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Welcome to the Committee of the Regions

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Title: Welcome to the Committee of the Regions


1
Gerhard Stahl Secretary General of the Committee
of the Regions The answer of Europes regional
and local authoritiesConference co-organised by
the Wales Governance Centre at Cardiff University
and the Welsh Assembly Government Small
countries and the global crisis challenges and
opportunities? Cardiff, 1st July 2009
European Union
Welcome to the Committee of the Regions
2
Contents
  • The scenario globalisation, EU, citizens and the
    crisis
  • Regions, local authorities drivers for
    innovationand sustainable recovery
  • The scale territorial cooperation, Europe and
    the world
  • The engagement of the CoR
  • EU decision-shaping
  • Multilevel Governance
  • Territorial cooperation
  • The CoR and the Academia

3
The scenarioGlobalisation, EU, citizens and the
crisis
4
Globalisation, European integration, localisation.
  • Global challenges economic globalisation,
    demographic change, migration flows, climate
    change, energy
  • European integration EU enlargement, widening of
    the EURO area, enlargement of the Schengen area,
    Lisbon Treaty
  • Localisation single territories are directly
    faced with challenges and have access to
    opportunities of a larger magnitude and which
    requires pooling of resources

5
EU Single Market the largest in the world. An
asset to preserve. The most advanced model of
governed globalisation.
Source WTO, International Trade Statistics, 2007
6
Imbalances of the World Economy
Source IMF (Oct 2008), Global Financial
Stability Report
7
Chronology of the banking crisis in 2008
  • 17/02/08 Northern Rock nationalised
  • 17/03/08 Bear Stearns acquired by JP Morgan Chase
  • 01/04/08 Sachsen LB acquired by LBBW
  • 11/07/08 Indy Mac nationalised (FDIC)
  • 21/08/08 IKB acquired by Lone Star
  • 08/09/08 Fannie Mae, Freddie Mac nationalised
  • 15/09/08 Lehman Brothers insolvent
  • 15/09/08 Marrill Lynch acquired by Bank of
    America
  • 17/09/08 AIG nationalised
  • 17/09/08 HBOS acquired by Lloyds
  • 22/09/08 Goldman Sachs and Morgan Stanley become
    regular commercial banks
  • 26/09/08 Washington Mutual acquired by JP Morgan
    Chase
  • 29/09/08 Fortis rescued by the State
  • 29/09/08 Bradford Bingley nationalised
  • 29/09/08 Hypo Real Estate rescued by the State
  • 29/09/08 Wachovia acquired by Citigroup
  • 30/09/08 Dexia rescued by the State
  • 09/10/08 The State of Iceland is insolvent
  • 10/10/08 Yamato Seimei Hoken (Japan) insolvent

8
Reasons for the financial crisis
  • Limited liability, economic growth and casino
    capitalism
  • Under-capitalisation
  • Excessive risk-taking (mortgage backed
    securities, asset backed securities,
    collateralized debt obligations, rating agencies)

9
Annus horribilis
  • Unprecedented financial, economic and social
    crisishow to avoid the worst?how to regain
    economic tonicity?how to preserve social
    cohesion?how to re-invent our future?
  • Energy / climate crisisgeopolitics impact in a
    new multipolar world under shape
  • Institutional crisis
  • treaty stuck

9
10
The crisis gloomy expectations
Source The Euro Growth Indicator is calculated
by the Observatoire Francais des Conjonctures
Economiques (OFCE, Paris) in cooperation with the
EUROFRAME and published by the Financial Times
Deutschland. The purpose of this leading
indicator is to anticipate the development of the
GDP in the euro area two quarters ahead of
official statistics.
11
The crisis keep the reins and prepare a new
sustainable future
  • Coordinate recovery measuresAvoid protectionism
    andbeg thy neighbour policies
  • Supervise and regulate financial markets
    International and EU supervisory framework,
    reconsider accounting practices, regulate credit
    rating agencies
  • Balance short-term stabilising measureswith
    long-term structural reforms
  • Temporary, targeted, timed action.Regain
    contact with the field. Envisage EXIT
    strategies
  • Develop the new paradigm for sustainable economic
    growth Prepare a revised Lisbon Strategy
  • Invest in new economic driverse.g. renewable
    energies, services to people
  • Protect and reform social cohesione.g. invest in
    re-qualification of people

