
Our international work
Premises and priorities of our 2025 EU advocacy

The EU advocacy of the Association of Finnish Cities and Municipalities aims to improve municipal competitiveness and promote the wellbeing of municipal residents.
The EU’s new 5-year term started on 1 December 2024 when the new Commission began its work. Even before that, after the EU election, Ursula von der Leyen was re-elected as President of the European Commission in summer 2024. The President published the priorities for the next five years, which are no less ambitious than the priorities of the previous term.
The Commission’s five-year policy focuses on defence and security, sustainable prosperity, democracy and social fairness. Increasingly difficult global challenges make the Union’s strategic autonomy an ever more important goal.
The AFCM has set its own EU objectives for the term:
1. Finnish municipalities shall implement green and digital transition
2. Work-based immigration shall be promoted
3. EU regulation and funding shall take into consideration the changes in Finland’s geopolitical position and accessibility
4. The economic development of cities and municipalities shall be strengthened; more investments!
5. Arctic knowhow and the importance of infrastructure (added in 2025)
In 2024, the Association of Finnish Cities and Municipalities investigated the EU’s impact on municipal decision-making. Nearly half of municipal tasks and decisions can be traced back to Brussels. According to the European Committee of the Regions, about two-thirds of EU regulations are implemented on the local level. Municipalities not only realise the implementation but also influence EU regulation preparations at various stages in several arenas. Due to the major role played by the local level, it is extremely important that the 2025 Commission work programme is focusing on easing the burden caused by regulation, simplifying regulation and assessing its impacts.
The Commission work programme contains 51 new policy initiatives, 18 of which are legislative and the rest various strategies and plans. These non-legislative papers must be paid close attention to, since they may include plenty of things that will later be developed into legislation that will also affect municipalities. In addition, the packages and programmes already contain plenty of new regulations that may have impacts on the municipal level.
The aim of the AFCM’s EU advocacy is to influence, in a timely fashion and using as many channels as possible, the issues and regulatory preparations being discussed in the EU that affect municipalities. The AFCM annually determines the goals and focal areas of its EU advocacy based on the AFCM strategy and the Commission work programme. This document serves as support for our EU advocacy in Finland and in Brussels.
This document is a collection of the AFCM’s views on those initiatives of the EU Commission work programme 2025 that are assessed to have an impact on Finnish municipalities. We will also comment on issues being discussed or prepared as needed. During the year, other issues that require a reaction may also come to light.
The Commission has set seven key priorities for 2024–2029, which are designed to create a faster, simpler and more united Union that supports its citizens and businesses.
The headlines of this document follow the Commission’s priority themes for the term:
A new plan for Europe’s sustainable prosperity and competitiveness
A new era for European defence and security
Supporting people, strengthening our societies and our social model
Sustaining our quality of life: food security, water and nature
Protecting our democracy, upholding our values
A global Europe: leveraging our power and partnerships
Delivering together and preparing our Union for the future
Ulla Karvo, EU Affairs Manager
Open all
1. A new plan for Europe’s sustainable prosperity and competitiveness
1.1 Competitiveness compass (initiative 1, Competitiveness)
The European Commission introduced the competitiveness compass in January 2025. The compass provides a strategic framework and guides the Commission's activities to promote the EU's competitiveness in 2024–2029. The competitiveness compass builds on the proposals of Mario Draghi’s September 2024 report “The Future of European Competitiveness” and Enrico Letta’s single market report.
The compass consists of three key pillars that aim to improve the EU’s economy, attract investments and keep Europe as a centre for production:
Closing the innovation gap
A common roadmap for decarbonisation and competitiveness
Improving security and reducing excess dependencies
The compass is a kind of policy framework, and the related several detailed initiatives and measures for different sectors are still being prepared. The premise of the competitiveness compass is a step in the right direction. From the perspective of the municipalities, it is essential to monitor and influence the contents of the actual initiatives and measures.
Further information:
Mikko Härkönen, Director of Economic Development and Growth
The competitiveness compass from a security perspective
From a security perspective, the aim is to reduce dependencies and create a better internal security of supply within the EU.
