PRO M OTING R E FU G E E I NT E G RAT I O N A ND I NC LU SI ON : E M P OW E R I N G M U N I C I PA L I T I E S AC R OSS E U R OP E P R O MOT IN G R E FUGE E IN T EG R ATIO N AN D IN C LUSIO N : EMP OWE R IN G MUN IC IPAL ITIES ACROS S EUROPE Contents Executive Summary 3 Overview4 Integration & Inclusion in Municipalities throughout Europe – Regional & country snapshots 5 REFUGEE INCLUSION & INTEGRATION: MAIN ISSUES AND CHALLENGES FOR MUNICIPAL GOVERNMENTS6 1. Funding  2. Housing  8 3. Opportunity concentration: Municipalities facing over-saturation, or declining populations 10 4. Coordination, and developing holistic integration policies 12 5. Data and achieving an evidence-based approach  14 RECOMMENDATIONS TO ENHANCE INCLUSION OF REFUGEES IN MUNICIPALITIES ACROSS EUROPE 18 On Data 19 On Housing 20 On Funding 22 On Opportunity Decentralization 23 On Alliances and Partnerships  23 Conclusion24 PROMISING PRACTICE IN EUROPE25 Endnotes32 Executive Summary Municipalities have played a defining role in the inclusion and local integration1 of forcibly displaced and stateless people in Europe in recent years, continually taking the lead in the short and longerterm response to large-scale refugee influxes. This brief examines the policy reforms and new institutional practices needed to better sustain integration efforts and enhance capacities for inclusive local development. It focuses on five persistent challenges which UNHCR has recurrently encountered at the municipal level, based on its on-the-ground daily interactions with local governments, other frontline local actors, and refugees2 throughout Europe. These include access to affordable housing, sustaining holistic integration and inclusion policies in the long-term, and access to funding. Moreover, it draws attention to the clear pragmatic dimensions and business case for more sustained and effective support for municipalities on socio-economic inclusion, particularly given the interest refugees have in contributing to their host communities and economies in the face of Europe’s shrinking labour force and ageing population.3 While much has been written on the role of municipalities in the integration of newcomers, this often has a limited geographic scope, or does not focus on forcibly displaced and stateless people. As it is often challenging for local actors to obtain a full overview of relevant publications on the topic of refugee inclusion at the local level, this policy brief provides a synthesis of pertinent studies and up-to-date policy guidance by experts in this field, while making reference to relevant resources for local4 actors to consider and engage with further according to their priority areas, along with practical tools and methodologies for ensuring the meaningful participation and effective inclusion of refugee communities. It also offers a selection of workable solutions – particularly around housing – based on concrete experiences and recommendations, that might inspire authorities in search of innovative initiatives from across the continent that they could consider implementing or scaling up where relevant. While municipalities are the focus of this brief, the refugee situations they grapple with are situated within complex, structural challenges related to the cost-of-living crisis and the asymmetric distribution of populations and opportunities within national territories, among others. These require coordination across levels of government and support from supranational and development actors, including the private sector. As such, this policy brief contains general information, guidance, and recommendations for a broad ensemble of actors needed to maximize the potential for refugee inclusion and the overall development of cities and towns across Europe. Contact us: UNHCR Regional Bureau for Europe Email: rbeext@unhcr.org Cover photo: Paulo Alexandre Fernandes, the Mayor of the small Portuguese city of Fundão, poses back to back with Sediqa Danish Nawrozi, a 29-year-old refugee from Afghanistan who worked as an intercultural mediator for fellow Afghans in the city under a project called “Fundão MEDEIA” implemented with support from the European Union. ©UNHCR/Ana Brigida. For more on Fundão’s work on refugee integration, see page 11. 2 UNHCR REGIONAL BUREAU FOR EUROPE, AUGUST 2024 UNHCR REGIONAL BUREAU FOR EUROPE, AUGUST 2024 3