strategies in urban plan-
ning, so as to achieve more sustainable development at 
local level. 

The project involved 13 European cities across Europe in an 
exchange process. The interregional partnership developed 
a methodology with supportive tools to assist European cit-
ies in formulating their own Urban Green Space Strategies. 
The main outputs are reﬂ ected and included in the Manual 
‘GreenKeys @ Your City – A Guide for Urban Green Quality’. 

http://www.greenkeys-project.net

CASE
STUDIES

Dublin Ballyfermot

FIGHTING AIR POLLUTION AND RAISING AWARENESS

Supported by the URBAN II programme for Ballyfermot, 
Dublin (Ireland) carried out a detailed air quality and noise 
assessment in Ballyfermot, aimed at determining the envi-
ronmental noise levels and air pollutants to which the local 
population was exposed. A key objective of this study was 
to measure a number of air pollutants and assess air quality 
20 years after the introduction of the ban on the burning of 
bituminous fuel. 

An important beneﬁ t of the project as a ﬁ rst step in a commu-
nication strategy was to raise the understanding and aware-
ness of potential environmental health impacts amongst the 
local population, with a view to capacity building and the 
development of agreed future actions to improve air quality 
and reduce the level of noise. The project also provided an 
initial user-friendly geographical information system, com-
plete with population statistics, infrastructure and environ-
mental details now available to the local community via a 
specialised website.

http://www.urbanbl.ie/priority3/air 

Climate change can have a direct impact on cities, due to extreme 
weather conditions, ﬂ oods, drought, soil damage and erosion, and 
it can cause severe structural damage. Cities are particularly vul-
nerable to these eﬀ ects, and so citizens must be protected from 
risks to health and well-being. At the same time, cities have to 
reduce their environmental impact. Urban areas are major sources 
of greenhouse gas emissions, rising volumes of waste and increas-
ing water consumption. Cities should thus be on the front line 
in the ﬁ ght against climate change. Actions to save energy, cool 
without air conditioning, and reduce traﬃ  c and land use should 
be on every city's agenda. In addition, the ﬁ ght against climate 

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“ Urban sprawl is increasingly seen in 
eastern and central parts of Europe „ 

European cities, particularly in the southern, 

Urban sprawl: A major challenge for towns and 
cities
More than a quarter of the EU's territory has now been directly af-
fected by urban land use. By 2020, approximately 80% of Europeans 
will be living in urban areas, while in seven countries the proportion 
will be 90% or more84. As a result, the various demands for land in and 
around cities are becoming increasingly acute. On a daily basis, we all 
witness rapid, visible and conﬂ icting changes in land use which are 
shaping landscapes in cities and around them as never before. 

Urban sprawl is synonymous with unplanned urban development, 
characterised by a low-density mix of land use on the urban fringe. 
Development is patchy, scattered and strung out, with a tendency 
for discontinuity. It leapfrogs areas, leaving agricultural enclaves, 
while, in the city itself, some areas are left empty. This ad-hoc type 
of development is wasteful and tends to have a negative impact on 
the environment (high energy use for space heating in dispersed 
individual houses, expensive utility connections and signiﬁ cant use 
of energy due to frequent commuting – since work, services and 
living accommodation tend to be far apart).

European cities have traditionally been rather compact, not subject 
to urban sprawl, as compared with many North American cities. 
Nevertheless, urban sprawl is increasingly seen in European cities, 
particularly in the southern, eastern and central parts of Europe85. It is 
thus important that cities develop a comprehensive and integrated 
set of policies to protect open areas around the city and encourage 
people to stay or come back to the city centre to live, work and invest 
(e.g. through long-term land-use planning, brownﬁ eld regeneration 
and revitalisation of the city-centre).

Good planning helps avoid wasteful urban sprawl.

change may lead to new economic opportunities and investments 
through eco-innovation. Cities can play a major role in promoting 
environmentally friendly industries, technologies and products and 
it should be remembered that sustainable cities do not only attract 
people – they also attract business.

The solutions to the environmental problems at European level re-
quire cooperation between national, regional and local government; 
otherwise policies at one level will encroach on those elsewhere. 
Strong partnerships between aﬀ ected groups of people and busi-
nesses are also essential for success. For example, the ‘Joining Forces 
– Metropolitan governance & competitiveness of European cities’ 
URBACT II working group explores how governance of metropolitan 
areas (or city-regions) can contribute to enhancing the competitive-
ness, cohesion and (environmental) sustainability of urban Europe. 
This will lead to recommendations from the group to authorities at 
local, regional, national and European levels74.

EU policies are forward-looking and anticipate the impact of a 
changing population, the risks associated with climate change, 
energy use and urban sprawl. These are speciﬁ c challenges in cit-
ies and urban policy must build around them. EU documents and 
policies contributing to sustainable urban development comprise 
in particular the Green Paper on Urban Mobility (an Action Plan and 
concrete actions will follow from 2009 onwards)75 and the Thematic 
Strategy on the Urban Environment76, as well as a wide range of 
speciﬁ c directives and regulations in the environmental ﬁ eld, for 
example related to ﬂ ood protection77, energy eﬃ  ciency of buildings78, 
the use of renewable energy79, Intelligent Energy for Europe80, clean 
air81 and noise protection82. Furthermore, the European Commission 
intends to continue its funding of the CIVITAS Initiative that helps 
cities to achieve a more sustainable, clean and energy eﬃ  cient urban 
transport system and to tackle congestion83. CIVITAS also supports 
training, exchange of information and take-up of results.

