Regions Cities Of Europe

ISSN 1681-3235

REGIONS CITIES OF EUROPE

NEWSLET TER OF THE COMMIT TEE OF THE REGIONS

No 63 February-March 2009

Special report on the European Summit of Regions and Cities — Prague, 5–6 March 2009 Luc Van den Brande on the political programme of the Prague Summit Hans-Gert Pöttering on the European elections Philippe Maystadt on business initiatives for coping with the financial crisis

Also in this issue: The responsibilities of CoR members: Herwig Van Staa, President of CALRE 15 years of the Committee of the Regions: Isidoro Gottardo and Jean-Louis Joseph A success story: ‘Structured dialogue’: a bridge between the European Commission and associations of local and regional authorities

➔ Editorial

The regions and cities in Prague: partners for and in Europe The Committee of the Regions intends to make its mark on the EU calendar by holding a European Summit of Regions and Cities on 5 and 6 March 2009 in cooperation with the city of Prague, the capital of the Czech Republic, which currently holds the six-month presidency of the European Union.

Luc Van den Brande President of the Committee of the Regions

This summit is set to take place on the eve of the European Spring Council, which Heads of State or Government consider — and even more so this year — to be a key meeting on the issue of regenerating economic growth and job creation. Five hundred mayors and presidents of regions will meet in Prague to demonstrate to the Heads of State or Government their commitment to pursuing European integration. These local and regional representatives will articulate their visions on new forms of governance which should underpin key EU decisions. Key issues for debate and discussion include: the EU budget review, cohesion policy reform, the reform of the common agricultural policy, a sustainable Europe, adapting to climate change, the growth and jobs strategy, mobilising for innovation, energy security and the EU demographic challenges. Local and regional authorities have practical experience to contribute and political messages to pass on to their EU partners. 2009 will be a challenging year for the regions when it comes to financing regional projects and supporting the stability of the banking and insurance sectors. Today, Europe is experiencing the full force of the impact of the financial crisis and the economic fallout. Europe will need to restore confidence through a better regulated and more transparent banking system and prove its ability to re-launch economic growth and create jobs by ensuring SMEs have access to credit. The active participation of all economic and financial partners cannot neglect the need to rely on the support of the cities and regions suffering the economic and social consequences of the world crisis. I am convinced that the ongoing crisis cannot be overcome unless all European political representatives, at all levels, take the decisions required to stabilise the economy and work together to find local and regional as well as European solutions. Cities and regions are best placed to boose the economy, guarantee social cohesion and bring citizens on board the European political project. This means that Europe cannot impose itself on its citizens but should build itself

from the ground up and focus on improving the areas where people live and work. Europe will achieve sustainable growth and employment through balanced and harmonious regional development And it is through sound governance rules based on partnership, i.e. rules that guarantee that responsibilities are shared between the local, regional, national and EU authorities, that Europe will succeed in putting the most effective economic solutions into practice. Regions and cities help Europe to move forward and reinforce European cohesion and European competitiveness. Innovation and creativity are born in the regions and the cities, jobs and growth are created in the regions and cities, and solidarity and social cohesion are built in the regions and cities. Europe finds its strength in its cities and regions. In many respects, 2009 will be a year of new beginnings. The financial crisis has taught us the need to work together towards a common goal, i.e. to guarantee stability and prosperity for as many people as possible. This has always been an EU objective. The Prague Summit will send out a clear and positive message to EU citizens. The European Union, with its single market and currency, is a major asset for its 27 members when it comes to overcoming this financial crisis, provided that it becomes strong in political terms and sends out tangible signals. This is why Prague was a symbolic choice to host the summit. As Europe commemorates the 20th anniversary of democratic change in Central and Eastern Europe, Prague is a clear symbol of Europe’s proven ability to rise above its divisions. Today, Europe is building itself on its citizens’ freedom tosettle and work in 27 Member States. Tomorrow, Europe will have to enable its regions to be competitive on the international scene. The European elections, which will be held from 4 to 7 June 2009, represent a democratic challenge which involves more than just the renewal of the European Parliament. They will determine key political, economic and social choices for the years ahead. European democracy starts in the cities and regions. Luc Van den Brande, President of the Committee of the Regions

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European Summit of Regions and Cities, Prague, 5–6 March 2009 ➔

European Summit of Regions and Cities, Prague, 5–6 March 2009 Every two years the Committee of the Regions holds a European Summit of Regions and Cities in a Member State of the European Union. Following Amsterdam, Wrocław and Rome, the next summit will be held on 5 and 6 March in Prague, at the invitation of Mayor Pavel Bém, who is also Vice-President of the CoR. This summit comes at a crucial time for democracy in the European Union. It comes just before the European Spring Council, where discussions will focus on the implementation of EU measures to tackle the economic and financial crisis and the necessary re-launch of the European growth and jobs strategy.It also precedes the

renewal of the European Parliament and the European Commission by a few months. As a result, it will provide an opportunity to present the point of view of European regions and cities on the pressing challenges ahead. Five hundred mayors and presidents of European regions will come together to send a political message to the Heads of State or Government. On this occasion, Luc Van den Brande, CoR President, will welcome Mirek Topolánek, Prime Minister of the Czech Republic and President of the European Council, and José Manuel Barroso, President of the European Commission.

