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EU Financing Architecture in a Nutshell

The EU financing architecture for local mobility and urban transport in the period 2021-2027 (Recovery Plan for Europe) rests upon two central pillars. 

Firstly, the Multiannual Financial Framework 2021-2027 (€1.2 trillion) is a “traditional” EU budget with financing based on EU own resources. The Multiannual Financial Framework (MFF) is the financial planning tool of the EU.

It gives an overview of the EU’s budget priorities from a budgetary perspective, with a primary objective being to ensure the orderly development of expenditures in line with EU priorities, and within the limits of the EU resource base.

Secondly, the Next Generation EU 2021-2023 (€807 billion) is a temporary recovery instrument with financing based on periodical borrowings on capital markets.

Regarding the EU financing typology, there are three main strands of support for local mobility and urban transport, with the two last strands representing reimbursable (repayable) forms of financing, often in the form of debt instruments such as loans:

  • EU grants (non-repayable forms of funding)
  • EU financial instruments
  • European Investment Bank (EIB) financial instruments

The Next Multiannual Financial Framework (MFF) 2028–2034

The Multiannual Financial Framework 2028–2034 will set the EU’s long-term budget and define the priorities that will shape the future of transport and mobility. Its impact on the public transport sector is substantial, influencing the scale and direction of EU investments in sustainable mobility, innovation, and infrastructure, while supporting the transition to a green and digital economy.

UITP has recently published a Position Paper on the MFF 2028–2034, calling for a bold, forward-looking framework that places local public transport at the centre of Europe’s climate, competitiveness, and social ambitions.

With city budgets under increasing pressure and the need for urgent climate action, the next MFF must prioritise sustainable urban, local, and regional passenger transport as a long-term investment in both people and the planet.

Interactive EU Funds Table

Our interactive table will provide you more details about selected EU funding or financing opportunities.

Just click on your Fund of choice to get more information.