The following areas will need and deserve special attention in the 
development of local projects and their inclusion in integrated urban 
development and regeneration strategies:

(cid:132)  Environmental  Risk  Management,  as  urban  areas  have  an 
important role to play in both adapting to climate change and 
mitigating greenhouse gas emissions. Urban areas are vulnerable 
to  the  consequences  of  climate  change,  such  as  ﬂ ooding, 
heatwaves and more frequent and severe water shortages; 

(cid:132)  Sustainable Urban Transport Plans including speciﬁ c measures 
to promote low CO2 emissions and energy-eﬃ  cient vehicles will 
help reduce greenhouse gas emissions at the local level;

(cid:132)  Sustainable construction, architectural and building culture 
and quality improve energy eﬃ  ciency, with a corresponding 
decrease in CO2 emissions; 

(cid:132)  Sustainable urban design (appropriate land-use planning) can 
help reduce urban sprawl and the loss of natural habitats and 
biodiversity. 

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CHAPTERR4

CASE
STUDIES

SUSTAINMENT: Integrated Solutions for 
Sustainability Management in the Baltic 
Cities

SUSTAINMENT aimed to respond to the needs and challenges 
of local authorities in achieving a more integrated sustainability 
process. The intention was to bring municipalities’ current sus-
tainable development processes to the next level – to create 
models for Sustainability Management Centres (SMC). To do 
so, these SMCs, which have been created under the banner 
of this project, promote cross-sectoral policy integration and 
increased eﬃ  ciency within city administrations in light of the 
diﬀ ering circumstances found within the Baltic Sea Region. 
As a result, the project has provided models for integrated 
sustainability management for all European cities.

The project included cities in the Baltic Sea Region, as well 
as regional stakeholders interested in tackling this issue on a 
wider scale. In either case, the project enabled local authori-
ties to develop their working methods and skills and bolster 
their personnel to signiﬁ cantly contribute to all dimensions of 
sustainable development within the city or region. One key 
aspect of SUSTAINMENT was learning how to support each 
other. External experts were used in training to bring in new 
information and know-how.

The SUSTAINMENT project focused on four main themes 
in order to build capacities for the creation of Sustainable 
Management Centres:

1. Management of the SMC as a strategic resource unit;
2. Governance for sustainability;
3.  A tool for promoting sustainable development: a Project 

Portfolio Approach;

4.  Promoting  administration  via  strong  and  effective 

communication.

These four themes were thoroughly worked through dur-
ing the main activities of the project, both via workshops 
and distance learning. The project resulted in a speciﬁ c SMC 
development plan for each of the participating cities as well 
as a toolkit called ‘URBANworks’ for distribution and wider 
use. The project was co-ﬁ nanced by the European Regional 
Development Fund as part of the Baltic Sea Region INTERREG 
III B Neighbourhood Programme.

http://www.sustainment-project.net

Net seeks to improve cooperation between cities and their surround-
ings by drawing up common programmes and recommendations 
on policy and ﬁ nancial instruments, so as to avoid urban sprawl and 
suburbanisation. To develop strategies for sustainable urban land-use 
management, the LUMASEC working group aims to set up a network 
of decision-makers in small- and medium-sized cities as well as local 
stakeholders from both the public and the private sectors.

A common vision for the future development of 
European cities

In recent decades, much has already been achieved in the develop-
ment of innovative concepts and tools in the ﬁ eld of urban policy. 
The EU considers cities as the driving force behind economic devel-
opment, building on a balance between competitiveness, strong 
social identities and environmental safeguards as a prerequisite for 
sustainable development. Today’s urban development policies are 
very comprehensive and include targeted, coordinated action at all 
levels, addressing current trends and challenges. However, as the last 
chapter also showed, there is still much work to be done.

European cities will perform better when the European ‘Acquis 
Urbain’ is consolidated and the key elements of a common European 
methodology for sustainable urban development have been de-
ﬁ ned. In addition, contributions to a responsible, sustainable and 
prosperous development of Europe’s cities and regions will be most 
successful if they are undertaken in close cooperation with all politi-
cal levels pursuing a common vision for the future development of 
European cities, making the best possible use of know-how, guidance 
and funding opportunities.

“ European cities will perform better when 
have been deﬁ ned „ 

the European ‘Acquis Urbain’ is consolidated 
and the key elements of a common European 
methodology for sustainable urban development 

The URBACT II CityRegion.Net network (The role of cities in inte-
grated regional development)86  and the Land Use Management 
for Sustainable European Cities working group (LUMASEC)87  both 
address spatial development and land-use management. CityRegion.

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GLOSSARY  

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GLOSSARY

‘Acquis Urbain’
Building on the experience of previous Community initiatives and 
programmes to support urban development and regeneration (such 
as the URBAN Community Initiative) and the principles for urban 
development policies established by the European Ministers for 
urban development, the process of creating new urban develop-
ment strategies has led to the emergence of a common European 
‘Acquis Urbain’ over the last decade. This includes the following key 
principles of sustainable urban development: 

•    The development of city-wide visions that go beyond each project 

and are embedded in the city-regional context;

•    The integrated and cross-sectoral approach (horizontal and verti-

cal coordination);

•    The new instruments of urban governance, administration and 
management, including increased local responsibilities and strong 
local and regional partnerships;

•    Financing and investing with lasting eﬀ ects, concentration of 

resources and funding on selected target areas;

•    Capitalising on knowledge, exchanging experience and know-how 

(benchmarking, networking);

•    Monitoring the progress (ex-ante, mid-term and ex-post evalua-

tions, set of criteria and indicators).

Cities and urban areas
This text uses the concepts of ‘cities’ and ‘urban areas’ in a generic 
sense. Deﬁ nitions diﬀ er from one Member State to another and fol-
low diverse approaches, from purely size-based to more functionally 
oriented deﬁ nitions.