Go to www. PragueSummit2009. eu, for further information on the summit programme and an online registration link. Please note that participation in the summit is by invitation only.

Pavel Bém, Mayor of Prague: ’The central theme of the summit will be cohesion policy in Europe today and, above all, the future of the European Union. It is a policy whose effects are felt particularly by those of us at local and regional level on a daily basis. At this summit, we shall try to identify together the direction in which we want to move forward with this common European policy, whose primary aim is to bolster the least developed areas of Europe. The purpose of the summit is to provide a forum for all those of you who want and have something to say about the cohesion policy of the future, and I am greatly looking forward to the findings and initiatives that will come out of this meeting. I would like to invite you to take part in the programme of events which will be taking place on the streets of the centre of Prague over the two days of the summit, and which will acquaint both local residents and visitors alike with the most valuable resource we have — the cultural diversity of Europe’s regions.’

Programme

Thursday, 5 March

Friday, 6 March

2 p.m.–6 p.m.: Meetings on ‘Global challenges and territorial policies’, attended by:

9 a.m.–9.45 a.m.: Formal political opening, attended by:

t
Claudio Martini, President of CPMR t
Michaël Schneider, Chairman of the COTER Commission t
Omar El Jazouli, Mayor of Marrakech t
Indermit Gill, World Bank, Director of the 2009 World Development Report t
Jan Olbrycht, MEP 7 p.m.: Official opening of the summit at the Municipal headquarters (Obecní dům)

(At Žofín Palace)

t
Mirek Topolánek, Prime Minister of the Czech Republic, President of the European Council t
José Manuel Barroso, President of the European Commission t
Luc Van den Brande, President of the Committee of the Regions t
Pavel Bém, Lord Mayor of the City of Prague t
Philippe Maystadt, President of the European Investment Bank 10 a.m.–12.30 p.m.: The Prague Summit work sessions will focus on two themes: ‘Europe will grow with its regions and cities’ and ‘Sharing responsibility, making partnership concrete’ and the adoption of the summit conclusions 1 p.m.–2 p.m.: Televised debate on ‘The challenge of the European elections’, with the participation of the leaders of Europe’s major political groupings

REGIONS AND CITIES OF EUROPE ➔ FEBRUARYMARCH 2009

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➔ European Summit of Regions and Cities, Prague, 5–6 March 2009

European elections: ’Regions and municipalities must explain loudly and clearly how financial support from Brussels has made it possible to initiate and complete numerous projects’ The European Parliament elections are approaching fast. What do you expect from the local and regional authorities? EU aid and Structural Funds are distributed mainly at grassroots level in our municipalities. EU funds give rise to, support and develop many local projects. But citizens are often unaware of this. In 2009, I would like regions and municipalities to explain loudly and clearly how financial support from Brussels has made it possible to initiate and complete numerous projects. For the ongoing term alone, i.e. between 2004 and 2009, numerous projects have been accomplished. I am sure that these concrete examples will help generate interest in the European elections. Indeed, this will show clearly that the EU also makes things happen on the ground in very concrete terms.

Hans-Gert Pöttering, President of the European Parliament

Hans-Gert Pöttering (EPP/DE) has been President of the European Parliament since January 2007. In 2009, as occurs every five years, elections will be held to renew the European Parliament towards the middle of the year. In this interview he recalls the role of local and regional authorities in helping EU citizens understand how Europe affects their daily lives.

Why is Europe important to the regions? In order to be precise, this sentence should be read both ways since regions are very important to Europe. There can be no conception of Europe without its regions. We have committed ourselves to build Europe on the principle of subsidiarity. We call for as many decisions as possible to be taken at the level closest to the citizen. This is why the Committee of the Regions is becoming more important in the EU institutional framework. Indeed, the CoR is the place where regional interests come together and gain a strong voice in Europe. Furthermore, it is precisely at a time of economic and financial crisis that the European Union and the euro show just how vital a role they play in mitigating the difficulties faced by EU citizens. The solidarity that emerges is an important aspect of EU policy. This solidarity is also put into practice in our regional development programmes. In the past, the latter have mostly helped Europe’s economically disadvantaged regions to reach an EU level of development. Without the EU, many regions would have developed far more slowly.

