COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS An EU Agenda for Cities: Driving Growth and Prosperity
Date: 2025-12-03
Institutions: Directorate-General for Regional and Urban Policy, European Commission
Subjects: adaptation to climate change, digitisation, economic and social cohesion, housing, regional policy, town, town traffic, urban community, urban habitat, urban problem

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 3.12.2025  COM(2025) 739 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS An EU Agenda for Cities: Driving Growth and Prosperity {SWD(2025) 389 final}  
 
 
1. INTRODUCTION 
Cities are at the forefront of tackling the challenges that will determine Europe’s future. They 
drive growth, competitiveness and innovation, while also playing a critical role in promoting 
sustainability and social inclusiveness. Cities advance decarbonisation and climate resilience, 
contribute to preparedness for future crises and disruptions, and to fostering economic, social 
and  territorial  cohesion.  Today,  around  75%1  -  close  to  340  million  people  -  of  the  EU 
population  lives  in  cities  and  other  urban  areas2.  Cities  face  numerous  challenges  such  as 
shortage of affordable, sustainable and decent quality housing supply, high energy costs, social 
exclusion,  accessibility  constraints,  pockets  of  poverty,  and  the  impacts  of  climate  change. 
Furthermore, some cities are shrinking, grappling with the retention of a skilled workforce and 
jobs,  ensuring  the  provision  of  public  services  and  generating  sufficient  fiscal  and  other 
revenues. 

Europe’s cities, whether located in coastal, island, inland, mountainous areas or border regions, 
reflect a rich diversity, not only in terms of geography but also in demographic profiles and 
socio-economic  capacities.  This  diversity  shapes  their  ability  to  respond  to  ongoing 
transformations.  The  continent’s  urban  model  allows  cities  of  varying  sizes  to  contribute 
meaningfully  to  territorial  development  and  connectivity.  While  larger  cities  often  serve  as 
innovation hubs, medium and smaller cities and urban areas play a crucial role in delivering 
services that support both local populations and surrounding areas, including rural areas, and 
improving access to opportunities. Urban services in education, care, health, mobility, sport, 
business and retail generate positive spillovers, fostering rural and inter-urban development.  

Cities are pivotal for economic convergence and competitiveness, attracting talent, investment, 
and  driving  growth3.  However,  these  dynamics  can  also  produce  challenges  such  as  rising 
costs,  congestion  and  territorial  disparities,  including  pockets  of  poverty.  A  balanced, 
polycentric  approach  remains  central,  aiming  to  mitigate  such  effects.  Yet,  cities  start  from 
different positions, with varying legal powers and resources - particularly smaller towns - and 
often face limited administrative capacity and constrained budgets. 

The EU Agenda for Cities presents the EU vision, policy and a set of actions for cities of all 
sizes  and  sets  out  a  forward-looking  perspective  for  sustainable  and  integrated  urban 
development. It aims to provide a framework to strengthen the territorial and urban dimension 
of EU policies. The Agenda also aims to provide coordinated and streamlined support - through 
leveraging the instruments under the current multiannual financial framework, as well as the 
next one for 2028-2034 - to address cities’ needs and to implement key EU priorities at the 
local  level. It  is  also  a  recognition  of  cities’  role  as  key  partners  in  tackling  the  EU’s  most 
significant challenges and contributing to its solutions. 

Moreover, an effective EU Agenda for Cities needs to promote policies that enable cities not 
only to generate value but also to spread this value equitably and efficiently across the EU so 
that all countries and territories benefit from growth and wellbeing. To this end, the Agenda 

1 Eurostat Statistics Explained and GISCO, based on census population grid 2021 and local administrative units 
2021. 
2 The term ‘cities’ refers to ‘cities and other urban areas of the EU’ in this document, if not stated otherwise. For 
the definition of cities, Eurostat uses the following categories with the first two referring to urban areas: (i) cities 
(densely populated areas, with 38.9% of EU population); (ii) towns and suburbs (intermediate density areas, with 
35.9% of EU population); and (iii) rural areas (thinly populated areas, with 25.2% of EU population). Eurostat, 
JRC and European Commission Directorate-General for Regional Policy (2021) - Eurostat Statistics Explained. 
3  Moretti,  E  (2014).  Are  Cities  the  New  Growth Escalator?  World  Bank  Policy  Research  Working  Paper  No. 
6881, https://ssrn.com/abstract=2439702. 

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covers cities and other urban areas, and underlines the importance of connections between these 
areas and surrounding regions (functional urban areas and functional rural areas). 

The EU Agenda for Cities builds on major strategic frameworks such as the Territorial Agenda 
2030 and the New Leipzig Charter and is complemented by the intergovernmental cooperation 
on urban matters and its main tool - the Urban Agenda for the EU. 

To  develop  the  EU Agenda  for  Cities,  the  European  Commission  carried  out  an  extensive 
consultation to gather input from a wide range of stakeholders. The consultation included: (i) 
a  call  for  evidence,  which  closed  on  26 May  2025,  receiving  193  contributions  from  local 
authorities and other public authority representatives, citizens, civil society organisations and 
others, (ii) a discussion between urban stakeholders during the sixth edition of the Cities Forum 
held  in  Kraków  on  17-19 June  2025  on  the  key  challenges  and  needs  of  cities,  (iii)  an 
implementation  dialogue with  cities on 24 June 2025, (iv) numerous  meetings and bilateral 
discussions with organisations representing local, regional and national authorities as well as 
pan-European  networks,  and  (v)  participation  in  various  events.  This  comprehensive 
consultation process ensured a broad and inclusive policymaking approach.  

2. CITIES AND EU POLICIES 
The European Union is experiencing increasing urbanisation and is characterised by a diverse 
array of urban areas ranging from small towns to large metropoles4. In 2021, 39% of the EU 
population lived in around 700 cities, 36% resided in roughly 9,000 towns or suburbs, and 25% 
inhabited rural areas5. Urbanisation is mostly happening in larger cities and their surroundings. 
In 2021, a particularly high concentration of people – more than half – were living in cities in 
Spain,  the Netherlands, and Greece, while 45.2% of the population  in Ireland lived in  rural 
areas.  The  population  in  the  EU’s  cities,  towns  and  suburbs  is  growing,  while  the  rural 
population is shrinking.   
A recent Eurobarometer survey6 has shown that the most immediate and urgent problem for 
Europeans living in cities is, by far, lack of affordable housing with 51% considering it to 
be  an  immediate  and  urgent  problem  (Figure  1). A  third  of  respondents  (33%)  report  that 
unemployment or lack of job opportunities is an urgent problem in their city; similar figures 
are also seen for lack of quality public services (32%) and poverty or homelessness (32%). 
Respondents in towns and suburbs rank lack of affordable housing first (37%), followed by 
lack of public services (30%), and unemployment or lack of job opportunities (29%).  

4  The  data  presented  in  this  chapter  is  largely  from  Dijkstra,  L.  and  Testori,  G.,  Trends,  Challenges  and 
Opportunities in EU Cities: Supporting the EU Cities Agenda, European Commission, Ispra, 2025. 
5 Eurostat Statistics Explained and GISCO, based on census population grid 2021 and local administrative units 
2021. 
6 Public opinion on urban challenges and investment in cities - June 2025 - Eurobarometer survey. 

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Figure 1. The most immediate and urgent problem for Europeans living in cities, towns 
and suburbs (Eurobarometer 2025). 

In terms of aspects needing the most improvement, quality of public services (selected by 
42%) and security and safety in public spaces (36%) (Figure 2) come first for respondents 
living in cities. These are followed by availability of affordable and well-connected public 
transport  options  and  economic  development  and  business  opportunities,  each  cited  by 
29% of respondents. Respondents in towns and suburbs rank quality  of public services first 
(43%), followed by economic development and business opportunities (37%), and availability 
of affordable and well-connected public transport options (34%). 

Figure 2. The aspects for needing improving most for Europeans living in cities, towns 
and suburbs (Eurobarometer 2025). 

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The  EU  considers  cities  and  other  urban  areas  in  the  EU  as  key  partners  in  implementing 
policies  to  deliver  on  the  Union’s  priorities  for  2024-20297. To  this  end,  the  integrated  EU 
policy  framework  includes  actions  on:  (i)  competitiveness,  digitalisation,  innovation  and 
investment;  (ii)  social  inclusion  and  equality;  (iii)  security,  safety  and  preparedness;  (iv) 
affordable, sustainable, decent quality and inclusive housing and buildings; (v) climate action, 
environment and clean energy; (vi) mobility; and (vii) international cooperation. These policies 
are often closely interconnected, reflecting the EU’s commitment to fostering sustainable and 
inclusive urban development. 

2.1.  Cities  are  powerful  magnets  of  talent,  drivers  of  competitiveness,  digitalisation, 
innovation and investment 
Cities  are  key  drivers  of  EU  competitiveness,  fostering  innovation,  jobs,  and  sustainable 
development. They are dynamic and competitive places where innovation and technological 
advances are driven by the proximity of stakeholders, including higher education institutions, 
and  their  multidisciplinary  interaction  as  well  as  access  to  key  research  and  technology 
infrastructures.  EU  metropolitan  regions8,  especially  capital  areas,  were  pivotal  for 
competitiveness and employment in 2022, seeing most new enterprise establishments. These 
regions had a higher percentage of high-growth firms and more employment (63%) relative to 
their  population  share  (59%)  and  accounted  for  an  even  higher  share  of  GDP  (68%)  in 
comparison  to  non-metropolitan regions9. In 2024, 45% of city residents aged 25-64 held  a 
university degree, compared to 31% in towns/suburbs and 26% in rural areas10. Cities housed 
41% of the EU's workforce, with towns/suburbs at 34.5% and rural areas at 24.5%11.  

To promote competitiveness, EU policy action focuses on boosting innovation and the adoption 
and scaling up of strategic technologies, in alignment with the Competitiveness Compass12 and 
the  Clean  Industrial  Deal13.  Cities  can  also  strengthen  demand  for  clean  and  circular 
technologies produced in the EU. The upcoming revision of the European public procurement 
framework will focus on simplification and clarify the use of public procurement as a strategic 
investment  tool,  thus  helping  to  overcome  public  procurement  challenges  for  cities  as 
contracting authorities and bolstering critical sectors and accessing clean solutions, and circular 
economy approaches14. 