City-regions
Facing the challenge of city competition at various levels, many cities 
are beginning to work closely with their surrounding authorities and 
administrations to form ‘city-regions’. City-regions can oﬀ er a good 
framework for authorities to work together across a large urban area 
to coordinate developments and complex actions, to create a critical 
mass, to deliver integrated transport or to address skills shortages. 
The 'city-region' relationship may be mutually beneﬁ cial if it results 
in positive partnerships that can capture the full beneﬁ ts both for 
the city and the region.

Cohesion Fund (CF)
Applying to Member States with a gross national income of less than 
90% of the EU average, the Cohesion Fund co-ﬁ nances projects in 
the ﬁ eld of transport and environment, including Trans-European 
Networks (TENs), energy eﬃ  ciency and renewable energy. 

Cohesion Policy / Regional Policy
Cohesion Policy is the EU’s strategy to promote and support the 
‘overall harmonious development’ of its Member States and regions. 
Enshrined in the Treaty (Articles 158 to 162), Cohesion Policy aims to 
strengthen economic and social cohesion by reducing disparities in 
the level of development between regions. Approximately 35.7%, or 

€347 billion of the total EU budget 2007-2013, is allocated to ﬁ nancial 
instruments that support Cohesion Policy.

Convergence Objective
The ‘Convergence’ Objective is one of the three Cohesion Policy 
objectives for the period 2007-2013. It is to promote growth-en-
hancing conditions and factors leading to real convergence for the 
least-developed Member States and regions and it allocates 81.5% 
of the resources available for Cohesion Policy. It concerns regions 
characterised by low levels of GDP and employment, where GDP 
per head is less than 75% of the EU average as it stood between 
2000 and 2002. Funded by the European Regional Development 
Fund (ERDF), the European Social Fund (ESF) and the Cohesion 
Fund (CF), it applies to 100 regions representing approximately 35% 
of the EU-27 population. It aims to promote conditions conducive 
to growth and which lead to convergence in the least-developed 
Member States and regions.

ESPON (European Spatial Planning Observation Network)
ESPON is an applied research programme bringing together the 
economic, social and environmental sectors, to name but three, 
all of which help compile territorial information that may be useful 
for drawing up territorial-development policies. To this end, the 
programme produces wide-ranging and systematic data on ter-
ritorial trends across the EU, in order to identify the potential and 
economic challenges of regions, cities and larger territories. The 
ESPON Programme is part-ﬁ nanced by the ERDF under the European 
Territorial Cooperation Objective.

EU-12, EU-15 and EU-27
EU-12 stands for the 12 EU Member States that joined the European 
Union in 2004 and subsequently. EU-15 stands for the 15 EU Member 
States that joined the EU before 2004. EU-27 means all 27 Member 
States of the EU.

European Regional Development Fund (ERDF)
Together with the Cohesion Fund and the European Social Fund, 
this is one of three ﬁ nancial instruments of EU Cohesion Policy and 
the major source of ﬁ nancing to develop the internal potential of 
regions. The ERDF aims to strengthen economic and social cohesion 
in the EU by correcting imbalances between its regions. Set up in 
1975, it contributes to the ﬁ nancing of productive investment, en-
trepreneurship, transport and environment infrastructure, research 
and technology, innovation, information society, sustainable devel-
opment and other activities.

European Social Fund (ESF)
Created in 1957, this is one of the EU’s three cohesion instruments 
(together with the European Regional Development Fund and the 
Cohesion Fund) and the main EU source of ﬁ nancial support to 
develop employability and human resources.

European Spatial Development Perspective (ESDP)
The ESDP was oﬃ  cially adopted in Potsdam in May 1999 by the 

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Ministers of the 15 Member States responsible for spatial planning. 
The ESDP is a framework for policy guidance, designed to improve 
cooperation between Community sectoral policies impacting on 
spatial and territorial development. It also aims to improve the coor-
dination of national policies in this ﬁ eld. One of the principles of the 
ESDP is the development of a balanced and polycentric urban system 
and a renewed relationship between cities and the countryside.

European Territorial Cooperation Objective
The European Territorial Cooperation Objective is one of the three 
Cohesion Policy objectives of the period 2007-2013 and allocates 
2.5% of the resources available for Cohesion Policy. This objective 
aims to strengthen cross-border, transnational and interregional 
cooperation across Europe, based on the 2000-2006 INTERREG 
Community Initiative. It encourages regions and cities from diﬀ er-
ent EU Member States to work together and learn from each other 
through joint programmes, projects and networks and provides a 
framework for exchanging experience between regional and local 
bodies. It also aims to promote common solutions for neighbouring 
authorities in the ﬁ elds of urban, rural and coastal development, the 
development of economic relations and the creation of networks 
of small- and medium-sized enterprises (SMEs). 

Integrated urban development and Integrated Urban 
Development Plan (IUDP)
Complex challenges in urban areas require complex cross-sectoral, 
holistic solutions. Integrated urban development seeks to coordi-
nate the diﬀ erent sectoral policies that have an impact on cities 
and city-dwellers, and it means the simultaneous and fair consi-
deration of concerns and interests which are of relevance to urban 
development. Strong local involvement and public participation 
in the design and implementation of cross-sectoral projects and 
programmes is therefore essential. Citizens need to play an active 
role in shaping their immediate environment. Strongly promoted 
through the URBAN Community Initiative and the Leipzig Charter 
on Sustainable European Cities, the approach to ‘integrated urban 
development’ became a guiding methodological principle across 
the European Union, often implemented on the basis of integrated 
urban development plans or strategies.

Operational Programmes (OPs) at national or regional level allow 
for sustainable mid- and long-term urban development strategies, 
as an OP puts such strategies in the framework of a mid-term re-
gional planning strategy and a reliable ﬁ nancial background. Many 
new Member States have chosen to co-ﬁ nance Integrated Urban 
Development Plans (IUDPs) within the ﬁ rst implementation phase 
of EU Structural Funds for 2007-2013. An IUDP serves as a policy tool, 
ensuring the successful implementation of EU Structural Funds to 
the beneﬁ t of towns and cities.