Key aims include:
Securing critical raw materials and supply chains
Strengthening the energy and defence industry
Developing cybersecurity
In part, the competitiveness compass also strengthens the possibilities of municipalities to get critical substances, supplies and services, especially in market disturbance situations. The objective improves the entire security of supply of the Member States. In influencing the strategy, key elements include enabling direct-award contracts in critical procurements (for example, information security devices and programmes) and strengthening the availability of supplies, substances and components that serve critical infrastructure within the EU’s single market.
Further information:
Ari Korhonen, Security and Preparedness Specialist
1.2 Single market strategy (initiative 2, Competitiveness)
In connection with the proposals of Enrico Letta’s single market report, the EU Commission will publish a horizontal single market strategy in summer 2025. The Commission aims to remove current barriers so that all businesses can fully utilise the scale benefits of the single market. The single market strategy aims to modernise the administrative framework, remove internal barriers and prevent the creation of new barriers.
From the perspective of the municipalities, the development of the single market is welcome. A functioning single market increases competition and, thus, lowers the price and improves the quality of goods and services. At the same time, increased competition promotes the creation of new innovations and improves the competitiveness of businesses. Local businesses operating within a municipality and region need to prepare for increased competition even in areas traditionally dominated by national or local businesses.
Further information:
Mikko Härkönen, Director of Economic Development and Growth
1.3 Simplification of regulation (initiatives 3-5, Simplification)
The EU must invest in its strengths to enhance Europe’s competitiveness on the global level. We are lagging behind our biggest competitors, the USA and China, in too many fields.
We’ve seen that there are many structural barriers hindering competitiveness, and there’s a willingness to address them. The way to achieve this aim is by simplifying regulation and enhancing implementation.
The Commission is proposing the Omnibus package of measures for a gradual progression towards easing the burden of regulation and simplifying it.
The Commission strongly aims to simplify regulation as a means of making investments easier.
During the third quarter of the year, the intention is to put together a proposal for a funding framework that would cover several years. It will also aim to simplify the funding programmes for the next term.
The Commission work programme also strongly emphasises efficient implementation. Most EU regulation is implemented on the local level, and the aim is to invest in implementation dialogue between the Commission and stakeholders.
The Association of Finnish Cities and Municipalities is in favour of simplifying EU regulation and curbing both the regulation flood and reporting. Smoother permit processes benefit everyone, but we cannot overlook the required resourcing. Regulation implementation should have national leeway, and the Commission should not set guidelines that are too strict or limiting for its implementation.
The AFCM favours focusing on the implementation of existing legislation instead of introducing new legislation. The support needs for the implementation should be assessed together with the municipalities and other implementers. Confirmed implementation cannot mean increased reporting obligations and other administrative burdens.
Further information:
Ulla Karvo, EU Affairs Manager
1.4 EU’s Sustainable Finance Disclosure Regulation (initiative 6, Simplification)
The EU’s sustainable finance regulation directs the flow of green transition financing and consists of the Taxonomy Regulation, Corporate Sustainability Reporting Directive (CSRD) and Sustainable Finance Disclosure Regulation (SFDR).
Under the SFDR, financial market participants (credit institutions, investment firms, insurance undertakings) have an obligation to disclose both product and company-specific information regarding aspects of sustainability. In practice, this means that they publish the principles behind their consideration of sustainability risks and information about the consideration of the adverse sustainability impacts resulting from their own investment decisions. The minimum requirements also include an obligation to disclose the level to which sustainability risks were considered for any financial product.
Should the revision intended by the initiative presented in the Commission work programme only concern the last part, the impact on municipal actors will be restricted to the quality and quantity of information received on financial and investment products. If, however, the revision also includes the other proposed parts, information that is likely to benefit municipalities will increase and become more detailed. At the same time, we must ensure that the potentially increasing obligations of the municipal sector to collect and report information are appropriate.
