BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

Boligudvalget 2023-24
BOU Alm.del Bilag 44
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INTERPARLIAMENTARY CONFERENCE

ON URBAN POLICIES IN THE

EUROPEAN UNION

BELGIAN PRESIDENCY OF THE EUROPEAN UNION

PARLIAMENTARY DIMENSION

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

SESSION:

FINANCING EU URBAN POLICIES

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

Introductory speech by

Mr Guy Vanhengel,

First Vice-President of the Parliament of

the Brussels-Capital Region

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

Speech by

Mr Thomas de Béthune,

Team Leader for Urban Policy, Inclusive

Growth, Urban and Territorial

Development Unit, European Commission

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

Sustainable Urban Development

European Commission financing

Thomas de Béthune – Team Leader for urban policy

Directorate General for urban and regional policy

Brussels – 22 January 2024

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

Local and Regional Governments’ (LRGs)

Investments

LRG are responsible for almost 55% of

total public investments

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

Local and Regional Governments’ finances are

under pressure

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

What cities are telling us about

their investment needs

Investment is recovering post-COVID:

•

Cities diverted capex and maintenance investment to operating costs during the pandemic -

>delayed disbursement

•

User charges and other own revenue starting to recover

•

Social protection schemes helped ensure social housing remained credit-worthy and investment

has continued

•

Anticipation of EU funding, projects are being prepared

•

High over-subscription – 370 applications for EU 100 Cities Climate Mission shows sustainability

remains high on agenda despite constraints

But:

•

City energy bills rising dramatically (even 5-10x)

•

Huge needs in some cities to support refugee integration

•

Dramatic cost increases makes planning/implementation challenging

•

2/3 of EU municipalities report infrastructure gaps for climate, digitalisation and urban transport

•

Over 2/3 of cities see institutional capacity in “green” as a barrier. Access to skilled labour and

supply chain constraints are the main challenges municipalities face.

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

Investment needs for decarbonization

Positive economic case

Source: Material Economics

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

New Opportunities –

EU funding for cities is increasing

Significant scope for urban development through:

•

Resilience and Recovery Fund (RRF) –

eg. for energy efficiency, urban mobility,

urban revitalisation, social housing

•

Operational Programmes under the

ERDF and other cohesion funds.

12% of

ERDF funding allocated to urban

development

•

Invest-EU

•

Just Transition Fund

New initiatives:

•

European Urban Initiative 2021-27 EUR

450m for innovative actions and

capacity building

•

100 Climate Neutral and Smart Cities

Mission

•

New European Bauhaus

•

...

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

Adequate funding for effective urban policies

Adequate funding for effective

implementation of responsibilities for urban

policy at all levels of government

• Promoting a diversified, balanced and

sustainable basket of resources

• Using economic instruments such as taxes

or fees

• Providing subnational governments with

sufficient leeway to adjust and manage their

revenues

• Mobilising innovative financing tools

• Leveraging private sector funding

Source:

Financing Cities of Tomorrow – OECD report 2023

and

OECD urban policy principles 2019

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

Methodological tools

https://urban.jrc.ec.eu

ropa.eu/#/en/urbanstr

ategies

https://urban.jrc.ec.eu

ropa.eu/sat4sud/en

https://urban.jrc.ec.europa.

eu/territorialstrategies/

https://functionalareas.eu/

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

Thank you

Unless otherwise noted the reuse of this presentation is authorised under the

CC BY 4.0

license. For any use or reproduction of elements that are

not owned by the EU, permission may need to be sought directly from the respective right holders.

Slide

xx: element concerned,

source:

e.g. Fotolia.com; Slide xx: element concerned,

source:

e.g. iStock.com

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

Speech by

Mrs Evi Cornelis,

Director of the ERDF programme,

Brussels International, Administration of

the Brussels Capital Region

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

Speech by

Mr Pietro Reviglio,

policy advisor responsible for cohesion

policy and the EU budget, Eurocities

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

EU support for cities

finances

Pietro Reviglio, policy advisor

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

We connect

200+

cities across Europe

representing more

than 150 million

people

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

Context: what are

the financing needs

of European cities?

