Local leaders call for an ambitious EU agenda that invests in cities as driver of competitiveness and social fairness

Metropolitan regions and functional urban areas have a vital role in driving sustainable investment, economic growth, and a balanced territorial development in Europe. Recognising this, local and regional representatives on 14 May unanimously adopted an opinion - drafted by Carmine Pacente, Councillor of the City of Milan -, during a plenary session of the Committee of the Regions (CoR), calling for a stronger urban dimension in post-2027 Cohesion Policy. 

With the European urban populations set to rise from 75% to 84% of the total by 2050, urban and metropolitan areas are under increasing pressure and will have a growing impact on the sustainable development of the European Union. In the adopted opinion, the CoR reaffirmed the need for balanced territorial development in Europe, driven by cooperation between urban and rural areas. Within this framework, strong urban and metropolitan strategies could help tackle some of the most pressing challenges for the entire European Union, such as demographic change, the green, digital and industrial transitions, and the shortage of affordable housing. 

Local and regional leaders put forward their request with an eye to the publication of a new agenda for cities by the European Commission, which was included by President Von der Leyen among the priorities of the current mandate. They urged the Commission to involve towns, cities and local and regional authorities at all stages of designing of the agenda, and to provide specific assistance to small and medium-sized municipalities as well as to cities. 

Cohesion Policy invests in sustainable urban development 

Members of the CoR underlined that the Cohesion Policy’s model of shared management - which involves European, national, regional and local levels of governance - remains an important source of funding for sustainable urban development. They therefore called for a strong, flexible and reformed Cohesion Policy after 2027. Local and regional leaders also cautioned that centralised management funding mechanisms, such as the Recovery and Resilience Facility, could lead national governments to neglect local priorities.  

Additionally, regions and cities called on Member States to test incentive mechanisms whereby unused funds from centralised policies could be redirected directly to regional integrated programmes and used in particular to the benefit of urban and metropolitan areas. 

Quote 

Rapporteur Carmine Pacente (IT/Renew E.), Councillor of the City of Milan: “By recognising the growing role of urban and metropolitan areas, this opinion calls for stronger EU urban agenda. For instance, it calls for increasing the European Regional Development Fund’s urban development funding beyond the current 8% and establishing a minimum and mandatory 5% European Social Fund+ reserve to tackle inequalities and housing needs. Moreover, it encourages Member States to introduce into their national shared management programmes, financial reserves for urban and metropolitan areas aimed at supporting investments.”    

Background 

• Video and photos from the plenary session.

• A functional urban area consists of a densely inhabited city and a less densely populated commuting zone whose labour market is highly integrated with the city (source: Eurostat).  

• On 15 May, the CoR plenary votes on two urgent resolutions on the next long-term budget of the European Union and the Mid-term review of Cohesion Policy programmes 2021-27. Moreover, on 14 May, CoR members adopted an opinion focusing on Cohesion Policy as an engine to achieve EU goals and reforms. Press releases will be published in the dedicated section of the CoR website. 

• From 17 to 19 June, the city of Krakow (Poland) will host the Cities Forum 2025, which will focus on collecting ideas for the development of the EU policy agenda for cities.