Apart from the Melina Mercouri prize, host cities can also access other sources of European funding.
Your city may be eligible for urban development funding under the EU's regional funds, in particular:
Financing from these Funds is allocated to "managing authorities" in every eligible EU country and then shared between regions on the basis of priorities.
Find the managing authority for your region
Cultural bodies/performers etc. participating in the event may also be eligible for funding under the EU culture programme.
You may also be able to secure EU funding for Capital of Culture events under the following:
Summary of the 25 year anniversary conference [2 MB] on the European Capitals of Culture
The brochure: the road to success from 1985 to 2010 [8 MB]
European Capital of Culture for the years 2007 to 2019