Cities Forum 2025: What’s Next for European Cities?
The 2025 Cities Forum in Kraków brought together urban leaders, policymakers, and innovators to discuss the future of European cities. At the heart of the conversation was the evolving role of cities in EU cohesion policy and the upcoming European Urban Initiative. Here are our key takeaways.
- Cities as Strategic Partners in EU Policy
European Commission Vice-President Raffaele Fitto emphasized that cities will play a central role in the next programming period starting in 2028. The vision includes simplifying funding instruments and empowering cities to lead innovation and development. The upcoming Multiannual Financial Framework, expected in July, will reveal how this vision translates into action.
- Green Transition Meets Competitiveness
Forum discussions highlighted the importance of aligning the green transition with economic competitiveness. The EU’s cohesion policy mid-term review reinforces this by prioritizing R&D, closing innovation gaps, affordable housing and public safety. The message is clear: sustainability and growth must go hand in hand. From the perspective of InnoCities, we welcome this message.
- Affordable Housing: A Pan-European Challenge
While affordable housing may not dominate Finnish urban debates, it is a pressing issue across Europe. According to the latest Eurobarometer, 51 % of urban Europeans see it as an urgent problem—compared to 29 % in Finland. In Finland, the focus is more on improving public services and economic opportunities.
- Funding and Influence Go Hand in Hand
The Forum emphasised the need for simple and flexible funding for urban development. Proposals include allocating at least 15 % of cohesion funds to urban development and using the European Urban Initiative (EUI) to channel national funding. The EUI could also award a “Seal of Excellence” to high-quality but unfunded projects, boosting their chances of securing national or regional support.
- Deep Tech and Urban Innovation
Cities are increasingly adopting deep technologies—AI, digital twins, IoT, AR/VR, blockchain, and big data. A study by ThoughtLab, Deloitte, ServiceNow, and NVIDIA found that 56 % of global cities already use AI, and 86 % of the rest plan to do so within three years. Helsinki and Tallinn were highlighted as European leaders in this space.
- Technology Adoption Is an Organizational Challenge
As Martin Brynskov from the University of Copenhagen noted, deep tech solutions aren’t off-the-shelf products—they must be tailored to each city’s needs. Implementing them requires organizational change, not just technical upgrades. Data management is crucial, yet many cities struggle to turn collected data into actionable insights.
- From Projects to Scalable Solutions
Many urban innovations remain confined to individual cities due to project-based funding. While public projects are valuable learning tools, long-term solutions must be implemented beyond project frameworks. The call to action: “Use public money for purchasing the future.”
Final Thought:
The Cities Forum made one thing clear: the future of Europe’s cities lies in their ability to innovate, collaborate, and lead. As Tallinn’s Deputy Mayor Margot Roose put it, “We need to move faster.”