What are the European Parliament’s priorities until the elections? What projects must the Parliament complete without fail during its current term? We have to find a solution to the Irish ‘No’ to the Lisbon Treaty. The treaty creates greater democracy, scope of action and transparency in the EU. Among other things, the right to local autonomy has been recognised for the first time in the European treaties. The principle of subsidiarity has been strengthened via a new form of monitoring. This is why the Parliament calls for the Lisbon Reform Treaty to be ratified as soon as possible by all Member States. It is in the interest of its citizens that the EU should become more democratic, transparent and have greater decision-making capacity. The package of measures for fighting climate change, which the Parliament and the Council have drawn up, should now be implemented. We are currently working on the reform of financial markets legislation in the hope that a financial crisis like this one never happens again. We are preparing the consolidation of the energy market in order to be able to prevent future price distortions and we are discussing rules for greater maritime security, which should also establish liability in case of accident.

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European Summit of Regions and Cities, Prague, 5–6 March 2009 ➔

Financial crisis: ’In 2009, EUR 15 billion a year will be targeted at some of the regions and sectors hit hardest by the financial crisis’ What is the EIB doing to help Europe respond to the economic and financial crisis? At the request of our shareholders — the 27 EU Member States — we plan to increase our volume of lending this year by 30 % to around EUR 63 billion. We plan to sustain that effort in 2010. The extra lending of around EUR 15 billion a year will be targeted at some of the regions and sectors hit hardest by the financial crisis. Can you be more specific? One fear is that the financial crisis will make banks more reluctant to lend to companies. So, we are increasing our lending for small and medium-sized enterprises, meaning we will, via commercial banks, make around some EUR 30 billion available for SMEs in the period 2008–11. In addition, we are accelerating our lending to less-favoured regions under our convergence objective, with a particular desire to help countries in central and eastern Europe advance their investment plans. We are also increasing our lending in support of the EU’s energy and climate change objectives.

The European Investment Bank The European Investment Bank (EIB) was established by the Treaty of Rome in 1957. Its mission is to further the objectives of the European Union by making finance (loans and guarantees) available for investment in the public and private sectors. These projects and programmes must be viable in four areas: economic, technical, environmental and financial. The EIB is based in Luxembourg and its shareholders are the Member States. The European Investment Fund (EIF) is an EIB subsidiary specialised in improving the financial environment for small and mediumsized enterprises.

REGIONS AND CITIES OF EUROPE ➔ FEBRUARYMARCH 2009

Philippe Maystadt, President of the European Investment Bank (EIB)

Will regions benefit from this extra support? Absolutely. As I have said, we are increasing our convergence lending to some EUR 20 billion a year. Just to give a few examples, projects currently in the pipeline include an urban regeneration fund in the East Midlands in the United Kingdom, an urban transport redevelopment in Komotini, Greece, and an energy efficiency programme for public buildings in the Czech Republic. Can we expect further initiatives? We have decided to modernise and simplify our intermediated loans for local authorities. We are also closely following the Covenant of Mayors proposal. We hope we can use some of the extra funds set aside under our climate change initiative to promote energy efficiency at local level, for example by investing in the renovation of public buildings, social housing or cleaner bus fleets. The idea would be to develop and finance energy efficiency programmes, with EIB products designed to leverage local and regional governments’ limited budgetary resources, including through private public partnership solutions.

The Belgian Philippe Maystadt has been President of the European Investment Bank (EIB), the EU financial institution, since 2000. He will be among the key speakers at the European Summit of Regions and Cities in Prague. In this interview he speaks to us about business initiatives for tackling the financial crisisPhilippe

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➔ The responsibilities of CoR members

Interview with Herwig Van Staa, President of the Tyrol Regional Parliament, member of the Committee of the Regions, President of CALRE You were elected President of the Conference of European Regional Legislative Assemblies (CALRE) in November. What are your views on relations between regional assemblies and the CoR and the European Parliament? Relations between the regional assemblies, CALRE and the CoR are already well developed. One of the strong points of our presidency is that we have established close cooperation with all active regional organisations at the EU level. In this way, we are determined to work together to promote the regionalisation process of the European Union.

For further information on cooperation between the Committee of the Regions and regional and local associations, please visit the CoR website and click on ‘Activities and events’, then ‘Cooperation with associations.

We also intend to continue to cooperate with the national parliaments and the Committee of the Regions in order to monitor the application of subsidiarity in EU legislation, and develop stable relations with all European associations of local and regional authorities in order to influence EU policy. The regions and local authorities have to restore and strengthen their relations with citizens because we are all aware of the fact that we need public support to be able to pursue the unification process of Europe. There is no other alternative. Regional assemblies should be more closely involved in the European decision-making process because they are the ones who have the closest contact with citizens.

