Bringing Local and Regional Perspectives to the Multiannual Financial Framework
The European Union’s Annual Budget Conference, held in Brussels on 20-21 May, with the agenda set this year on the future Multiannual Financial Framework (MFF), has brought together policymakers, economists and citizens to chart a new course for the Union’s long-term budget. Under the theme “From Local Action to Global Influence”, the conference focused on reshaping the EU’s MFF to better respond to a rapidly changing world, with a strong emphasis on how the local level can better inform the EU budgetary framework.
European Commission President Ursula von der Leyen opened the event with a powerful keynote, emphasising the transformative role the EU has been forced to play in recent years – from pandemic recovery to energy security. The recent history shows, that the next long-term budget should be above all more flexible. Therefore, a central theme of the conference was indeed the need for a more agile and responsive budget as the Commissioner for Budget, Anti-Fraud and Public Administration Piotr Serafin summarised. There was also a clear message that simplifying funding mechanisms and aligning them more closely with the EU’s policy priorities will be at the heart of the upcoming commission’s funding reform proposal.
Cities as Engines of Competitiveness
At the conference both the cohesion and the competitiveness were tackled comprehensively, mostly emphasising the latter. In the panel session “The Future of EU competitiveness” the Mayor of Espoo, Kai Mykkänen, brought a strong urban perspective to the conversation, highlighting the pivotal role cities play in shaping Europe’s economic future. Drawing on Espoo’s reputation as a hub for innovation and sustainable growth, the mayor argued that competitive EU funding programmes – like Horizon Europe – are not just effective, but essential.
Don’t kill the milking cows – Let’s focus on what works and double the funding that delivers the best
Kai Mykkänen, Mayor of Espoo
Competitive funding programmes like Horizon Europe deliver 11 euros for every euro invested over 25 years. They drive innovation, scale-ups, and tech sovereignty, Mykkänen argues.
The mayor of Espoo agrees with the president von der Leyen that there is a need for the continuation of a framework programme for research and innovation but reminds that cities should have better access to the calls.
Additionally, President von der Leyen gave a powerful message to the regions at the conference. Von der Leyen reaffirmed that regions will remains at the heart of our Union, emphasising that Cohesion Policy will continue to hold a central place in the next EU budget. Moreover, instead of having a single recipe for all regions, the new cohesion budget will be based on “national and regional partnership plans”, planned and carried out together with the regions – and shaped by European priorities. In addition, the president of the European Council, António Costa, emphasised that cohesion policy is a cross-cutting theme that strengthens Europe’s overall competitiveness and is essential for the EU’s future success.
It appears that the voice and needs of European regions have now been better taken into account in the Multiannual Financial Framework process
Tuija Telén, Regional Mayor of Helsinki-Uusimaa
“As President von der Leyen stated, each region has the best understanding of its specific needs. It is therefore crucial to ensure that all regions have the opportunity to co-design national and regional partnership plans with the Commission — and that this opportunity cannot depend solely on the will of the Member State,” adds Telén.
In parallel, Mykkänen emphasises that cities must also be recognised as strategic partners in the EU’s budgetary architecture. With the majority of Europe’s economic activity concentrated in urban areas, Mykkänen advocates for the inclusion of City Growth Pacts in national planning frameworks – co-designed with cities and addressing both cohesion and competitiveness objectives.
“A forward-looking EU budget must empower those best placed to deliver impact – and cities are at the core of that,” Mykkänen concludes.
Together, these perspectives reflect a growing consensus: Europe’s future lies in empowering all levels of local governance – cities, regions, and their ecosystems – to co-shape and co-deliver the EU’s strategic goals.
Pictures: Copyright European Commission 2025