Urban areas are becoming more important for economic activity, especially when they work together with their surrounding regions. Small and medium-sized towns can compete with big cities by collaborating instead of competing. The EU emphasizes the need for cities to work together and strengthen their connections. The state's role in urban development has changed, with a focus on cooperation and international connections. The city of Győr in Hungary faces challenges in its development compared to other European cities. Successful city-regional models in Europe provide insights into how cities can improve their governance and economic prospects.