The Conference of European Regional Legislative Assemblies The Conference of European Regional Legislative Assemblies (CALRE) was set up in 1997. It comprises EU regional assemblies with legislative powers. This includes a total of 74 regions in 8 countries. Together they represent a population of over 200 million citizens. Since these regions have legislative powers, they are each responsible for incorporating EU directives in their own legislation, and play a strong part in defending the subsiarity principle. Members of CALRE includes: the parliaments of the autonomous communities of Spain; the regional councils of Italy; the assemblies of the regions and communities of Belgium; the parliaments of the Länder of Austria and Germany; the autonomous Åland Parliament (Finland); the regional assemblies of the Azores and Madeira (Portugal); and the assemblies for Wales, Scotland and Northern Ireland (United Kingdom). Regional assemblies are more than a mere expression of a political vision; they are vehicles for a cultural identity and are better placed than any other body to safeguard this identity in the globalisation and unification process. Noticing that regional assembly legislation was not sufficiently apparent in European integration, CALRE sees the EU as a challenge with respect to institutional integration and works to ensure that regional assemblies are recognised as partners in their own right in the EU legislative process. CALRE has also concluded a number of joint action plans with the Committee of the Regions since 2003 for the purpose of establishing more efficiently targeted operational cooperation on shared objectives and activities. CALRE contributes, together with 26 regional assemblies, to the subsidiarity monitoring network.

CALRE is a firm defender of the Lisbon Treaty and the principle of subsidiarity in Europe. What are its main demands? During my presidency, my main concern will be to strengthen the legal position, roles and responsibilities of regional legislative assemblies. The Charter of Regional Democracy is of fundamental importance to the regionalisation of Europe. It guarantees the rights and powers of regions and sets out a widely recognised and binding definition of a European region. This is why we all need to work towards the ratification of this charter by European States. We need to find a way to encourage and strengthen regionalism and regional democracy throughout Europe. In future, I will also apply myself to defending and guaranteeing the rights acquired by regional assemblies under the Lisbon Treaty. Monitoring the subsidiarity and proportionality of EU legislation are among the foremost of these rights. As President of CALRE, I will also step up my efforts to ensure that European regions with legislative powers obtain the right of recourse to the Court of Justice of the European Communities. You are also the CoR rapporteur on ‘Greening the transport sector’. What does the CoR expect from the EU in this area? In my capacity as a CoR rapporteur, I drew up an opinion on the Commission proposal entitled ‘Greening transport’. One of the most important points in this opinion is that the fundamental right to health and a clean environment must not be made subordinate to the unfettered free movement of goods. The CoR also points out the need for a transparent allocation of all external costs such as health, climate change, the environment in general, accidents, the costs of energy production and of vehicle production, maintenance and disposal, impacts on pedestrians and cyclists, land use; and that costs should by borne by the polluter. The allocation of external costs cannot be left to the discretion of the Member States, but instead a transparent system based on appropriate criteria should require Member States to allocate external costs and to invest revenues for a particular purpose. Road user charges should be used to change driving behaviour and encourage the transfer of freight flows from road to rail.

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Activities of the political groups ➔

EPP Fifteen years ago, the CoR held its first ever meeting and the political groups began to organise themselves. Even at this stage, the EPP was the largest political group in the CoR and its Chairman was Jacques Blanc, President of the Languedoc-Roussillion Regional Council in France. Over the years that followed, the EPP has always led the debate for more subsidiarity and a greater involvement of the local and regional level in European decisionmaking. To date, the group has held 12 extraordinary meetings and seminars, thus reaching out to Europe’s cities and regions and viewing first hand their strengths and concerns. In addition, the annual summer university for local and regional media, the EPP/CoR study visit and competitions targeted towards young people have pro-

moted decentralised communication and given citizens an opportunity to speak out. As we approach the European elections, it is an opportune moment to reflect on how much the European Union has brought to our cities and regions and what can be done to strengthen their role in the future. The EPP group is therefore delighted to welcome Antonio López-Istúriz, Secretary-General of the EPP and member of the European Parliament, to its group meeting on 11 February to consider how the EPP members in the CoR can further develop their cooperation with the European Parliament with the aim of bringing Europe closer to citizens.

