Towns and cities are home to nearly three quarters of the EU's population. Many EU cities and urban areas constitute vibrant spaces of economic growth and innovation. However, they also face multiple challenges, such as building inclusive societies, tackling inequalities, addressing climate change and environmental degradation, and dealing with housing issues and demographic challenges. Cities are at the forefront of implementing EU legislation in several policy areas, including cohesion, and have been demanding a stronger role in shaping these policies and greater access to EU financial resources. Cohesion policy has a strong urban dimension. Its support for sustainable urban development was reinforced in the current 2021-2027 programming period to help cities take an active role in designing and implementing policy responses to their own challenges. Cohesion funds invest more than €100 billion in towns and cities. For their part, cities are directly responsible for designing and implementing investments worth over €24 billion under the cohesion policy programmes. The emergence of the Urban Agenda for the EU in 2016 and the beginning of participatory partnerships raised new expectations about the role of urban authorities in the EU decision-making process. The Pact of Amsterdam provided for urban partnerships focusing on key urban themes such as air quality, urban poverty and housing. However, progress in empowering cities within cohesion policy has been limited. Stakeholders evaluating the progress of the Urban Agenda for the EU highlight issues such as limited EU resources channelled to tackling urban issues, obstacles in achieving direct EU funding, a lack of effective long-term urban governance mechanisms in EU policymaking, and limited input of urban areas into EU policies. Source : © European Union, 2025 - EP Read more