Further information:
Jari Vaine, Senior Adviser
1.5 European Business Wallet (initiative 8, Simplification)
The aim of eIDAS, and the EUDI wallet (European Digital Identity) to be implemented alongside it in all Member States, is to ease online and local access both nationally and across borders in the EU. One goal is to streamline and enhance services, by enabling citizens to use the EUDI wallet to share their information (electronic attribute certificates) with different parties.
The EUDI wallet, if successful, may create a new means of accessing services, while minimising, for example, any unneccessary access. It is important to invest in the development of and civic communication regarding eIDAS and the EUDI wallet (EUDI is voluntary for citizens) and finalise the essential aspects of it before promoting another similar solution. Even if the wallet user is a juridical person, the solutions are similar, so EUDI solutions should be utilised and harmonised as far as possible instead of developing something entirely new.
Further information:
Jaana Jormanainen, Senior Adviser
1.6 Clean Industrial Deal CID and industry low carbon promotion (initiatives 9-10, Competitiveness)
The EU is to become a decarbonised economy by 2050 with the help of CID. There is a desire to accelerate industry decarbonisation while ensuring predictability and competitiveness for businesses and investors. CID focuses mainly on two sectors: energy-intensive industries and the clean-tech sector.
The recognised requirements for success are affordable energy, the demand for clean products, financing of the clean transition and circularity and access to materials. The actions must take place on the global level and the workforce must have the necessary skills.
Competitiveness is created and investments are often made locally. Municipalities play a key role in, for example, facilitating the location of industry through zoning and the required infrastructure. Municipalities also function as permit-issuing and supervising authorities for the majority of projects. All aspects of the clean transition from emissions to biodiversity and security of supply are weighed as part of the municipalities’ regional development task, environmental protection responsibility and other mandatory duties. It is important that municipalities are included in the dialogue within the implementation of the clean industrial deal and drafting of the Industrial Decarbonisation Accelerator Act.
The Association of Finnish Cities and Municipalities emphasises that it must be considered a framework condition that the stipulations on zoning fall under national jurisdiction and they should, per se, be excluded from future potentially binding EU regulation.
The measures and conditions for moving towards carbon neutrality are different at different locations in Europe.
It has not been considered functional, in Finland, to establish different acceleration or special areas. In such areas, environmental impacts, for example, will need to be preliminarily assessed.
Easing the administrative burden of businesses should not lead to an increase in measures for public authorities. The Association of Finnish Cities and Municipalities views the investments into the digitalisation of the activities of the authorities, the securing of their resources and the adjustment of permit procedure payments to better cover accrued expenses as positive actions.
As far as energy production is concerned, renewable hydrogen seems to be a key element, but its production is largely still in its infancy.
Further information:
Marko Nurmikolu, Senior Legal Counsel
Vesa Peltola, Energy Adviser
Action plan for affordable energy (Initiative 9)
The aim of the Action plan for affordable energy (published 26 February 2025) is to lower end-user energy costs while moving towards a low-carbon economy
by speeding up clean energy roll-out and electrification
by creating a functional internal energy market within the EU through the interconnection of energy networks
by improving energy efficiency and reducing dependency on fossil fuels.
Further information:
Vesa Peltola, Energy Adviser
1.7. Plan for a Savings and Investment Union (Initiative 12, Competitiveness)
The Commission work programme initiative includes a plan to expand the capital markets union and banking union to become a savings and investment union.
The initiative aims to promote investments, economic growth, employment and sustainable public finances. The functionality and prerequisites of the financial markets will also play a role.
From the perspective of Finnish municipalities and regional industrial policy, functional capital markets as well as a healthy banking sector are important. The capital markets union has included notions about joint debt. The Association of Finnish Cities and Municipalities has reservations about joint debt as it may have negative impacts on credit ratings and financing costs.
The aim of the new initiative is to enhance the functionality and impact of the capital markets and banking union. One key approach is to increase the return on the savings of depositors and create new investment and financing options, particularly for SMEs and innovative companies.
The creation of new profit, investment and financing opportunities is, in itself, commendable. The more detailed impacts depend on how the measures and their targets are defined. It should be noted that the content of the initiative indicates a radical and far-reaching change in the operational culture of financial markets, the flow of money, risk creation and management and, most likely, the business and profit logics of financial institutions that accept savings deposits in particular. The readiness of depositors to adapt to these changes should also be surveyed.
