The opening-up of eastern Europe invites new competitors to the cities of the Union. At
the same time the difference in the standards of living between the west and the east have
induced a lot of people from eastern Europe to come to the west in search of a better
living. The majority of them have settled in the larger cities.
Changing urban economic structures
Along with globalisation, the economic structure of cities in the European Union has
changed considerably in the past decades. Industrial activities no longer dominate the
urban economy; a whole array of other activities (such as trade, financial services,
commercial services, cultural activities, etc.) have taken their place. Technologically
advanced industries are thriving on the intense networks of small and medium-sized firms
found in the so-called industrial districts. Indeed, competitiveness in these sectors is still
to some extent dependent on a city or region, but the initial advantages might have been
developed just as well at other locations. Moreover, such highly dynamic markets are
subject to rapid changes. The initial chances of cities have become somewhat more equal
and it is up to them to make capital out of these opportunities.
The advancement of urban networks
Competition implies that cities will concentrate more on their core competencies, which
will induce a process of further spatial specialisation in Europe. Cities are also becoming
more interdependent. In effect, one can expect competition to induce the ’competitive’ city
but at the same time to give rise to the ’complementary’ city. Growing interdependency
among cities implies the advancement of urban networks. The expectation is that the
scope and importance of functional urban networks linking for instance logistic nodes or
urban financial centres, will increase further. Besides cities get together to apply for
European funding or for exchange of experiences and ‘best practices’ in specific areas
such as networks for sustainable cities, car free cities, tele-cities, etc.
Accumulation of unemployment, poverty and deprivation in the larger cities
Societal problems such as unemployment, poverty, crime, youth delinquency, lack of
education and social deprivation accumulate in (parts of) urban areas. In many of the
larger European cities a separation is defining itself between a dynamic segment of the
population that shares in the new economic and social progress, and another that cannot
share and as a result falls into economic and social exclusion. Such a concentration of
distressed groups is especially manifest in cities that have been hit by industrial decline,
but also in cities that have managed to reverse the downward economic trend. The
accumulation of different but connected problems in the larger cities poses a clear threat
to a balanced urban development and hampers the cities in their function as motors of the
national economy.
Increasing attention for sustainable development
Closely bound up with the rise of welfare and the changing aspiration levels of European
citizens is the rising importance that is attributed to the environment. The rising
environmental awareness has promoted the idea of sustainable urban development, a
development that provides for the needs of the present generation without jeopardising