The  EU  also  recognises  the  central  role  cities  play  in  driving  economic  development  and 
facilitating  strategic  city-industry  partnerships.  Investment 
in  education  and  skills 
development15,  including  digital  and  green  skills  and  entrepreneurial  education,  remains 
critical  for  meeting  labour  market  demands  and  tackling  the  inequalities  that  are  emerging 
alongside  technological  shifts  and  innovation.  Furthermore,  capitalising  on  research  and 
innovation to support inclusive, clean, resilient and smart transitions help city administrations 

7 European Union priorities 2024-2029. 
8 Metropolitan regions refer to NUTS 3 regions or a combination of NUTS 3 regions that encompass all functional 
urban  areas  with  a  population  of  at  least  250  000  people. A  functional  urban  area  consists  of  a  city  and  its 
commuting zone, and it therefore encompasses a densely inhabited city and a less densely populated commuting 
zone whose  labour market is highly integrated with the city. See: Territorial typologies manual  - metropolitan 
regions - Statistics Explained - Eurostat and Functional urban area - Statistics Explained - Eurostat. 
9 JRC ARDECO Explorer. 
10  Eurostat  Population  in  private  households  by  educational  attainment  level  and  degree  of  urbanisation 
[edat_lfs_9913]. 
11 Population by sex, age, citizenship, labour status and degree of urbanisation – Eurostat. 
12 COM(2025) 30 final. 
13 COM(2025) 85 final. 
14 E.g., the Circular Cities and Regions Initiative. 
15 The Union of Skills aims to equip all learners with skills boosting their resilience to labour market shifts and 
greater employability and high-quality jobs. 

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to  build  up  knowledge  and  develop  evidence  and  place-based  strategies  to  increase  their 
economic resilience. 

Generating an estimated EUR 764 billion gross value added in 2023, tourism accounts for 7.1% 
of  the  total  gross  value  added  in  the  EU  economy16,  with  big  variation  across  EU  Member 
States17. Tourism in Europe has surged to record levels, surpassing pre-pandemic numbers: it 
has increased 35% in cities and 41% in towns and suburbs, against a modest increase of 8% in 
rural areas, between 2014 and 202418. Nevertheless, poorly managed tourism flows are putting 
a  strain  on  resources  and  lead  to  overcrowding  and  social  backlash,  including  shortages  of 
housing  supply.  The  sector  remains  highly  fragmented  and  is  characterised  by  diverse 
governance models across Member States and regions, necessitating the close involvement of 
cities in relevant initiatives to ensure good outcomes at the local level. The EU is supporting 
the  transition  to  more  sustainable,  resilient  and  digital  tourism  management  models  and 
services through the Transition Pathway for Tourism and the European Agenda for Tourism 
203019.  

Culture, the creative industries and sport improve the attractiveness of cities and the health of 
people but also create jobs and boost competitiveness and well-being. Cities across the EU are 
at  the  forefront  of  culture-led  development  and  are  natural  partners  for  experimentation, 
anticipating  trends  and  exploring  models  of  social  and  economic  innovation.  The  Culture 
Compass for Europe sets out a long-term strategic vision to strengthen the role of culture across 
the EU in shaping Europe’s identity. 

EU  policy  on  digitalisation  bridges  the  digital  divide  to  bolster  productivity  and 
competitiveness. It supports cities in identifying technological gaps, strategically procuring the 
appropriate  technologies,  identifying  service  priorities,  developing  the  required  skills, 
navigating  EU  regulatory  frameworks,  and  enabling  local  authorities  to  adopt  advanced 
technologies  such  as  artificial  intelligence  and  Internet  of  Things,  and  have  access  to 
interoperable  data  ecosystems,  among  other  efforts.  Investments  in  high-speed  connectivity 
infrastructure  such  as  5G  and  fibre  are  crucial  across  cities  in  the  EU  -  particularly  in 
underserved  areas  -  to  facilitate  seamless  digital  transformation.  While  large  urban  centres 
often act as innovation hotspots and early adopters of digital tools, they also have a key role to 
play in driving diffusion, supporting less connected territories, and fostering cohesion. Making 
use  of  data  to  monitor  public  policies  -  through  tools  like  digital  twins  -  enhances  urban 
resilience and planning capacities, while also helping align local efforts with the objectives of 
the Digital Decade policy programme.  

The EU’s Apply AI Strategy supports cities in reducing administrative burden for both local 
authorities and businesses but also by helping AI startups grow. The Digital Innovation Hubs, 
as the key players within the European AI Innovation Ecosystem, are the central contact point 
in accelerating and advising cities in their digital transformation, including the uptake of AI20. 

16 Data accessible through the European Commission, DG GROW,  Industrial Ecosytems Indicators Dashboard 
(2023) [PowerBI dashboard], accessed on 04 August 2025. 
17 Consultation on EU Sustainable Tourism Strategy. 
18 Nights spent at tourist accommodation establishments by degree of urbanisation and coastal/non-coastal area – 
Eurostat. 
19 The Transition Pathway for Tourism is a policy framework setting out key actions, targets and conditions for 
the sector and  endorsed by the Council’s adoption of the European Agenda for Tourism 2030. 
20 E.g., the EU Local Digital Twin Toolbox provides a modular, standards-based suite of tools designed to help 
cities and communities across Europe simulate, analyse, and plan urban environments more effectively. 

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Cities  play  a  key  role  in  implementing  the  European  Declaration  on  Digital  Rights  and 
Principles21 and in accelerating progress toward EU’s digital decade objectives and targets22 
and  making  digital  ecosystems  and  digital  professions  more  accessible.  Moreover,  e-
government  initiatives23  are  pivotal  for  modernising  public  services  of  cities  and  boosting 
citizen  engagement  through  developing  interoperable  digital  services  that  are  efficient  and 
citizen-centric.   

2.2. Cities are facing a mixed picture on poverty, jobs, social inclusion and equality 

At EU level in 2023, the employment rate and the at-risk-of-poverty-or-social-exclusion rate 
were almost identical for cities, towns and suburbs and rural areas24. The data on employment, 
education, and healthcare outcomes, is better for cities compared to towns, suburbs and rural 
areas.  In  part,  this  is  due  to  a  higher  concentration  of  opportunities  and  access  to  quality 
services.  Income  inequality  remains  prominent  in  cities,  driven  by  polarised  economic 
prospects  and  elevated  living  costs25. While  poverty  rates  in  EU  cities  vary  significantly,  a 
common trend is that the urban poor face a unique set of challenges that are distinct from their 
rural counterparts.  

EU policy on social inclusion and equality fosters inclusive societies that ensure fairness and 
equality for everyone. Taking an equality-mainstreaming and intersectional approach enables 
cities to better understand the multifaceted nature of inequalities and discriminations. This is a 
pre-requisite for the design of comprehensive and tailored policy approaches addressing the 
interrelated  needs  of  disadvantaged  groups  and  marginalised  communities.  Cities  must  be 
supported in their efforts to address social disparities and structural inequalities and to ensure 
that  essential  services  are  accessible  to  all  so  that  everyone  can  participate  fully  in  society, 
including persons with disabilities and people who live in surrounding areas. Implementing the 
European Pillar of Social Rights26 and the Union of Equality strategies27 is crucial, as these 
initiatives focus, among others, on access to housing, transport, education and employment as 
well as on equal opportunities for groups at risk of discrimination and exclusion. In 2026, the 
European  Commission  will  adopt  the  Anti-Poverty  Strategy,  which  will  aim  to  provide 
essential  protection  to  people  and  tackle  the  root  causes  and  many  different  dimensions  of 
poverty.  
Collaboration  among  civil  society  groups28  and  regional  stakeholders  is  enhanced  through 
relevant EU policies. This collaboration can help develop local action plans that address more 
efficiently the needs of specific communities, promoting a more inclusive and equal society 
across Europe and fostering cohesion. Strengthening community support systems, the capacity 
of  local  authorities,  and  the  availability,  affordability  and  quality  of  essential  services  and 
developing local ecosystems, are vital for ensuring equal access for women and other groups 

21 European Digital Rights and Principles | Shaping Europe’s digital future.  
22 Cities are essential in implementing the European Declaration on Digital Rights and Principles.  
23 E.g., the Living in EU initiative. 
24 Population by sex, age, citizenship, labour status and degree of urbanisation – Eurostat. 
25  Interim  findings  of  the  OECD-DG  REGIO  project  on  ‘What  works  for  inclusive  growth  in  cities:  A 
compendium’ (2025). 
26 The European Pillar of Social Rights in 20 principles – Employment, Social Affairs and Inclusion. 
27 The Gender equality strategy 2020-2025, the EU anti-racism action plan 2020-2025, the EU Roma strategic 
framework for equality, inclusion and participation 2020-2030, the LGBTIQ+ equality strategy 2026-2030 and 
the Strategy for the rights of persons with disabilities 2021-2030. A new gender equality strategy and a new anti-
racism strategy will be adopted for post-2025. 
28 E.g., environmental and social economy partners, youth organisations, and bodies responsible for promoting 
social inclusion, fundamental rights, rights of persons with disabilities, gender equality and non-discrimination, 
national human rights institutions and organisations. 

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at risk of discrimination and exclusion like migrants and refugees to services and the labour 
market, as well as their participation in society.  

The  social  inclusion  and  equality  dimensions  should  be  incorporated  in  the  design  and 
implementation of sectoral policies at local level, ensuring that cities provide accessible and 
affordable  services  for  all  persons,  including  those  with  disabilities,  and  contribute  to  the 
reduction of poverty. 

2.3. Cities are playing a key role in ensuring the security and safety of public spaces, and 
are in the frontline for EU’s resilience and preparedness action 

Cities are key actors in ensuring safety, security of public spaces, preventing radicalisation, and 
protecting communities from terrorism. According to a survey on quality of life in cities in the 
EU29, safety perceptions are varying with city size: 75% of residents in cities with fewer than 
250,000 inhabitants felt safe, versus 67% in those with larger populations.  

