AER working group on regionalism Item 11

REGIONS - THE CRUCIAL ROLE OF

SUB-NATIONAL GOVERNANCE IN THE SUCCESS OF EUROPE

EXECUTIVE SUMMARY

Background and context

The working group was set up to examine the issue of regionalism across Europe, an issue made topical by recent changes in political processes and the review of structural arrangements in many countries. The purpose of the work was to arrive at an interpretation of the definition or definitions of regions so that individually or collectively through the AER they are able to influence European policy. The results should also be helpful to accession countries and other European countries facing change.

Membership

The working group was composed of 18 individuals representing 12 regions in 10 countries.

Terms of reference

To review regional structures and make recommendations to Committee A and the Presidium of AER

Task

The task was to identify the key features of a region, working from the AER Declaration on Regionalism in Europe and contributions from members of the working group on the sub national situation within their own countries.

Results

The results show areas of political commonality in sub-national government in areas such as a distinct political identity, a representative assembly, self-determination as well as considerable diversity in competencies, size and structures. The results are set out in Appendix 1.

Issues

The key issues are:

· National debates on regionalism, including NUTS classification and the future of the structural funds

· Cultural, geographical and social differences reflected in diverse sub-national structures

· Convention on the Future of Europe and the European Constitution

· Subsidiarity

Conclusions

· Definition of the characteristics of sub-national government

· Welcoming diversity of regions as a strength

· Importance of sub-national government for the successful functioning of Europe

· Boundaries should respect communities of interest

· Strengthening the role of sub-national government in political decision making process

· Enhancing public awareness of the European agenda

· Accountability of governance at all levels

Recommendations

1. to encourage the Convention on the Future of Europe to acknowledge the importance of directly elected sub-national government across Europe. In addition the Assembly of European Regions should continue to lobby the Convention to strengthen the position of regions and to give them an adequate role in building the future of Europe, with particular recognition of the fact that there is no one-size-fits-all definition of a region. The definition must be flexible enough to encompass a wide range of political structures.

2. the region is the territorial body of public law established at the level immediately below that of the state and endowed with political self-government.² To exercise this self-government there is a need for the sub-national government to be legally empowered to make regional decisions on funding, allocation of resources and provision of services. Therefore it has the political and financial means to make real decisions.

3. according to the terms of the Declaration on Regionalism in Europe a sub-national government is recognised as government, not just the administrative arm of central government. Additionally the distinction between political decision-making and implementation of policy is made clear.

² Article 1 of the Declaration on Regionalism in Europe

4. that a sense of ownership of sub-national government by citizens is encouraged through involvement of citizens in local decision-making and in political processes. This will, in turn, lead to an increase in general awareness of the European project, within the EU and beyond, of the Constitution, of enlargement, and role of regions in a wider Europe.

REGIONS - THE CRUCIAL ROLE OF

SUB-NATIONAL GOVERNANCE IN THE SUCCESS OF EUROPE

1. Background and context

The working group was set up to examine the issues of regionalism across Europe in response to changes in political processes and the review of structural arrangements in many European countries. This includes:

· changes in regionalism processes in Central and Eastern European countries and particularly Hungary, Poland, Croatia, the Czech Republic, Estonia, Lithuania and Latvia;

· proposals in England for a varied mix of elected and unelected regional assemblies alongside devolved government in Scotland and Wales;

· review of structures and competencies in Scandinavia, France and elsewhere.

The purpose of the work of the group was to arrive at an interpretation of the definition or definitions of regions in the AER Declaration on Regionalism in Europe as well as to show their variety and strength so that either individually or collectively through the AER regions are able to influence European policy. This will enable the AER to support its members in their own national debates, strengthen the AER in dealings with European institutions and in lobbying at international level and generally give the AER a clear voice. In addition, the results of the work should be helpful for accession countries and other European countries facing changes in structures and processes by contributing models and best practice examples to their debates.