A more detailed evaluation of the initiative requires a comprehensive impact assessment by sector, on the national and Union level.
Further information:
Jari Vaine, Senior Adviser
1.8. Bioeconomy strategy (Initiative 17, Competitiveness)
Taking bioeconomy under re-examination in the Commission work programme is a good thing. Bioeconomy should be viewed as larger than just the circular economy. The Association of Finnish Cities and Municipalities considers sustainably-produced bioenergy to be necessary far into the next decade, since it is not possible to ensure weather-independent heat production in the next ten years without energy produced by burning some type of fuel. A future outlook should be created for the municipal biogas ecosystems and the investments made therein as part of sustainable energy production and use.
Further information:
Vesa Peltola, Energy Adviser
The renewal of the bioeconomy strategy is also linked to the vision for agriculture and food (initiative 34), especially as concerns the promotion of innovations. From a municipal perspective, the biostrategy objectives are linked to economic development in rural areas, the utilisation of the strengths of regional economic structures and, more widely, climate and environment targets. As far as agriculture is concerned, the aims of the strategy are the diversification of value chains, utilisation of material flows, strengthening of the position of primary producers in the value chain and the creation of new jobs in rural areas.
The objectives include the promotion of bio-based and circular economy solutions and biotechnology.
Further information:
Taina Väre, Senior Adviser
1.9. Targeted Revision of the REACH Regulation (Initiative 18, Simplification)
When implementing the REACH regulation, it is important to consider the clarity and predictability of the regulation. Unambiguous and transparent regulation promotes industry investment planning and reduces the health and environmental hazards of chemicals.
Measures to reduce the chemical load should be cost-effective, based on health effects and take into consideration their overall environmental impacts. Any chemical load that is hazardous to health and the environment should be reduced primarily by intervening at the source.
Further information:
Kaisa Mäntynen, Senior Adviser
1.9.1 Roadmap towards ending Russian energy imports (Initiative 19, Security)
The Association of Finnish Cities and Municipalities considers the initiative good, but suspects the realisation may be difficult, especially when considering the reasonability of energy prices. The AFCM estimates that the use of fossil energy in Europe will not end for a long time. Accelerating the spread of small modular reactors by means of a European industrial alliance is an interesting idea. In any case, SMRs will probably not be of help before 2035.
Further information:
Vesa Peltola, Energy Adviser
9.1.2 Sustainable Transport Investment Plan (Initiative 20, Competitiveness)
The Sustainable Transport Investment Plan is one of the cornerstones for competitiveness and clean industry in the Commission work programme. The aim is a sustainable transport system across borders and via different forms of transport.
As per the Commission’s competitiveness compass initiative, the plan focuses on the production and distribution of low-carbon and renewable power, ports and marine industry as well as cross-border railway connections. The initiative is important and Finland must ensure its usability from the Finnish perspective as well.
The content and form of the financial instruments for the Trans-European Transport Network (TEN-T) will be discussed as part of the EU’s new financial framework. The EU’s new financial framework should retain an instrument like the CEF (Connecting Europe Facility), which supports the implementation of tighter requirements, also in TEN-T urban nodes.
EU regulation and financial instruments must take into account the particulars of the Member States and their accessibility and changes in the geopolitical situation.
EU policy should promote the use of multimodal transport chains and mobility services as well as an increase in the share of public transport and other forms of sustainable mobility, such as utility cycling, in urban areas. Any regulation changes that weaken the legal basis (Regulation on public passenger transport services) and financial foundation for the organisation of urban public transport should be avoided. A key initiative linked to the topic is the Multimodal digital mobility services (MDMS) initiative that is in further preparation in the Commission.
Urban regions play a decisive role in achieving transport emission reduction targets. The Commission is preparing sustainable urban mobility indicators for TEN-T urban nodes as per the TEN-T Regulation. The result should be a limited number of well-defined indicators that also support local and regional level targets.