Across  the  EU,  there  are  notable  differences  in  the  perception  of  crime  by  degree  of 
urbanisation.  In  2020,  the  perception  among  the  EU  population  that  these  issues  were  of 
relevance  to  the  area  where  they  lived  was  considerably  higher  for  people  living  in  cities 
(16.3%) than it was for people living in either towns and suburbs (8.4%) or rural areas (5.8%)30. 
In almost all of the Member States, the highest perception of crime, violence or vandalism was 
recorded among people living in cities. 
EU actions on preparedness31 and security centre on achieving a well-prepared and resilient 
society, where all people enjoy the same level of protection and safety regardless of where they 
live, their gender and their specific needs  and  circumstances.  In cities, the design  of public 
infrastructure can contribute to ensuring citizens’ safety and sense of security in public spaces 
by envisaging, for example, sufficient streetlights and safe public transport so that citizens and 
in particular people in vulnerable situations can move around with confidence. The safety and 
security of public spaces are also essential to the role of cities in promoting social cohesion, 
community engagement, and democratic participation. 

Human-made  security  threats,  such  as  organised  crime  and  terrorism,  affect  cities.  As 
emphasised in the ProtectEU: a European Internal Security strategy32, the impact of organised 
crime  and  terrorism  are  often  felt  locally.  Although  cities  face  multiple  challenges  beyond 
organised crime and terrorism, such as drug-related and gender-based violence, and trafficking 
in human beings - particularly for sexual exploitation, they also play a central role in addressing 
them33.  Local  and  regional  solutions  should  be  found  to  reduce  vulnerability  of  people, 
especially young persons, to criminal or terrorist recruitment and to decrease and prevent the 
appeal of illegal activities and criminal infiltration. The ProtectEU strategy sets out objectives 
and  actions  to  take  on  these  threats,  focusing  on  the  disruption  of  criminal  activity  via  the 
administrative  approach,  crime  prevention,  the  protection  of  critical  infrastructure,  law 
enforcement  cooperation  and  enhancing  operational  capabilities  of  Member  States  to  fight 
crime34.  In  line  with  the  EU  Drugs  Strategy  2026-203035,  to  reduce  drug-related  risks  and 

29 The Quality of Life in European Cities survey (2023). 
30 Eurostat - Crime, violence or vandalism in the area by degree of urbanisation. 
31 Preparedness - European Commission. 
32 COM(2025)148 final. 
33 The Future of Cities, Vandecasteele, I., Baranzelli, C., Siragusa, A. and Aurambout, J. editor(s), EUR 29752 
EN,  Publications  Office  of 
ISBN  978-92-76-03847-4, 
doi:10.2760/375209, JRC116711. 
34 Tools developed by the EU Cities against Radicalisation initiative and the Knowledge Hub on Prevention of 
Radicalisation provide support to local actors. 
35 The new EU Drugs Strategy will be adopted in 2025 that defines priorities for 2026–2030. 

the  European  Union,  Luxembourg,  2019, 

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harms, cities are encouraged to consider measures for access to community-based health and 
social services to those in need, as supported through cohesion policy. 

Inclusive  urban  planning  plays  a  crucial  role  in  promoting  equality  and  diversity,  and  in 
tackling  social  exclusion.  Cities  overwhelmingly  dominate  in  providing  opportunities  for 
personal rights, freedom, inclusiveness, and access to advanced education36.  

Preparing  the  population  for  crisis  situations,  and  mainstreaming  security  and  preparedness 
considerations  into  EU  policy  and  programmes  are  major  components  of  the  Preparedness 
Union strategy. Cities need to invest in resilience and preparedness measures to prevent and 
mitigate the impact of recent and future shocks to the system (e.g., natural disasters, pandemics, 
geopolitical  risks).  Smart  city  technologies  could  be  useful  in  increasing  the  resilience  and 
preparedness of cities. Crisis response should increase the resilience and preparedness of cities, 
including the protection of critical infrastructure against all types of security and public safety 
threats, and leverage the strategic use of space assets. Cities must also find innovative and cost-
effective  ways  to  ensure  the  civic  preparedness,  particularly  as  regards  the  misuse  of  new 
technologies. Cities and surrounding rural areas are also key for the resilience of communities 
in view of providing food security and food supply. 

2.4. Cities are experiencing acute challenges related to housing and buildings 
Shortage of affordable housing is among the most urgent issues in cities and urban housing is 
increasingly unaffordable for many people37, including young people38. In 2024, the housing 
cost overburden was highest in cities at 10%, compared to 8% in towns/suburbs, and 6% in 
rural settings. Nearly half of the EU population living in cities would need a mortgage of more 
than 20 years to buy a 25m² apartment, and 90% of them would need a mortgage of more than 
30  years  for  a  75m²  apartment.  Furthermore,  around  16%  of  EU  population  lives  in 
overcrowded conditions, where low-income households are the most affected39. Homelessness 
is rising, with estimates indicating 1 million homeless individuals in the EU40. 

Housing is a shared responsibility at national, regional and local level. However, while national 
policies  set  overarching  frameworks,  cities  are  uniquely  positioned  to  address  housing 
challenges due to their competences and direct engagement with communities. They have a 
first-hand understanding of local needs and can foster partnerships between public authorities, 
stakeholders  and  the  private  sector  to  mobilise  the  necessary  investments.  The  2014-2020 
cohesion  policy programmes delivered investments  totalling EUR 9.6 billion (including EU 
budget  and  national  contribution)  to  enhance  the  housing  sector.  In  the  2021-2027 
programming period, EUR 7.5 billion has been allocated thus far from cohesion policy funds 
for  investments  in  the  housing  sector,  focusing  on  energy  efficiency  and  social  housing  for 
groups at risk of discrimination and social exclusion. The European Social Fund Plus (ESF+) 
invests  an  additional  estimated  total  amount  of  EUR  1.9  billion  in  measures  targeting  the 
housing situation for individuals and for public services41, such as enabling access to housing, 
housing  assistance  and  integrated  support  to  improve  housing  and  living  conditions.  The 

36 European Commission: Directorate-General for Regional and Urban Policy, de Dominicis, L., Kovacic, M., De 
Franceschi, et al. (2025), Social Progress in cities and rural areas of the EU, Publications Office of the European 
Union. https://data.europa.eu/doi/10.2776/9234298. 
37  Public opinion on urban challenges and investment in cities - Eurobarometer survey 2025. 
38 The JRC Indicators Explorer, based on data from the Youth Progress Index, indicates that since 2011 young 
people in the EU have become increasingly dissatisfied with the availability of affordable housing, with the share 
of dissatisfied young people increasing from 38.7% in 2011 to 50% in 2024. 
39 Housing in Europe – 2024 edition - Interactive publications - Eurostat. 
40 Affordable Housing Database, HC3.1 People experiencing homelessness - OECD. 
41 In the 2021-2027 programming period, ESF+ measures target individuals or families at risk or experiencing 
homelessness, persons with disabilities, elderly, third-country nationals, refugees and marginalised communities. 

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ongoing  mid-term  review  of  the  EU’s  cohesion  policy  offers  an  important  opportunity  to 
address  challenges  in  the  areas  of  housing. When  Member  States  are  reprogramming  funds 
under  the  mid-term  review,  they  are  encouraged  to  allocate  funding  for  investments  in 
affordable, sustainable and decent quality housing. Furthermore, the Recovery and Resilience 
Facility (RRF) is also making a significant impact in the area of housing, with tangible benefits 
for residents of cities and urban areas. Overall, the total allocated amount for housing under 
the RRF, including investments to support housing affordability and availability, is EUR 19.6 
billion,  while  the  European  Investment  Bank  has  provided  financial  support  of  EUR  15.6 
billion for affordable housing in 2021-2024.  

As part of the EU policy objectives for promoting affordable, sustainable and decent quality 
housing, the forthcoming European Affordable Housing Plan will address the drivers of the 
housing  crisis  through  specific  actions  and  coordination  with  other  EU  initiatives,  i.e.,  the 
European Strategy for Housing Construction, the revision of EU State aid rules on social and 
affordable  housing  and  the  European Anti-Poverty  Strategy.  The  Pan-European  Investment 
Platform for Affordable and Sustainable Housing will complement the plan to support funding 
and financing through providing a single framework to support investment in social, affordable 
and  sustainable  housing.  Member  States  are  also  encouraged  to  make  use  of  funding  and 
financial  instruments  developed  with  the  European  Investment  Bank,  and  the  future  Pan-
European Investment Platform to attract additional private financing and loans with favourable 
conditions.  

Furthermore, Member States should place emphasis on the quality of architecture and the living 
environment, aligned with the New European Bauhaus principles and values. This initiative 
supports  sustainable  practices  in  the  built  environment  through  integrated  urban  strategies, 
incorporating innovative techniques and materials, to boost the regeneration and resilience of 
neighbourhoods  while  respecting  cultural  heritage  and  Europe’s  local  values  and  traditions. 
Besides  residential  buildings,  public  and  dismissed  industrial  buildings  or  areas  need  to  be 
modernised, made more (energy) efficient and become more inclusive for the population. 

