Regions and cities across Europe expect to increase public investment in transport infrastructure, environmental protection, housing and education over the next few years, according to a joint consultation by the OECD and the European Committee of the Regions (CoR).
The consultation also asked local and regional authorities about broader priorities linked to long-term change, with 45% of respondents expecting the strongest rise in investment tied to the digital transition and 35% pointing to the climate transition, the CoR informed in a statement on Sunday.
A further 26% expected increased investment linked to population ageing and shrinking, including age-friendly infrastructure.
Funding constraints remained the most frequently reported obstacle to investment, with 77% citing mobilising grants and subsidies as a major or moderate challenge.
Raising their own revenues was flagged by 73% of respondents, while 66% pointed to difficulty accessing external financing.
Co-ordination and red tape cited as constraints
Co-ordination between different levels of government was also identified as a barrier, with 76% of respondents saying “vertical co-ordination” — co-operation between local, regional and national authorities — constrained investment, the CoR said.
Regulatory and administrative processes were cited by 73% as a problem.
The consultation found that efforts to address national-level barriers were less widespread than steps taken internally by subnational authorities, with about half reporting measures to better align responsibilities with fiscal capacity, and 55% working to reinforce vertical co-ordination.
Separately, 73% of respondents said they were pursuing or considering measures to enhance transparency, make better use of public procurement — the process public bodies use to buy goods and services — and strengthen public-sector expertise.
The consultation ran from 15 May to 31 October 2025 and received 215 responses from representatives of subnational governments in 22 EU countries, the OECD and CoR said.
