EU Agenda for Cities offers strong recognition but few resources

Brussels, 3 December 2024 – The European Commission unveiled its new EU Agenda for Cities [1]today, a landmark plan that strives to bring EU initiatives under one roof, introduces more structured dialogue with cities, and simplifies access to support through a single entry point. [2] The Agenda marks an important acknowledgment of cities as key drivers of Europe’s green, digital, and social transitions and clearly sets out the challenges they face. Yet the measures and resources proposed still fall short of the scale of cities’ responsibilities and the ambition required.

Around 340 million Europeans, 75 % of the EU’s population, live in urban areas, and cities are responsible for implementing around 70% of EU legislation [3]. Local governments are also the level of government most trusted by citizens [4] and account for over two-thirds of climate-related public spending [5]. Through the new EU Agenda for Cities, the Commission aims to simplify cities’ engagement with the complex landscape of existing EU initiatives, including through a new EU Cities Platform to be established under the 2028–2034 Multiannual Financial Framework [6] (MFF). These steps respond to longstanding requests for clarity and coherence in EU support.

The Agenda, however, does not introduce dedicated EU funding for cities, relying instead on recommendations for Member States to consult local and regional authorities when preparing their National and Regional Partnership Plans [7]. Most notably, the agenda comes without earmarked funding for cities under the proposed EU Facility for the next budget period.The EU Facility, the Commission’s new flexible financing instrument, in its current form, provides only one shared budget line for cities - grouped with social innovation and employment- totalling just €11 billion for 2028–2034.

“The EU Agenda for Cities correctly identifies the major challenges cities face. While the diagnosis is sound, the treatment, however, remains weak without enough dedicated resources”, said Martin Horn, President of ICLEI Europe. “For Europe’s transformation to succeed, the next EU budget must earmark significant funding for cities in the EU Facility, grant local and regional governments direct access to the Competitiveness Fund, and ensure mandatory consultation in the National and Regional Partnership Plans. Cities carry Europe’s ambitions on their shoulders - the next EU budget must match these with dedicated, accessible funding that empowers cities to act on the solutions they help deliver.”

The Agenda also introduces new annual high-level dialogues and regular technical exchanges between cities and the European Commission. These mechanisms respond directly to calls issued by cities and their networks, including through the 2024 Aalborg Conditions [8] and a joint letter [9] from more than 100 local leaders outlining a vision for shared governance in Europe.

“It is encouraging to see the EU acknowledge both the scale of the challenges cities face and the importance of involving us more closely in shaping the solutions,” said Maider Etxebarria Garcia, Mayor of Vitoria-Gasteiz, Spain and ICLEI Europe RexCom Member. “The proposed regular political and technical consultations with the European Commission have real potential - provided they are well structured, inclusive, and allow cities to offer detailed input early in the legislative process. With the right design and resources, these mechanisms can dramatically improve how Europe coordinates, legislates and delivers for its citizens.”

Although the Agenda highlights the importance of multilevel governance, it stops short of requiring Member States to co-design reforms and investment plans with their local governments.

Ring-fenced, directly managed EU resources for cities under the EU Facility would help build local capacity, support technical assistance and innovation, and complement the national and regional Partnership Plans as well as contribute to the implementation of the EU Agenda for Cities. ICLEI Europe and its 200+ Member local and regional governments will continue working to ensure that the EU Agenda for Cities is fully reflected in the negotiations on the next EU budget, and that the 2028–2034 framework empowers cities and regions as the main drivers of Europe’s green, social and economic transition.

ICLEI Europe is the European Secretariat of ICLEI - Local Governments for Sustainability, a global network of more than 2500 local and regional governments committed to sustainable urban development. ICLEI Europe supports local governments to build more sustainable, resilient and equitable communities.

NOTES TO EDITORS:

The EU already works with cities through a wide range of policies and funding instruments to help them plan, finance, and implement solutions addressing climate risks, social inequality, housing shortages, transport bottlenecks, and more. Key support instruments include the EU Cohesion Policy [10], the Recovery and Resilience Facility [11], Horizon Europe (including the EU Mission for Climate Neutral and Smart Cities [12] and Adaptation Mission [13]), and the EU Covenant of Mayors [14].