Further information:
Johanna Vilkuna, Development Manager
2. A new era for European defence and security
2.1 EU Preparedness Union Strategy (Initiative 22, Preparedness and Resilience)
The Preparedness Union Strategy is a key tool that will help us to develop a common vision of how our society, citizens and critical infrastructure can efficiently prepare to safeguard our living conditions, values, economic stability and sustainable prosperity.
The Preparedness Union Strategy provides a comprehensive and multifaceted approach to catastrophe and crisis management, covering all threats, risks and challenges under an all-hazards approach.
It is a general level strategy that aims at better preparedness, crisis management and the development of the preparedness culture throughout the entire EU. The strategy has an indirect impact on municipalities, as the aim is to develop and improve the preparedness culture in all aspects of government as well as to support the resilience of citizens. The development of the preparedness culture will increase preparedness in all sectors, which will mean increased resource needs for the development and strengthening of preparedness. For this part, the aims concern municipalities as well.
Further information:
Ari Korhonen, Security and Preparedness Specialist
2.2 Critical Medicines Act (Initiative 23, Preparedness and Resilience)
The main aim of this act is to promote the availability and security of supply of critical medicines and support the availability and supply of other generally important medicines.
No immediate impacts on municipalities.
Further information:
Ari Korhonen, Security and Preparedness Specialist
2.3 New common approach on returns (Initiative 27, Migration)
Increasing the number of returns has been a key part of the EU’s migration policy for the past 20 years. After the record year of 2015, when the number of asylum seekers and illegal immigrants was at an all-time high, the EU and Member States have added measures to build a more efficient return policy. Significant changes have been made to the EU’s internal and external return policy.
From a security perspective, Finland has amended the Border Guard Act to control weaponised migration in extreme situations.
The new decree on returns may have impacts on the integration measures of municipalities.
Further information:
Ari Korhonen, Security and Preparedness Specialist
2.4 European Migration and Asylum Strategy (Initiative 28, Migration)
The aim of the strategy is to strengthen operative readiness for border security control and responding to external border threats. The strategy strives for a just and decisive approach to immigration policy. The strategy is also closely linked to the strengthening of internal security within the Union.
The impacts on municipalities are indirect, especially as the strategy emphasises control of the EU’s external borders.
Further information:
Ari Korhonen, Security and Preparedness Specialist
3. Supporting people, strengthening our societies and our social model
3.1 A new action plan to implement the European Pillar of Social Rights (Initiative 29, Social Fairness)
The promotion of the European Pillar of Social Rights in a long-term manner is important and a new action plan is needed. It is important that the action plan be connected with other plans tied to social rights, such as the housing policy and other themes linked with social rights.
Finnish municipalities play a key role, larger than in many other countries, in safeguarding welfare, as they are responsible for the promotion of wellbeing and health, cultural services, sports services and youth services. In terms of social rights, it is essential to consider measures that are concrete enough to safeguard the strengths of the European social dimension.
Further information:
Maria Salenius, Director, Welfare Issues
3.2 Affordable housing (2026)
A new action plan on the implementation of the European Pillar of Social Rights – Affordable Housing Plan
Originally, the Commission was supposed to release its Affordable Housing Plan during the final quarter of 2025. Ursula von der Leyen raised the housing crisis as one of the major themes for the new Commission and appointed a Commissioner for housing.
The plan includes outlines that connect to rules on state aid for affordable housing. The role of the European Investment Bank in supporting the prerequisites for affordable housing construction is also on the agenda.
The delay in the Commission programme and an uncertain future outlook hinders the development of affordable housing in Finland as well. The programme is even more topical because market-based financing will not be providing the same opportunities for rental construction as before due to the banking regulation that entered into force in 2024. The regulation being prepared is important and the Association of Finnish Cities and Municipalities will keep a close eye on the initiative and its potential impacts on municipal operations.
Advance influencing in 2025.
Further information:
Laura Hassi, Adviser
4. Sustaining our quality of life: food security, water and nature
4.1 European Climate Law amendment (Initiative 33, Sustainability)
The European Climate Law supports decarbonisation and a more sustainable economy. Updating the Climate Law to include a 90% emission reduction target by 2040 signals the continuing of the aims of the EU’s Green Deal. Mitigating the human, social and economic impacts and costs of climate change requires sizable efforts to reduce emissions.