The group's work was to examine existing and proposed structures across Europe dealing with issues such as:


· national and sub-national government structures

· division of competencies

· democratic representation

· law-making powers

· finance and tax raising powers

· size, population, demography and cultural distinctiveness

The group felt it was important in examining these issues to focus on the importance of involving and engaging citizens in the future development of Europe.

The timing of the work was important given the debate in the Convention on the Future of Europe and the opportunity this offers for a contribution to the discussions on the role and place of regions. Linked to the forthcoming review of structural funds and progress of the accession states to joining the European Union the working group suggests this report is timely.

2. Membership

The working group was composed of invited representatives of regions who have been able to give the necessary time commitment, who have the relevant experience and who come from a range of countries across Europe.

The group was composed of 18 individuals from 12 regions in 10 countries. The full list is appended.



The working group has met four times, on 17 December 2002, 22 January, 26 February and 27 March 2003.

3. Terms of reference

The terms of reference were endorsed by Committee A and the Presidium of AER and agreed by the working group at its first meeting. They are:

· To review regional structures across Europe


· To make recommendations to Committee A and the Presidium of AER on the definition or definitions of regions in the context of the AERs need to have its own clear understanding of the diversity of regions and regional influence; to ensure that individually and as the Assembly, the regions of Europe can exercise the strongest possible influence on European policy


· To use existing data and material where this is available and relevant; to commission research where necessary

4. The task

The working group decided to focus on structures and definitions to try and set out the key features that identify a region. In the groups early discussions the AER Declaration on Regionalism in Europe was seen as an important reference document and was taken as a starting point. Key features contained in the Declaration, broadly those of political legitimacy, identity and leadership were seen as important measures of regional government. Each member of the working group was asked to contribute information on the sub national structure of their own countries in line with the main themes of the Declaration and these are:-

· level of government immediately below the state

· recognition in the constitution and/or legislation of the state

· distinct political identity

· ability to decide on political organisation

· representative assembly

· universal suffrage

Members of the group were also asked to supply information relating to competencies, size, relationship with lower tiers of government, ability to conclude international agreement and proportion of budgets dependant on national government.

The purpose of collecting this information was to identify commonality and diversity across the countries represented on the group. This therefore includes a good sample of current and accession members of the EU as well as countries outside the EU including Switzerland and Norway. The working group also felt that it would be helpful to have some overview of existing research material and approached a number of research institutes to ask what studies had already been undertaken.

5. Results

The results of the work undertaken as set out above in relation to the key themes in the AER Declaration on Regionalism in Europe and issues of competencies, size etc., are set out in a matrix, attached as appendix 1. This reflects information supplied by individual members of the group and is as accurate as possible given the range and variety of structures within some countries. It cannot reflect the complexity of every structure in every country but gives a representative picture the working group is happy to put forward. It is also recognised that there are other models, such as the variety of regional structures in Spain, which are not included.

Matrix I shows that in relation to the political themes in the AER Declaration on Regionalism in Europe there is some significant degree of commonality across the regions represented on the group. The other indicators in matrix II and III show considerable diversity, with sound historic, cultural and geographic reasons for this.


Fuller details in relation to specific countries in support of the information in the matrix are attached as appendices


In relation to the approach to research institutes, the response was a considerable volume of reports, articles, references and research projects. The time constraint on the group to produce this report has meant it has been impossible to fully analyse the usefulness and relevance of this research. This could be a potential future area of work to be commissioned by AER.

6. Issues

As set out above this research into regionalism in Europe was carried out in response to the recent growth in the regionalism debate across Europe, and more generally because of a need to readdress the role of regions in a rapidly changing Europe. This specific political and socio-economic context, directly affecting governance at the sub-national level, which was the content of the working group's discussions, informed by the material available, is set out in detail below.

· Throughout Europe, national debates on regionalism reflect the particular circumstances within each nation state. These encompass a huge range of historical and political viewpoints and diversity in sub-national political frameworks. These political frameworks range between regions with their own legislative powers, autonomous regions, and more centralised states. Enlargement of the European Union is influencing reform of domestic sub-national political structures for accession countries in particular. Many European states are reviewing their existing structures in light of the principle of subsidiarity and in order to support effective regional and local democracy.

