ABSTRACT
European urban development is progressively challenged by ongoing processes of globalisation, the shift towards a knowledge-based and technology-driven economy, increasing mobility of production factors, demographic change, European integration, accumulation of social and environmental problems and traffic congestion. Cities have to operate in an increasingly complex and competitive environment. Urban competition seems to have become the leading principle to determine the future urban system in Europe (Brotchie et al., 1995; Kresl, 1995; Cheshire and Gordon, 1995; and many others). Cities need to anticipate and respond efficiently and effectively to opportunities and threats that influence their competitiveness structurally. City governments develop policies to try to meet these challenges, but at the same time higher layers of government pursue policies that influence the position of the cities. National governments – and regional governments in federal states – draw up financial and policy frameworks that establish the social, economic and political conditions for cities to design their own policies. Apart from the influence of national governments, EU cities are increasingly affected by supranational policy, notably regional, social, transport and environmental policy.