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

Public investments – some relevant

trends at city level in the EU

Local and regional

authorities key actors for

delivering most public

investments

Public investments at

EU level have still not

recovered to pre-

crisis level (to see

RRF temporary

effect)

Current expenditure at

local level on the rise

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

Public investments – some relevant

trends at city (or local) level in the EU

Growing unfunded

mandates and low

fiscal autonomy

Local level executing

majority of public

investments in key

areas for the twin

transition

Government capacity

struggling but key to

delivering public

investments

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

Public investment gaps at city level

– evidence from EU Mayors survey

For climate action and the energy transition, two top priorities, only

6.45% expect to have enough resources to meet needs in coming

five years

For the majority of the top priorities for 2023, including migration,

urban poverty, housing, and sustainable mobility less than one out

of five mayors expect to have enough resources.

Similar results from the EIB 2020 Municipalities survey – also

showing major gaps at the infrastructure level

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

Private investments – some trends at

city (or local) level in the EU

Private investments needed to drive green and digital

transition in cities

Public investments crowding in private investment – Mission-driven economy

Public-private partnerships needed but many barriers remain

Cities are increasingly looking to attract venture capital and equity investment to

support innovative companies

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

What is the EU doing to support

cities and deliver EU urban

policies?

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

How the EU impacts public

investments at city level

EU budget: 1% of GDP (in

cohesion countries more

than 50% of public

investment / overall) –

little space for change

Indirect but still huge

impact on public

investments via EU rules

and frameworks:

• Subsidies: mainly CP structural funds (now RRF too) – with strong focus

on infrastructure and sustainable urban development and MLG

• Grants to support (smaller) projects: mainly innovation-driven funds via

competitive calls (Horizon Europe, European Urban Initiative)

• Economic Governance – Stability and growth pact

• European Semester – Country-Specific recommendations

• State aid, public procurement rules, debt rules, etc.

• Leveraging capacity to raise and implement public funds

• EIB lending: both loans and advisory services

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

EU subsidies and grants – Cohesion

Policy

•

Main source of subsidies, rooted in EU treaties, shared

management, regional focus, likely to remain key investment

tool for cities

•

European Regional Development Fund (226 bn): urban dimension

– earmarking 8%

•

European Social Fund Plus (99.3 bn): no explicit urban dimension

but MLG – where important investment gaps persist

•

Asylum, Migration and Integration Fund (9.8 bn – EU contribution):

no explicit urban dimension but MLG – where investment needs

are growing

•

Cohesion fund (48 bn): limited scope to 15 MS – strong focus on

infrastructure

•

Just Transition Fund (19.3 bn)

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

EU subsidies and grants – other key

programmes

•

Horizon Europe – 95.5 bn – highly strategic for cities

innovation potential

•

Recovery and Resilience facility – potential of 672.5 bn –

limited in time – a model that could be replicated for

future Eurobonds

•

Common Agriculture Policy – 387 bn a pillar of EU

budget targeting agriculture sector and rural areas

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

Investment areas where

mayors expect the EU

level to make a difference

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

How to improve EU support and

align it with cities financial needs?

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

Key issues addressed by Eurocities

members for better financed cities

Reinforcing

and streamlining EU subsidies and grants in line with

cities’ needs

Ensuring

economic governance rules and EU Semester country

specific recommendations promote strong fiscal capacity and

resilience



Paving the way to (more) direct funding schemes to support

urban transitions



Leveraging public development banks and financial institutions

firepower to promote public and private investments at city level



Promoting additional own-resources at the EU level that support

city-level challenges

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

A better Europe

starts in cities –

EU cities Manifesto

ahead of EU election

#LocalFutureEU

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

A local Europe with the capacity to act

Reinforce technical and administrative

capacity in local administrations, and

ensure more direct access to EU

funding.

Encourage fiscal decentralisation and

increase the EU’s own resources to

boost investment in urban

sustainability. Make the EU’s budgetary

rules more flexible to facilitate long-

term investments and incentivise local

public investments.

#LocalFutureEU

BOU, Alm.del - 2023-24 - Bilag 44: Præsentationer fra det interparlamentariske møde i Bruxelles den 21.-22. januar 2024 om Urban policies in the European Union"

Speech by

Mr Dirk De Smedt,

Director General of Bruxelles-Fiscalité