Antonio López-Istúriz, secretary-General of the EPP and member of the European Parliament

PES As 2009 is a crucial year for European integration, marked by decisive political events such as the European elections, a new European Commission and, hopefully, the conclusion of the ratification process of the Lisbon Treaty, the common thread of the various political and information activities of the PES group for 2009 is ‘Communicating the added value of the EU at grassroots level’. The project of the PES group involves the organisation of a one-day conference in Brussels later this year. It will be complemented by a publication consisting of members’ contributions on tangible examples of the EU’s added value at the local and regional levels. A photo competi-

tion on the same topic is being launched by PES members in their constituencies for young Europeans aged 18–30. They are asked to capture in photographs what European integration has brought in real terms (for instance, through interregional cooperation or the use of Structural Funds) to their regions and cities. Building on the lessons learnt from the current profound financial and economic crisis caused by the failure of unregulated market economy, the aim of the PES group in the CoR is to demonstrate how a Europe that is closer to its citizens can make more of a real difference to people’s everyday lives.

Mercedes Bresso, president of Piemonte (IT) and president of the PESCoR group

UEN-EA During 2009, the UEN-EA group will continue a number of successful projects to promote the CoR and the EU among young people. The group will run its Fourth Annual Secondary Schools Competition, which includes a multiple-choice quiz and essay competition, in the first half of the year. This year there will be a focus on encouraging people to vote in the European Parliament elections. During the second half, the UEN-EA group will concentrate on primary schools with initiatives to pro-

mote the EU and members’ work in the CoR. Finally our group will also organise an event which will highlight the ‘Marketplaces of Europe’. Details of all events will be on our website (www.uen-ea.cor.europa. eu).

ALDE At the invitation of Jens Arne Hedegaard, ALDE member and Deputy Mayor of Brønderslev Kommune, the ALDE group in the Committee of the Regions organised a seminar ‘All European politics is local’ alongside the Venstre Party Congress on Friday 14 November. ALDE-CoR President, Flo Clucas, was invited to meet the Danish Prime Minister, Anders Fogh Rasmussen, and present him with the resolution drawn up by the seminar partici-

REGIONS AND CITIES OF EUROPE ➔ FEBRUARYMARCH 2009

pants. In his address to the congress, Fogh Rasmussen welcomed the initiative of the ALDE-CoR group and reiterated his government’s commitment to subsidiarity and decentralisation.

Winners of the 2008 Annual Secondary Schools Competition, during the CoR Plenary session

ALDE-CoR President, Flo Clucas, meeting Anders Fogh Rasmussen, Danish Prime Minister,

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➔ Fifteen years of the Committee of the Regions

The Committee of the Regions celebrates its 15th anniversary in 2009. This theme will run through the next few newsletters, talking to local and regional elected representatives who have been on the Committee of the Regions from the outset.

1994–2009: The Committee of the Regions 15 years down the line Interview with Isidoro Gottardo

Isidoro Gottardo, Municipal Councillor of Sacile and member of the Italian national Parliament (EPP/IT), has been a member of the CoR for 10 years. He is currently Chairman of the EPP group in the CoR and Chairman of the working group on Croatia. As Chairman of the EPP group, you have participated in many external meetings and conferences. Is there one that particularly stands out in your mind and which you think really enabled the CoR to speak out?

Committee of the Regions’ document: CdR 236/2008 Opinion on the Barcelona process: Union for the Mediterranean — Implications for regional and local authorities CdR 353/2008 The energy performance of buildings and the second strategic energy review

of decentralised cooperation, in particular in the field of the European neighbourhood policy. Whenever we talk about the future of the CoR within the field of external relations — be this in the Euro-Mediterranean area, the Balkans or the Black Sea — our motto should be multilevel governance. It is essential that local and regional authorities work in close cooperation with other institutional levels and partners. The territorial level of governance is the level from which solutions are often devised because they witness challenges and successes on an everyday basis. We are also ideally situated to ensure that the practical benefits of cooperation are comprehensible to citizens by turning declarations of principle into tangible measures. The year 2009 is an important year for the European Union — 20 years after the fall of the Iron Curtain, five years after the largest EU enlargement, a year of a new Commission and European Parliament elections. What does this mean for you as a local representative? The European scene has changed dramatically over the last few years. I firmly believe that the 27 EU Member States need to find a common approach towards the current challenges. At the same time, a better connection with citizens is crucial and this is where the CoR, as the institution representing local and regional issues, can be strengthened.

Interview with Jean-Louis Joseph

Every single initiative of the CoR throughout the past 15 years has contributed towards creating a path of settlement and strengthening the role of local and regional authorities. However, in my personal view, the first extraordinary meeting of the EPP group in Athens in 2004, devoted to civil protection, marked an important step in strengthening cooperation between European cities in the face of growing security threats, and demonstrated the added value of involving all levels of governance. You were recently rapporteur for an opinion on Euro-Mediterranean relations and a strong supporter of the initiative to set up an assembly of local and regional authorities for the Euro-Mediterranean (ARLEM). Do you think that it is important for the CoR to become more present in the field of external relations in the future? The CoR has to be visionary when its members feel the need to represent their regional and local authorities beyond the strict scope given by the Treaty. Reality happens faster than institutional tools develop and the role of regional and local authorities is growing in the field

Jean-Louis Joseph, Mayor of La Bastidonne and VicePresident of the Regional Council of Provence-AlpesCôte-d’Azur (PES/FR), has been a member of the CoR since 1994. He was Chairman of the French delegation from 1998 to 2002, and from 2005 to 2006.

