More cities and less bureaucracy in the EUI’s fourth call

The European Urban Initiative (EUI) launched its fourth call for Innovative Actions (EUI-IA) this Wednesday, endowed with €60 million from the European Regional Development Fund (ERDF), introducing significant changes that mark a turning point compared with previous editions. The instrument retains its core purpose: to fund pilot projects testing innovative solutions to specific urban challenges. This new call, however, shifts the focus towards practical local implementation, broadens access to small and medium-sized cities and simplifies the financial framework in order to facilitate the participation of municipalities with less experience in managing European funds. The deadline for submitting proposals is 15th June 2026.

“This call marks a change of approach,” says Antonio Barrios, consultant in the Cities and Regions area at Zabala Innovation and head of the EUI call for the firm. “Urban innovation is no longer assessed on the basis of its novelty at European level, but rather on its real capacity for implementation in the local context,” he adds.

Greater accessibility and focus on intermediate cities

One of the main changes is the reduction of the population threshold: urban authorities with at least 25,000 inhabitants will now be eligible to submit proposals, compared with the previous requirement of 50,000. In addition, cities that have already received funding under the first three calls will not be eligible as beneficiaries.

“It is not merely a matter of eligibility. With this redesign, the European Commission is sending a strategic signal: the EU’s economic, social and climate transformation does not depend exclusively on major capitals. Small cities are key to territorial cohesion and competitiveness,” Barrios notes.

Local, realistic and transformative innovation

The call broadens the concept of urban innovation. It is no longer limited to technological solutions, but also encompasses new governance models, public services, organisational processes and forms of public–private collaboration. This cross-cutting approach is structured around six main priority areas:

• Competitiveness, digitalisation, innovation and investment
• Social inclusion and equality
• Security, protection of public spaces and preparedness
• Affordable, sustainable, high-quality and inclusive housing and buildings
• Climate action, environment and clean energy
• Mobility

“Innovation is not an end in itself. What the EUI-IA call assesses is whether the solution tangibly improves the way a city addresses a real problem,” Barrios explains.

New timeline structure: pressure on delivery

The total project duration will be 30 months, divided into three months of initiation, 24 months of implementation and three months of closure. “This framework reinforces the importance of operational feasibility,” Barrios stresses, warning that “many applications fail due to weaknesses in delivery rather than a lack of innovation. Public procurement, permits, scheduling and results measurement are decisive factors, particularly where infrastructure investment is involved.”

Simplified and more predictable financial framework

Each project may have a maximum budget of €2.5 million, of which up to 80% may be financed through the ERDF, equivalent to €2 million. The remaining 20% must be provided locally.

On the financial side, key new features include:

• Advance payments
• A combination of real costs and lump sums
• Simplified cost options (hourly rates and unit costs)

“These measures aim to reduce the administrative burden and improve budget predictability, especially for cities with less experience in managing European funds,” Barrios underlines.

Partnership architecture: a decisive element

The call requires a clear governance structure, with an urban authority acting as project leader and bearing overall responsibility, supported by delivery partners – companies, universities, technology centres or operators responsible for technical implementation – as well as strategic stakeholders ensuring legitimacy, uptake and sustainability. The latter influence the project but do not play any direct role in its implementation, have no allocated budget and are not considered partners. “It is not about adding more entities, but about clearly defining who decides, who delivers and who maintains the solution once the pilot has ended,” Barrios points out.

Zabala Innovation’s recommendations

Zabala Innovation’s Cities and Regions team emphasise that success in the EUI-IA call depends less on the originality of the narrative and more on the technical and strategic robustness of the proposal. In this regard, they recommend that interested cities begin structuring their applications as soon as possible on solid operational foundations.

Proposals should start with the precise identification of a specific urban problem, supported by data, and clearly justify the innovative nature of the solution in relation to current practice. It will also be essential to adopt a place-based approach tailored to the city’s specific context, incorporate citizen participation mechanisms aligned with the principles of the New Leipzig Charter, and demonstrate transformative capacity and consistency with local urban strategies.

In addition, the European Commission will place particular emphasis on clarity in governance and delivery: building a minimum viable partnership, defining responsibilities from the outset and designing the implementation before crafting the narrative. Replicability and long-term sustainability, conceived as a transferable model for other cities, will also be determining factors.

“The EUI-IA call does not fund abstract ideas but delivery capacity,” Barrios concludes. “Cities that start working now on governance, operational planning and strong partnerships will have a competitive advantage in 2026.”