Return to basics take careof peopleand nature?
12
Quantity of (deficit) public spending is raising
Projected budgetary deficits for euro-area
countries, 2007-2010
Source European Commission Economic Forecast
Spring 2009
13
QUALITY of (deficit) public spending will be
essential
  • Incentives must be selective? leading to
    change industries and orientate consumes
  • Innovation need to be built-in in new fixed
    capital expenditure? massive investment plans
    (infrastructures, buildings, ICT networks) may
    help in this phase to enlarge the scope and
    scaleof application of existing advanced
    technologies.
  • Public expenditure needs private engagement ?
    e.g. EIB loan based instruments

14
Regions and local authoritiesdrivers for
innovation and recovery
14
15
The European citizen
  • Special Report 307
  • The role and impact of local and regional
    authorities in Europe
  • February 2009
  • Field Oct-Nov 08

15
16
Across the Atlantic
  • 17 Feb American Recoveryand Reinvestment Act
  • 20 Feb Obama and Biden convene85 mayors at the
    White House
  • Too often in the past, America's cities have
    been neglected, and our mayors haven't had --
    haven't been able to be heard on the questions of
    national policyYou are -- you're the ones who
    know the areas that give us the greatest return
    on our investment -- you know it better than we
    do.
  • Now, rebuilding our economies and renewing our
    cities is going to require a true partnership
    between mayors and the White House, and that
    partnership has to begin right nowInstead of
    waiting for Washington, many of you have already
    made our cities laboratories of change, coming up
    with innovative new ways to solve the problems of
    our timewhat I will need from all of you, is
    unprecedented responsibility and accountability

16
17
Sub-national public sector across Europe, key
figures
  • 92 500 local and regional authorities
  • 18 million people employed(56 of total public
    employment)
  • 16 of total EU GDP
  • 1/3 of total public expenditure
  • 2/3 of total public capital expenditure
  • comparison European Economic Recovery
    Plan1,5 of EU GDP 0,3 (EU) 1,2(MS)3,3
    if automatic stabilisers are counted

Huge potentialfor innovation
17
Source Dexia (December 2008), Sub-national
governments in the EU.
18
Sub-national public expenditure, key investment
driver
On average2/3 of totalpubliccapital expenditure
Source Eurostat, EC(2007), Fourth Cohesion Report
19
Level of public expenditure, decentralisation and
Innovation ranking
Innovation Scoreboard ranking Innovation
leaders Innovation followers Moderate
innovators Catching-up countries
Source our elaboration from Dexia(2008),
Sub-national governments in the EU.and from
EC(2008), European Innovation Scoreboard
19
20
Many channels to inject innovation in
local/regional expenditure
Source Dexia(2008), Sub-national governments in
the EU.Organisation, responsibilities and finance
20
21
Innovation drivers regions and local authorities
act as
Facilitators e.g. better regulation,
e-infrastructure, e-services, Innovators e.g.
re-engineering of public services (Web
2.0) Promoters e.g. incentivating new energy
efficiency applications Coordinators e.g.
fostering sector based public-private
partnerships Networkers e.g. by creating
European innovation networks Forerunners e.g.
by developing pilot projects which deliver
quicker and more ambitiously than targets set at
national / EU level(e.g. fight to climate change
Covenant of Mayors)
22
Navarra, an example of green innovation
  • Navarras development of Renewable Energy Sources
    (RES)
  • Around 100 companies working in this sector (GDP
    5)
  • 5000 jobs generated
  • Technology, know-how development and
    internationalisation
  • Companies of Navarra have registered 43 patents
    on RES issues
  • Environment improvement - every year circa
    5.000 CO2 tons have not been emitted -
    non-fossil fuels account for 61 of electricity
    consumed in Navarra, against Spanish average 10.
  • Governamnet of Navarras support- more than 400
    MEUR invested on RES systems
  • - substantial investment through EU cohesion
    policy

23
Ruhr2010
  • Ruhr Region is diversifying its production and
    employment base
  • In North-Rhine Westphalia,creative industry
    (media, arts, culture, etc.)accounts nowadays
    for
  • 32.1 billions EUR turnover
  • 156.000 people employed
  • 46.300 enterprises