INTERREG
INTERREG III was an integral part of the European Union’s Regional 
Policy for 2000-2006. It aimed to improve economic and social 

cohesion by supporting cross-border, transnational and interregional 
cooperation. The goal was to promote balanced development across 
the EU. Drawing ﬁ nance from the European Regional Development 
Fund (ERDF), the initiative focused on developing actions to strengthen 
links across borders between Member States and the EU and its non-
member neighbours.

Approved for the period 2007-2013, the interregional cooperation 
programme INTERREG IV C provides Community support under the 
European Territorial Cooperation Objective. INTERREG IV C provides 
regions with a framework for the exchange of experience between 
regional, local and urban bodies from diﬀ erent EU Member States, 
Norway and Switzerland on issues such as globalisation, demographic 
change, energy supply and climate change.

National Strategic Reference Framework (NSRF)
When programming the Structural and Cohesion Funds’ interventions 
for 2007-2013, Member States had to present a NSRF which ensures that 
the interventions are in line with the Community strategic guidelines 
on cohesion.

Operational Programme (OP)
This is a document setting out a Member State’s or a region’s develop-
ment strategy, with a coherent set of priorities to be achieved through 
one of the Structural or Cohesion Fund instruments. It is submitted to 
the European Commission.

Regional Competitiveness and Employment Objective
The Regional Competitiveness and Employment Objective is one of 
the three Cohesion Policy objectives for the period 2007-2013 and al-
locates 16% of the resources available for Cohesion Policy. Outside the 
least-developed regions (see the Convergence Objective), it aims to 
strengthen regions' competitiveness and attractiveness and employ-
ment potential. Regional Competitiveness and Employment Objective 
funding is available to the EU regions that are not eligible for funding 
under the Convergence Objective: this applies to 168 regions, repre-
senting almost 65% of the EU-27 population. Funded by the European 
Regional Development Fund (ERDF) and the European Social Fund 
(ESF), it aims to enhance the competitiveness and attractiveness of 
regions, as well as boost their employment levels.

Regions for Economic Change (RFEC) and Fast Track Label (Fast 
Track Networks - FTN)
The Regions for Economic Change (RFEC) Initiative seeks to strengthen 
exchange of experience and best practice in innovation by intro-
ducing new ways to stimulate regional and urban networks. Under 
the European Territorial Cooperation Objective, the initiative allows 
good innovative ideas to be disseminated rapidly to the Operational 
Programmes under the Convergence and Regional Competitiveness 
and Employment Objectives. The RFEC includes the option of granting 
a so-called ‘Fast Track Label’ to regional or urban networks. The label 
implies that selected networks maintained by the Commission pro-
vide a rapid testing ground for policy ideas. Seven of the 24 thematic 
networks of the URBACT II Programme are labelled as ‘Fast Track’.

 54 

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GLOSSARY

improvements. Between 2000 and 2006, the URBAN II Community 
Initiative continued this eﬀ ort and commitment to European cities in 
their search for the best development and regeneration strategies. 
A total of €730 million has been invested in sustainable economic 
and social regeneration in 70 urban areas throughout Europe, with 
the support of this Community Initiative.

Urban Audit
Launched by the European Commission in 1998, the Urban Audit 
aims to enable an assessment of the state of individual EU cities and 
to provide access to comparative information from those cities. The 
second full-scale Urban Audit took place between 2006 and 2007 
and involved 321 European cities in the 267 regions of the EU, along 
with 36 additional cities in Norway, Switzerland and Turkey.

URBAN mainstreaming
For the 2007-2013 programming period, the guiding principles 
of the URBAN Community Initiatives have been integrated into 
the Operational Programmes of the Convergence and Regional 
Competitiveness and Employment Objectives (‘mainstreaming’). 
This important change allows for an integration of diﬀ erent sectoral 
and thematic policies in all cities throughout Europe in the context 
of the Lisbon Strategy, the Sustainable Development Strategy and 
other EU priorities. It means that Member States and regions can 
continue to apply the successful integrated approach of the URBAN 
Community Initiatives and can invest in towns and cities through 
‘mainstream’ Cohesion Policy Programmes.

Urban policy
Urban policy refers to policies that promote urban development, 
urban regeneration (or urban renewal) and urban revitalisation at 
various levels.

Urban sprawl
Urban sprawl is increasingly seen in European cities and is syn-
onymous with unplanned urban development, characterised by 
a low-density mix of land use on the urban fringe. It results in ter-
ritorial development that is patchy, scattered and strung out, with 
a tendency for discontinuity. Urban sprawl leapfrogs areas, leaving 
agricultural enclaves. In the city itself, this sprawl results in some areas 
being left empty. Ad-hoc development of this kind is wasteful and 
tends to have a negative impact on the environment.

Territorial Cohesion
Territorial Cohesion is about reducing disparities in levels of develop-
ment that exist between diﬀ erent regions and about promoting the 
diverse potential of Europe’s territories in order to contribute to the 
EU’s Lisbon and the Sustainable Development Strategies. While it 
concerns Cohesion Policy, it also raises questions about the nature 
of territorial cooperation, how people use the spaces in which they 
live, the territorial impact of sectoral policies, and the relationship 
between cooperation and competitiveness.

The territorial dimension has been at the core of Cohesion Policy 
since its inception – through the system of eligibility, or the system 
of distribution of ﬁ nancial resources, or the way in which program-
ming has been organised. To improve the way public policies address 
territorial needs, the European Commission launched the debate 
on Territorial Cohesion by publishing the Green Paper on Territorial 
Cohesion in October 2008.