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Photo gallery ➔

Why have you chosen to invest your efforts in the Committee of the Regions, in addition to your local commitments? The Committee of the Regions is a privileged discussion and meeting forum. It is an honour for me to be one of its members. I represent one of the smallest, if not the smallest, local authority since my municipality in Provence has only 700 inhabitants and I sit side by side with the mayors and presidents of much larger cities and regions of Europe. This says a lot for the diversity and wealth of our regions. I have held many responsibilities at the CoR as a member of the Bureau, its executive body, and later as VicePresident of the Committee. I have also been Chairman of the French delegation twice, and I have watched it grow in strength. Today, the Committee of the Regions is a respected and useful institution that defends the social values underpinning the construction of Europe.

19 November: Luc Van den Brande, President of the CoR, with the winners of the 2008 European Regional Champions Awards, held in partnership with the Regional Review. This event includes 10 categories for innovative regional projects, such as European best practices.

Could you give us examples of areas the Committee of the Regions has defended? The Committee is a privileged forum for relaying the opinion of citizens via their local representatives. This is the place where they can draw up opinions on subjects that have real repercussions on European cities and regions. I am proud to have voted for several very important opinions, especially the 2001 opinion on services of general interest (i.e. public services), which was the first report on this issue to be adopted by a European institution, and was then taken up by the European Parliament, the Council of the European Union, and now resonnates with the Lisbon Treaty, in that it provides a legislative basis for the adoption of a text providing a protective legal framework at European level. I am currently working on a strategic report on the ‘energy package’ and ‘the energy performance of buildings’. I believe that the Committee of the Regions is doing a useful job that will benefit future generations.

3 December: Luc Van den Brande, President of the CoR, meets a delegation of Japanese MPs, an illustration of the diplomatic dimension of the activities of European local and regional authorities.

What, in your opinion, are the future challenges facing the Committee? I believe that the Committee of the Regions helps new Member States to integrate properly into the EU and also fosters a sense of belonging and European citizenship because it addresses the practical and vital issues of tomorrow, issues that impact on citizens’ daily lives. What it lacks is the right to veto directives that would have a negative impact and grave socioeconomic or even cultural consequences on our regions and citizens.

9 December: Karsten Uno Petersen (PES/DK), CoR rapporteur on the application of patients’ rights in cross-border healthcare, welcomes Androulla Vassiliou, European Commissioner for Health, to a structured dialogue event with key European and national associations of local and regional authorities.

REGIONS AND CITIES OF EUROPE ➔ FEBRUARYMARCH 2009

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➔ The rapporteur speaks

’SMEs are the lifeblood of our local and regional economies and we need to do what we can to ensure that they survive’ What impact is the financial crisis having on SMEs in the regions?

Constance Hanniffy is a member of Offaly County Council (EPP/IE) and Chairman of the CoR Commission for Economic and Social Policy (ECOS). She was appointed CoR rapporteur on the communication from the European Commission ‘Think small first — A Small Business Act for Europe’. She presents the main conclusions of her work.

Committee of the Regions’ document: CdR 246/2008 Opinion — Think small first — A Small Business Act for Europe

The Small Business Act for Europe (SBA) was prepared when the economic context was more benign than it is today, but the financial and economic crisis makes the need for the SBA even more necessary. At the ECOS conference in Athlone, Ireland, in September, the key issue echoed by all participants, especially the entrepreneurs themselves, was that of access to finance. In my own region, small businesses represent about 98 % of all businesses and are the main driver of the economy. Many of these businesses are facing a combination of falling consumer confidence and pressures on public spending, less business-to-business trading, below-cost selling to generate cash flow, and a credit famine from banks in terms of overdraft facilities and lending. Some 54 % of small businesses have been refused access to finance or an extension of existing credit lines in recent months and, of the 46 % who were successful, nearly 40 % could not meet the stringent conditions attached by their banks to secure the funds. The short-term cash flow for otherwise healthy businesses is a major problem and many small businesses cannot and will not survive for much longer if conditions do not change. The SBA has been adopted. What should happen now? Firstly, credit must go to the French presidency for the urgency it provided to the negotiations on the SBA. The conclusions of December’s European Council are very welcome, as they recognised the SBA and its action

