The State of Local Infrastructure Investment in Europe: EIB Municipalities Survey 2024–2025

Are European municipalities ready to lead the green and social infrastructure transition? The EIB Municipalities Survey 2024–2025 sheds light on this key question by analysing data from over 1,000 municipalities across the EU.

📌 Key findings:

• 56% of municipalities plan to increase investment in climate mitigation, and 53% in social infrastructure (e.g. schools, hospitals, affordable housing).
• Financing gaps and regulatory delays remain the top barriers to implementing local infrastructure projects.
• Shortages of technical and environmental experts continue to hinder progress—particularly in less developed and transition regions.
• A growing number of municipalities rely on EU grants and financial instruments, with 83% citing EU support as essential for planned investments.

While most cities still use own resources and national transfers, the share of municipalities turning to EU-backed financial tools—like guarantees or blended finance—is increasing rapidly.

📊 The report also tracks progress on the green and digital transition:

• Around 50% of municipalities are investing in both areas, but regional and size disparities persist.
• Larger and wealthier municipalities are more likely to adopt advanced digital tools and smart infrastructure.

The survey confirms the rising role of local public investment—which accounted for two-thirds of total government investment growth in the EU in 2023. But reaching climate and digital goals will require stronger coordination, skilled staff, and easier access to funding and technical support.