The Four J's (JEREMIE, JESSICA, JASPERS, JASMINE)
The four J’s are four new ﬁ nancial engineering tools that are oﬀ ered 
at European level: 

•   JASPERS (Joint Assistance in Supporting Projects in European 
Regions) provides free assistance to Member States for preparing 
proposals for large projects;

•   JEREMIE (Joint European Resources for Micro to Medium Enterprises) 
enables the Managing Authorities of Structural Funds programmes 
to promote increased access to ﬁ nance for the development of 
micro, small and medium-sized enterprises in the regions of the 
EU;

•   JESSICA (Joint European Support for Sustainable Investment in City 
Areas) promotes sustainable investment in Europe’s urban areas and 
enables the Managing Authorities of Structural Funds programmes 
to take advantage of outside expertise and have greater access to 
loan capital provided by urban development funds;

•   JASMINE (Joint Action to Support Micro-Finance Institutions in 
Europe) seeks to improve access to ﬁ nance for small businesses 
and for socially excluded people, as well as ethnic minorities, who 
want to become self-employed.

URBACT
The URBACT II Programme falls under the Territorial Cooperation 
Objective and runs from 2007 to 2013. The aim of the network 
programme is to stimulate innovation in urban development by 
encouraging towns and cities to identify, transfer and disseminate 
good practice and share experience. As a key part of the Regions 
for Economic Change Initiative, URBACT II follows on from the 2002-
2006 URBACT programme. 

URBAN Community Initiatives
Between 1994 and 1999, the URBAN I Community Initiative ﬁ nanced 
programmes in 118 urban areas with Community assistance totalling 
€900 million. Projects focused on the redevelopment of infrastruc-
ture, job creation, combating social exclusion and environmental 

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FOOTNOTES

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1       All ﬁ gures unless indicated otherwise: European 

Commission, State of European Cities Report – Adding value 
to the European Urban Audit, Brussels, May 2007.

2       Communication from the Commission to the Council, the 

European Parliament, the Committee of the Regions and the 
European Economic and Social Committee, Green Paper on 
Territorial Cohesion – Turning diversity into strength, Brussels, 
6 October 2008, COM(2008) 616 ﬁ nal, p. 4-5.

3      European Commission, Communication to the Spring 

European Council, Working together for growth and jobs 
– A new start for the Lisbon Strategy, Brussels, 2 February 
2005, COM(2005) 24 ﬁ nal; Council of the European Union, 
Presidency conclusions of the Brussels European Council (22 
and 23 March 2005), Doc. 7619/05.

4      European Commission, Cohesion Policy 2007-2013 – 

National Strategic Reference Frameworks, Brussels, January 
2008; European Commission (Working document of the 
Directorate-General for Regional Policy), Fostering the 
urban dimension – Analysis of the Operational Programmes 
co-ﬁ nanced by the European Regional Development Fund 
(2007-2013), Brussels, 25 November 2008.

14    Besides the Commission’s direct initiatives on urban policy, 
several actions have a more indirect impact on urban 
development but nevertheless include a strong urban 
dimension, examples being the INTERREG Programme 
with its three strands of cross-border, transnational 
and interregional cooperation. (http://ec.europa.eu/
regional_policy/cooperation/index_en.htm), the RECITE 
Programme (‘Regions and Cities for Europe’), the INTERACT 
Programme to promote and support good governance of 
European Territorial Cooperation Programmes (http://www.
interact-eu.net/), the ECOS-Ouverture Programme for local 
and regional partnerships to face the political, social and 
economic changes taking place since the fall of the Berlin 
Wall in Central and Eastern Europe (http://ec.europa.eu/
regional_policy/innovation/innovating/ecos.htm), the 
LEADER Community Initiative for rural development (http://
ec.europa.eu/agriculture/rur/leaderplus/index_en.htm) 
and the EQUAL Community Initiative to foster equal 
opportunities for all on the labour market (http://ec.europa.
eu/employment_social/equal/index_en.cfm). 

15    http://ec.europa.eu/regional_policy/urban2/urban/upp/

src/frame1.htm 

5      Communication from the Commission to the Council and 

16    The ‘Quartiers en Crise’ European Regeneration Areas 

Parliament, Cohesion Policy and cities: The urban contribution 
to growth and jobs in the regions, Brussels, 13 July 2006, 
COM(2006) 385 ﬁ nal.

6      Communication from the Commission to the Council, the 

European Parliament, the Committee of the Regions and the 
European Economic and Social Committee, Green Paper on 
Territorial Cohesion – Turning diversity into strength, Brussels, 
6 October 2008, COM(2008) 616 ﬁ nal, p. 3-4.

7      Communication from the Commission to the Council, the 

European Parliament, the Committee of the Regions and the 
European Economic and Social Committee, Green Paper on 
Territorial Cohesion – Turning diversity into strength, Brussels, 
6 October 2008, COM(2008) 616 ﬁ nal, p. 4.
8      All ﬁ gures unless indicated otherwise: European 

Commission, State of European Cities Report – Adding value 
to the European Urban Audit, Brussels, May 2007.
9      European Commission (Working document of the 

Directorate-General for Regional Policy), Fostering the 
urban dimension – Analysis of the Operational Programmes 
co-ﬁ nanced by the European Regional Development Fund 
(2007-2013), Brussels, 25 November 2008, p. 3. 
10    European Commission (Working document of the 

Directorate-General for Regional Policy), Fostering the 
urban dimension – Analysis of the Operational Programmes 
co-ﬁ nanced by the European Regional Development Fund 
(2007-2013), Brussels, 25 November 2008, p. 3.
11    European Commission, Communication to the Spring 