Small business, big ideas: first European SME Week The first European SME Week, which takes place from 6 to 14 May 2009, will promote entrepreneurship and inform entrepreneurs about the support available to them at the European, national and local levels. It aims to make it easier for SMEs to find information, advice, support and ideas to help them develop their activities. European SME Week is coordinated by the European Commission’s Enterprise and Industry Directorate-General but most of the events and activities will take place in the participating countries and will be organised by business organisations, support providers, regional and local authorities, etc. For further information, please visit the Enterprise and Industry DG website: http://ec.europa.eu/enterprise

plan, adopted by the Competitiveness Council, as a crucial pillar of Europe’s economic recovery. The Member States are aware of the difficulties SMEs are facing and of the positive role that the SBA can play to tackle the current economic downturn I see three things as being crucial now: firstly, a strong political commitment, as a follow-up to the direction given by the European Council; secondly, use of the SBA by all relevant authorities, in particular for implementing the ‘think small first’ principle to ensure that all policies are SME friendly; and, thirdly, rapid and full implementation against agreed targets and timetables, with regular assessment to monitor progress. Your opinion suggests that local and regional authorities should take greater political responsibility for the SBA. How do you think this could be done? Local and regional authorities already support small businesses in their areas in many ways. We provide the enabling environments for SMEs, we are significant customers of their goods and services, and we provide a range of advisory, financial and other supports to ensure that they survive and prosper. As I said earlier, all authorities should now make use of the SBA and work towards realising its objectives. In the current economic climate this may mean that we as elected representatives need to be better attuned to SMEs’ concerns, listening to what they have to say, responding to their needs and supporting their development. In my opinion I make a number of suggestions such as: establishing consultative forums between local/regional government and SME interests; improving access for SMEs to public sector contracts by re-balancing the buying culture in our authorities; looking at the levels of charges, rates and fees applied to small business; and reassessing our service provision structures and procedures with the small business person in mind. These SMEs are the lifeblood of our local and regional economies and we need to do what we can to ensure that they survive and create jobs and growth.

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The rapporteur speaks ➔

’The European Union must ensure that all regions are able to benefit from its impetus for development’ In your opinion, you say that you find it regrettable that there is no definition of territorial cohesion in the Commission’s Green Paper. Territorial cohesion is an issue that is of key importance for the Committee of the Regions. Its members are ideally placed to speak about the benefits that good territorial cohesion can have on people’s lives, by reducing the inequalities that affect them on a day-to-day basis. The European Union must ensure that all regions are able to benefit from its impetus for development. For the Committee of the Regions as a political body, the most important thing is for territorial cohesion to be made an objective of the European Union — or, in other words, to become a cross-cutting goal in all Community allocative and regulatory policies and, in compliance with subsidiarity, at all levels of governance. In concrete terms, how could this new EU objective be translated into Community policies? As elected representatives responsible for the future of the districts and regions we represent, the members of the Committee of the Regions are directly concerned by the inconsistencies — and sometimes contradictions — between the various public policies that apply to regions. On the ground, the members of the Committee of the Regions have long been aware of the contradictions between Community policies, such as when a TEN-T infrastructure crosses an area protected under the habitats directive. Another example would be the new Community objectives on combating climate change, which, albeit legitimate, may cause difficulties for outlying regions, which are more dependent than others on road and air transport. Our call for territorial impact studies to be conducted ahead of policy decisions reflects a desire to avoid the distortions caused by an overly sectoral approach to the implementation of policies, which are often designed far away from the grassroots level. Turning to another issue, services of general interest ... your opinion highlights their importance to territorial cohesion. Yes indeed. The defence of local services is an imperative for those of us working on the ground. Firstly, in the new liberalised framework that is being prepared, there is no guarantee that universal access to local services will be maintained, particularly in areas with low population density. Secondly, the ability of the Member States and local and regional authorities to fulfil their pub-

REGIONS AND CITIES OF EUROPE ➔ FEBRUARYMARCH 2009

lic service obligations by paying aid to service operators in compensation for additional costs is restricted by the competition rules. Lastly, the additional costs of providing services in regions with low population density will be passed on to the taxpayer. Might this not risk placing a heavy burden on the budgets of already disadvantaged regional authorities? The objective of territorial cohesion should help us to ensure that the needs of local and regional authorities and the users of services of general interest are taken into account more effectively. The current systemic crisis should help to raise awareness of the urgent need for a greater focus on solidarity and integration in the European venture. There is also the issue of multi-level governance. There is a CoR working group on subsidiarity looking into this general issue. In relation to territorial cohesion in particular, I would stress that the main issue is the need to strengthen territorial cohesion, without having a detrimental effect on the ‘competitiveness and employment’ objective. Experiences such as the EGTCs [European Grouping of Territorial Cooperation] and the Baltic Sea region strategy are particularly useful for extending the principle of territorial cohesion outside the borders of the EU. On this point, does territorial cohesion have a role to play in relations with non-EU countries? We cannot restrict the territorial cohesion objective to the current borders of the EU. The countries of the EuroMediterranean periphery are also concerned, particularly the countries that come under the European neighbourhood policy (ENP), which already have the possibility to become associated with EU policies. In addition, sustainable management of transnational maritime and river basins (the Baltic, the Danube, the Black Sea and the Mediterranean) also involves close cooperation with third countries, which already receive Community aid for this, for example for participating in cross-border and transnational programmes with their counterparts in the EU. What do you see as the next step? As far as incorporating territorial cohesion is concerned, the Green Paper is only the beginning. We are calling on the Commission, as a logical next step, to produce a White Paper, as soon as it has assessed the results of the consultation. The Committee of the Regions will play an active role in the discussions on implementing territorial cohesion and the means of doing so.