The NUTS nomenclature of statistical territorial units, essentially based on administrative divisions, is seen as an important element of the debate on regionalism for accession countries. The application of NUTS boundaries has been seen as a precursor to a more pervasive European influence on regional policy in these countries. In existing member states and non-EU countries, however, NUTS boundaries play a less significant role in the debate, and are generally considered simply as administrative boundaries for the management of funding regimes. The debate on the reform of structural funds is of increasing relevance to sub-national governments and any reforms will impact on their ability to access, influence and manage European funding in the future. Nevertheless the opportunity to access European structural funds should not be the only attraction to develop regionalism in Europe. The regions are a mirror of the political, social and cultural diversity of the European continent and therefore have a strong legitimation to take an active role in building the future of Europe. Additionally they take a growing responsibility with regard to the implementation of Community law such as agricultural policy, environmental standards. The regions can act as appropriate mediators in getting the abstract community standards across in a way that is closer and more transparent to the citizens. This is a chance for the EU and the regions together to enhance economic and social cohesion.

· Sub-national government is diverse in terms of size, geography, population, language, history, trade, industry, and cultural identity. As a consequence of this diversity, there is no single model for sub-national governance in Europe. Instead, the diversity in structures reflects that of the regions represented. This is not a disadvantage but a sign of strength of European regionalism.

· The Convention on the Future of Europe is currently looking at the role of sub-national government in the future institutional framework of Europe. In addition, the European constitutional treaty is likely to define more clearly the role of sub-national government within the European framework, as well as the division of competencies between the European Union, nation states and sub-national governments.

· The principle of subsidiarity, where political decision-making is carried out at a level as close to the citizen as possible, is currently a major theme in European thinking. Subsidiarity is not restricted to the relations between the Union and the member states and does not simply imply a process whereby national governments pass control down to sub-national levels, but where the most local level of political organisation, that closest to the citizen, is able to engage directly in appropriate and relevant political activity. In other words, subsidiarity is a principle to be applied at and between all levels of government.

7. Conclusions

· Sub-national government is the level of governance operating directly below or in parallel with the state, with its own distinct political identity, and the ability to determine its own political organisation. The distinction between the administration of central government at a regional level, and a de-centralised state where sub-national government formulates its own policy in an autonomous way must remain clear. Governance at a sub-national level is more than simply administration, and the recognition of the stand-alone competencies of sub-national governments is vital. Sub-national government should have autonomy in fund-raising and spending powers, and the ability to make decisions about how central government money is spent. Members of sub national government and its legislature should be directly elected by the citizens of the region that they represent.

· The diversity of regions within Europe is a major strength of Europe's regional structure, precisely because of the flexible approach it demands. Diversity of regional structures should be respected and embraced by national governments and European institutions, as well as recognised by the European Constitution. There should be no pressure to conform, or to harmonise regional structures with an overarching European model. Central and Eastern European countries, where regional structures have been set up relatively recently, should have the support to organise sub-national government according to tradition and other local factors, rather than being influenced unduly by administrative boundaries such as the NUTS regions. Regional debates in other European countries should also reflect this notion of the strength of diversity.

· Regions play a vital role in the successful functioning of Europe. By representing the aspirations of citizens more closely than central government is able to, and because of the diversity of political structures at the sub-national level, sub-national governance across Europe will continue to play a vital role in the future success of economic development and social cohesion in Europe.

· Sub-national boundaries most often have their roots in cultural and historical traditions, and link communities of interest. While such regions may be home to people with a wide range of languages, dialects or tradition, they are bound by geographical and cultural links. Regional boundaries should not be drawn without due reference to the natural boundaries of such communities of interest thereby avoiding creating arbitrary regions which are of little relevance to citizens.

· The role of sub-national government in the political decision-making process must be reinforced. European political institutions should involve sub-national governments - which are responsible for implementing much EU policy - in policy formation. A consultation role for sub-national government should be further developed, particularly when it affects competencies at the sub-national level, and representation of sub-national government at all levels should be routine.

