Dear Member of the New Cohesion Alliance,

As the European Union stands at a pivotal moment in its history, the European Committee of the Regions wishes to share with you the key findings of its 2025 Annual Report on the State of Regions and Cities.

This report is not just a reflection of territorial realities – it is a call to action, a reminder of the indispensable role that cities and regions play in shaping Europe’s future.

Across the Union, local and regional authorities are driving forward the EU’s most ambitious goals: from climate neutrality and industrial transformation to social inclusion and democratic resilience. They are not merely implementers of policy – they are co-creators of solutions, the most trusted level of government among citizens, and responsible for two-thirds of public investment and the delivery of 70% of EU legislation on the ground.

Yet, the recent proposal for the Multiannual Financial Framework (MFF) 2028–2034 marks a concerning shift. The move towards a ‘one plan per Member State’ risks sidelining the very actors who bring Europe’s policies to life. The nationalisation of EU funding would sever the direct link between the Union and its cities and regions, undermining decades of partnership, trust and shared ownership.

This is not just a technical adjustment – it is a political choice. The MFF is more than a budget. It is a statement of values, a blueprint for the kind of Europe we want to build. A Europe that centralises decision-making risks losing the richness of its diversity and the strength of its proximity. A Europe that empowers its regions and cities embraces the full potential of its people.

The Committee of the Regions firmly believes that cohesion policy must remain a cornerstone of the EU’s strategy. It is the only policy that ensures that every region – regardless of its economic strength or geographic location – can contribute to and benefit from the Union’s objectives. It is a proven engine of convergence, competitiveness and solidarity.

Our report highlights the urgent need for a place-based approach to industrial policy, energy transition and social investment. From Upper Austria’s climate-neutral industries to Asturias’ Just Transition Observatory, from Prague’s affordable housing for essential workers to Gothenburg’s battery innovation hub – local stories show that transformation happens on the ground.

We also underline the importance of addressing demographic change, energy poverty and the housing crisis with tailored, inclusive strategies. Regions and cities are uniquely positioned to respond to these challenges, but they need the tools, funding and recognition to do so effectively.

In light of the MFF proposal of 16 July, the European Committee of the Regions calls for a renewed commitment to multilevel governance. We welcome the inclusion of horizontal principles such as gender equality in programmes like Horizon Europe, Erasmus+ and the European Competitiveness Fund. However, these principles must be matched by structural mechanisms that ensure that regions and cities are active partners – not passive recipients.

Let us not forget: Europe’s strength lies in its unity in diversity. In its ability to connect the dots between global ambitions and local realities. In its capacity to listen, empower and act together.

The Committee of the Regions stands ready to work with all EU institutions and partners to ensure that the next MFF reflects this vision. Let us build a Europe that is competitive, resilient and close to its citizens. A Europe of regions and cities.

Yours sincerely,

Kata Tüttő

President of the European Committee of the Regions