2.5. Cities are influencing and being impacted by climate change and other environmental 
challenges and are playing a key role in accelerating the clean energy transition 

Cities  and  other  urban  areas  contribute  around  45%  of  global  greenhouse  gas  (GHG) 
emissions42. They are disproportionately affected by the negative impacts of climate hazards, 
which are exacerbated by the interaction with other drivers such as poor air and water quality, 
inadequate soil sealing, and other factors. Extreme heat is another major hazard particularly 
affecting cities and causing a heat island effect, where urban areas become significantly warmer 
than  surrounding  areas.  In  the  EU,  floods  threaten  approximately  10.6%  of  urban  areas43. 
Cities’  proximity  to  households,  businesses  and  communities  makes  them  key  partners  for 
achieving  a  clean,  secure  and  affordable  energy  system.  Together  with  regions  they  are  to 
implement up to 70% of emission mitigation measures and deliver 50% of public investment 
and 30% of public expenditure44. Cities shape the energy transition through their decisions on 
spatial  planning,  permitting,  sustainable  public  procurement  and  investment.  Additionally, 
European  cities  are  facing  a  growing  wildfire  risk  due  to  changes  in  the  climate  but  also 

42  Crippa,  M.,  Guizzardi,  D.,  Ciarlantini,  S.,  Pagani,  F.,  Banja,  M.,  Muntean,  M.,  Pisoni,  E.: 
EDGAR_GHG_by_settlement_2025, dataset, https://edgar.jrc.ec.europa.eu/edgar_smod, 2025. 
43 Report from the European Environmental Agency (14/2023) - Urban adaptation in Europe. 
44 The state of regions and cities - EU annual report 2024, Committee of the Regions. 

9 

 
 
 
expanding  wildland–urban  interfaces45,  requiring  enhanced  preparedness  and  coordinated 
response measures.  

The EU aims to further recognise the fundamental role that local and regional actors play in 
developing  and  implementing  place-based  measures  that  contribute  to  increasing  EU 
preparedness and resilience concerning climate action, environment and clean and affordable 
energy.  When  developing  its  policies,  the  EU  recognises  decentralised  energy  systems  as 
strategic assets, and will therefore envisage support for distributed renewable energy, energy, 
efficiency  and  storage  assets,  local  energy  companies,  smart  grids  and  citizen-led  energy 
communities. Incentives for the construction of district heating networks will be promoted.  

The ongoing mid-term review of cohesion policy presents an opportunity to Member States to 
re-prioritise funding to address challenges related to water resilience, notably through digitised 
systems  and  nature-based  solutions,  and  the  energy  transition  such  as  distribution  grids, 
interconnectors and transmission infrastructure.  

When  designing  their  Social  Climate  Plans,  as  well  as  the  future  national  and  regional 
partnership  plans,  Member  States  are  encouraged  to  allocate  continued  funding  for 
environment, climate and energy related investments, while assuring that these are designed to 
be resilient to future climate risks, to support local solutions, such as collective heating and 
cooling systems, as well as investments in energy efficiency and decarbonisation.  

Regarding the environment, Member States should ensure that local authorities implement all 
necessary circular economy, waste management, and re-use/recycling measures, as set out in 
EU waste and circular economy legislation, as well as measures on air quality in line with the 
revised Ambient Air Quality Directive, on noise, on the protection and enhancement of urban 
nature and tree canopy cover stemming from the Nature Restoration Regulation, and on the 
improvement of water resilience in cities in line with the water resilience strategy.  

2.6. Cities are providing better access to transport services 

Cities  tend  to  provide  better  access  to  public  transport  than  other  areas,  facilitating  goods, 
people, knowledge flows, and boosting productivity. The dense concentration of people and 
activities  makes  it  more  efficient  to  provide  public  transport  in  cities,  but  this  same 
concentration  can  lead  to  high  levels  of  congestion.  Despite  improvements  in  air  quality, 
pollution levels still surpass EU thresholds in several cities46. 

EU policy on mobility prioritises the transition towards sustainable, safe, accessible, inclusive, 
affordable,  resilient  and  smart  urban  mobility  systems47.  The  focus  is  on  the  development, 
modernisation, decarbonisation and electrification of urban and peri-urban (public) transport48, 
active mobility (cycling and walking) and shared mobility means and services. Emphasis is 
given  to  integrated  planning,  fostering  seamless  multimodal  connectivity,  improving  road 
safety, strengthening sustainable urban logistics, and reducing congestion, and with that urban 
pollution and emissions to also achieve the objective of climate-neutral and smart cities. EU 
policy also helps to address transport poverty, including in rural areas, to better integrate urban 
logistics into sustainable urban mobility planning,  and to strengthen the link between urban 

45 Wildland–urban interfaces are areas where human development meets or intermingles with wildland vegetation, 
and therefore, these areas often face heightened wildfire risk.  
46 Air pollution emissions have declined in the last two decades, resulting in better air quality. Between 2005 and 
2022, the number of deaths in the EU attributable to fine particulate matter (PM2.5) fell by 45%, moving the EU 
closer to achieving the 55% reduction target outlined in the zero-pollution action plan for 2030. 
47 COM(2021) 811 final. 
48 Including the development of better and more affordable transport links between cities and their non-urban 
surroundings. 

10 

 
 
 
mobility and tourism. Member States are also encouraged to use their Social Climate Plans for 
actions addressing transport poverty, such as investments in public transport, active mobility 
and shared mobility. 
At the centre of EU policy action are 431 urban nodes49, which are considered key elements of 
a  well-functioning  trans-European  transport  network  (TEN-T).  The  cities  concerned  are 
requested  to  develop  sustainable  urban  mobility  plans  (SUMPs)  for  their  functional  urban 
areas, collect data, deploy recharging and refuelling infrastructures for sustainable alternative 
fuels,  and  develop  multimodal  passenger  hubs  and  freight  terminals.  Member  States  are 
required to draw up national programmes to support urban areas in this endeavour. In turn, the 
European  Commission  is  supporting  Member  States  in  this  task,  and  provides  guidance, 
knowledge sharing and networking opportunities to address the mobility challenge.  

Building on the TEN-T, the recently launched high-speed rail plan sets the ambition of cutting 
the  duration  of  many  popular  rail  journeys  between  capital  and  major  urban  nodes  across 
Europe by half compared to today. The plan aims to deliver a well-functioning and faster high-
speed rail network by 2040 and foster intermodal transport through urban connections.  

Moreover,  among  key  issues  for  EU  policy  action  are  to  improve  synergies  between  urban 
mobility, housing policy and spatial planning, to leverage the potential of transport innovation 
and digitalisation, including artificial intelligence, and to continue improve urban road safety50. 
The  EU  road  safety  policy  framework  2021-2030,  which  identifies  key  priority  areas  and 
addresses  the  main  risk  factors,  pays  particular  attention  to  vulnerable  road  users  such  as 
pedestrians, cyclists, and motorcyclists, most affected in urban areas.  

Cohesion policy is providing considerable support for transport, with more than EUR 59 billion 
planned for investments  in  the 2021-2027 programming  period51.  Furthermore, the ongoing 
mid-term review of cohesion policy makes it possible for Member States to relocate resources 
toward recharging networks. 

The total RRF support allocated to sustainable transport and urban mobility amounts to more 
than EUR 26 billion52. The investments supported cover several areas such as metro and tram 
extensions, cycling paths, and infrastructure. These investments are tangibly improving cities’ 
competitiveness  and  attractiveness,  ensuring  they  remain  engines  of  economic  growth  and 
innovation. 

2.7. EU cities and the international context 

Cities are playing an important role in international cooperation. The global trade landscape is 
undergoing  a  radical  change.  There  is  an  acceleration  in  global  economic  and  geopolitical 
fragmentation,  particularly  with  the  emergence  of  new  protectionist  trade  policies.  Cities 
should  be  able  to  adapt  to  these  changes  to  remain  competitive  and  should  diversify  their 
economies, for instance by reducing their reliance on a single industry or trade partner.  

The EU recognises the value of international cooperation between cities also more broadly, 
as a means of increasing mutual understanding. It remains committed to an urban policy that 

49 Regulation (EU) 2023/1804 provides the following definition: An urban area where the transport infrastructure 
of the trans-European transport network, such as ports including passenger terminals, airports, railway stations, 
logistic platforms and freight terminals located in and around an urban area, is connected with other parts of that 
infrastructure and with the infrastructure for regional and local traffic. 
50 As part of its Apply AI strategy, the Commission will launch an Autonomous Drive Ambition Cities initiative 
to accelerate the deployment of operational services working with European providers. COM(2025) 723 final.  
51 https://cohesiondata.ec.europa.eu/cohesion_overview/21-27. 
52 Based on Annex VI of the RRF regulation 2021/241.  Urban transport infrastructure, public transport rolling 
stock (e.g., trams, metros and buses) and bicycle infrastructure.  

11 

 
 
 
aligns with global frameworks, actively contributing to the implementation of the Sustainable 
Development Goals in the UN 2030 Agenda and the UN New Urban Agenda. It will continue 
to  support  the  implementation  of  the  UN  endorsed  city  definition  called  ‘the  degree  of 
urbanisation’.  By  engaging  in  platforms  like  the  World  Urban  Forum,  the  G7  Urban 
Development Ministers’ meetings, the EU can play a pivotal role in shaping international urban 
policy. International cooperation provides substantial benefits for EU cities. Programmes such 
as URBACT enable  collaboration  with cities  in  EU  candidate  countries,  including Ukraine, 
enabling  knowledge  exchange  and  capacity  building  on  urban  governance,  planning  and 
community-led  development.  Moreover,  the International  Urban  and  Regional  Cooperation 
programme (IURC)53 and  the global Urban Transitions Mission (UTM)54 connect EU cities 
with counterparts across Latin America, Asia, Africa and North America, fostering cooperation 
on shared challenges such as urban mobility, energy transition, circular economy and climate 
adaptation. As highlighted in the EU-India strategic agenda55, the EU and India are currently 
taking  important  steps  to  deepen  cooperation  on  sustainable  urbanisation  through  existing 
partnerships, with a focus on cities. EU cities benefit from international initiatives such as the 
WHO-led Global Network of Age-Friendly Cities helping to improve the participation of older 
people  in  community  life  and  promoting  healthy  and  active  ageing.  Efforts  to  promote 
international cooperation are complemented by long-standing initiatives, which offer a people-
to-people  dimension  to  EU  external  relations  and  support  joint  actions  between  local 
administrations, such as the Global Covenant of Mayors where the EU’s leadership strengthens 
global city diplomacy and multilevel cooperation. 