European Council, Working together for growth and jobs 
– A new start for the Lisbon Strategy, Brussels, 2 February 
2005, COM(2005) 24 ﬁ nal; Council of the European Union, 
Presidency conclusions of the Brussels European Council (22 
and 23 March 2005), Doc. 7619/05.
12   http://ec.europa.eu/sustainable/ 
13    Communication from the Commission, Towards an Urban 
Agenda in the European Union, Brussels, 6 May 1997, 
COM(97) 197 ﬁ nal; Communication from the Commission, 
Urban Sustainable Development in the EU: A Framework 
for Action, Brussels, 28 October 1998, COM(98) 605 ﬁ nal; 
Communication from the Commission to the Council and 
Parliament, Cohesion Policy and cities: The urban contribution 
to growth and jobs in the regions, Brussels, 13 July 2006, 
COM(2006) 385 ﬁ nal; Communication from the Commission 
to the Council, the European Parliament, the Committee 
of the Regions and the European Economic and Social 
Committee, Green Paper on Territorial Cohesion – Turning 
diversity into strength, Brussels, 6 October 2008, COM(2008) 
616 ﬁ nal. Also: http://ec.europa.eu/growthandjobs/ 

Network is a network of regional and local regeneration 
areas established in 1989, promoting (policy) development 
of regeneration areas. It especially focuses on challenges 
faced by member organisations working in those areas, such 
as public bodies, NGOs and research institutions. Website: 
http://www.qec-eran.org/index.htm

17    The RECITE I (1992-1996) and RECITE II (1998-2001) 
Programmes supported the exchange of experience 
between the local authorities of diﬀ erent Member States 
through exchange of know-how and working methods 
with the aim of enhancing institutional capacities and the 
realisation of pilot actions in the ﬁ eld of urban development 
policies. 

18    European Commission (Working document of the 

Directorate-General for Regional Policy), Fostering the 
urban dimension – Analysis of the Operational Programmes 
co-ﬁ nanced by the European Regional Development Fund 
(2007-2013), Brussels, 25 November 2008, p. 12.

19    Decision 94/C 180/02 of 15 June 1994, Notice to Member 

States ‘Laying down guidelines for operational programmes 
which Member States are invited to establish in the 
framework of a Community Initiative concerning urban 
areas’; Communication from the Commission, Towards an 
urban agenda in the European Union, Brussels, 6 May 1997, 
COM(97) 197 ﬁ nal; Commission Communication, Urban 
Sustainable Development in the EU: A Framework for Action, 
Brussels, 28 October 1998, COM(98) 605 ﬁ nal (http://
ec.europa.eu/regional_policy/sources/docoﬃ  c/oﬃ  cial/
communic/caud/caud_en.htm).

20    Communication from the Commission to the Council, the 
European Parliament, the Economic and Social Committee 
and the Committee of the Regions, The Programming of 
the Structural Funds 2000-2006: An initial assessment of 
the Urban Initiative, Brussels, 14 June 2002, COM(2002) 
308 ﬁ nal; Communication from the Commission to the 
Member States of 28 April 2000 laying down guidelines 
for a Community Initiative concerning economic and social 
regeneration of cities and of neighbourhoods in crisis in 
order to promote sustainable urban development URBAN II 
(C(2000) 1100), Oﬃ  cial Journal of the European Union C141, 
19.5.2000, p. 8.

21    European Commission (Working document of the 

Directorate-General for Regional Policy), Fostering the 
urban dimension – Analysis of the Operational Programmes 
co-ﬁ nanced by the European Regional Development Fund 
(2007-2013), Brussels, 25 November 2008, p. 3, 12-13. 
Article 8 of Regulation (EC) No 1080/2006 of the European 
Parliament and of the Council of 5 July 2006 on the European 
Regional Development Fund and repealing Regulation 
(EC) No 1783/1999 states: ‘[…] the ERDF may, where 

FOOTNOTES

appropriate, support the development of participative, 
integrated and sustainable strategies to tackle the high 
concentration of economic, environmental and social 
problems aﬀ ecting urban areas. These strategies shall 
promote sustainable urban development through activities 
such as: strengthening economic growth, the rehabilitation 
of the physical environment, brownﬁ eld redevelopment, 
the preservation and development of natural and cultural 
heritage, the promotion of entrepreneurship, local 
employment and community development, and the 
provision of services to the population taking account of 
changing demographic structures. […]’.

22    European Commission (Working document of the 

Directorate-General for Regional Policy), Fostering the 
urban dimension – Analysis of the Operational Programmes 
co-ﬁ nanced by the European Regional Development Fund 
(2007-2013), Brussels, 25 November 2008, p. 4.

23    European Commission (Working paper of the services of 
the Directorate General for Regional Policy), The territorial 
and urban dimension in the National Strategic Reference 
Frameworks and Operational Programmes (2007-2013) – A 
ﬁ rst assessment, Brussels, May 2007. 

24    European Commission (Working document of the 

Directorate-General for Regional Policy), Fostering the 
urban dimension – Analysis of the Operational Programmes 
co-ﬁ nanced by the European Regional Development Fund 
(2007-2013), Brussels, 25 November 2008.

25   European Commission (Working document of the 

Directorate-General for Regional Policy), Fostering the 
urban dimension – Analysis of the Operational Programmes 
co-ﬁ nanced by the European Regional Development Fund 
(2007-2013), Brussels, 25 November 2008.

26   European Commission (Working document of the 

Directorate-General for Regional Policy), Fostering the 
urban dimension – Analysis of the Operational Programmes 
co-ﬁ nanced by the European Regional Development Fund 
(2007-2013), Brussels, 25 November 2008, p. 14.
27    European Commission (Working document of the 

Directorate-General for Regional Policy), Fostering the 
urban dimension – Analysis of the Operational Programmes 
co-ﬁ nanced by the European Regional Development Fund 
(2007-2013), Brussels, 25 November 2008.

