CoR-OECD consultation sheds light on regions and cities' investment challenges

Regions and cities across Europe expect to increase public investment over the next few years in transport infrastructure, environmental protection, housing and education, according to a joint OECD-European Committee of the Regions (CoR) consultation.

The survey highlights the role of subnational governments in addressing major structural transitions. Among cross-cutting priorities, respondents expect the strongest rise in investment in the digital transition (45%), followed by the climate transition (35%) and adaptation to population ageing and shrinking (26%), including through age-friendly infrastructure.

However, persistent barriers continue to constrain investment. Access to funding and financing remains the main challenge: 77% of respondents cite mobilising grants and subsidies as a major or moderate challenge, while 73% point to raising own revenues and 66% to accessing external financing.

Coordination between levels of government is also a major concern, with 76% identifying vertical co-ordination as a constraint. Regulatory and administrative processes, cited by 73%, further underline the need for simpler procedures and more consistent regulatory frameworks.

While many subnational governments are strengthening internal capacity, action on national-level barriers remains more limited: only half report measures to better align responsibilities with fiscal capacity, and 55% are working to reinforce vertical coordination.

At the same time, 73% are pursuing or considering measures to enhance transparency, make better use of public procurement and strengthen public-sector expertise. 

The findings point to the need for stronger multi-level governance, predictable investment frameworks and targeted support to help regions and cities deliver long-term, place-based investment.

The joint survey was conducted between 15 May and 31 October 2025, targeting at representatives of subnational governments in charge of investment planning, financing and implementing investment. A total of 215 respondents from 22 EU countries participated in the survey.

Read the results of the consultation.