24
The leverage effect of EU Cohesion Policy
  • The EU regional policy
  • based on solidarity
  • activated in all EU regions
  • is an effective lever for regional and local
    innovation
  • Leverage effects
  • Financial leverage? national and regional
    co-financing, PPPs, financial engineering
  • Strategic policy orientation? mainstreaming of
    EU policies in local context, adaptation
  • Institutional capacity building? innovation of
    administrations, reinforcement of management
  • Cohesive building of Europe? local partnership,
    citizens involvement, territorial cooperation

24
25
The scale territorial cooperation,Europe and
the world
26
Meta-regions, e.g. strategy for Baltic Sea Region
(and others?)
  • More strategic and flexible territorial
    cooperation
  • Macro-region level allows to address challenges
    which go beyond traditional regional or national
    boundaries (e.g. Strategy for Baltic Sea Region,
    Strategy for Danube Basin)
  • Attempt to better coordinate legislation,
    planning, funding across EU, national, regional
    and local policy-making
  • Sometimes, internal territorial cohesionhighly
    affected by external relations (e.g.
    neighbourhood)
  • Multi-level governance is key questionhow do we
    adapt existing structures?do we need new set-ups
    (Council level, EGTCs, etc.)?how do we ensure
    macro-regional interest fitting EU?
  • CoR is working politically through its
    interregional groups
  • Baltic Sea
  • North Sea
  • Saar-Lor-Lux (The Greater Region)
  • Danube
  • Mediterranean

26
Source Prof. Esko Antola(Centrum Balticum)
27
European networking.e.g. satellite-based
regional innovation
  • NEREUS
  • Network of European Regions Using
  • Satellite infrastructure-based services
  • Implementation cooperation, exchange of best
    practices, input to policy-making
  • broad range of intervention areas relevantfor
    local and regional authorities
  • environment, emergencies and security(urban
    transport, spatial planning, flooding, fire,
    pollution control)
  • Regional clusters are also often at the core of
    the research, technological development and
    experimentation of innovative systemsof
    satellite-based services

27
28
Territorial cooperation.e.g. Technological Top
Region (NL / BE / DE)
  • Aim Triple helix  at cross border
    level(business / knowledge institutions /
    government)
  • Partners Provinces of Limburg and North Brabant
    (NL), Provinces of Brabant, Limburg and Liege
    (BE), Land of North Rhine-Westphalia (DE)
  • Focus three clusters chemicals and advanced
    materials, High Technical Systems (Engineering),
    Health Sciences

29
Development cooperation
  • Regions and cities are essential actors to
    assist development countries
  • Decentralised cooperatione.g.Germany? 750 Mio
    Spain ? 440 Mio
  • Commitment must be kept, efficiency must be
    improved, coordination is needed
  • New instruments
  • Cartography of decentralised development policy
  • Establishment of an exchange of decentralised
    development cooperation

30
The engagement of the CoR
31
Berlin Declaration 25 March 2007
  •    There are many goals which we cannot achieve
    on our own, but only in concert. Tasks are shared
    between the European Union, the Member States and
    their regions and local authorities
  • - European Heads of State and Government, in
    the Berlin Declaration on the occasion of the
    50th anniversary of the signing of the Treaties
    of Rome, Berlin, 25 March 2007

32
The Committee of the Regions commitment
  • European Summit of Regions and Cities
  • Prague, 5-6 March 2009 - Regions and cities for
    Europe
  • 600 participants Mayors, President of Regions,
    EU Institutions
  • Main messages- regions and cities are key
    players in economic recovery- need to coordinate
    between different levels of government- added
    value of the European common policies as common
    level playing field - relevance of the European
    Elections, June 2009
  • http//www.praguesummit2009.eu

33
Signing of the Lisbon Treaty, 13 December 2007
34
Lisbon Treaty prospects for MLG
  • New definition of subsidiarity LRA dimension
    (art. 5 TEU)
  • New actors regional parliaments (Pcl. on
    subsidiarity)
  • Strengthened role for national parliaments (art
    11 TEU, Pcl. on the role of NPs in the EU, and
    Pcl. on subsidiarity proportionality)
  • Strengthened role for the CoR
  • Subsidiarity defence before the ECJ (Pcl. on
    subsidiarity)
  • Privileged access to ECJ in defence of
    prerogatives (art 263 TFEU)
  • Consulted in new areas as climate change energy
    (art 307 TFEU)
  • Territorial cohesion as an objective of the Union
    (art 3 TEU) RLA dimension to be better taken
    into account in EU policy making.

