The topic of this master thesis is the possibility of improving public urban rail transport in Zagreb with the use of EU funds. The master thesis tries to bring the topic of public city transport and its importance in the daily functioning of the city in general, and in this research the city of Zagreb is used as an example. The development of Zagreb's public city transport is presented, as well as its advantages, disadvantages and problems that have arisen due to the fact that public city transport has stopped following the development of the city, its expansion and population growth. In its activities, European Union encourages the development of public urban transport and finances numerous activities in public urban transport and transport in general. These possibilities are described in the thesis, providing, among other things, an overview of programs and funds available to the Republic of Croatia as a Member State. In order to present the activities of the European Union in more detail, to gain insight into the implementation and financing of such projects, and to perhaps provide inspiration for projects in the City of Zagreb, examples from other Member States and the cities of Sofia, Thessaloniki and Krakow are used. Based on examples of good practice, the possibilities for Zagreb are listed and existing and future projects are presented. In addition to the case study, interviews with independent traffic experts and surveys of public transport users have been used for the research, and consequently their results are discussed and interpreted. In conclusion, much larger investments in public city transport are needed. There are ideas and possibilities, and with the help and support of the European Union through funds and programs, it is possible to co-finance such projects up to 85% of the total project value.