Considering the acceleration of urbanisation globally, fostering multi-level and cross-border 
cooperation,  including  with  candidate  countries,  will  ensure  that  cities  serve  as  both  local 
centres  of  transformation  and  global  partners  in  advancing  sustainable  and  inclusive 
development. The EU and its Member States provide substantial support to urban development 
and  infrastructure,  cooperation  with  regional  and  local  authorities  in  partner  countries  for 
sustainable development policy measures under the Global Gateway and the European Fund 
for Sustainable Development Plus (EFSD+) and seek to improve their access to international 
finance.  Local  authorities  are  important  actors  in  the  Neighbourhood,  Development  and 
International Cooperation Instrument, which is also reflected in the Global Gateway strategy. 
They  deal  with  everyday  challenges  at  local  level  and  their  involvement  is  essential  to 
understand the details of the context where the Global Gateway is implemented. Furthermore, 
on the longer term, EU cities could have a greater role in defining partnership priorities in areas 
in  which  cities  generally  have  significant  responsibilities  and  can  promote  multilevel 
governance cooperation. Considering investments needs in urban infrastructure and innovative 
urban  management,  cities  in  partner  countries  also  represent  commercial  opportunities  for 
European cities and wider EU actors.  

53 The IURC is an EU-funded programme jointly implemented by the Service for Foreign Policy Instruments and 
the Directorate-General for Regional and Urban Policy of the European Commission supporting cities and regions 
from like-minded countries with similar challenges. 
54 The Urban Transitions Mission of Mission Innovation supports a cohort of over 100 cities from 45 countries 
towards a net zero, resilient and people-centred future. 
55 Joint Communication to the  European Parliament and to the Council on a New Strategic EU-India Agenda. 
JOIN(2025) 50 final. 

12 

 
 
 
 
 
 
 
2.8. Implementation of EU legislation 

Local  and  regional  authorities  implement  and  use  approximately  70%  of  EU  legislation56 
making them key actors for delivering EU policy goals57. To meet EU goals and targets, it is 
essential to enable cities to implement EU legislation efficiently and effectively. Cities are also 
crucial for democratic systems due to their closeness to people and direct responsibility for the 
delivery of essential services. EU policies are already prepared through close consultation with 
relevant stakeholders, using various mechanisms such as public consultations, expert groups 
and territorial assessments. The European Committee of the Regions and its Regional Hubs 
Network58  have  also  provided  valuable  contributions  from  local  and  regional  members  on 
implementation bottlenecks. Despite these efforts, cities still report difficulties in implementing 
EU rules. They  often report that they were insufficiently  informed  about the preparation of 
relevant  legislation,  highlighting  the  need  for  more  inclusive  and  effective  engagement  at 
different levels of governance to ensure that policies are both practical and responsive to local 
needs59. 

Recognising the complexity of urban governance and the variety of competences and actors 
involved,  the  Urban  Agenda  for  the  EU  was  launched  in  2016  as  an  intergovernmental 
cooperation process to better integrate cities into the design and implementation of both EU 
and  national  policies.  It  aims  to  improve  regulation,  funding  and  knowledge  sharing  for 
European cities. The Urban Agenda for the EU has set up 20 thematic partnerships on important 
topics for cities, engaging around 350 partners representing all levels of governance (including 
more than 100 cities, Member States,  NGOs  and EU bodies) and proposing more than 150 
actions to date. This innovative multi-level governance method has been recognised as one of 
the  most  important  achievements  of  the  Urban  Agenda  for  the  EU60.  Whereas  the  Urban 
Agenda for the EU is an intergovernmental initiative bringing together actors from all the levels 
of governance (local, regional, national and the EU), the EU Agenda for Cities will reinforce 
the  approach  of  the  EU  to  sustainable  urban  development  with  the  focus  on  supporting 
implementation of EU policy priorities at local level. The EU Agenda for Cities will enhance 
coordination and synergies with the Urban Agenda for the EU, facilitating the implementation 
of its actions and building on its outcomes.  

3. CITIES AND EU SUPPORT 

3.1. Current EU support to cities 
While  urban  policies  remain  a  prerogative  of  Member  States,  the  EU,  through  many  of  its 
policy tools, has been providing cities and urban areas with a wide range of support. Cohesion 
policy  programmes  provide  the  most  significant  support  to  territorial  development,  though 
additional assistance is also available through several sectoral policies. 

Cohesion  policy  has  a  strong  urban  dimension,  and  its  support  to  sustainable  urban 
development has been stepped up in 2021-2027 with an increased compulsory allocation of 8% 
from  ERDF  to  cities  in  order  to  empower  cities  to  take  an  active  role  in  designing  and 
implementing policy responses tailored to their local challenges. As a result, cities are directly 

56 European Parliament resolution of 24 June 2021 on European Union regulatory fitness and subsidiarity and 
proportionality - report on Better Law Making covering the years 2017, 2018 and 2019 (2020/2262(INI)).      
57  For  example,  in  the  areas  of  the  built  environment,  energy,  industry,  mobility,  digital  connectivity,  climate 
change, zero-pollution environment, loss of biodiversity and circular economy. 
58 Network of Regional Hubs of the European Committee of the Regions.  
59 Cities – new policy agenda – Call for Evidence 2025. 
60Assessment Study of the Urban Agenda for the EU (2019). 

13 

 
 
 
responsible for designing and implementing sustainable urban development strategies, 
receiving over EUR 24 billion under cohesion policy programmes for that purpose. Moreover, 
cohesion policy funds invest more than EUR 100 billion61 in cities  overall. This  support 
enables both Member States and local authorities to develop innovative solutions that address 
environmental, social and economic challenges. 

For  example,  Finland’s  sustainable  urban  development  strategy  is  built  on  agreements 
between the State and 19 cities with a shared ambition to strengthen innovation ecosystems. 
These long-term contracts set out shared priorities for allocating public and private funding to 
innovation-driven, city-specific ecosystems. They promote targeted investments in sectors like 
clean  tech,  health  and  digitalisation,  linking  urban  competitiveness  with  sustainable 
development, and serve as a strategic framework for urban growth, balancing local initiatives 
with national coordination. 

In  Italy,  sustainable  urban  development  is  pursued  through  regional  programmes  and  the 
‘National Programme Metro Plus and Southern Medium Cities 2021-2027’. This programme 
builds on the success of its predecessor (carried out in 2014-2020) by focusing on digitalisation, 
sustainability and social inclusion. Under its governance model, responsibilities are delegated 
to 14 metropolitan cities serving as intermediate bodies, which have been joined by 39 medium-
sized southern cities as beneficiaries of social innovation projects. 

In Portugal, implementation of sustainable urban development supports integrated strategies 
for  functional  areas,  stimulating  balanced  urban  development  through  intermunicipal 
cooperation  and  urban-rural  links.  These  strategies  are  cross-sectoral,  combining  different 
forms of investment depending on the specific needs at regional and local level, such as support 
for  innovation  and  competitiveness,  digitalisation,  energy  efficiency,  renewable  energy 
communities, climate action, sustainable waste and water management, biodiversity, mobility, 
urban regeneration, culture and tourism. 

The European Urban Initiative (EUI) and URBACT 

EUI and URBACT  are two flagship  instruments under the 2021-2027 EU cohesion policy 
framework that provide direct support to cities.  

The EUI has a budget of EUR 395 million (in current prices) from the ERDF in the 2021-2027 
programming  period.  It  plays  a  key  role  in  supporting  cities  across  Europe  by  providing 
financial  resources  for  innovation,  technical  assistance  and  knowledge  exchange  to  address 
urban challenges. In this way, the EUI helps cities effectively translate EU policy priorities into 
tangible, locally driven actions.  

In addition, URBACT has a total budget of EUR 110 million62 (in current prices), including 
EUR  79.7  million  from  the  ERDF,  for  the  2021-2027  programming  period.  It  supports 
capacities of cities in strategic urban planning and participatory governance through a specific 
method  of  ‘collaborative  networks’  based  on  thematic  urban  challenges.  Both  instruments 
jointly contribute to a more coherent and collaborative urban policy landscape across Europe. 

The mid-term review of cohesion policy and cities 

61 The amount of more than EUR 100 billion includes the share of over EUR 24 billion implemented directly by 
cities through sustainable urban development strategies.  
62 The URBACT programme receives funding from the ERDF, NDICI and IPA funds, which are complemented 
by national contributions.  

14 

 
 
 
Moreover, cities can also benefit from the mid-term review of the EU’s cohesion policy. This 
review identifies new priorities and offers significant flexibilities and incentives to Member 
States, which can also benefit cities and other urban authorities. 

For example, it offers the possibility to address the investment gap in affordable housing via 
increased cohesion policy funding and dedicated financial instruments combining EU grants 
with financing. Investment is also encouraged to support the energy transition, as well as in 
water resilience. Cities can also  benefit from  measures  to  boost Europe's  competitiveness, 
strengthen  defence  and  support  eastern  border  regions.  Member  States  may  also  use  the 
European Social Fund+ to provide support for the development of skills in civil preparedness, 
in the defence industry and in cybersecurity. 

As part of the mid-term review, it is possible to boost the EUI by allowing Member States to 
transfer European Regional Development Fund (ERDF) resources to the initiative. In addition, 
the mid-term review created a Seal of Excellence for the EUI, allowing projects that meet high-
quality criteria  but  that fall outside available funding to access support through mainstream 
cohesion policy programmes. 

The Recovery and Resilience Facility and cities 

The Recovery and Resilience Facility (RRF) has been a game-changer in Europe's response to 
the impacts of the COVID-19 pandemic, helping to fuel the recovery and strengthening the 
resilience  of  Europe  and  its  cities.  Several  analyses63  show  that  the  RRF  has  provided 
significant support to cities, metropolitan and urban areas, translating into tangible benefits to 
their residents and businesses, in particular on the green and digital transition.  

Support from the EIB 

The European Investment Bank also plays a pivotal role in supporting cities across the EU with 
both financial and advisory services. Since 2021, it has provided over EUR 80 billion in new 
financing to cities for strategic investments such as in sustainable urban transport, affordable 
housing,  decarbonising  district  heating,  energy  efficiency,  and  circular  economy.  The  EIB 
Advisory  services  provide  tailored  technical  and  financial  advisory  services,  backed  by  the 
European Commission. To support cities as crucial catalysts of private investments, it is helping 
them to develop and deploy financial instruments that blend EU funding with private funding. 

