Local Alliance urge EU to rethink governance of published 2028–2034 budget

As the European Commission unveils its proposal for the next Multiannual Financial Framework (2028–2034), eight major networks of cities and regions, including POLIS, are raising critical concerns.

While the proposal outlines ambitious objectives, the Local Alliance warns that it risks sidelining the very actors most vital to delivering on those goals: local and regional governments.

This new call to action builds on the Alliance’s paper of January 2025 'A grounded EU budget: Investing in Europe, our local communities and citizens for a competitive, resilient and fair future', which stresses that with cities and regions responsible for implementing 70% of EU Green Deal legislation and nearly 69% of climate-related public investment, the EU budget must align with the capacities and insights of local authorities to succeed.

In today's statement, Mohamed Ridouani, Mayor of Leuven and President of Energy Cities, said:

'The EU budget, proposed by the Commission, aims at better aligning EU funding to strategic objectives: resiliency, preparedness, European independence and EU democracy. We welcome these priorities, in line with what citizens are asking us every day. Nonetheless, municipalities must be recognised as key partners in the design and implementation of the EU funding. Active participation by municipalities will enhance the democratic process and strengthen support for the allocation of public funding.'

Christoph Schnaudigel, Co-President of CEMR, echoed:

'After analysing the European Commission’s proposal for the EU budget, it is clear that local and regional governments across Europe must mobilise. The proposal fails to uphold economic, social, and territorial cohesion as a core objective. Furthermore, centralising decision-making towards member states will not help address the realities and challenges of the territories, making EU funding less efficient.'

Local leadership is essential

'From climate adaptation and energy transition to housing, mobility, and innovation, local governments are essential to delivering real results for people,' the Alliance states. 'Yet this proposal does not sufficiently guarantee their access to funding or involvement in decision-making.'

The Alliance’s earlier vision paper calls explicitly for place-based investment, new success metrics, and institutionalised governance frameworks that ensure local authorities are part of both the strategy and the delivery.

Mobility left behind?

The lack of urban mobility provisions is a glaring example of the disconnect between EU ambition and operational design.

Senna Maatoug, Deputy Mayor for Mobility, Energy and Climate for the City of Utrecht and President of POLIS, said:

'Urban mobility is where European ambitions become reality—from the Trans-European Transport Network to alternative fuels infrastructure, digitalisation, and the EU Cycling Strategy, yet in this MFF proposal, the urban dimension is once again structurally overlooked.'

This reflects a broader theme from the Alliance’s work: if cities are expected to lead the transition, they must also be equipped to act. In earlier publications, POLIS specifically called for reintegrating urban nodes funding into the Connecting Europe Facility to support sustainable transport infrastructure—an essential lever for climate and competitiveness goals.

A modern competitiveness agenda needs cities

Competitiveness and cohesion must go hand in hand—with cities playing a key role in delivering clean industrial transitions, innovation, and strategic autonomy on the ground.

In today's statement, Susanne Schilderman, Deputy Mayor of Utrecht and ICLEI Europe Regional Executive Committee Member, said:

'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 the 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.'

Julje Domac, President of FEDARENE, added:

'Make no mistake, embracing decarbonisation as a driver for competitiveness requires all the expertise our continent can muster. This will only be achieved by mobilising local and regional energy agencies through forward-looking partnerships. A more resilient, prepared and sustainable EU is possible, as long as the right actors implement it.'

A budget for people, not just numbers

Local leaders are clear: budgets built far from citizens risk falling short on both efficiency and legitimacy.

Jakub Mazur, Deputy Mayor of Wrocław and Regional Executive Committee member of ICLEI Europe, warns:

'EU budgets and reforms are often developed without local input and fail to align with real needs on the ground—risking taxpayers’ money being wasted.'

György Laki, Mayor of Kajárpé and Board Member of Climate Alliance, adds:

'This proposed budget, which is meant to carry the EU into the next decade, simply doesn’t take local governments seriously as key beneficiaries. Our cities and towns are where the majority of EU targets are realised, and where real climate action takes place—often despite national developments to the contrary.'

What the Local Alliance is asking for

Drawing on both recent and earlier positions, the Local Alliance calls on co-legislators to ensure the MFF becomes a tool for democratic governance and effective delivery. The core asks are:

Earmark cohesion funds for local investment, with binding mechanisms to ensure direct access for cities and regions, particularly when national authorities obstruct or delay disbursement.
Institutionalise multilevel governance across funding instruments, involving local governments from planning to execution stages.
Reintegrate urban nodes funding under the Connecting Europe Facility to strengthen sustainable and smart local mobility.
Enable local access to innovation funding through the proposed EU Competitiveness Fund and the next research framework (FP10), supporting smart specialisation and regional innovation.

A test of democratic ambition

The Local Alliance is now urging the European Parliament and the Council to amend the Commission’s proposal to reflect the democratic values and territorial diversity the EU stands for.

'Delivering a truly inclusive and effective EU budget means recognising cities and regions not just as implementers, but as strategic partners,' the Alliance concludes. 'That requires adapting governance structures, investment criteria, and funding access—so the budget delivers where it matters most: in people’s lives.'

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