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EU Prioritizes Urban Development

Published February 26, 2026, 17:11
EU Prioritizes Urban Development

The development of cities is at the forefront of the European agenda, as highlighted by the meeting of the EU Council of General Affairs. The Minister of Finance, Makis Keravnos, emphasized the importance of cities as key factors in implementing European priorities such as competitiveness and sustainable development, as well as achieving social and territorial cohesion. The contribution of the Cohesion Policy was recognized, with over €24 billion allocated to sustainable urban development during the 2021-2027 period. The interim review of the Cohesion Policy aims to leverage the experience and lessons learned from the current period to shape the next programming period. Discussions focused on designing incentives and flexibility mechanisms to align cohesion policy with the Union's strategic priorities and enhance the well-being of European citizens. Emphasis was placed on administrative capacity, simplification of procedures, and flexibility, as well as access to opportunities for all regions. Mr. Keravnos referred to concerns expressed in the European Parliament regarding reforms to the Cohesion Policy, emphasizing the honest and transparent dialogue taking place to reach convergences. From the European Commission's side, Executive Vice-President Raffaele Fitto assured full alignment between the Council and the Commission regarding key priorities and policies, pointing out that 75% of Europeans live in cities, making urban areas central to the European agenda.