Europe must seize the opportunity to modernise its long-term budget, strengthen competitiveness and security, and ensure that cities and regions remain at the heart of European decision-making. This was the message delivered by Sari Rautio (FI/EPP), President of the EPP Group in the European Committee of the Regions (EPP-CoR), during the opening session of the 2026 European Week of Regions and Cities in Brussels. Against a rapidly changing geopolitical landscape, Rautio stressed that Europe must act together, reduce bureaucracy, encourage innovation and equip itself with sufficient financial resources to respond to growing challenges.
“We cannot do more with less,” stressed Rautio. “A credible and ambitious MFF requires new, sustainable sources of funding and a strengthened system of own resources.” She underlined that cohesion policy and competitiveness must not be seen as competing priorities. Rather, cohesion is a driver of competitiveness, supporting investment, innovation and economic development across Europe's territories. “Cohesion policy is the foundation for peace and prosperity, so the foundation of our EU,” she added. Rautio also called for a performance-driven, effective and significantly simpler EU budget, while emphasising the need for its timely adoption. With geopolitical developments increasingly affecting communities directly, cities and regions have a concrete role to play in strengthening Europe's resilience, competitiveness and security. “Security and competitiveness can't wait,” she stressed.
Juanma Moreno (ES/EPP), First Vice-President of the European Committee of the Regions and President of the Regional Government of Andalusia, warned against weakening the role of regions in the next EU budget. He stressed that priorities such as agriculture, fisheries, security and migration must not be forced to compete against one another within national budgets. “Simplification must not become a pretext for recentralisation,” he said. Moreno also highlighted the democratic importance of maintaining a strong European presence at local and regional level. “Defending the role of regions and cities is not simply an institutional matter. It is a profoundly democratic one,” he stated. He warned that weakening Europe's presence on the ground risks increasing citizens' disengagement, particularly among younger generations, and called on regions and cities to make their voices heard before budget negotiations enter their decisive phase.
State of Regions and Cities report: strong regions for a stronger Europe
The opening session also marked the publication of the European Committee of the Regions' 2026 State of Regions and Cities report, under the motto “Strong Regions. Strong Europe.” The report highlights mounting demographic, economic and social challenges across Europe's territories. It finds that 95% of regions have experienced increasing ageing pressure, while around three-quarters are projected to lose population by 2050. It also reinforces calls for an ambitious EU budget, strong cohesion policy and greater involvement of cities and regions in European decision-making.
Among the successful regional initiatives highlighted is Pueblos con Vida (Villages with Life), launched by the EPP-led Regional Government of Madrid under President Isabel Díaz Ayuso. Backed by a €155 million investment programme, the initiative supports housing, local businesses and essential services in smaller municipalities. The report highlights how such place-based approaches can help revitalise rural communities and strengthen citizens' Right to Stay. Municipalities with fewer than 5,000 inhabitants in the Madrid region have recorded population growth of 14% since 2019. For the EPP Group in the European Committee of the Regions, the message is clear: Europe needs a stronger, simpler and adequately funded budget, with cohesion policy at its core and cities and regions recognised as partners in shaping and delivering European priorities.