28   http://urbact.eu/ 
29    Communication from the Commission, Regions for Economic 
Change, Brussels, 8 November 2006, COM (2006) 675 ﬁ nal.

30   http://www.urbanaudit.org/ 
31   http://www.urbanaudit.org/
32    European Spatial Development Perspective: http://

ec.europa.eu/regional_policy/sources/docoﬃ  c/oﬃ  cial/
reports/som_en.htm 

33    Territorial Agenda of the European Union – Towards a More 
Competitive and Sustainable Europe of Diverse Regions 
(Agreed on the occasion of the Informal Ministerial Meeting 
on Urban Development and Territorial Cohesion in Leipzig on 
24/25 May 2007). 

34    Leipzig Charter on Sustainable European Cities (Agreed on 
the occasion of the Informal Ministerial Meeting on Urban 
Development and Territorial Cohesion in Leipzig on 24/25 
May 2007).

35    Council Decision 2006/702/EC of 6 October 2006 on 

Community strategic guidelines on cohesion, Oﬃ  cial Journal 
of the European Union L 291, 21.10.2006, p. 29.

36    Council Decision 2006/144/EC of 20 February 2006 on 
Community strategic guidelines for rural development 
(programming period 2007 to 2013), Oﬃ  cial Journal of the 
European Union L 55, 25.2.2006, p. 20.

37    Communication from the Commission to the Council, the 

European Parliament, the Committee of the Regions and the 
European Economic and Social Committee, Green Paper on 
Territorial Cohesion – Turning diversity into strength, Brussels, 
6 October 2008, COM(2008) 616 ﬁ nal.

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73    Communication from the Commission to the Council and 
the European Parliament, Thematic Strategy on the Urban 
Environment, Brussels, 11 January 2006, COM (2005) 718 
ﬁ nal.

74    http://urbact.eu/
75    European Commission, Green Paper – Towards a new culture 
for urban mobility, Brussels, 25 September 2007, COM (2007) 
551 ﬁ nal.

76    Communication from the Commission to the Council and 
the European Parliament, Thematic Strategy on the Urban 
Environment, Brussels, 11 January 2006, COM (2005) 718 
ﬁ nal.

77    Directive 2007/60/EC of the European Parliament and of 
the Council of 23 October 2007 on the assessment and 
management of ﬂ ood risks, Oﬃ  cial Journal of the European 
Union L 288, 6.11.2007, p. 27.

78    Directive 2002/91/EC of the European Parliament and of the 
Council of 16 December 2002 on the energy performance 
of buildings, Oﬃ  cial Journal of the European Union, L 1, 
4.1.2003, p. 65.

79   http://ec.europa.eu/energy/renewables/index_en.htm
80   http://ec.europa.eu/energy/intelligent/ 
81   http://ec.europa.eu/environment/air/index_en.htm 
82    For example: Directive 2002/49/EC of the European 

Parliament and of the Council of 25 June 2002 relating to 
the assessment and management of environmental noise, 
Oﬃ  cial Journal of the European Union, L 189, 18.7.2002, 
p. 12. See also http://ec.europa.eu/environment/noise/
directive.htm 

83   http://www.civitas-initiative.org/ 
84     http://reports.eea.europa.eu/brieﬁ ng_2006_4/en/

eea_brieﬁ ng_4_2006.pdf 

85    European Environment Agency / European Commission 

Joint Research Centre, Urban sprawl in Europe. The ignored 
challenge (EEA Report 10/2006) (http://www.eea.europa.
eu/publications/eea_report_2006_10). 

86    http://urbact.eu/
87    http://urbact.eu/lumasec/ 

38   Communication from the Commission to the Council and 

51    Communication from the Commission to the Council and 

Parliament, Cohesion Policy and cities: The urban contribution 
to growth and jobs in the regions, Brussels, 13 July 2006, 
COM(2006) 385 ﬁ nal; Commission staﬀ  working document 
SEC(2006) 928 of 13 July 2006, Annex to the Communication 
from the Commission to the Council and Parliament Cohesion 
Policy and cities: The urban contribution to growth and jobs 
in the regions.

39    Leipzig Charter on Sustainable European Cities (Agreed on 
the occasion of the Informal Ministerial Meeting on Urban 
Development and Territorial Cohesion in Leipzig on 24/25 
May 2007).

40    European Commission (Working document of the 

Directorate-General for Regional Policy), Fostering the 
urban dimension – Analysis of the Operational Programmes 
co-ﬁ nanced by the European Regional Development Fund 
(2007-2013), Brussels, 25 November 2008.

41    Support for Cities, Operational Report on the experts’ 

missions in the framework of the Support for Cities initiative 
(http://urbact.eu/ﬁ leadmin/corporate/pdf/Urbact.EN.pdf).

42     European Commission, Communication to the Spring 

European Council, Working together for growth and jobs – A 
new start for the Lisbon Strategy, Brussels, 2 February 2005, 
COM(2005) 24 ﬁ nal; European Commission, Integrated 
Guidelines for Growth and Jobs (2005-2008), 12 April 2005, 
COM(2005) 141 ﬁ nal.

43    Council Decision 2006/702/EC of 6 October 2006 on 
Community strategic guidelines on cohesion, Oﬃ  cial 
Journal of the European Union L 291, 21.10.2006, p. 29; 
Communication from the Commission to the Council, the 
European Parliament, the Committee of the Regions and the 
European Economic and Social Committee, Green Paper on 
Territorial Cohesion – Turning diversity into strength, Brussels, 
6 October 2008, COM(2008) 616 ﬁ nal.

44    Council Decision 2006/702/EC of 6 October 2006 on 

Community strategic guidelines on cohesion, Oﬃ  cial Journal 
of the European Union L 291, 21.10.2006, p. 29.

