Europe is one of the most urbanised continents in the world. Today, more than two thirds of the European population lives in urban areas and this share continues to grow. The development of our cities will determine the future economic, social and territorial development of the European Union. Around 68% of EU’s population lives in a metropolitan region and these regions generate 67% of EU’s GDP.
Cities play a crucial role as engines of the economy, as places that favour connectivity, creativity and innovation, and as centres of services for their surrounding areas. Due to their density, cities offer a huge potential for energy sa-vings and a move towards a carbon-neutral economy. Cities are therefore essential for the successful implementation of Europe 2020 Strategy.
“European cities follow different deve-lopment trajectories and their diversity has to be exploited. Competitiveness in the global economy has to be combined with sustainable local economies by anchoring key competences and resources in the local economic tissue and supporting social participation and innovation”, states DG Regio in a study.
Europe is no longer in a situation of continuous economic growth and many cities, especially non-capital cities in Central and Eastern Europe, but also old industrial cities in Western Europe, face the serious threat of economic stagnation or decline. Strongly developed cities can play an important role in Europe’s territorial development, but the key principles of development have to rely on metropolitan regions and other strong urban areas that can offer improved accessibility to general economic interest services.
In its study, DG Regio warns on the out-of-control extension of urban agglomerations and low-density settlements representing one of the greatest threats to sustainable territorial development. As a result, public services are expensive and difficult to provide, natural resources are overexploited, and public transport networks are insufficient, while car dependency and traffic congestion inside and around cities are serious. Mobility without cars has to add on attractiveness, while multimodal public transport systems need to be encouraged.
European regions need serious investments to boost competitiveness
The European Regional Development Fund (ERDF) is the biggest single source of EU funding for this. It aims to redress the main regional imbalances by supporting the development and structural adjustment in regional economies – including the conversion of declining industrial regions and regions lagging behind. The ERDF is part of the EU’s cohesion policy, which remains an essential element in the EU’s financial framework for 2014-2020 proposed by the Commission. The EU will make substantial funding available for it.
The proposed Regional Development Fund Regulation for 2014-2020 sets out the scope of the Fund, and the investment priorities for regional development programmes. All regions in Europe will receive funding from the ERDF. National and regional authorities establish their own development programmes and select the projects to be financed.
Specific support from the ERDF would go to cities and urban development. Also, part of the funds will be allocated for integrated urban development measures and for the setting-up of an urban deve-lopment platform to promote exchanges between cities.
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