As discussions on the European Union’s next long-term budget reach a decisive stage, local and regional leaders from across Europe are calling on national governments to preserve a strong role for cities and regions in EU investment and implementation.
Ahead of the European Council meeting on 18–19 June, the Local Alliance, a coalition representing more than 1,800 cities, 60 regions, 60 energy agencies and 42 national associations, has addressed an open letter to Heads of State and Government. The letter has been signed by the presidents of all eight member networks, alongside more than 50 municipalities, regions, associations and networks from across Europe.
Local and regional authorities play a central role in translating European priorities into concrete action. Whether investing in clean energy, expanding sustainable transport, renovating public buildings or improving social infrastructure, many of the EU’s strategic objectives are delivered at local level.
For this reason, the Local Alliance continues to advocate for a place-based Multiannual Financial Framework (MFF), built on the principles of multilevel governance and partnership. Such an approach is essential to achieving Europe’s objectives on competitiveness, resilience and the green transition.
The coalition welcomes the recent position adopted by the European Parliament on the future MFF, as well as the draft reports on the European Competitiveness Fund and the National and Regional Partnership Plans (NRPPs). These proposals recognise the importance of territorial development and the contribution of local and regional authorities to European priorities.
“It is essential that the Council, alongside the other co-legislators, strive for an MFF that truly enables implementors. Proven delivery mechanisms such as Coordination and Support Actions must be reinforced. They are indispensable to turning Europe’s ambitions into tangible results on the ground.”
— Julije Domac, President of FEDARENE
In its letter, the Local Alliance calls on national leaders to uphold several key principles during upcoming negotiations:
A strong and predictable EU budget
The coalition urges EU leaders to secure dedicated funding for programmes that support local and regional governments, including Cohesion Policy, the European Regional Development Fund (ERDF), the European Social Fund (ESF) and LIFE. Clear budget allocations would provide certainty for beneficiaries and safeguard these programmes from competing priorities.
Meaningful partnership through National and Regional Partnership Plans
The Alliance advocates for mandatory regional and territorial chapters within national plans, stronger multilevel governance requirements and dedicated resources to reinforce administrative capacity. It also calls for continued support for integrated territorial and urban development through dedicated ERDF funding.
A Competitiveness Fund that works for territories
To strengthen Europe’s innovation and investment capacity, the coalition recommends dedicated mechanisms for territorial innovation, predictable funding streams for local investment pipelines and explicit recognition of local and regional authorities as eligible beneficiaries and implementation partners.
As negotiations continue, the Local Alliance stands ready to contribute practical experience from Europe’s cities and regions and engage in a structured dialogue on implementation. Ensuring that local and regional authorities remain central to the future EU budget will be critical to delivering Europe’s policy objectives while reinforcing territorial cohesion and democratic governance.
About the Local Alliance
The Local Alliance is an informal coalition of Europe’s leading networks representing local and regional governments, including ACR+, CEMR, Climate Alliance, Energy Cities, Eurocities, FEDARENE, ICLEI Europe, and POLIS. Together, they advocate for a stronger, more inclusive European Union that empowers local democracy.