· There are low levels of knowledge, interest and awareness among the public in the Convention on the Future of Europe and in the European Constitution. This highlights more than anything else the necessity of convincing citizens of the European project and the important role that sub-national governments can play in bringing this agenda closer to citizens in an approachable and objective manner.

· It is a requirement of a democratic structure that there should be a balance of power within the state structure, so that power is not concentrated in one institution. There must be transparency and accountability of leadership, with a system of checks and balances in place to ensure continuing stability and efficiency of political structures. In terms of sub-national governance, there should be a genuine transfer of power between central, regional and local levels.

· In the light of enlargement and the expansion of the European Union, the AER Declaration on Regionalism in Europe, adopted in 1996, continues to be a reflection of this Working Group's views on regions and regionalism.

8. Recommendations:

The working group presents this report to Committee A in April 2003 and requests that it adopts the following recommendations and does all within its power to bring them into effect as quickly as possible.


1. to encourage the Convention on the Future of Europe to acknowledge the importance of directly elected sub-national government across Europe. In addition the Assembly of European Regions should continue to lobby the Convention to strengthen the position of regions and to give them an adequate role in building the future of Europe, with particular recognition of the fact that there is no one-size-fits-all definition of a region. The definition must be flexible enough to encompass a wide range of political structures.

2. the region is the territorial body of public law established at the level immediately below that of the state and endowed with political self-government.² To exercise this self-government there is a need for the sub-national government to be legally empowered to make regional decisions on funding, allocation of resources and provision of services. Therefore it has the political and financial means to make real decisions.

² Article 1 of the Declaration on Regionalism in Europe

3. according to the terms of the Declaration on Regionalism in Europe a sub-national government is recognised as government, not just the administrative arm of central government. Additionally the distinction between political decision-making and implementation of policy is made clear.

4. that a sense of ownership of sub-national government by citizens is encouraged through involvement of citizens in local decision-making and in political processes. This will, in turn, lead to an increase in general awareness of the European project, within the EU and beyond, of the Constitution, of enlargement, and role of regions in a wider Europe.

List of Appendices

1. Matrix of research results


2. Norway : local government structure and tasks

3. The regional issue in Sweden

4. Regional and local self-government in Croatia

5. Regional self-government in Poland



6. United Kingdom

7. The legal position of the Swiss Cantons

8. The Region of Brussels Capital in Federal Belgium

9. AER Declaration on Regionalism in Europe



10. List of working group members

I) Analysis of Regional Structures Appendix 1

Definitions in AER Declaration

* Subject to current discussionII) Response to criteria asked by working group

III) Competencies (from working party input)

Appendix 10

Working Group members

Councillor David Kirk, Chairman of working group, Hampshire, GB
Jill Lovelock, Policy Manager, Hampshire, GB
Daniella Terruso, Brussels office, Hampshire, Isle of Wight, West Sussex, GB
Miljenko Doric, County President, Primorje and Gorski Kotar County, HR
M. de Brek, Councillor, Basse-Normandie, F
M. Jean-Michel Evrard, Head of Planning, Research, Economy and Europe, Basse-Normandie, F
Rolf Vorburger, External Relations, St Gallen, CH
Jorgen Hedberg, County Commissioner, Sormland, S
Tor- Ottar Karlsen, Chairman of County Council, Buskerud, N
Jan Olbrycht, Councillor, Slaskie Voivodship PL
Councillor Brad Watson OBE, West Sussex, GB
Louise Atkinson, Policy Officer, West Sussex, GB
Arrigo Zanella, Presidents Cabinet, Brussels Capital, B
Guiseppe Anzaldi, Sicily, I
Geert De Proost, Brussels Capital, representation to EU
Paul Boisclair, Quebec Delegation in Brussels
Ulla Kalbfleish - Kottsieper, Thuringen, D
Klaus Klipp, Secretary General, AER