Other examples of EU initiatives in support of cities  

Over  the  past  years,  the  European  Commission  has  launched  more  than  50  initiatives  and 
instruments  to  help  local  authorities  with  their  transformation  efforts  and  facilitate  the 
implementation  of  EU  policies  at  local  level.  These  include  multiple  online  platforms  to 
strengthen  cities’  capacity,  knowledge  and  access  to  funding,  and  various  awards  and 
recognition schemes in areas such as sustainability, innovation and accessibility, to celebrate 
and incentivise excellence in urban development. Most initiatives provide support, advisory 
services and capacity building for cities to actively participate in European efforts to achieve 
sustainable transitions. 

A number of ongoing EU initiatives promote and support the development of sectoral strategies 
(e.g., plans, deals and contracts) and call on cities to make political commitments to guide the 
sustainability transition. Key examples include (see the EU Cities Portal - Regional and Urban 
policy - European Commission for a full overview): 

The  EU  Covenant  of  Mayors  for  Climate  and  Energy  is  a  well-established  initiative 
supported by the EU climate and energy policies that offers all EU municipalities a platform to 

63 COM(2025) 637 final; COM(2024) 82 final.  

15 

 
 
 
achieve EU climate and energy targets. It provides a science-based methodological framework 
for assessing  emissions and vulnerabilities and for developing integrated sustainable energy 
and climate action plans to address them. This framework is implemented through a multi-level 
approach. National and regional authorities  rely on a validated format to coordinate climate 
action at the local level and collect data and information needed to develop their own policies 
and allocate funding. The EU Covenant of Mayors forms the core of the Global Covenant of 
Mayors.  

The  EU,  through  the  Horizon  Europe  programme,  is  advancing  two  EU  Missions  to  tackle 
climate challenges in cities: Climate-Neutral and Smart Cities and Adaptation to Climate 
Change. The former involves 100 cities in the EU working towards climate neutrality by 2030 
through  Climate  City  Contracts  —  comprehensive  plans  co-created  with  citizens  and 
stakeholders  covering  energy,  buildings,  transport,  and  waste,  supported  by  investment 
strategies. These cities also act as innovation hubs to inspire all European cities to reach climate 
neutrality by 2050. The latter supports over 300 local and regional authorities with climate data 
and  scientific  modelling  to  conduct  place-based  risk  assessments  and  develop  innovative 
solutions. This  approach  strengthens  resilience,  fosters  cross-sectoral  planning,  and  ensures 
local actions align with broader regional and national strategies. The two Missions collaborate 
closely. 

The  European  Capitals  of  Culture  is  a  flagship  EU  initiative  supported  by  the  Creative 
Europe programme. Each year, it designates one or more cities to host a year-long celebration 
of culture, aiming to highlight Europe’s cultural diversity, foster a shared sense of belonging, 
and promote long-term cultural, social and economic development. 

The wide range of EU initiatives that support cities highlights the importance the EU places on 
urban issues. At the same time, the abundance of available tools often makes it difficult for 
cities to navigate the opportunities. Some tools overlap with other thematic areas that receive 
a high level of attention (such as climate, energy and environment) and therefore offer natural 
synergies, while other thematic areas remain less covered (e.g., equality of access and social 
inclusion).  The  fragmentation  of  EU  initiatives  and  tools  with  different  application  and 
evaluation procedures, as well as various requirements for action plans and reporting creates a 
burden for cities. At the same time, support for piloting innovative solutions must be followed 
up  with  efforts  to  facilitate  wider  scale  implementation,  replication  and  related  technical 
assistance.  This  fragmentation  is  particularly  challenging  for  small  and  medium-sized 
cities  as  they  have  less  resources  and  lower  administrative  capacity  to  get  involved  in  EU 
initiatives and scaling-up projects. 

3.2. The need for further support for cities 

Cities must balance multiple sectoral  policy goals  and obligations  highlighting  the need for 
integrated approaches. 

To  manage  these  challenges,  cities,  particularly  small  and  medium-sized  cities,  need 
administrative  capacity  and  access  to  expertise  and  knowledge.  The  provision  of  tailored 
technical  assistance  targeting  the  design  and  implementation  of  strategies,  financial 
structuring of strategic investments, sectoral dialogues, procedures, methodologies, reforms, 
and  the  preparation  and  implementation  of  concrete  investment  projects  and  procurement 
actions can help cities. 

Cities and urban areas in the EU are experiencing financial constraints and are under pressure 
to limit net expenditure growth. In parallel, they require an increasing amount of funding to 

16 

 
 
implement policy priorities. To address these challenges, they cite the following needs64: (i) 
accessibility and simplification of EU funding streams (ii) harmonisation of criteria, and (iii) a 
shift from project-based financing to portfolio and integrated approaches for financing through 
long-term  strategic  planning.  Innovative  financing  models,  involving  the  private  and  public 
sectors, help to mobilise additional investments, and to minimise risks. Cities have highlighted 
the benefits of EU support instruments and tools that take systemic approaches to strategies 
and 
cohesion 
policy. Multisectoral  urban  investment  plans,  foster  deep,  structural  transformation  and 
connect all investment needs under a unifying plan.  

investments  under 

integrated 

territorial 

such  as 

funding, 

Going forward, cities will be encouraged to  use  integrated ‘mission’ approaches that  tackle 
multiple challenges together, such as housing, transport, energy, climate and the environment, 
in  alignment  with  decarbonisation  and  broader  environmental  sustainability,  inclusion,  and 
quality-of-life  goals,  while  also  strengthening  security,  safety  and  overall  resilience.  The 
approach should be inclusive. An integrated approach like the one adopted by the Covenant of 
Mayors could serve as an entry point for cities of all sizes, linking city stakeholders under a 
single political commitment. 

The experience of cities has demonstrated the value of combining EU grants with funding 
from financing institutions such as the European Investment Bank, the European Bank for 
Reconstruction  and  Development,  the  Council  of  Europe  Development  Bank,  and  national 
promotional banks, as well as using financial instruments to establish revolving funds. This is 
particularly pertinent in a context where cities have increasing needs, multiple priorities and 
scarce public resources. To meet their significant investment needs, cities should expand the 
use of innovative financing mechanisms and public private partnerships. Cities need further 
support to build their financial engineering capacity and expertise and optimise their ability to 
generate  additional  revenues,  in  particular  through  improved  asset  management.  Finally, 
matching cities with private investors is a success factor, and thus cities need advisory support 
and  facilitated  access  to  financing  institutions.  To  this  end,  the  Smart  Cities  Marketplace 
approach65 and the Climate City Capital Hub66 of the Climate-Neutral and Smart Cities Mission 
together with the complementary support provided by the EIB, as mentioned above, serve as 
models to be scaled up. 

When  supporting  cities,  policy  coherence  and  alignment  of  objectives,  methodologies,  and 
funding across different levels of government are crucial. Several existing EU initiatives are 
applying common methodological frameworks67 as part of their support on which future EU 
support to cities could build.  

To support cities more effectively, a comprehensive support structure is required to assist 
them with strategic planning, capacity and knowledge building and implementing policies to 
address multiple challenges. When setting up such a structure, it is necessary to consolidate 
existing EU initiatives and support tools in steps, while fostering clearer communication and 
coordination across policy areas. 

64  The  impact  of  EU  climate  and  energy  initiatives  on  cities’  climate  transition,  European  Committee  of  the 
Regions, 2023, https://data.europa.eu/doi/10.2863/428101. 
65 Smart Cities Marketplace.  
66 In 2024, the EIB launched an EUR 2 billion lending envelope in the context of the Cities Mission.  
67 E.g., sustainable urban development strategies of cohesion policy and methodological frameworks developed 
by the Covenant of Mayors and the Missions on Cities and Adaptation, Sustainable Urban Mobility Plans as well 
as the Green City Accord. 

17 

 
 
 
4. VISION AND THE WAY FORWARD  

4.1. A vision – thriving, liveable, prosperous and inclusive cities 

Cities across Europe are liveable, prosperous, and inclusive. They provide high levels of digital 
connectivity and opportunities for people of all generations, taking into account demographic 
change, and businesses to thrive, thereby promoting competitiveness, innovation and growth.  

Quality jobs and the provision of affordable, sustainable and decent quality housing for all, as 
well  as  equal  and  easy  access  to  services,  are  vital  for  thriving  cities.  The  New  European 
Bauhaus  principles  and  values  are  incorporated  into  the  inclusive,  sustainable  and  quality 
transformation of buildings and the urban environment across Europe. 

Opportunities for quality educational attainment and skills development, and support for talent 
attraction and migrants’ integration are available in cities across Europe. The attractiveness of 
cities, also as sustainable tourism destinations with vibrant cultural activities, while preserving 
cultural heritage, is key to their prosperity. 

Safety, security, inclusiveness, and respect of fundamental rights  are of vital importance for 
cities across Europe. Smart, sustainable, and affordable cities that provide inclusive mobility 
solutions,  support  an  improved  quality  of  life  for  people.  Complementary  interactions  are 
fostered  with  nearby  rural  areas,  creating  a  balanced  relationship  between  urban  and  rural 
spaces.  

Energy  efficiency,  locally  produced  renewable  energy,  enhanced  natural  ecosystems  and 
progress towards climate-neutrality foster a healthy living environment and build resilience to 
the impacts of climate change protecting the economies of cities and the well-being of people.  

Fostering civic engagement and democratic participation at the city level, where citizens often 
engage  most  actively  with  authorities,  is  of  key  importance68.  Policymaking  is  based  on 
relevant up-to-date data and delivers publicly consulted and accepted outcomes tailored to the 
local  needs.  Decisions  are  aligned  with  broader  EU  goals  and  initiatives,  such  as  the 
Competitiveness Compass, the New Leipzig Charter, as well as international frameworks, such 
as the United Nations Agenda 2030 and the UN New Urban Agenda. 

