Future EU budget: territorial leaders and the European Parliament urge Member States to show greater ambition

Regional leaders and the European Parliament's co-rapporteur on the EU's Multiannual Financial Framework have voiced strong opposition the latest proposal for negotiations on the future EU budget, the so-called 'nego box'.

Speaking at a two-day meeting of the Commission for Territorial Cohesion Policy and EU budget (COTER), on 24 and 25 June, they reiterated a call on Member States to increase the total amount of the EU budget 2028-34, support decentralised investments across the EU and to foster place-based innovation and competitiveness. The COTER meeting also gave the first green light to draft opinions on the sustainable transition of the automotive sector and sustainable EU mobility.

EU's long-term budget

Members of the COTER commission and the co-rapporteur of the European Parliament on the next EU budget, Carla Tavares (S&D/PT), jointly reiterated their call for an ambitious EU budget after 2027, because the Union "cannot do more with less" resources. They insisted that regions and cities must be kept at the heart of Cohesion Policy, which should count on a standalone and predictable budget, covering all categories of EU regions.

The debate took place only few days after EU heads of states and government had a first discussion on the document prepared by the Cypriot Presidency of the Council of the EU to guide negotiations between Member States on the EU's long-term budget. The so-called 'nego box' was widely criticised by local and regional leaders coming from a range of countries - from the Netherlands to Greece, and from Finland to Hungary - as not ambitious enough and because it supported the idea of merging cohesion and agriculture funds into a single pot of money. The document proposes a further 2% budgetary cut to the proposal put forward by the European Commission in July 2025, which had already been criticised by members of the European Committee of the Regions (CoR).

Automotive package and sustainable transport

The automotive sector is deeply embedded in industrial territories where production networks, suppliers and employment are concentrated. COTER members adopted a draft opinion on the 'Automotive Package', calling for a stronger EU investment in industrial capacity, battery production, innovation, and regional automotive ecosystems, while promoting a 'made in the EU' approach. They further supported electrification but stressed the need for affordable electric vehicles, expanded charging infrastructure, and targeted support for less affluent regions.

Rapporteur María Chivite (ES/PES), President of Navarra, said: "Strategic autonomy is not a choice; it is a necessity. And for our automotive industry, stability is the foundation of that strategic autonomy. In Navarra, we know the cost of dependence and the value of leadership. Billions have already been invested in electrification. 'Made in Europe' is our only defence against state-subsidised electric vehicles imports that threaten to drown our market. The question is simple: do we lead, or do we surrender? Do we build a Europe that competes, innovates, and decides its own future or do we step aside and let others dictate the terms? The answer must be clear: We stand. We invest. We lead."

During the meeting, COTER members also adopted a draft opinion on advancing Europe's sustainable and connected transport system. They said that EU transport investments remain overly concentrated on core corridors, while regional rail networks, cross-border missing links, and rural and sparsely populated areas continue to face structural underinvestment.

Rapporteur Marco Marsilio (IT/ECR), President of Abruzzo Region, said: "The transition to more sustainable transportation is a priority we fully support, but it must be driven by innovation, not predefined choices. This is why we have called for a technology-neutral approach to alternative fuels. Today, there are profound differences between European regions in terms of infrastructure, industrial capacity and availability of investments. We must prevent the green transition from becoming a factor of territorial inequality. We need ambitious objectives, but also a regulatory framework, financing and timescales compatible with the reality of the territories."

Also during the meeting

COTER members unanimously adopted a draft opinion on the Agenda for Cities, prepared by rapporteur Kieran McCarthy (IE/EA), member of Cork City Council, calling for meaningful multi-level governance. This includes the systematic involvement of local and regional authorities in the design, implementation and monitoring of EU policies and cohesion funding. Members also stressed the need for place-based approaches and integrated territorial instruments, while ensuring that cities of all sizes have access to capacity-building, innovation opportunities and EU financial support.

During the meeting, a draft opinion on the EU Atlantic Macro-region strategy was also adopted. The text, prepared by rapporteur Ander Caballero Barturen (ES/Renew Europe), General Secretary for External Action of Basque Country, demands a greater involvement of regional and local authorities in both the design and implementation of the strategy, stronger investment in transport, energy and digital connectivity, and coordinated action to address climate resilience, demographic challenges and socio-economic disparities.

All four draft opinions adopted during the COTER meeting are scheduled for adoption at the CoR plenary in October.

COTER members held a first exchange of views on:

• 'EU's Eastern regions bordering Russia, Belarus and Ukraine', drafted by rapporteur Adam Struzik (PL/EPP), President of the Mazowieckie Voivodeship;
• 'EU Ports Strategy', drafted by rapporteur Keven Cauchi (MT/EPP), Mayor of Għajnsielem.

COTER members appointed Noel Formosa (MT/EPP), Mayor of San Lawrenz, as rapporteur on the EU strategy for islands.

Background

• Video and photos of the meeting.
• On 17 June, on the eve of the European Council meeting, the #CohesionAlliance- a coalition of the CoR and leading territorial associations that advocates for strengthening cohesion as a fundamental value of the EU - published a joint call on EU leaders to have a genuine political debate on a future budget fit for purpose. Full text.
• On 16 December 2025, the European Commission presented the Automotive Package to support the sector's efforts in the transition to clean mobility. From 2035 onwards, carmakers will need to comply with a 90% tailpipe emissions reduction target, but the Commission's proposals provide some flexibility by allowing the remaining 10% of emissions to be compensated -- 'offset' -- by the use of low-carbon steel in the EU or of e-fuels and biofuels.
• On 27 May, the Automotive Regions Alliance (ARA) signed in Bilbao a joint political position on the two files that will shape the immediate future of the sector: the Industrial Accelerator Act and the Automotive Package. The 41 regions of ARA support the 'Made in the EU' approach as a lever to strengthen European value chains, call for a central role for regions in the design and implementation of European industrial instruments, and advocate for a technology-open approach to decarbonisation.
• The EU Agenda for Cities, presented by the European Commission in December 2025, is a strategic policy framework for sustainable and integrated urban development. It seeks to improve policies affecting cities, increase dialogue, and ease their access to EU support.

Contact

Matteo MigliettaTel: +32 [email protected]

Theresa SostmannTel: +[email protected]