Cities are the economic engines of the European Union, offering people — both in city centres and often in surrounding areas — access to essential services and a high quality of life.
Cities are key players in implementing EU policies and legislation at the local level.
At the same time, cities and other urban areas face numerous challenges that require significant investment.
They are at the forefront of implementing innovative solutions, designing and delivering services, improving safety, and planning and regulating the built environment and public space.
Stakeholders, including local authorities (in cities or other urban areas), have called on the EU to strengthen long-term support, cooperation, and guidance in this area.
As outlined in President Ursula von der Leyen’s mission letter to Executive Vice-President Raffaele Fitto, the European Commission will present a political agenda for cities.
This agenda will provide a vision for the future of cities, and address issues such as housing, climate action, digitalisation, mobility, social inclusion, and equality.
It will also explore the potential of cities as drivers of innovation, growth, and competitiveness.
Cities play a role in achieving the objectives of the European Green Deal, including zero pollution, the circular economy, nature and biodiversity, and climate action, through policy implementation, legislation enforcement, and mobilisation of public and private investment.
Cities are also:
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advancing the digital transition to support the green transition;
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promoting affordable housing, sustainable living standards, community health, as well as accessibility and inclusion; and
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adhering to the principles of the New European Bauhaus.
They are essential for the implementation of EU policies and measures in support of sustainable urban development, which are by nature cross-sectoral.
This process requires administrative capacity and methodological frameworks, as well as solutions that can be delivered and shared through EU-level action.
Cities vary in terms of starting points, needs, capacities, and legal competencies to address the required transformations. Many, particularly smaller cities, have limited human and administrative capacity and restricted budgetary resources.
Through many of its sectoral policies, the EU has provided support in various forms to cities and urban areas, especially to advance the implementation of the European Green Deal.
This support helps cities build capacity, benefit from expertise, access funding, and mobilise investment on the ground.
Currently, there are over 50 EU-level initiatives for cities.
While this variety creates many opportunities and addresses cities’ needs, it also leads to complexity and makes it difficult to navigate.
Another recurring concern raised by cities is the limited attention paid to the urban dimension during the EU’s policy and legislative preparation process.
Since cities are ultimately crucial for enforcing EU legislation, their concerns must be better integrated into future Commission proposals, to avoid contradictory effects on their territories.
Without new EU-level action, the complexity of existing support mechanisms would persist, hindering optimal use of resources and communication with beneficiaries.
Urban policy is primarily the responsibility of Member States across various levels of government (national, regional, metropolitan, and local).
Although there is no specific legal basis for EU action on urban policy, several legal bases for EU action have a direct impact on urban development — including energy, climate, mobility, environment, and land use — as well as inclusive and accessible policies for vulnerable groups. Local authorities are largely responsible for implementing the EU acquis on the ground.
In addition, Article 174 of the Treaty on the Functioning of the European Union states that the EU shall “develop and pursue its actions leading to the strengthening of its economic, social and territorial cohesion”.
Given the central role of Member States in urban policy and development, any initiative must respect the principle of subsidiarity.
The initiative will have a dual objective:
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To organise and streamline current EU support for cities and urban areas, so that support is targeted where it is most needed and is accessible to all potential beneficiaries; and
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To serve as a foundation for future actions, enhancing the EU’s ambition for cities and sustainable urban development, ensuring that cities’ interests and needs are reflected in future EU initiatives, and that appropriate governance is in place for implementation.
The initiative will also explore ways to coordinate with cities to learn from their experiences and avoid contradictory policy and legislative impacts on the ground.
Several core principles will guide the actions needed to achieve the above goals. For example, the support mechanism will be based on:
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a review of experience to date;
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coordination and synergies across different city initiatives and related monitoring;
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reduced administrative burden for stakeholders, including cities, Member States, and the Commission; and
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flexibility and adaptability to address cities’ emerging needs, including investments.
The initiative will also take into account the principles of proportionality.
It will take the form of a non-legislative instrument (Communication), aimed at reducing financial and administrative costs for the EU and for local authorities.
Our team is available should you require more information.
