It’s always a pleasure to be with you, here in this year’s European Week of Regions and Cities. Europe was built on a rich network of cities and regions that shaped our nations and, over time, our independent states, making the European Union a unique project, enriched by its diversity. In our Union, every level of governance has a vital role to play. As President of the European Council, I have made it my objective to strengthen our unity, working closely with all European institutions, partners and stakeholders. Cities and regions are essential to territorial and social cohesion. They are closest to citizens and businesses, and often the first to respond to their needs. They are also on the front line of our major challenges: protecting our prosperity and social model, responding to demographic change, advancing the climate and energy transition, and strengthening our resilience and strategic autonomy. These challenges require common priorities and determined action at every level. Let me highlight three areas where this matters most. First: affordability. Europe must be a place where people can afford their homes, energy and mobility, where businesses can grow, and where everyone can plan their future with greater predictability. Energy prices are, of course, central to this equation. The current crisis in the Middle East and its impact on global energy supplies reinforce the need for decarbonisation and greater energy independence, based on our homegrown renewable and nuclear energy sources. We can already see the benefits in member states and regions with a higher share of renewables, which enjoy significantly lower electricity prices than those heavily dependent on fossil fuels. Accelerating the energy transition is therefore our best long-term strategy to ensure our autonomy and lower prices. In the short term, however, targeted and temporary measures are needed to protect households and businesses from price spikes. The European Commission has already made some proposals to provide immediate relief while preserving incentives to save energy and accelerate the clean transition. But the energy transition is not just about generating renewable energy – it is also about transforming mobility and improving energy efficiency. We must accelerate public transport, transport electrification, with more residential chargers, charging-equipped parking spaces and electric buses. This will lower commuting costs and reduce urban pollution. Energy efficiency is equally important. Better insulation, heat pumps and smart meters reduce consumption and protect households from price volatility. The annual energy cost difference between a poorly insulated and a well-insulated home can reach €5 000. Multiplied across millions of households, the potential savings are enormous. We must also expand and modernise electricity grids to connect renewables and meet growing demand. This requires investment, resilient infrastructure and faster permitting. Cities and regions are essential to delivering these changes. But affordability also means housing. From Copenhagen to Lisbon, from Dublin to Athens, access to affordable housing has become one of our citizens’ most urgent concerns. This is a crisis affecting the homeless, low-income households, but also the middle class and, especially, younger generations. The lack of affordable housing also fuels disillusionment with democratic institutions. Housing is primarily a responsibility of national, regional and local authorities. But the European Union can complement their efforts - can help their efforts - and make a concrete difference. That is why I placed the housing crisis on the European Council’s agenda for the first time last October. That is why the Commission has since presented an Affordable Housing plan and an Affordable Housing Act. And that is why I have been in close contact with the coalition of Mayors for Housing, exploring how the European Union can support their efforts through: - better regulation
- increasing innovation and energy efficiency in the construction industry
- ensuring that affordable housing remains a priority in the post-2027 MFF and Cohesion Policy
We need a multi-level response to this multi-level crisis. To strengthen social cohesion, accommodate demographic pressures, reinforce our democratic systems and boost our economies. Second: competitiveness. In March, European leaders adopted an ambitious “One Europe, One Market” agenda, with clear priorities and timelines. Let me focus on one dimension critical for cities and regions: simplification. We must make it easier for people and businesses to operate across Europe, enabling companies, especially SMEs, to scale up, realise their full potential and create quality jobs. We must continue simplifying our rules – the Brussels effect must become synonymous with reducing red tape. Member states must also address gold-plating and domestic barriers. One of the most effective ways to simplify is through better European rules – fewer directives and more regulations – to ensure greater consistency and reduce fragmentation across the Single Market. Finally, we must simplify and accelerate planning and permitting procedures. Lengthy approvals and excessive administrative requirements delay investment, increase costs and hold back projects. We need faster, simpler and more predictable procedures to help businesses invest, innovate and grow. Finally, my third remark: the next Multiannual Financial Framework. Negotiations on the next MFF are entering a decisive stage. The European Union needs a long-term budget that responds to the challenges of this historic moment. This is not just about numbers. It is a political choice about our future and the Europe we want to build together. The next long-term budget must put competitiveness, industrial transformation, defence, security and strategic resilience at its heart. At the same time, it must continue to support cohesion and agricultural policies, pillars of regional development and shared prosperity. Both dimensions are important for our Union and our Single Market, which benefit us all. Regional and local authorities must be closely involved in preparing, implementing and evaluating the new plans under the next MFF. Because the European budget is an investment framework that must ultimately deliver tangible results for our communities, cities and regions. We must respect the principle of multilevel governance. The recent mid-term review led by Vice-President Fitto has shown that active engagement with stakeholders at all levels delivers results. I will continue to encourage everyone involved to negotiate with an open mind and a spirit of collective responsibility, with the aim of reaching an agreement by the end of the year. That is crucial to ensure that the next budget is operational from the start of 2028. Any delay would impact the lives of our farmers, businesses, students, researchers and innovators – and of course, our cities and regions. In these turbulent geopolitical times, Europe must be a source of predictability and stability. It must have the means to act, the capacity to deliver and the unity to face the challenges ahead. That is what citizens expect from the European Union. A strong Europe is built from the ground up: through empowered communities, strong cities and strong regions. I count on all of you to continue building it together. Thank you very much. | 
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