Municipalities that agree to take in asylum seekers should be strengthened with a financial incentive. To this end, we propose the establishment of an EU fund to which municipalities can apply directly for financial resources. Beyond the costs of reception and integration, municipalities can receive funds in the same amount for their own municipal development.

Cities and municipalities are central actors in the reception of migrants and protection seekers. They are responsible for providing housing, integrating them into the local labor market, and providing social services such as healthcare, childcare, and education. At the same time, they are notoriously underfunded and excluded from most EU decisions on asylum and migration policy. Yet, in recent years, many municipalities across Europe have declared their willingness to voluntarily receive additional migrants and refugees and have shown their willingness to participate in Euroepan relocation from Europe's external borders. Although municipalities do not have the legal authority to directly participate in relocation programs, their willingness to host refugees could be used to break the political deadlock at the European level. To do so, they need to be supported with adequate resources by the European Union, among other things.
As a way to support voluntary reception by municipalities, we propose the establishment of an independent European "Integration and Development Fund" from which municipalities could receive reimbursement for reception costs and the same amount for their own municipal development. Such an innovative combination of integration and community development measures would provide municipalities with adequate funding and transform the reception of refugees from a financial burden into an opportunity for sustainable development at the local level. This fund can give cities an incentive and greater leeway to engage in humanitarian, sustainable, and inclusive solutions. Especially in times of rising anti-migration sentiment and the reluctance of EU member states to engage in intra-European refugee redistribution programs, this municipal approach offers a new perspective for progressive European solidarity.
However, the joint financing of urban development and integration in a common fund and the direct transfer of EU funds to municipalities and cities raises legal and practical questions. Do the EU treaties allow for such a fund? And how must it be designed to be a useful and accessible instrument for both large and small cities and municipalities? To discuss these legal and practical challenges and possibilities, we have commissioned a legal opinion together with the Friedrich Ebert Foundation and discussed it with European actors and legal experts.
There are also limited opportunities for cities and municipalities to apply for direct EU funding for reception and integration costs. However, the procedure is often complex and the effort for municipalities is very high. In a policy brief, we provide an overview of the various EU funding mechanisms in this area.
2020 - 2022
Giulia Fellin, Johannes Krabbe, Malisa Zobel
Friedrich Ebert Foundation Brussels