There are significant cracks appearing in the European Union. Economic and banking challenges, substantially different employment rates and economic prosperity, a growing back-lash to immigration policies and a restless social structure in several countries are combining to endanger the EU's future.

In the United Kingdom the debate has become particularly virulent. After barely surviving the Scottish Independence referendum, the future of the UK with the EU is under increasing attack by UKIP the United Kingdom Independence Party which wants to rebuild the moat around Great Britain and withdraw from the European Union.

Next year's general election will be a critical moment in the future of the UK. What is not likely to be controversial amongst the three main parties is the need for a significant change in how the UK's main cities are financed and operated.

During a visit last month, I was able to study some of the problems facing cities in Great Britain. As a residue of the Thatcher era, cities in the UK were stripped of most of their authority. Now there is growing realization that cities are an economic driver, and their governance limitations and the paucity of their sources of financing need to be reconsidered.

The Cities Growth Commission recently released a report on how to spur growth in the UK's 15 largest cities. It concluded that devolution of more powers from Westminster could produce an economic boost of more than $100 billion dollars for the economy. That would represent an increase of 5% on their GDP.

An Economic Statement is expected later this fall from Chancellor of the Exchequer George Osborne that will propose some devolution of powers and grant greater ability by some municipal regions to keep more of the money that cities raise generally what are called business rates' (a tax on non-residential property). The problem has been that most of the revenue raised locally had to be sent to the federal government, and was then redistributed to municipalities.

It is a cumbersome, inefficient and unfair system. UK cities have been underfunded for some time, and have shockingly limited governance authority. In an increasingly global business climate where cities are in a fight for attracting talent and investment, many UK cities (other than London) have been at a significant disadvantage.

There is a particular push to develop a Northern Powerhouse' of Manchester, Liverpool and Leeds to provide a counter to London's economic clout. Great Britain does have a Parliamentary Secretary responsible for Local Government, and he has been calling for allowing cities to retain up to 90% of local revenue raised.

This federal consideration of urban needs is something that Canada should be considering once again. Decades ago we had a federal Ministry (or Secretariat) for Urban Affairs, Housing and other local issues. Today in the House of Commons, who is fighting for our towns and cities? Who is the federal voice for urban growth and development? For rural Canada?

This is symptomatic of a problem facing all Canadian municipalities the lack of attention from the federal government. When you look at federal support for municipal sustainability and prosperity around the world, Canada ranks as one of the poorest.

Cities are simply too important to the economic and cultural prosperity and success of any nation for them to be ignored by a federal government. Canada risks slipping as global urban development explodes around the world if our cities don't get more help for badly needed infrastructure investments. 

Like Great Britain, we need to rethink the relationship between municipalities and the federal government, which in Canada is almost non-existent other than the Gas Tax, Building Canada fund and occasional short-term infrastructure programs or special grants. 

Then we can tackle the even thornier problem of confronting the taxation and governance problems facing municipalities and their 13 different provincial and territorial masters.

Canada's towns and cities have to become more aggressive in their inter-governmental relations. Our nation's future prosperity depends on it.