In this paper sustainable management of European cities in contemporary business environment is analyzed. Recognition of culture diversity and market responsiveness are of substantial importance for new context of urbanization. Economic cooperation among cities is executed in the framework of integrated strategic planning and upgraded sustainability principles. Global climate change and economic restructuring are becoming a wider concern for future cities development. Heterogeneous urban growth is the main constraint for demographic reforms. The focus is on creating management paradigm based on innovative business models, which describes how the ideas should be pursued in European urban settings. The management approach of flexible adjustments that influences the new strategic path development and modification of ongoing structural issues is observed. In order to fulfill the role of privileged location, sustainable city needs to intensify the flow of capital, goods, know-how and value. The paper emphasizes evolutionary concepts of urban transformation management. High prosperity and poverty reduction are highlighted in terms of social justice, geographical and inter-generational equity. The aim of making a “Fair Share” cities includes efficient waste management, energy supply and resource based decision making. The relationship between urban economic viability and patterns of green land investments is considered. Long-term prospects of European regional integration, along with urge for high edge city maintenance, are shown. Land use, access to services and population density present urban issues that indicate strong European commitment to form urban innovation areas. The paper sums up most significant advantages of European capital cities, that make them leaders in the global market.
