Small urban areas as key actors to manage a just transition

Small urban areas are home to 43 % of the EU population, and around 66 % of Europe’s urban dwellers reside in areas with fewer than 500 000 inhabitants. There are about 14 000 small urban areas with a population of between 5 000 and 50 000 in the EU. They are an important part of Europe’s territorial, social and economic fabric. They are centres for the provision of services and can function as anchor points for the wider regions, ensuring a more cohesive EU. 

The Opinion of the European Committee of the Regions on small urban areas as key actors to manage a just transition, for which I was rapporteur, outlines the main challenges facing small urban areas and opportunities, and proposes resolutions. Moreover, the opinion, which adds immensely to the European Committee of the Region’s work on urban policy, also aims to bridge the gaps between rural and urban policy.  

Small urban areas face a risk of demographic shrinkage and of becoming places left behind. Shrinking places are exacerbated by a myriad of issues including but not limited to ageing populations, brain drain, weak local governance and capacity. The lack of investment in digital ecosystems, land abandonment and deindustrialisation also contribute to increasing social inequalities and decreasing quality of life.  

The green and digital transitions and the recovery from the pandemic bring extra challenges to small urban areas. Often small urban areas do not have sufficient capacity, knowledge or skilled workforce to address these challenges. They often have limited financial and administrative capacities, collaboration issues, limited decision-making power and leadership, and limited adaptation and resilience capacities. Moreover, the urban–rural divide and misalignment of urban and rural policy can contribute to political polarisation. The geography of political discontent is a key concern in this regard.  

Shrinking places are exacerbated by a myriad of issues including ageing populations, brain drain, weak local governance and capacity, lack of investment in digital ecosystems, land abandonment and deindustrialisation. 

Developing the green capacity

For the green transition to be successful in small urban areas, upskilling, reskilling and technical expertise are required, and so is knowledge of climate change adaptation approaches; local authorities in small urban areas need to have highly qualified staff in addition to traditional local administration. Strategic forward-thinking and innovative solutions are crucial.

National and EU programmes should give more support to the development of skills in small urban areas. They can benefit from sharing knowledge from EU funding programmes and initiatives such as urban innovative actions, EU urban agenda partnerships, Interreg, Urbact and the Technical Assistance and Information Exchange instrument, as we know these are not evenly distributed among small urban places in Europe.

There are also a number of instruments to support small urban areas in the transition, such as community-led local development, integrated territorial investments and the New European Bauhaus initiative, to name just a few, but achieving more synergies and streamlined access to funding is key.
The Just Transition Fund and the European Social Fund +, and local and regional authorities, also have critical roles in helping small urban areas that are highly affected by the green transition, while ensuring greater social cohesion in the light of the asymmetric impact of consecutive crises.

The European Commission should integrate the topic of small urban areas into its rural proofing exercises. Screening for territorial and rural impacts should become a mandatory element of the policy-making process.

Building the digital transition

When it comes to the digital transition, a significant urban–rural divide still exists in all EU Member States, largely due to the high costs and risks involved in the roll-out of digital infrastructure in less built-up areas. Small urban areas are currently competitively disadvantaged by a lack of digital connections, which makes it more difficult to exploit development potential, secure or create new jobs, or reduce migration.

Member States should invest in smart village projects – implementing digital solutions to optimise connectivity, daily life and services in small urban areas – within the national recovery and resilience plans and the European Structural and Investment Funds.

Constructing a long-term vision for rural areas with small urban areas

The above mentioned opinion also emphasises developing the rural pact methodology by following the urban agenda for the EU model, based on the principles ‘better funding, better regulation and better knowledge’, and delivering it through thematic multilevel and cross-sectoral partnerships.

The European Commission should integrate the topic of small urban areas into its rural proofing exercises. Screening for territorial and rural impacts should become a mandatory element of the policy-making process. This can be done in close cooperation with the European Committee of the Regions.

To shape territorial capacity, the opinion of the European Committee of the Regions calls for ‘one-stop-shop’ approaches to make it less complex for small urban areas to get access to European funds and administer projects using them, and to promote an integrated approach to linking EU funds.

The CoR's opinion calls for ‘one-stop-shop’ approaches to make it less complex for small urban areas to get access to European funds and administer projects , and to promote an integrated approach to linking EU funds.

The opinion requests that the European Commission and the Member States make provisions for technical support to be used for municipalities throughout a project’s life cycle. It asks the European Commission to consider the possibility under the new European urban initiative of offering on-the-spot coaching to small urban areas and suggests that the national contact points to be introduced under the initiative should act as intermediaries for supporting small urban areas.

Initiating multilevel governance for small urban areas is difficult; participating in strategic decision-making or mobilising additional financial or administrative resources often requires navigating complex multilevel governance processes.

In conclusion, small urban areas need the administrative capacity to shape their multidimensional transitions and develop long-term perspectives. They also need knowledge, policy coordination and empowerment to mobilise people, resources and EU funding programmes.