European regions and cities demand clear rules and solid financial backing to help Europe’s ailing car industry through the shift to electric vehicles (EVs). The European Committee of the Regions (CoR) on Wednesday adopted an opinion on the European Commission’s Automotive Package, arguing that the transition will only succeed if regions are adequately equipped to carry it.

Regions said electrification is crucial to achieving climate-neutral road transport, but that success depends on affordability and access. They called for charging infrastructure across regions, funded by European, national and regional budgets, as well as targeted demand support in lower-income regions.

“Europe’s regions and cities have spoken with one voice: competitiveness and electrification by 2035 go hand in hand,” said María Chivite, President of the Navarre region in Spain, who drafted the opinion. Europe can only lead the transition, she argued, if regions receive “real financing”.

The Commission proposed the Automotive Package in December. It suggests a 90-percent-cut in tailpipe emissions from 2035, with the remaining 10 percent offset through low-carbon steel or e-fuels and biofuels. The CoR welcomed these temporary flexibilities but warned that they must not delay zero-emission mobility.

Brigitte Torloting, Chair of the Automotive Regions Alliance (ARA) and Vice-President of France’s Grand Est region, warned that time is short and “global competition will not wait for us”. She called for a strategy that protects automotive production in the regions, backed by strong European instruments such as “European preference.” Without a clear framework and targeted investment, she said, Europe risks losing its industrial base, from small and medium-sized enterprises (SMEs) to major suppliers.

Made in the EU

“European preference” is an approach first introduced in the Commission’s proposal for an Industrial Accelerator Act in March and is designed to prioritise EU-based manufacturing. The Commission suggests public procurement contracts and state-subsidised industrial projects to source a minimum percentage of materials or components from European producers. For EV production, the Commission proposed that 70% of components for new cars – excluding the battery – must originate within the EU.

CoR members also welcomed the “Made in the EU” approach to strenghten European production but insisted it must be proportionate, so that SMEs and regional supply chains are not buried in red tape.

With automotive production concentrated in specific territories, the opinion also calls for targeted cohesion funding, skills and quality jobs.

According to EU figures for 2024, the automotive industry contributed 7 percent of EU gross domestic product (GDP), about EUR 170 billion in exports and supported around 13.8 million jobs, 3.5 million of them in manufacturing. According to CoR figures, the 41 regions organised in the Automotive Regions Alliance (ARA) generate more than 40 percent of EU GDP.

This story was produced by the European Newsroom (enr) in cooperation with the European Committee of the Regions (CoR). The editorial responsibility lies with the enr. 

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Theresa Sostmann
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Theresa.Sostmann@cor.europa.eu

European regions and cities are calling on the EU to give millions of displaced Ukrainians legal certainty and a genuine choice between building a future in Europe and returning home safely. Their appeal comes as Russian attacks on Ukraine’s critical energy infrastructure intensify ahead of what is expected to be another harsh winter for the war-torn nation.

Temporary protection for displaced Ukrainians was set to end in March 2028. Eurostat data from July shows that almost 4,5 million non-EU citizens who fled Ukraine were benefiting from the mechanism, which was established shortly after Russia’s full-scale invasion in 2022.

“Temporary protection was the right emergency response, but it cannot be the long-term answer,” said Antje Grotheer, Chair of the European Committee of the Regions’ (CoR) Working Group on Ukraine. “People forced to flee Ukraine because of Russia’s war need certainty about their future,” the President of the Bremen State Parliament added.

An opinion drafted by Grotheer and adopted by CoR members on Tuesday calls for timely, accessible information on legal options beyond temporary protection so that people can make informed decisions.

It notes that decisions on legal status are taken mainly at EU and national level, while their practical consequences are managed in cities and regions. Local authorities need predictable funding and administrative capacity to keep public services running and respond to housing pressures, the CoR said.

Grotheer demanded that cities and regions are given a voice in shaping the transition after the EU’s temporary protection runs out.

Preparing for winter

The opinion sets out three parallel priorities: supporting the inclusion of displaced Ukrainians in European communities, investing in their education and skills for the benefit of host societies and Ukraine’s recovery, and enabling voluntary, informed and safe return when conditions allow.

“It’s time now to realise that we should not only treat Ukrainians as vulnerable refugees; we should treat them as our partners,” said Ylva Johansson, EU Special Envoy for Ukrainians in the EU. “Their future is part of Ukraine’s future, and that future is in the European Union,” she added.

“The millions of Ukrainians currently living outside the borders of our country are a huge human potential that Ukraine cannot afford to lose,” said Tetiana Yehorova-Lutsenko, President of the Ukrainian Association of District and Regional Councils (UAROR) and Chair of Kharkiv Regional Council.

The UN Refugee Agency (UNHCR) reported that 49 percent of Ukrainian refugees – down from 61 percent in 2024 – have expressed hopes or intentions to return one day, with security, housing and essential services among the key conditions.

Protecting Ukraine’s energy infrastructure has been a central part of the EU’s support since 2022. In a letter to CoR members, President Kata Tüttő and Grotheer warn that the attacks risk depriving communities of basic living conditions. The letter recalls that the European Commission President Ursula von der Leyen had described the attacks as “a strategy of terror”.

“Cities and regions must act before the arrival of the cold further aggravates the already difficult humanitarian situation,” the letter warned. It said regions and cities can deliver support in the form of energy equipment, used municipal vehicles, medical supplies or IT equipment.