The 2040 target and the related implementation planning will bring predictability to the climate policy.
The EU has supported local-level climate action in shared objectives (for example, Missions), and continuing the support is desirable, while also taking into account that European cities and municipalities come in very different sizes and require different instruments of support.
Further information:
Pauliina Jalonen, Adviser
4.2 Vision for Agriculture and Food (Initiative 34, Competitiveness)
The vision for agriculture and food includes a roadmap for proposals that provide a long-term (2040) stable operational environment for food chain actors and outline the post-2027 CAP.
Agriculture and food (incl. fishing) are the EU’s strategic sectors. Food is a part of the EU’s competitiveness, as well as a significant employer and export industry. The EU’s food security is not granted, and it is connected to security of supply and security on both the national and EU level.
The agri-food sector promotes the EU’s climate objectives when we maintain healthy soil, clean air and water, and protect and restore biodiversity (incl. water resilience strategy).
The policy objectives of the vision are an attractive and predictable, competitive and resilient agri-food sector with a sustainable future, and a focus on food, fair living and working conditions in rural areas. For municipalities, the measures concern public procurement, short supply chains, reviewing the EU school food scheme and developing animal welfare legislation.
Further information:
Taina Väre, Senior Adviser
4.3. Common Agricultural Policy simplification package (Initiative 35, Simplification)
CAP legislation proposals are expected in autumn 2025 after the Commission has issued its proposals for the EU’s future multiannual financial framework.
The CAP simplification package aims to ease administrative burdens, support young farmers and promote farmers’ generational renewal (Strategy on Generational Renewal).
For municipalities, especially small municipalities and rural areas, it is important for small rural microbusinesses to continue to have access to tools for development, so that economic development opportunities can be supported in all parts of rural areas. Rural development funding, incl. LEADER groups, is also important. An interesting opportunity is the so-called multifund approach for community-led local development measures, among others. As the population dwindles and ages, the significance and added value of rural development funding grows for, among others, the renewal of rural services (for example, Smart villages).
Further information:
Taina Väre, Senior Adviser
4.4 Oceans Pact (Initiative 36, Competitiveness)
On 20 January 2025, the Commission published an initiative that aims to promote sustainable ocean management and ensure the health, resilience and productivity of the oceans and thus the prosperity of the EU’s coastal communities.
The European Oceans Pact seeks a broader, integrated and holistic approach to ocean governance across all sectors. The Oceans Pact aims to:
maintain a healthy, resilient and productive ocean
promote a sustainable and competitive blue economy, including fisheries and aquaculture
work towards a comprehensive agenda for marine knowledge, research and innovation, and investment.
Further information:
Taina Väre, Senior Adviser
4.5 European Water Resilience Strategy (Initiative 37, Preparedness and Resilience)
The main objectives of the Water Resilience Strategy, promoting the protection and sustainable management of water resources, are commendable. Its three central aims, worthy of support in themselves, are to restore and protect broken water cycles, ensure clean and affordable water and sanitation for all, and promote a competitive EU water industry and a clean, water-wise and circular economy.
It is important to ensure that the further preparation of water efficiency implementation ensures adequate national flexibility, since the estimated climate change impacts would not appear to result in a large-scale water shortage in Finland, for example.
In particular, the objectives on water recycling that may be included in the future strategy will require the possibility to consider national circumstances and the operating environment in order to be truly efficient, functional and resilience-promoting.
In order to improve water industry competitiveness and innovations, it is important to maintain a regulatory environment that supports public-private co-operation in water supply management as well.
Further information:
Tuulia Innala, Senior Adviser
Paavo Taipale, Head of Municipal Infrastructure
5. Protecting our democracy, upholding our values
5.1 Roadmap for Women’s Rights (Initiative 39, Equality)
It is important to realise the Roadmap for Women’s Rights right now, due to several development directions that challenge the realisation of women’s rights in Europe and elsewhere in the world. Europe must lead the way with regard to guarding and developing women’s rights.
