Urban sprawl is the reality for two out of three people living in Europe, as Europe’s cities increasingly become economic powerhouses for jobs and opportunities. Around 80% of Europe’s energy is used by city dwellers, who also contribute around 85% of the continent’s GDP. In the latest edition of Real Economy, Euronews examines the role of smart cities in dealing with critical urban issues like economic hardship, housing, transportation and pollution. Smart cities connect humans, society, information and communication technology. These connections help a citizen to know, for example, when his or her bus to work will arrive or to find a parking space. They enable municipal authorities to control traffic to decrease congestion, light street lights at the right time or warn about pollution levels in real time. Europe has put urban development at the heart of its plan for 2020, with a significant chunk of European regional development funds earmarked to help smart cities, along with other funds that can be mixed and matched by cities and national governments.