This story was produced by the European Newsroom (enr) in cooperation with the European Committee of the Regions (CoR). The editorial responsibility lies with the enr. 

Press contact:

Theresa Sostmann
Tel. +32475999415

Theresa.Sostmann@cor.europa.eu

Brussels (enr) – Local and regional leaders raised concerns that the next multiannual EU budget risks undermining investment in affordable homes needed to alleviate Europe’s deepening housing crisis.

“Europe’s housing challenge is not simply about building more housing units,” said Kata Tüttő, President of the European Committee of the Regions (CoR), an EU advisory body home to democratically elected regional and local representatives from all 27 Member States.  

At a gathering in Brussels on Thursday, they demanded the EU “move from political ambition to concrete investment and delivery,” arguing that failing to invest now will only put affordable housing further out of reach for millions of Europeans.

As negotiations over the EU’s next long-term financial framework gather pace, cities and regions fear that affordable housing could become a casualty of competing spending priorities as several EU member states seek to cut the European Commission’s proposed €2 trillion budget for ‌2028-2034.

Tüttő called on the European Investment Bank (EIB), the EU’s lending arm, to “mobilise the scale of investment” that cities and regions need to “make communities liveable” by providing essential infrastructure. She cited public transport, as well as energy and water infrastructure, as key examples.

Italian MEP Irene Tinagli, Chair of the European Parliament’s Special Committee on the Housing Crisis (HOUS), said addressing the housing crisis “requires investment, better coordination across all levels of government and a shared commitment from European institutions, Member States, regions and cities”.

The CoR and EIB on Thursday agreed on closer cooperation in key areas including social infrastructure, housing, and energy. The European Investment Bank’s president, Nadia Calviño, said “investing into resilient cities and regions, into cohesion and housing” was a strategic priority.

According to EIB figures, the world’s largest multilateral development bank provided a record €5 billion in financing for housing projects across Europe in 2025. The EIB is targeting an increase to €6 billion this year, Calviño confirmed.

The investments are a contribution to the European Commission’s Affordable Housing Plan, which was launched in December and aims to boost housing supply, mobilise public and private investment, and support Member States and regions in expanding social and affordable housing.

According to the Commission’s estimates, however, the EU needs to build 2 million homes each year to meet current demand, which amounts to an investment of approximately €153 billion per year.

This story was produced by the European Newsroom (enr) in cooperation with the European Committee of the Regions (CoR). The editorial responsibility lies with the enr.

Gdańsk/Brussels (European Newsroom) – Ukrainian cities and regions risk being left out in deciding how billions in reconstruction funds are being used unless they are given a robust role in the planning, governance and implementation of reconstruction support, a joint statement by the European Alliance of Cities and Regions for the Reconstruction of Ukraine warned. 

Meeting on the sidelines of the Ukraine Recovery Conference (URC) 2026 in Gdańsk, Poland, the alliance called for a “localisation marker” in donor planning tools and ring-fenced funding with direct local access. 

Antje Grotheer, President of the State Parliament in Bremen, Germany, and chair of the European Committee of the Regions’ (CoR) Working Group on Ukraine, argued that local and regional authorities should have a greater voice in donor discussions and reconstruction planning. She stressed that Ukraine’s decentralisation reforms have been key to maintaining resilience during the war.   

“We feel there is an increasing need for stronger coordination of support that targets municipalities and regions,” Grotheer said.  

Oleksii Riabykin, Deputy Minister for Rebuilding and Minister for Development of Communities and Territories of Ukraine, said his country is already moving from emergency reconstruction to building resilient communities. Experience gained by Ukrainian cities, towns and villages during the war can help strengthen resilience across in Europe, he said. 

EU law implementation

The joint statement released Wednesday stressed that over 70 percent of EU law is implemented at local level, but most reconstruction funding for Ukraine is still channeled through national governments, leaving municipalities to compete over the leftovers. At the URC 2026 in Gdańsk, the CoR and its alliance partners demanded a structural fix.  

The alliance also encouraged Ukrainian regions to exploit existing EU programmes and platforms. It underscored the contribution of neighbouring EU countries to both Ukraine’s military efforts and its reconstruction, arguing that they should receive targeted support.  

EU member states that share a border with Ukraine are Poland, Slovakia, Hungary and Romania. 

The alliance brings together EU and Ukrainian local and regional authorities and was co-founded by the CoR, an EU advisory body, in June 2022 following Russia’s full-scale invasion of Ukraine.  Its goal is to coordinate an effective reconstruction of Ukraine that involves local and regional authorities rather than centralising the implementation of funds to the state. 

The URC was also established after Russia’s full-scale invasion, building on the foundations of the annual Ukraine Reform Conference established in 2017 by supporters of Ukraine, including the European Union.  

The URC 2026 takes place on June 25 and 26 and focuses on the sectors most impacted by Russia’s attacks, such as energy, critical infrastructure, and logistics. The lead-up to the conference was overshadowed by escalating dispute between Warsaw and Kyiv. Ukrainian President Volodymyr Zelensky had named an army unit after Ukrainian underground fighters from World War II who are also blamed for massacres of tens of thousands of Poles and Jews in what is now western Ukraine.  In response, Poland’s right-wing conservative President Karol Nawrocki stripped Zelensky of a high Polish order of merit. 

This story was produced by the European Newsroom (enr) in cooperation with the European Committee of the Regions (CoR). The editorial responsibility lies with the enr.