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17 July 2025

Cities and regions warn new EU budget risks sidelining local action

As the debate on the next EU Multiannual Financial Framework (MFF) heats up, ICLEI Europe has joined forces with its fellow Local Alliance networks – ACR+, CEMR, Climate Alliance, Energy Cities, Eurocities, FEDARENE, and POLIS – to ensure that Europe’s cities and regions are at the heart of the next EU budget.

The Commission’s proposal for the 2028–2034 MFF, presented yesterday (16 July), outlines key spending priorities for the next seven years but risks weakening Cohesion Policy and leaving local governments without the tools they need to deliver Europe’s green, just and competitive transition on the ground. 

With a clear, unified message, the Local Alliance warns that the current proposal does not fully reflect the essential role local and regional governments play in turning EU ambitions into reality in every community.

Jakub Mazur, Deputy Mayor of Wrocław (Poland) and Member of ICLEI Europe’s Regional Executive Committee, underlined:

“While local governments are leading on climate action – from clean energy to sustainable mobility and housing – the new EU budget proposal overlooks our crucial role. We need an earmarked Cohesion Policy for all of our territories and a stronger partnership principle to ensure that local governments can act as strategic partners in shaping and delivering EU priorities.”

Susanne Schilderman, Deputy Mayor of Utrecht (NL), responsible for Climate Adaptation, Circular Economy, Public Space, Finance and Economic Affairs and Member of ICLEI Europe’s Regional Executive Committee, said :

“We welcome the Commission's efforts to put competitiveness and innovation at the centre of the next EU budget proposal. Yet, competitiveness and cohesion are two sides of the same coin, as cities and regions are key enablers of clean industrial transitions and strategic autonomy at the local level.

We drive the development of lead markets, support the rollout of AI-enabled infrastructure, promote collaboration among businesses, and serve as real-world laboratories for innovation and circular economy. Successful competitiveness policies and funding require embedding cities into the core of the EU Competitiveness Fund and Horizon Programme, with guaranteed funding access and a meaningful role in decision-making.”

The Commission’s proposed ‘National and Regional Partnership Plans’ risk centralising decision-making, which could weaken democracy and sideline local priorities. Any potential centralisation of governance, and investment decisions under the next EU budget risks further alienating people from the European project, weakening the vital connection between EU policies and the cities and towns where citizens live and work. When funding decisions are made without local input based on citizens’ needs, it raises serious concerns about the effective use of taxpayers’ money.

As the budget negotiations move forward, ICLEI Europe, via the Local Alliance, calls on the European Parliament and the European Council to seize this crucial opportunity to strengthen the role of cities and regions, safeguard Cohesion policy, and ensure the EU budget delivers tangible results for people across Europe.

As the budget negotiations move forward, the Local Alliance calls on the European Parliament and the European Council to seize this crucial opportunity to strengthen the role of cities and regions, safeguard cohesion policy, and ensure the EU budget delivers tangible results for people across Europe.

Ahead of the EU budget negotiations, local leaders call for:

  • Reforms and investments to be defined through a multilevel governance approach. Safeguards must be included in the National and Regional Partnerships Plans to ensure mandatory cooperation with local governments in the design and implementation of the plan.
  • The territorial chapter of these plans must be clearly stated as an obligation and not as an option left to the discretion of central governments.
  • Clear and enforceable safeguarding mechanisms to ensure that local and regional authorities can directly access EU funds, especially in cases where national governments delay or restrict disbursements.
  • Concrete institutionalised cooperation with cities and regions in the European Competitiveness Fund (ECF) and FP10, and we urge the EU institutions to involve local and regional governments as partners in setting priorities and strengthening place-based innovation.

To learn more about the Local Alliance and its position on the MFF negotiation, read here.