Cities and regions call on EU leaders to keep local governments at the heart of the next EU Budget
As negotiations over the European Union's next long-term budget intensify, the Local Alliance once again urges EU leaders to ensure that cities and regions remain central to future investment decisions.
In an open letter addressed to Heads of State and Government ahead of the European Council meeting on 18-19 June, the Local Alliance, a coalition representing Europe's leading local and regional government networks, calls for a place-based EU budget that strengthens competitiveness, cohesion and public trust through genuine multilevel governance.
The intervention comes at a pivotal moment in discussions on the Multiannual Financial Framework (MFF) for 2028–2034. On 16 June (just earlier today), the Council agreed its partial negotiating position on the proposed National and Regional Partnership Plans (NRPPs), a cornerstone of the future EU budget architecture. While the Council stressed the importance of partnership between national, regional, and local authorities, cities and regions are calling for stronger guarantees to ensure local governments remain directly involved in shaping and implementing EU investments.
The letter comes at a critical stage in discussions on the EU's next seven-year budget. Signatories include more than 50 municipalities, provinces, associations, and agencies from across Europe, among them Barcelona, Budapest, Lisbon, Paris, Rome, Antwerp, and Rotterdam.
The coalition argues that local and regional authorities are indispensable to achieving European objectives. From public transport and social housing to energy efficiency, innovation and climate adaptation, many EU policies are ultimately delivered at the local level. 'Local and regional governments translate EU objectives into actual projects, services and investments', the letter states, emphasising that municipalities and regions make the benefits of European integration visible to citizens in their daily lives.
The Parliament's position
The Local Alliance welcomed the European Parliament's recent interim report on the next MFF, as well as draft reports on the proposed European Competitiveness Fund (ECF) and National and Regional Partnership Plans (NRPPs).
The coalition is urging national leaders to reflect Parliament's recommendations during upcoming Council negotiations.
One of the central demands concerns the overall architecture of the EU budget. The signatories call for clear allocations for major funding programmes, including Cohesion Policy, the European Regional Development Fund (ERDF), the European Social Fund (ESF), and the LIFE programme. According to the coalition, greater clarity would reduce uncertainty for beneficiaries and prevent competition between different policy priorities.
The letter also supports stronger safeguards to ensure that local beneficiaries are not punished if EU funds are suspended at the national level due to rule-of-law concerns.
Defending territorial governance
A major focus of the letter is the proposed National and Regional Partnership Plans, which are expected to become a key delivery mechanism under the next budget.
The debate has gained further momentum following the Council's agreement on its partial negotiating mandate for the NRPP regulation. The Council's position reinforces the role of regions in implementing EU financing and requires plans to be developed in partnership with regional and local authorities.
However, the Local Alliance argues that stronger safeguards are still needed. In particular, the coalition supports the European Parliament's proposal for mandatory regional and territorial chapters in national plans, as well as enforceable requirements for multilevel governance. According to the signatories, these provisions are necessary to ensure that cohesion investments remain place-based and responsive to the needs of Europe's diverse territories. The coalition further calls for dedicated resources to strengthen local administrative capacity and technical assistance, arguing that stronger local institutions improve project delivery, investment quality and policy outcomes.
Protecting place-based development tools is another priority. The letter welcomes Parliament's proposal to reserve a minimum share of ERDF funding for integrated territorial and urban development strategies, which have become important instruments for implementing EU priorities at the city and regional levels.
A stronger role in the Competitiveness Fund
The Local Alliance also seeks greater recognition of cities and regions within the proposed European Competitiveness Fund.
While supporting the goal of strengthening Europe's economic competitiveness, the coalition argues that local authorities should be explicitly recognised as eligible beneficiaries and implementation partners. The signatories also warn against disconnecting innovation funding from territorial realities. They call for stronger links between the ECF and existing regional innovation ecosystems, including smart specialisation strategies, local innovation clusters, and projects developed under EU Missions.
The coalition also urges policymakers to maintain Coordination and Support Actions within the fund. These measures provide technical assistance, capacity building, networking and knowledge-sharing activities that often do not generate commercial returns but are essential for scaling up innovation and overcoming implementation barriers.
Finally, local leaders are asking for a formal role in the governance of the Competitiveness Fund, particularly in shaping work programmes and investment priorities.
Debating about delivery
As EU institutions prepare for negotiations on the next MFF, the coalition's message is clear: Europe's competitiveness, green transition, and social cohesion will depend not only on how much money is allocated, but also on who is involved in deciding how it is spent.
With cities and regions responsible for implementing many of the policies that directly affect citizens, local leaders are calling on Member States to ensure that the next EU budget reflects the realities of delivery on the ground.
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Arnhem Nijmegen
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