Recognizing the critical role of urban centers in Europe, Executive Vice-President Raffaele Fitto delivered a speech at the European Week of Regions and Cities on 14 October 2025, outlining his vision for an EU Agenda for Cities. With approximately 75% of Europeans residing in cities, and these urban areas facing issues like overpopulation, escalating housing costs, and administrative challenges, Fitto emphasized the importance of adaptation in EU policy.
New Investment Priorities and Focus on Housing Fitto announced that the mid-term review of Cohesion Policy introduces five new priorities allowing Member States and regions to reprogramme funds voluntarily. Housing emerged as a significant priority due to rising rent and house prices and a growing investment gap in social and affordable housing. The European Commission is working on a comprehensive affordable housing plan targeting structural causes, construction strategies, technical aid, and investment.
Simplification and Cooperation as Policy Pillars The forthcoming EU Agenda for Cities is set to pursue two main objectives: simplifying access to EU support initiatives for all cities, particularly smaller and less technically equipped ones, and enhancing multilevel governance through improved cooperation among the EU, Member States, regional and local authorities. This double-pronged strategy seeks to foster inclusive governance and maximize urban growth potential.
Stakeholder Impacts The proposed simplification offers potential benefits for smaller cities and local authorities, reducing bureaucratic complexity and enabling wider access to EU funds. The housing plan could improve affordability and social welfare for urban residents, addressing a common urban strain. However, EU producers and construction sectors may face heightened demand and regulatory oversight, possibly increasing operational costs. National authorities will need to harmonize efforts within multilevel governance frameworks, which could introduce administrative shifts.
Fitto’s proposal thus indicates a direction towards increasing EU involvement in the urban dimension, prioritizing social infrastructure alongside governance reforms. The plan balances enhancing EU influence via cohesive policies with sensitivity to local needs and capacities, signaling a concerted drive to support urban competitiveness and citizens’ well-being.
← Atlas › News › Regions & Rural areas