In terms of gender equality as well, the actions in different sectors on the local level play a key role in how equality in Europe will develop. When drafting the roadmap, it must be remembered that municipalities already have broad legal obligations to promote gender equality but scarce resources for the task. Women’s growing and strong representation in local level elections and local politics must also continue to be promoted and secured in the future.
Further information:
Maria Salenius, Director, Welfare Issues
5.2 New equality strategies for LGBTIQ (Initiative 40, Equality)
It is good that the rights of sexual and gender minorities are highlighted. There is still room for improvement and a common European value discussion is needed. There should be investments into developing local-level knowhow and making educational material available for, for example, shop stewards. The legislation that concerns Finnish municipalities is up to date.
Further information:
Maria Salenius, Director, Welfare Issues
6. A Global Europe
No immediate municipal impacts from initiatives.
7. Delivering together and preparing our Union for the future
7.1 Post-2027 Multiannual Financial Framework proposals (Initiative 44, Future priority)
The Commission issued a separate communication on the Multiannual Financial Framework for 2028–2034 on 12 February 2025. The communication outlines different policy and budgetary challenges for the financial framework. The aim is to better align the next term’s financial framework with the EU’s objectives and direct funding to EU-level actions that bring the highest added value. The new financial framework is meant to be policy-based and focus on the following themes: sustainable prosperity and competitiveness, defence and security, democracy and social fairness.
The objective of the next financial framework term is a more efficient and impactful financial architecture. A central reform will be plans for each country (Single Plans), which will link key national reforms with investments where EU action is most needed. A positive message from the perspective of Finnish cities, municipalities and regions is that a strengthened cohesion and growth policy should be planned and implemented in partnership with national, regional and local authorities. The Association of Finnish Cities and Municipalities has drafted separate advocacy priorities for cohesion or regional policy that are based on Finland’s Treaty of Accession as well as on principles of multilevel governance and a place-based approach for the entire Finland. Strengthening regional economic development and investments is very much a security question as well, influenced by the changed geopolitical situation.
A European Competitiveness Fund will support strategic sectors and technologies that are critical to competitiveness and important projects of common European interest, including research and innovation. The Union’s external action financing will also be revamped, the rule of law protected and revenues increased especially via new own resources.
There is a plan to expand the banking and capital markets union into a savings and investment union. This is a complex issue.
Cities and municipalities have the opportunity to share their views in the preparation of the new financial instruments by participating in the Commission’s thematic consultations in spring 2025.
The Commission has announced that it will present the multiannual financial framework in July 2025. Regulation proposals are expected in autumn 2025.
Further information:
Annukka Mäkinen, Development Manager; Jari Vaine, Senior Adviser
7.2 An EU fit for enlargement: policy reviews and reforms (Initiative 45, Future priority)
The Commission states that enlargement is both a political and geostrategic necessity. The Commission proposes that the EU increase its support for the Western Balkans, Moldova, Georgia and Ukraine, so that they can prepare for EU membership in the next term. The accession process continues to remain merit-based and depends on meeting the benchmarks set for each candidate nation. The Commission work programme includes the drafting of expansion estimates that examine the impacts of expansion on different fields of EU policy and the needs to develop operations and governance. The Association of Finnish Cities and Municipalities will monitor the situation and examine different development alternatives and expansion impacts, particularly on regional and growth policy and the common agricultural policy.
Further information:
Annukka Mäkinen, Development Manager
For more information, you can contact our specialists

Ulla Karvo
EU Affairs Manager
+358 9 771 2523, +358 50 512 2232
Responsibilities
- enhancing and coordinating the Association’s EU lobbying in Helsinki together with the International Affairs Team
- coordinating the preparation of opinions to the EU
- acting as coordinator for the Committee of the Regions
- supporting the Brussels Office and developing its operations together with the Office’s director

Ilari Havukainen
Director, Brussels Office
+358 9 771 2408, +358 50 464 3408
Responsibilities
- EU lobbying
- advocacy in Brussels