[URDICO] - Urban Dimension of Cohesion Policy and other EU programmes

The targeted analysis URDICO aims to analyse and compare the implementation of the urban dimension of Cohesion Policy as well as some crisis response mechanisms (e.g. Recovery and Resilience Facility) in stakeholder territories, representing a diverse group of cities and urban areas. The comparative analysis shall build on data and evidence on how stakeholder cities and urban areas use EU funds, allowing to benchmark different approaches to sustainable urban development. The timeframe set for the analysis shall cover the programming period 2014-2020 and the first years of the 2021-2027 period.

This targeted analysis relates to the narrative of the TAP on Perspectives for All People and Places as it enables to strengthen the urban governance in implementing the urban dimension of the Cohesion Policy and other EU funding frameworks. It will look at effective governance models supporting urban development, corresponding to the specific territorial challenges and potentials in the stakeholder cities, with due attention to the differences in roles, institutional frameworks, capacities and perspectives. Thereby, it helps tailor and integrated urban development policies to shape liveable, attractive and inclusive places for all people in cities, metropolitan and urban areas across the EU.

Policy needs

ESPON URDICO is expected to answer the following policy needs, that are here grouped in four main objectives:

1. Comparing the different governance models that deliver the urban dimension of Cohesion Policy, assessing their effectiveness in supporting public investments in cities.

Which governance models work better in delivering urban investments?
Roles of city administrations in delivering urban dimension of cohesion policy (direct vs intermediated).
How do cohesion investments fit and interact with the wider local public investment framework?
Potential interaction, where relevant for the stakeholders, between different funding programmes for CP (ERDF, ESF+, AMIF) and beyond (RRF, JTF, HE, LIFE etc.) to deliver integrated urban investments.

2. Assessing – starting from the case studies - how urban dimension of CP contributes to institutional innovations, stronger administrative capacity and better alignment at city level and between government levels on urban issues:

main institutional innovations that were developed in the past and current programming period.
barriers that undermine the development of a well-functioning EU framework for urban investments.
most adequate level (i.e. FUA) to deliver CP (ESIF in particular) in various contexts and through various instruments (ITI, dedicated OPs).
main learning points to improve the approach to sustainable urban development and the strategy 2021-2027.

3. Developing evidence on how urban dimension of Cohesion Policy contributes to city long-term agendas and localisation of EU priorities (European Green Deal) and how it can evolve to meet new needs.

What are the key investment areas where cohesion funds made a difference? How were these investments complementary to other funding sources?
How does the framework of the urban dimension of cohesion policy allow cities to adapt to exogenous shocks (Covid-19, climate crisis) and fast changing priorities, including support post-2027 financial needs?

4. Develop an overview of the interaction between urban dimension of CP, other EU funding programmes and the EU and national frameworks for public investments (EU economic governance framework).

How cohesion investments work in synergy with other key EU investments (Horizon Europe, Recovery and Resilience Facility)?
How is the implementation of cohesion investment influenced by the EU fiscal framework and its national implementation? How does it contribute to better fiscal capacity?
How can other EU programmes support cities strategies for sustainable urban development and help build capacity to deliver on EU initiatives for cities?

Expected results

This targeted analysis will include desk research to compare the different governance models that deliver the urban dimension of cohesion policy; in addition, it will conduct case studies in the stakeholder territories on how the urban dimension of cohesion policy contributes to institutional innovations, stronger administrative capacity and better alignment on urban issues at the city level and between government levels.

It will develop recommendations on how to better support cities under an EU funding framework, bearing in mind the long-term development needs in line with the European Green Deal and the European Pillar of Social Rights, and how to build local administrative and fiscal capacities to withstand exogenous shocks.