35
Lisbon Treaty prospects for MLG (2)
  • EU to respect the internal constitutional and
    political structure in MS, inclusive of local and
    regional self-governance (art 4 TEU)
  • Regulatory impact of EU legislation on RLAs is to
    be taken into account (Pcl. On subsidiarity)
  • Promotion of social dialogue (art 152 TFEU)
  • Provisions on democratic principles and the
    Citizens initiative gt a tool for civil society
    dialogue, platforms and action? Towards a more
    participative democracy based EU? (Art 9-11 TEU)
  • Convention method is ordinary method for Treaty
    change (art 48 TEU)

36
The Committee of the Regions White Paper on
Multilevel Governance - Objectives Building EU
in partnership
  • Renewed partnership based Community method
  • Consolidated constitutional framework
  • Developed culture of interinstitutional and
    political cooperation
  • Enhanced participation in the European process
  • Reinforced effectiveness of Community action
  •  Regional and local authorities are genuine
    partners rather than mere intermediaries 

37
Definition of multilevel governance
  • Coordinated action based on partnership and aimed
    at drawing up and implementing EU policies
  • Dynamic process with a horizontal and vertical
    dimension, which does not dilute political
    responsibility

38
10 examples of multilevel governance
  • The Covenant of Mayors committing and
    cooperating in the fight against climate change
  • The Euro-Mediterranean regional and local
    Assembly (ARLEM)
  • Open Days European Week of Regions and Cities
  • Decentralised communication
  • European cohesion policy leverage effects for
    Community policies

39
Signing of the Covenant of Mayors, 10 February
2009
40
10 examples of multilevel governance
  • The Lisbon Monitoring Platform of the Committee
    of the Regions
  • The Subsidiarity Monitoring Network
  • An integrated maritime policy for the European
    Union
  • The Strategy for the Baltic Sea region
  • The European Grouping of Territorial Cooperation
    (EGTC)

41
The Committee of the Regions commitment
  • The Lisbon Monitoring Platform
  • gathers 114 regions and cities from 26 EU
    countries
  • allows an exchange of best practice and mutual
    learning
  • monitors the advancement of the Jobs and Growth
    Strategy on the field
  • analyses the Economic Recovery measures
    undertaken at local and regional level
  • Currently open consultation on the strategy post
    2010 for Growth and Jobs
  • http//lisbon.cor.europa.eu

42
The Committee of the Regions commitment
  • Territorial cooperation and EGTC
  • European Grouping of Territorial Cooperationnew
    legal tool to stabilise cooperation between
    regions,local authorities and national
    authorities strongly demanded by the CoR
  • CoRs EGTC Expert Group 40 Members from 23
    different Member States
  • Investigation on added value of EGTC with
    respect to scope (including RDI) and scale of
    territorial cooperation
  • 5 EGTCs already established, about 30 on the
    pipeline across Europe
  • http//www.cor.europa.eu/egtc.htm

43
The CoR and the Academia
43
44
CoR and Academia
  • Thesis Competition
  • Since 1996 annual doctoral thesis competition
    onLocal and Regional authorities in the European
    Union
  • The purpose of the competition is to
    rewarddoctoral theses defended during two
    previous years
  • Around 50 candidatures per year
  • http//www.cor.europa.eu
  • studies_at_cor.europa.eu

45
CoR and Academia
  • Ateliers on Multilevel Governance
  • key activity driven by the newly created CoR
    Cellule de Prospective
  • gather academicians (around 60 contributors so
    far)around topics relevant for Multilevel
    Governance
  • Five Ateliers realised since September 2008
  • The (new) concept of multilevel governance
  • The legal and political instruments of multilevel
    governance
  • Strengthening multilevel governance in key EU
    policy
  • Multilevel governance in a multipolar world
  • Fiscal federalism
  • Helped to prepare the CoR White Book on
    Multi-level Governance(adopted by Plenary on 17
    June) and its follow-up Action Plan
  • http//www.cor.europa.eu/ateliers

46
CoR and Academia
  • Open Days 2009 The University
  • (in cooperation with DG REGIO)
  • Bringing together academics on questions related
    toregional development, territorial cohesion and
    innovation.
  • Working together with universities and
    associationsand networks specialised in the
    field such asthe Regional Studies Association or
    theEuropean observation network for territorial
    development and cohesion (ESPON)
  • http//www.opendays.europa.eu

47
Thank you for your attention
www.cor.europa.eu
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