The EU Agenda for Cities plays a crucial role in facilitating this vision, providing support and 
empowering  cities  to  implement  integrated,  place-based  solutions,  continuing  to  evolve  as 
thriving, dynamic and liveable spaces for all. 

4.2. The way forward  

4.2.1. Continuous dialogue – cities are key partners in EU policy making  

Close  cooperation  between  the  different  levels  of  governance  and  across  policy  sectors  is 
essential to better deliver EU priorities at local level and integrate cities’ considerations into 
the  design  and  implementation  of  EU  policies  and  regulations.  To  this  end,  the  European 
Commission will build on existing best practices and use the instruments and methods outlined 

68  The  European  Democracy  Shield  presented  by  the  Commission  encourages  citizens’  involvement  and 
democratic participation at all levels. 

18 

 
 
 
 
in  its  Communication  on  simplification69,  which  aims  to  streamline  EU  legislation,  reduce 
administrative  burden  and  enhance  the  efficiency  of  policy  delivery.  The  Commission  will 
remain closely engaged with cities through an ongoing dialogue and specific initiatives.  

-  High level political dialogue 

From  2026  and  building  on  the  Implementation  dialogue  with  cities  held  by  the  Executive 
Vice-President  for  Cohesion  and  Reforms  in  June  2025,  the  Commission  will  put  in  place 
regular dialogues with cities. An annual high level political dialogue will be organised with 
the Commission, giving local leaders - and where relevant other public and private financial 
institutions, and business representatives - with hands-on experience the opportunity to inform 
policy discussions. This direct contact will serve as a sounding board to identify bottlenecks 
and  challenges  in  specific  policy  areas,  uncover  opportunities  for  simplification  and 
harmonisation, and provide information on necessary adjustments to EU policies, as well as 
recommendations for targeted support.  

-  Technical level dialogue 

To complement discussions at political level, targeted consultations at technical level with 
urban practitioners, and with the participation of relevant Commission services, will also be 
held on a regular basis to focus on identifying good practices and opportunities across thematic 
policy areas to reduce administrative burdens. Simplification efforts will be at the core of this 
process. Targeted consultations provide the opportunity to discuss how to improve tools for 
territorial  assessments  at  all  levels  and  to  engage  with  cities  and  other  urban  areas  when 
national and EU legislation is prepared and implemented.  

-  Regular dialogue with the European Committee of the Regions and the European 

Parliament 

These  meetings  will  be  complemented  and  fed  by  discussions  in  other  technical  formats, 
regular  dialogue  with  the  European  Committee  of  the  Regions  and  the  European 
Parliament, inputs collected by the EU Local Councillors network, public consultation results, 
territorial  assessments,  knowledge  capitalisation  activities,  relevant  organisations  and 
intergovernmental  structures  of  cooperation,  including  the  Urban  Agenda  for  the  EU 
partnerships.  The work done under the Urban Agenda for the EU will provide important inputs 
for  both  types  of  dialogues,  in  particular  actions  targeted  at  improving  legislation  and 
implementation processes. 

-  Cities Forum 

Additionally, the Cities Forum will continue to take place regularly, hosting workshops and 
policy discussions, and enabling the sharing of solutions, knowledge and opportunities for the 
benefit of urban stakeholders and policymakers. 

-  State of European Cities report 

In  addition,  the  Commission  will  prepare,  at  regular  intervals,  a  State  of  European  Cities 
report. The report will support more evidence-based urban policy making in the EU. The next 
report will be issued in 2026. 

Inclusive governance processes, such as the continuous dialogues proposed above between the 
Commission  and  cities  should  not  only  happen  at  the  EU  level,  but  also  in  Member  States 
through a well-established structured dialogue with cities on all key areas of national and EU 
legislation, both during preparatory and implementation phases. The need for such structured 

69 COM(2025) 47 final. 

19 

 
 
 
multi-level dialogue and partnership also applies to the planning of investments and is a key 
feature in the preparation and implementation of the national and regional partnership plans in 
the 2028-2034 programming period70. 

4.2.2. Simplification and capacity building 

The consolidation and simplification of cities’ access to EU support tools is an ongoing process 
and  will  continue  through  to  the  next  multiannual  financial  framework.  Simplification  and 
streamlining  efforts  will  continue  to  take  place  to  consolidate  the  support  offer,  harmonise 
awards and prizes as well as eligibility and reporting conditions.  

-  EU Cities web-portal  

As the first step, the Commission launched today an ‘EU Cities web-portal’. The portal will 
simplify  access  of  cities  to  all  current  EU  support  available  to  them.  It  will  act  as  a 
communication tool and space for stakeholders to find information and interact about activities, 
events, news, policy developments, and opportunities of relevance  to urban development. It 
will provide an overview and convey information on the different EU initiatives supporting 
cities (depending on thematic areas, cycle of preparation and implementation, etc.) and redirect 
users to the relevant place where detailed information is provided.   

Later on, in the next multiannual financial framework, the Cities web-portal will become a key 
element of the Cities platform and remain dedicated to communication and outreach. The portal 
will evolve to serve the objective of the Cities platform in consolidating and facilitating access 
to information on support to cities in the new simplified landscape, including, when relevant, 
the use of artificial intelligence.  

-  European Urban Initiative 

A  ‘Cities  helpdesk’  will  be  established  in  the  framework  of  the  European  Urban  Initiative 
(EUI). In addition to the search tool available on the Cities web-portal, the helpdesk will assist 
cities  in  identifying  urban  support  tools  across  multiple  EU  initiatives  and  related  funding 
opportunities. 

The  4th  EUI-Innovative  Actions  call  will  be  launched  in  early  2026.  It  will  focus  on 
supporting smaller-scale pilot projects aimed at testing innovative solutions to address urban 
challenges. While the call will be open to cities of all sizes, it will particularly target small and 
medium-sized cities with limited innovation capacities. It will follow a bottom-up approach, 
allowing urban authorities to submit proposals addressing any thematic area aligned with the 
urban themes of the EU Agenda for Cities. 

-  EU Cities platform  

Under  the  next  multiannual  financial  framework,  the  Commission  proposes  to  create  a 
common ‘EU Cities platform’ (see Figure 3) bringing together different forms of support, 
such  as  funding  instruments,  technical  assistance,  knowledge  resources  and  digital  tools,  to 
provide simplified access to EU resources, including from the EU Facility.  

The platform will be a place for cities of all sizes to collaborate with one another, and the EU 
level. In particular, the platform will be designed to offer support across the full lifecycle  – 
from analysing the needs using the latest available data and tools, to capacity building, through 
cooperation  and  peer  learning,  to  technical  assistance  in  strategic  planning  and  project 

70 Recitals 22 and 24 – Regulation of the European Parliament and of the Council establishing the European Fund 
for economic, social and territorial cohesion, agriculture and rural, fisheries and maritime, prosperity and security 
for the period 2028-2034 and amending Regulation (EU) 2023/955 and Regulation (EU, Euratom) 2024/2509. 

20 

 
 
 
development.   This  overview,  dedicated  exclusively  to  cities,  will  complement  the  tools 
proposed as part of the next multiannual financial framework to make access to EU funds for 
beneficiaries easier. In this respect, the Single Gateway71 will become the single access point 
for consolidated information on funding opportunities for project promoters. 

By building on the valuable experience and frameworks put in place in numerous cities, the 
platform will support cities and ease access to flexible financing, leaning on integrated urban 
development  plans,  such  as  sustainable  urban  development  strategies  of  cohesion  policy, 
Climate City Contracts of the EU Mission on Climate-Neutral and Smart Cities, Sustainable 
Energy  and  Climate  Action  Plans,  Sustainable  Urban  Mobility  Plans,  environmental 
frameworks72, and Adaptation Plans.  

Cities will be able to get support on specific policy areas but also on operational challenges 
they  face.  The  platform  will  be  composed  of  continued  initiatives  as  well  as  new  support 
options to respond to gaps that were identified. It will aim notably at facilitating access  for 
small and medium-sized cities and remain flexible to address emerging new challenges. 

The platform will host and organise the different types of support provided by the European 
Commission to cities in a consolidated way. It is a structure for policy action and cooperation 
with  cities.  It  will  be  composed  by  several  initiatives  and  streams  of  support,  built-in  in  a 
comprehensive,  simplified  and  accessible  way  for  beneficiaries,  providing  genuine 
simplification  and  EU  added  value,  while  facilitating  multi-level  governance  cooperation 
towards achieving sustainable and integrated urban development.  

71 COM(2025) 545 final. 
72 E.g., the Green City Accord is a political movement through which mayors commit to ambitious environmental 
goals in areas like air and water quality, nature and biodiversity, waste management, and noise reduction by 2030. 
It aims to improve urban quality of life, support the European Green Deal, and accelerate the implementation of 
environmental laws at the local level.  

21 

 
 
 
Figure 3. Visual presentation of the EU Cities Platform.  

The platform will help guide cities towards the support offer that is most adequate depending 
on  their  needs  and  will  host  opportunities  that  cities  will  be  able  to  benefit  from.  Support 
options will range across policy fields and different types of support:  

a)  Capacity and knowledge building, strategic planning, and networking 

-  Support  for  methodological  frameworks  and  tools  for  strategic  planning,  including 

integrated ‘mission’ approaches, and for simplified monitoring and reporting 

-  Support for reinforcement of administrative capacity and operational challenges related 

to the implementation of strategies and policies  

-  Peer learning and cooperation opportunities, and facilitation of knowledge transfer  

-  Support on procurement, for example, the platform may facilitate cooperation between 
cities  through  common  procurement  systems,  with  the  support  from  the  European 
Commission  

-  Support to encourage industry-city dialogues  

- 

Information  on  relevant  national,  bilateral  and  multilateral  initiatives  helping  cities 
identify synergies, draw inspiration from other models and practices using EU tools and 
support from other governance levels.  

b)  Support for innovative projects 

-  Support  for  cities  to  develop  and  implement  innovative  projects  will  be  provided 
similarly to the 2021-2027 European Urban Initiative (EUI). The EUI provides direct 
financial resources for cities for their innovative projects addressing urban challenges 

22 

 
 
 
of EU relevance and has generated many scalable, innovative solutions across European 
cities. 

c)  Advisory support for funding and finance 

A  funding,  finance  and  advisory  support  window  will  be  part  of  the  platform  and  will  be 
dedicated  to  providing  structured  information,  advisory  services  and  technical  assistance  to 
better support cities in accessing funding. It will assist cities to access and combine different 
sources of funding with expertise and technical support, notably EU funding from the national 
and regional partnership plans, other EU instruments, and sources such as funding from the 
European Investment Bank and private financing.  

