A grounded EU budget: Investing in Europe, our local communities and citizens for acompetitive, resilient and fair future

The Local Alliance has released a pivotal policy paper urging EU leaders to shape the next EU budget (2028–2034) into a powerful tool for a just, climate-neutral, and competitive Europe. The report highlights the vital role of local and regional governments in achieving this vision.

The Local Alliance—a coalition of Europe’s eight leading city and regional networks—has published a transformative policy paper that calls on EU leaders to ensure the next Multiannual Financial Framework (2028–2034) empowers local leadership. The report outlines a vision for an EU budget that supports a just, climate-neutral, and competitive Europe by strengthening multi-level governance and fostering closer collaboration across all levels of government.

The paper emphasizes the central role of local and regional governments, which already implement 70% of European Green Deal legislation and account for 69% of climate-related public spending. It advocates for a budget that acts as a long-term investment tool, combining public and private financing to support local projects that improve citizens’ lives.

Key recommendations include safeguarding Cohesion Policy, adopting a place-based investment strategy, and ensuring cities and regions can access resources to drive green innovation, decarbonisation, and resilience.

“Cities and regions are the beating heart of Europe’s prosperity, resilience, and democracy,” says André Sobczak, Secretary General of Eurocities. “The next EU budget must empower local governments to deliver greener cities, stronger economies, and a better quality of life for everyone.”

FEDARENE President Julije Domac adds: “The EU must rely on local authorities to achieve its goals. The next budget should draw on their expertise in implementing renovation programmes and fuel switch campaigns while continuing to support regional energy agencies through programmes like ELENA and LIFE-CET.”

The Local Alliance urges EU leaders to strengthen multi-level governance, streamline funding processes, and ensure funds reach all territories through a place-based approach. By prioritising these measures, the next EU budget can transform Europe’s ambitions into meaningful outcomes for its people.