October 14, 2025

The following is a press release:

Regional and local leaders are mobilising to counter any nationalisation of EU investments and avoid that regions and farmers are forced into a ‘Hunger Games' competition for resources”, declared President Tüttő.

The European Committee of the Regions (CoR) has published the sixth edition of the EU Annual Report on the State of Regions and Cities, which was presented by President Kata Tüttő on 13 October at the opening session of the 23rd European Week of Regions and Cities to European, national and regional leaders, decision-makers and stakeholders.

The 2025 annual report explores key challenges that the EU faces at the regional level, alongside local solutions. An accompanying survey, commissioned by the CoR and conducted by IPSOS, identifies some of the core reasons why local and regional politicians value the EU’s support, and how they believe cooperation should be shaped.

President Tüttő said: “This annual report shows the pain and pressure points of our people and our territories — but it also recognises ambition, leadership, creativity, and innovation capacity. It shows how Cohesion Policy is helping us keep Europe strong from the inside. This policy is Europe’s most concrete, decentralised, and long-term stabilising tool, that binds us together through values and through shared investments in each other’s futures. It is Europe’s resilience strategy. The new budget proposal threatens to nationalise it, defund it, and disconnect it from Brussels, forcing regions and farmers into a “Hunger Games” competition for resources. This is why we are all mobilised for the future of cohesion.”

The opening session featured keynote speeches by Roberta Metsola, President of the European Parliament, and Raffaele Fitto, Executive Vice-President for Cohesion and Reforms of the European Commission, followed by a video message from European Commission President Ursula von der Leyen. Three further panel debates were held, focusing on cohesion and growth for the future, the right to stay, and how cities are building tomorrow, with the participation of politicians and experts.

Some of the highlights of the EU Annual Report on the State of Regions and Cities are:

EU funding for regional development has long driven economic convergence, with regions and cities co-managing projects, implementing over 70% of EU policies, and handling two-thirds of public spending. The Commission’s proposal for the 2028–2034 multiannual financial framework weakens this bond by centralising decisions into one plan per Member State. Such centralisation risks undermining strong efforts towards development across all EU regions, as a one-size-fits-all approach cannot address specific local challenges of a clean and just transition or restore competitiveness. Only a place-based approach, relying on local solutions and decentralised strategies, can deliver the Union’s objectives of cohesion, resilience and proximity.

Many communities face growing risks from multiple natural and climate-related disasters, with one in five exposed to several hazards, most Europeans feeling unprepared, and floods in 2024 alone causing EUR 18 billion in damages. The proposed MFF would be a step backwards for resilience-related policies, as nature-based solutions could be sidelined, the LIFE programme discontinued, and key environmental initiatives under cohesion policy threatened.

47 million Europeans cannot adequately heat their homes, highlighting rising energy poverty since 2020 and the need for continued cohesion policy support for energy efficiency, renewables, and vulnerable populations.

Local security resilience is under strain, with critical infrastructure facing cyberattacks, misinformation disrupting politics, and regions called to strengthen civilian preparedness and defence-related industrial clusters, as reflected in the CoR’s new Working Group on Defence.

The EU faces a widespread and costly housing crisis, with a gap of 2.3 million units per year requiring an estimated EUR 270 billion annually, necessitating close cooperation with regions and cities to ensure housing is affordable.

Two out of three regions are expected to see population declines by 2050, particularly affecting rural areas, highlighting the need for stronger socio-economic policies to support demographic transitions.

Public services in rural areas, crucial yet under strain, require cross-cutting investments, tax incentives, and targeted state aid, as 36% of rural inhabitants cite service quality as their most pressing concern, despite long-term cuts in spending.

Gender disparities remain significant, with persistent employment gaps across Member States and underrepresentation of women, who in 2025 formed a majority in only 26 of 286 regional assemblies.

Background

EU Annual Report on the State of Regions and Cities webpage, which includes the full speech of President Kata Tüttő, the full report, factsheets, and previous editions.

Video and pictures from the speech and the opening session of the #EURegionsWeek 2025.

The #EURegionsWeek 2025 took place in parallel with the 168th CoR Plenary Session (14-15 October).

CoR’s priorities 2025-2030: the CoR calls for stronger Cohesion, Resilience, and Proximity to build a fairer, more responsive, and people-centred EU.

Contact

Hélène Dressen

Tel: +32 471502795

helene.dressen@cor.europa.eu