The Commission aims to support this transition by providing cities with coherent frameworks, 
shared tools, and long-term partnerships. This will include a continuous support track for cities, 
extending  from  the  planning  stage  to  funding  access  for  the  deployment  of  solutions.  By 
helping cities to develop investment portfolios, which are attributed a proof of quality label, 
the platform will facilitate access of cities to EU funding. 

d)  Data and tools repository  

An important function of the Cities platform will be to consolidate the available data and to 
make it accessible to cities and urban areas, providing a continuous evidence base for urban 
policymaking  alongside  the  regular  State  of  European  Cities  report  to  be  prepared  by  the 
Commission. To ensure the interoperability of the data, and therefore, its wide availability and 
usability, existing standards and specifications will be utilised73. The platform will facilitate 
simpler  reporting  and  provision  of  data.  In  addition,  the  Commission  will  consider  how  to 
improve synchronisation and harmonisation of the reporting requirements. The platform will 
also establish common indicators to assess the impact of urban policies on different thematic 
areas building on existing monitoring systems. 

e)  Support for a continuous dialogue   

The  Cities  platform  will  support  continuous dialogue  organised  at  both  high  political  and 
technical  levels  (see  4.2.1.).  Through  the  platform,  participation  mechanisms  will  be  put  in 
place  for  cities  to  contribute  to  shaping  policy  initiatives.  This  involves  interactions  with 
intergovernmental structures, such as the Urban Agenda for the EU, other EU and international 
city  networks,  including  thematic  networks,  as  well  as  national  and  regional  intermediary 
organisations. 

4.2.3.  EU funds in the proposed multiannual financial framework 2028-2034 

On  16  July  2025,  the  European  Commission presented  its  proposal  for the Multiannual 
Financial  Framework  (‘MFF’)  for  2028  to  2034. This  puts  forward  an  ambitious  long-term 
budget that is simpler, more flexible and more strategic. 

National and regional partnership plans will combine EU funds implemented by Member 
States and regions into a coherent, tailored planning process – fully aligned with the Union’s 
common  priorities  notably  reducing  economic,  social  and  territorial  disparities.  They  will 
provide more flexibility to adapt to regional and local needs, taking into account for instance 
the different types of territories such as rural and urban areas, and simplify rules for Member 
States and regions. 

The principles of partnership and multi-level governance will guide the development of the 
plans as in the case of cohesion policy today. In particular, each Member State will have to 

73 SEMIC Support Centre | Interoperable Europe Portal. 

23 

 
 
 
prepare and implement their plan in partnership with regional and local authorities, in 
line with each Member State’s constitutional structures and traditions. 

When addressing the challenges facing urban areas in national and regional partnership plans, 
Member States should provide the opportunities for cities and other urban authorities to shape 
programmes of reforms and investments tailored to their specific needs.   

The programming of locally and regionally integrated funding approaches, consistently aligned 
with the EU policy framework, could also include necessary reforms at the sub-national level 
helping to both maximise the impact of the funds and address regulatory or other barriers.  

In  addition,  as  part  of  their  territorial  development,  Member  States’  plans  will  have  to 
effectively  support  territorial  and  local  cooperation  initiatives,  including  integrated  urban 
development strategies.  

In  the  current  programming  period  2021-2027,  cohesion  policy  is  already  providing 
considerable  support  to  urban  development  strategies.  To  respond  to  the  multiple, 
interconnected  challenges  faced  by  cities  today,  cities  need  to  strengthen  their  capacity  for 
action  through  operational  tools,  regulatory  support  and  funding.  EU  Member  States  and 
regions  are  therefore  encouraged  to  step  up  their  ambition  in  the  resourcing  of  their 
urban strategies, including through their national and regional partnership plans while 
taking into account the specificities of cities.  

Moreover,  the  EU  Facility,  which  will  be  closely  linked  to  the  national  and  regional 
partnership  plans74,  will  also  support  urban  authorities  to  develop  innovative  projects, 
strengthen capacity building, and provide an environment to share know-how on sustainable 
urban development.  

Under the European Competitiveness Fund, cities could potentially benefit, for example via 
the  clean  transition  and  industrial  decarbonisation  window.  This  window  aims  to  support 
activities related to clean energy deployment, decarbonisation solutions and system transition. 
It may also fund mobility-oriented projects and sustainable tourism in cities. In addition, the 
resilience  and  security,  defence  and  space  window  may  help  cities  strengthen  their 
preparedness, protect critical infrastructure, enhance defence and security, and make effective 
use of space-based technologies for monitoring, connectivity and emergency response. 

European  cities,  which  play  a  crucial  role  in  enhancing  regional  competitiveness,  may 
contribute  with  national  governments  and  EU  institutions  to  identify  and  prioritise 
competitiveness  strategies  and  contribute  to  the  overall  goals  of  the  Competitiveness 
Compass  by  ensuring  that  strategies  are  tailored  to  local  contexts  while  working  towards 
broader EU objectives. 

Furthermore, cities and other urban authorities may be able to access other EU programmes to 
address their challenges, including the Horizon Europe programme which has proven to be 
well-suited for innovation and research activities. 

The Commission invites the Member States to promote the integration and mainstreaming of 
values and principles of the New European Bauhaus across broader EU, national, regional 
and local development initiatives and programmes related to the regeneration of buildings and 

74 Annex XV to the proposal for a Regulation of the  European Parliament and of the Council establishing the 
European  Fund  for  economic,  social  and  territorial  cohesion,  agriculture  and  rural,  fisheries  and  maritime, 
prosperity and security for the period 2028-2034 and amending Regulation (EU) 2023/955 and Regulation (EU, 
Euratom) 2024/2509 {SWD(2025) 565 final}. 

24 

 
 
 
neighbourhoods,  including  the  provision  of  affordable  housing,  to  strengthen  inclusive  and 
community-driven investments. 

The  Global  Europe  programme  could  support  international  cooperation  on  EU  policy 
priorities for urban development, in particular with EU candidate countries, enabling transfer 
of  knowledge,  capacity  building  on  urban  governance,  planning  and  community-led 
development. 

5.  CONCLUSION 

Cities are essential for the future of the European Union. They are places where Europe’s most 
pressing challenges are concentrated, and where incubators of cutting-edge solutions can be 
built and scaled up across Europe’s territories. Cities face multiple simultaneous challenges, 
which require integrated solutions. As engines of sustainable growth, cities of all sizes not only 
drive  progress  within  their  boundaries  but  also  in  surrounding  areas,  including  rural  areas. 
Moreover, they are the places where most of the EU policies and legislation are implemented. 
The success of a more competitive, accessible, inclusive, resilient and cohesive Europe, that 
navigates the green  and digital transitions  with fairness  and ambition, is directly tied to  the 
success of cities. 

With this  EU  Agenda for  Cities, the Commission  lays out  its  vision  and policy response to 
support thriving cities in meeting the challenges of today and tomorrow. 

As  cities  contribute  to  the  achievement  of  EU  priorities  at  local  level,  the  Commission  is 
committed to enhance its engagement with cities, learning from their experience, and ensuring 
that EU policies and legislation have a coherent  and positive impact on the ground. To this 
effect,  the  Commission  is  committed  to  ensuring  cities  are  meaningfully  involved  in  EU 
policymaking and implementation, in line with  the cohesion policy’s partnership and multi-
level governance principles that remain central elements of the Commission’s proposal for the 
next multi-annual financial framework.   

Moreover, as cities can facilitate the deployment of innovative solutions across EU Member 
States, it is crucial to provide them the necessary funding, improved capacities and knowledge 
as well as a community for exchange to accelerate policy learning and implementation. The 
Commission is  engaged to  simplify and streamline the support made available to  cities and 
other  urban  areas.  The  Commission’s  technical  assistance  support  through  the  Cities  web-
portal launched today, and the future Cities platform will contribute to meeting the needs and 
opportunities of cities – considering their unique situation, specific challenges and functional 
areas – with tailored solutions, fostering collaboration and knowledge exchange.  

Member  States  are  encouraged  to  make  full  use  of  cohesion  policy  funds,  as  well  as  other 
instruments,  in  both  the  current  and  post-2027  period  to  support  urban  development.  The 
Commission invites all stakeholders to join in the effort of this new ‘EU-cities partnership’ and 
will monitor the EU Agenda for Cities’ implementation in an integrated and inclusive way. 

25 

 
 
 
ANNEX 1: FLAGSHIP ACTIONS OF THE EU AGENDA FOR CITIES  

The list below outlines the actions the Commission will undertake to implement the EU Agenda 
for Cities. 

No 

Action  

Timeline 

3. 

4. 

5. 

6. 

7. 

1. 

 High-level political dialogue with local authorities 

CONTINUOUS DIALOGUE 

2. 

 Targeted technical consultations with urban practitioners  

 Regular dialogue with the European Committee of the 
Regions and the European Parliament 

 Cities Forum (biennial) 

 State of European Cities report 

From 2026 
onwards 

From 2026 
onwards  

From 2026 
onwards 

Next one in 2027 

From 2026 
onwards 

SIMPLIFICATION and CAPACITY BUILDING 

 EU Cities web-portal 

Q4 2025 

 European Urban Initiative – Innovative Actions 4th call, and 
Cities helpdesk 

Q1 2026 and Q3 
2026 

8. 

 EU Cities platform 

2028 

INVESTMENTS 

9. 

 Support under the current multiannual financial 
framework  

Ongoing to 2027 

10. 

 Support under the next multiannual financial framework  

2028-2034 

26