Jean-Yves Le Drian, President of the Brittany Regional Council (PES/ FR) and member of the Commission for Territorial Cohesion Policy (COTER). Following the adoption of the Green Paper on territorial cohesion by the European Commission last autumn, he was appointed rapporteur for the CoR opinion on this issue. On the occasion of its adoption at the plenary session, he outlines the priorities he defends.

Committee of the Regions’ document: CdR 274/2008 Opinion on the Green Paper on territorial cohesion

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➔ A success story

Regions & Cities of Europe — No 63 CoR Directorate for Communication, Press and Protocol Director: Laurent Thieule Editor in chief: Christian Gsodam, Head of Unit for Media, Communication, Associations Photos: Unit for Media, Communication, Associations Graphics: Office for Official Publications of the European Communities (Luxembourg) Committee of the Regions Press and Communication Directorate Rue Belliard 101 B-1040 Bruxelles Tel. (32-2) 282 21 55 Fax (32-2) 282 20 85 Internet: http://www.cor.europa.eu Regions & Cities of Europe is a newsletter of the Committee of the Regions, published by the Press and Communication Directorate. The content of this newsletter does not necessarily reflect the opinions of the European Union institutions. Neither the institutions/bodies of the European Union, nor any person acting on their behalf, can be held for responsible for any misuse of the information provided here. Available in seven languages. Available online/PDF format: http:// www.cor.europa.eu /en/press/ newsletter.html © European Communities, 2009

The ‘structured dialogue’: a bridge between the European Commission and associations of local and regional authorities The ‘structured dialogue’ was launched by the European Commission and the Committee of the Regions in May 2004. Its aim is to boost transparency and improve the quality of EU legislation by ensuring that the associations of regional and local authorities are consulted before formal decision-making processes start. This general and sectoral consultation and dialogue process between associations of regional authorities and the European Commission is a new form of contact, which is additional to institutionnal consultation methods and contributes to enhancing the preparatory work of the Committee of the Regions’ consultative role. The dialogue takes place at the political level and involves European commissioners and local and regional representatives. It is open to all associations of local and regional authorities that address themselves to the CoR, on condition that they have broad regional and democratic representation and that their members are involved in the implementation of the policy under consideration. Margot Wallström, Vice-President of the European Commission for Institutional Relations and Communication Strategy, has already announced that she will meet with the associations to present the European Commission’s annual strategic policy, which sets out the Commission’s priorities for 2010. Louis Michel, Commissioner for Development, will hold a ‘structured dialogue’ on decentralised cooperation in June.

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Structured dialogue since 2004: 15 high-level political meetings, i.e. six general and nine thematic meetings; 84 participating associations: 28 European associations and 56 national associations; 13 members of the European Commission have been invited: two Commission presidents and 11 commissioners. For further information and useful links go to the CoR website and click on ‘Activities and events’, then go to ‘Structured dialogue’.

José Manuel Barroso, President of the European Commission: ‘I was most happy to join you for a discussion as part of the structured dialogue with local and regional authorities in the European Union. I urge you — from a European perspective — to remain critical and demanding of the Commission and the European institutions as a whole. It is also necessary for the associations you represent to relay the public’s expectations to the European Commission.’ Ewa Samuelsson, ViceMayor of Stockholm and member of the Swedish Association of Local Authorities and Swedish Federation of County Councils: ‘Thanks to their close ties with their electorate, local and regional politicians are clearly able to engage in direct dialogue with the public. It is therefore essential that the Commission should maintain and develop contacts with the political leaders of national associations of local and regiona

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Benita FerreroWaldner, European Commissioner for External Relations: ‘As elected representatives in the municipalities and regions of our Union, you are at the heart of people’s everyday preoccupations and aspirations. Your knowledge and experience can help us to sharpen our strategy further, achieve it even more effectively and thus contribute to a real “Europe of results”.’