Empowering European towns: the crucial role of capacity-building

Leveraging European Funding 

Small and medium-sized towns (SMSTs), defined as those with populations between 5,000 and 50,000 inhabitants, comprise approximately 24.2% of the European population (Servillo et al.). They represent a large portion of European urban areas. In recent years, the EU has increasingly acknowledged such importance by deploying a number of strategic policies such as:

• The Urban Agenda for the EU
• The Territorial Agenda 2020 
• Instruments such as the Community-Led-Local-Development

All are aimed at providing tools for a sustainable local development.  

Within the current EU Cohesion Policy, Objective 5 'Europe closer to Citizens by fostering the sustainable and integrated development of all types of territories' provides SMSTs with a crucial opportunity to access European funding, as it focuses on sustainable and integrated development across all territories, creating a framework to meet the diverse needs of both urban and non-urban areas. By leveraging this opportunity, SMSTs can implement place-based policy approaches using relatively new instruments, such as Integrated Territorial Investments, to tackle local challenges in an integrated manner. 

The importance of capacity-building 

Despite available European funds, SMSTs often find it challenging to access and utilise them effectively. Towns often lack the necessary capacities: skills, time, and local funds. The lack of capacities poses a substantial barrier. Unlike their larger counterparts, SMSTs often struggle with limited financial resources and administrative capabilities.

This dual challenge hinders their ability to manage sustainable urban development projects and navigate the complex processes required to secure EU funding. Austerity measures have exacerbated these difficulties, reducing financial and human resources, leading to significant staff cuts, and increasing reliance on outsourcing. This trend undermines the adaptability of local governments to tackle complex tasks. 

To address these challenges, several strategies can be employed:

• Training staff members on EU policies and funding opportunities can significantly enhance the capacity of SMSTs to access EU financial schemes.
• The role of intermediaries, such as regional development agencies or inter-communalities, is crucial. These entities can facilitate access to funding opportunities by providing the necessary expertise and support to SMSTs. They can learn how to navigate the intricate application processes and increase the likelihood of successful funding acquisition.
• SMSTs can benefit from EU capacity-building initiatives which can empower them to respond effectively to their most pressing local challenges (see the table below with an overview of EU capacity-building initiates to support SMSTs).  

Bulgaria: municipalities learn to master ITIs 

Building on the increased capacities gained through its participation in the Interreg Europe project IMPROVE during the 2014-2020 programming period, the Municipality of Gabrovo in Bulgaria, along with representatives from the municipalities of Sevlievo, Dryanovo, Tryavna, and key stakeholders, convened in January 2024 to discuss cooperation on Integrated Territorial Investment (ITI) concepts.

Two projects, “Gabrovo - a center of innovation, education, and entrepreneurship” and “Regional tourist product ‘Ancient heritage and modernity’ of the municipalities of Tryavna, Dryanovo, and Gabrovo,” were highlighted.

In order to pilot the ITIs, Interreg Europe URBANCOOP project partner from the Municipality of Gabrovo established a Council for Sustainable Urban Development, including different municipalities and stakeholders under the leadership of the Mayor of Gabrovo. The Council will monitor and evaluate the results of ITI and urban development projects, mapping the problems and critical factors for planning and development in the territory.  

Examples of this kind are numerous, and exist in all EU countries. Just to name a few, Interreg Europe good practices in Fundão, Portugal, or Ventspils, Latvia, illustrate that with the right leadership and capacities, SMSTs can rapidly reinvent themselves. Knowledge is power, capacity building is the way.  

Capacity building programmes and initiatives

Explore the different services and initiatives offered to support capacity building.