As debates on the future EU budget and Cohesion Policy intensify, the ESPON URDICO Final Report sheds light on how cities actually use and shape EU funds on the ground. Based on eight European case studies, it shows that strong urban roles and multilevel governance are key to effective, place-based Cohesion Policy outcomes. The report and its annexes provide timely evidence for the post-2027 reform debate.

Drawing on in-depth analysis of eight European cities – Budapest, Florence, Ghent, Prague, Rotterdam, Strasbourg, Valencia and Warsaw – URDICO examines how cities participated in and influenced Cohesion Policy during the 2014–2020 and 2021–2027 programming periods. The research combines detailed fieldwork, stakeholder engagement and original data collection to assess governance models, funding patterns, institutional capacity and the alignment of EU funds with long-term urban strategies.

The findings show that while the urban dimension of Cohesion Policy has been formally strengthened, cities’ real influence, autonomy and access to resources vary widely across Member States. Where cities are entrusted with clear roles, adequate instruments and stable mandates, Cohesion Policy delivers more integrated, place-based and visible results. Conversely, increasing centralisation and fragmented governance risk weakening subsidiarity and diluting the territorial impact of EU investments.

URDICO’s conclusions and policy recommendations offer concrete guidance for EU institutions, national and regional governments, and cities themselves. They aim to support a stronger, more effective urban dimension of Cohesion Policy in the post-2027 framework, ensuring that Europe’s cities remain key partners in achieving cohesion, resilience and sustainable development.