News

23 January 2025

Local Alliance outlines recommendations for the next EU budget

The Local Alliance—a coalition of Europe’s eight leading city and regional networks, including ICLEI Europe—has published a joint position paper outlining its vision for the EU’s next Multiannual Financial Framework (MFF) for 2028–2034. The paper calls on EU leaders to ensure that the next EU budget becomes a robust and comprehensive tool for achieving a climate-neutral, just, and competitive Europe.

As Europe navigates unprecedented challenges, from decarbonisation to digital transformation, the Local Alliance emphasises that closer collaboration between all levels of government is critical for success. In the position paper, the Alliance underscores the essential role of local and regional governments as key implementation partners of the EU budget to ensure a prosperous and resilient Europe.

Wolfgang Teubner, ICLEI Europe’s Regional Director, explains: "The next EU budget is a pivotal opportunity to shape a Europe where communities, cities, and regions thrive. By investing in resilient and future-proof local infrastructure, we can strengthen European industry and businesses, create jobs, and drive innovation. Simplifying support for place-based investments and elevating the role of local and regional governments will transform the vision of climate neutrality into a lived reality. This is a once-in-a-generation chance to create a competitive, equitable, and resilient Europe that moves forward together."

The paper envisions the EU budget as a long-term investment tool that unites public and private financing to support impactful local projects. It stresses the importance of safeguarding Cohesion Policy, the EU’s most effective mechanism for ensuring balanced territorial development and tackling inequalities. Key recommendations include:

  • Strengthening the place-based approach: Empower local authorities through improved partnership principles, including ex-ante conditionality requiring member states to consult them before accessing EU funds.
  • Enhancing multi-level governance: Avoid centralised planning to prevent delays and inefficiencies. Shared governance and tools like Integrated Territorial Investments and cross-border cooperation are crucial for effective territorial strategies.
  • Broadening the definition of reforms: Include capacity building, technical support, and multi-level governance to prepare public administrations for the future.
  • Simplifying processes while maintaining accountability: Streamline funding mechanisms to reduce administrative burdens without compromising transparency and oversight.
  • Ensuring accessibility of future competitiveness funds: Guarantee cities and regions have access to funds supporting green innovation, decarbonisation, and resilience to drive Europe’s industrial transformation.

This position paper will be presented to key EU decision-makers in the coming months, ahead of the European Commission’s proposal for the next EU budget. The Local Alliance aims to ensure that these ideas shape the design and implementation of the new budget.

For more information, read the full paper here.