45    Communication from the Commission to the Council and 

Parliament, Cohesion Policy and cities: The urban contribution 
to growth and jobs in the regions, Brussels, 13 July 2006, 
COM(2006) 385 ﬁ nal; European Commission, Interservice 
Group on Urban Development, The urban dimension in 
Community policies for the period 2007-2013, p. 9. 
46    European Commission (Working document of the 

Directorate-General for Regional Policy), Fostering the 
urban dimension – Analysis of the Operational Programmes 
co-ﬁ nanced by the European Regional Development Fund 
(2007-2013), Brussels, 25 November 2008, p. 4.

47   Article 11 of Council Regulation (EC) No 1083/2006 of 11 
July 2006 laying down general provisions on the European 
Regional Development Fund, the European Social Fund 
and the Cohesion Fund and repealing Regulation (EC) No 
1260/1999, Oﬃ  cial Journal of the European Union L 210, 
31.7.2006, p. 25.

48    European Commission (Working document of the 

Directorate-General for Regional Policy), Fostering the 
urban dimension – Analysis of the Operational Programmes 
co-ﬁ nanced by the European Regional Development Fund 
(2007-2013), Brussels, 25 November 2008, p. 48.

49    F. Wassenberg, A. van Meer and R. van Kempen/European 
Urban Knowledge Network, Strategies for upgrading the 
physical environment in deprived urban areas – Examples of 
Good Practice in Europe (Background Study on the Leipzig 
Charter on Sustainable European Cities), published by the 
Federal Ministry of Transport, Building and Urban Aﬀ airs 
(Germany), March 2007 p. 10. 

50    Leipzig Charter on Sustainable European Cities (Agreed on 
the occasion of the Informal Ministerial Meeting on Urban 
Development and Territorial Cohesion in Leipzig on 24/25 
May 2007).

Parliament, Cohesion Policy and cities: The urban contribution 
to growth and jobs in the regions, Brussels, 13 July 2006, 
COM(2006) 385 ﬁ nal; see also: The ‘Acquis URBAN’ – Using 
Cities’ Best Practices for European Cohesion Policy (Common 
Declaration of URBAN cities and players at the European 
Conference ‘URBAN Future’ on 8 and 9 June 2005 in 
Saarbrücken, Germany). 

52    Communication from the Commission to the Council and 

Parliament, Cohesion Policy and cities: The urban contribution 
to growth and jobs in the regions, Brussels, 13 July 2006, 
COM(2006) 385 ﬁ nal.

53    Leipzig Charter on Sustainable European Cities (Agreed on 
the occasion of the Informal Ministerial Meeting on Urban 
Development and Territorial Cohesion in Leipzig on 24/25 
May 2007).

54    Federal Ministry of Transport, Building and Urban Aﬀ airs 
(Germany), Strengthening the Local Economy and the Local 
Labour Market in Deprived Urban Areas, Good Practice 
Examples in Europe (Background Study on the Leipzig 
Charter on Sustainable European Cities, completed by the 
URBACT Secretariat), March 2007, p. 13-26.

55    http://ec.europa.eu/regional_policy/funds/2007/jjj/

index_en.htm 

56    E.g. Liverpool City Council, Public Private Partnership in urban 
regeneration – A guide to opportunities and practice (2006): 
http://urbact.eu/ﬁ leadmin/subsites/partner4action/pdf/
PractionersGuide_-_ﬁ nal_English.pdf

57    European Commission (Working document of the 

Directorate-General for Regional Policy), Fostering the 
urban dimension – Analysis of the Operational Programmes 
co-ﬁ nanced by the European Regional Development Fund 
(2007-2013), Brussels, 25 November 2008.

58    Council Regulation (EC) No 1083/2006 of 11 July 2006 

laying down general provisions on the European Regional 
Development Fund, the European Social Fund and the 
Cohesion Fund and repealing Regulation (EC) No 1260/1999, 
Oﬃ  cial Journal of the European Union L 210, 31.7.2006, p. 25.

59   http://urbact.eu/ 
60   GHK, Ex-post evaluation of the URBAN Community Initiative 

(1994-1999), Final report August 2003. 

61    Communication from the Commission to the Council and 

Parliament, Cohesion Policy and cities: The urban contribution 
to growth and jobs in the regions, Brussels, 13 July 2006, 
COM(2006) 385 ﬁ nal.

62    Commission staﬀ  working document, Regions 2020 – An 
assessment of future challenges for EU regions, Brussels, 14 
November 2008, SEC(2008) 2868 ﬁ nal.

63    Commission staﬀ  working document, Regions 2020 – An 
assessment of future challenges for EU regions, Brussels, 14 
November 2008, SEC(2008) 2868 ﬁ nal, p. 5.

64    Commission staﬀ  working document, Regions 2020 – An 
assessment of future challenges for EU regions, Brussels, 14 
November 2008, SEC(2008) 2868 ﬁ nal, p. 6.

65   http://urbact.eu/unic/
66   http://urbact.eu/opencities/
67   http://urbact.eu/runup/
68   Commission staﬀ  working document, Regions 2020 – An 
assessment of future challenges for EU regions, Brussels, 14 
November 2008, SEC(2008) 2868 ﬁ nal, p. 8-9.

69   Commission Communication, The demographic future of 

Europe – From challenge to opportunity, Brussels, 12 October 
2006, COM (2006) 571 ﬁ nal.

70   http://urbact.eu/
71    Commission Communication, The demographic future of 

Europe – From challenge to opportunity, Brussels, 12 October 
2006, COM (2006) 571 ﬁ nal, p. 11.

72    http://urbact.eu/mile/

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4/10/09   2:03:25 PM