Thomas Lymes, Head of Advocacy at Eurocities, explains why Europe cannot afford to neglect public transport and discusses its funding potential
Cities are striving to make public transport more sustainable and attractive for their citizens; however, the latest draft of the European Union (EU) budget raises questions about how urban mobility will fit into the EU’s evolving priorities and funding landscape.
The potential for funding public transport
The large-scale investment required to improve public transport is clear: €1.5 trillion will be needed by 2050, with €500 billion required for implementation alone. Yet the economic returns far outweigh the investment. For every euro invested in public transport, €6.50 is yielded in regional economic returns. For individuals, the modal shift could save each person up to €15,000 by 2050.
The European Commission’s proposal for the 2028-2034 Multiannual Financial Framework (MFF) introduces a new structure meant to simplify EU funding and reduce disparities. Still, this change has significant implications for urban mobility policy, planning, and funding. Urban leaders argue that the new approach risks centralising the EU budget, weakening Cohesion Policy – an important source of EU funding for urban projects – and marginalising local and regional governments in the policy design and implementation. The changes would essentially sideline cities and regions, undermining the delivery of EU priorities linked to transport and climate.
Leveraging local action to reach European goals
Public transport goals are closely aligned with the EU’s own objectives. Investing in sustainable urban mobility directly contributes to key EU legislation and strategies, such as the Clean Vehicle Directive, which promotes clean mobility solutions in public procurement tenders, and the Trans-European Transport Networks (TEN-T) Regulation, which supports road decarbonisation and multimodality, among many other policies. These efforts are central to the EU’s Green Deal, which aims to achieve a significant reduction in greenhouse gas emissions by 2030 and seeks climate neutrality by 2050.
Public transport, complemented by shared mobility, is not only a critical lever in achieving climate targets but also a key component of the broader agenda for climate-neutral, resilient, and livable cities. Public transport advances social and economic objectives that the EU promotes, such as fostering inclusive and accessible communities, reducing transport poverty, and supporting local economic development through attractiveness.
Competitiveness and cohesion, two sides of the same coin
Although the EU has established a legislative framework for decarbonising regional and urban transport, its funding mechanisms fall short of adequately supporting the necessary investments. To build public transport systems that truly serve citizens, strong coordination between European, national, and regional levels is essential. To succeed, EU funding instruments for the post-2027 period must treat public transport as a central pillar of the green transition rather than a peripheral issue.
The current structure of the MFF mirrors that of the Recovery and Resilience Facility (RRF), which was developed as a temporary instrument to aid the EU in recovering from the COVID-19 crisis. While the RRF served a critical function, it also demonstrated the risks of top-down decision-making, including the lack of consultation with local authorities and the withdrawal of projects. The upcoming MFF offers an opportunity to avoid repeating these mistakes by ensuring greater engagement with cities and regions in the design and implementation of EU policies.
One critical issue is the lack of clear earmarking of Cohesion Funds across all territories, including cities. Without dedicated funding and robust multilevel governance structures, local and regional authorities are unlikely to access the necessary tools to implement EU priorities on the ground. There are growing concerns that the new structure of National-Regional Partnership Plans (NRPPs) may fail to address the real needs of communities adequately.
This is also true when bearing in mind removal of urban nodes in the proposed revised Connecting European Facility (CEF). Urban nodes are crucial to ensure cities and regions can finalise or modernise their transport infrastructure required for efficient public transport systems. As the Letta Report emphasises, competitiveness and cohesion are two sides of the same coin, and both must be integrated into the design of funding mechanisms.
The Commission’s foreseen initiative for a Sustainable Transport Investment Plan (STIP) also holds great potential to strengthen both sustainability and economic resilience across Europe, ultimately boosting the EU’s competitiveness. Unfortunately, the STIP, as currently proposed, primarily channels funding towards renewable and low-carbon fuels in the aviation and shipping sectors. The plan addresses critical market challenges, including fragmentation, limited demand coordination, and underutilised public procurement potential in aviation and shipping. Although these same barriers hinder investments in urban and regional mobility, urban mobility remains largely absent from current STIP discussions.
Future versions of the STIP must clearly define urban mobility’s scope within the plan. The STIP should be an opportunity to support cities’ efforts to decarbonise mobility, be it by upgrading bus depots or building zero-emission transport infrastructure. For instance, providing clarification on the future of the Alternative Fuels Infrastructure Facility beyond 2026 should be a key component of this plan. With the right priorities, the STIP can accelerate decarbonisation, strengthen Europe’s industries, and make the EU a global leader in sustainable transport.
Calling for a European declaration on public transport
In November of last year, Eurocities and UITP launched the European Declaration for Sustainable and Attractive Public Transport in Cities, signed by 17 deputy mayors from across Europe. The Declaration urges EU, national and local leaders to treat public transport as a core pillar of the green and social transition, ensuring funding, innovation, accessibility, resilience and strong local leadership.
Its central demand is for the adoption of a European declaration on public transport that would set shared objectives for the sector, highlight its positive externalities, recommend best practices and commit to concrete support measures by the EU and national authorities.
