4th Conference of European Regions and Cities – Salzburg (Austria), 24-26 August 2008

“The Increasing Economic Importance of Regions and Cities of Europe”

Speech by Yavuz Mildon, President of the Congress of Local and Regional Authorities of the Council of Europe

25 August 2008

Mr Chairman,

Excellencies,

Ladies and Gentlemen,

One of the slogans of Bill Clinton’s winning electoral campaign for the Presidency of the United States in 1992 was phrased in a rather undiplomatic way: “It’s the economy, stupid!”. This slogan, however harsh, encapsulates one simple truth: that efforts to build cohesive, peaceful and sustainable societies – consisting, necessarily, of cohesive, peaceful and sustainable communities – such efforts would be in vain, or at least incomplete, if we fail to ensure economic sustainability of our cities and regions.

This is why I am delighted to address you today, as President of the Congress of Local and Regional Authorities of the Council of Europe, on the subject of the increasing economic importance of European cities and regions – indeed, on the subject of their taking economic matters into their own hands to improve the quality of life in their communities.

The unification of Europe based on democracy, the rule of law and respect for human rights – these three fundamental values promoted by the Council of Europe – has also opened up the way for European integration at the territorial level, prompting a shift of power in the political, economic and social fields from national governments towards territorial communities.

This in turn has allowed for a better application of the principle of subsidiarity – the transfer of competences and financial resources to the level where public services can be delivered most efficiently. National governments today recognize that municipalities and regions are often better placed to respond, in many domains, to the needs and evolving expectations of our citizens.

Integration processes and the gradual disappearance of political and administrative borders have boosted inter-regional and inter-municipal cooperation, leading to the creation of Euroregions and cities’ networks across national frontiers. I could mention here such networks as Cities for Children, Cities for Local Integration Policy, Cities for Human Rights, or the Berlin Process for disadvantaged urban neighbourhoods. Beyond its participation in these networks, the Council of Europe Congress is also actively involved in promoting the new political phenomenon known as City Diplomacy, and in setting up Euroregions around European seas, such as the Adriatic Euroregion established in 2006 or the Black Sea Euroregion which is about to be launched.

All this shows the growing vigour and importance of cities and regions, which are increasingly becoming major actors on the national, European and even international scene. Side by side with political prominence, local and regional economic are playing more and more of a key role by boosting employment, job creation and service provision, by encouraging entrepreneurship – in particular among young people, women and migrants – as well as by supporting small and medium-sized enterprises, and by attracting investment.

In many European countries, the regional economies and those of large cities are underpinning today national economic development. In some regions, local and regional authorities have become the main employer and services provider, often applying innovative approaches and showing the way for building more cohesive communities. To give just one example, the city of Stuttgart has been changing its recruitment procedures to involve and employ more migrants, including by using their mother tongues in administrative practice. There are, of course, other examples of the work of local and regional authorities the areas where they clearly have comparative advantages due to their closeness to both populations and localities – in stimulating entrepreneurship, for instance, in land development and urban planning, or in promoting tourism,  reconciling heritage and modernity, and preserving landscapes.

The Congress is actively involved with these issues. Today, we see it as our task to help cities and regions to capitalize on Europe’s growing diversity, help them to become think-tanks for creative ideas, and establish infrastructures and practices fit for modern globalizing society. As I said earlier, integration processes have also brought about new opportunities for expanding and deepening cross-border cooperation, for a pooling of resources and exchange of best practices between cities and regions, with an overall aim of making territorial communities more competitive and more efficient in the face of globalization.

Ladies and Gentlemen,

Globalisation has meant that states, and consequently regions and cities, are forced to adopt increasingly similar policies in order to maintain sound public finances and solid economic policies. To meet the challenges of globalization, regions and cities need to be able to act as an interface between global trends and the concerns of citizens. In this respect, a vibrant regional and local democracy – built through policies of economic stimulation, sustainable development, social solidarity and the safeguarding of regional identities – can help to manage the effects of globalization. Indeed, finding an alternative to economic standardization, to the “sameness” of approach is becoming a challenge and an increasingly decisive component of good governance and sustainable development at the local and regional level.

Against this background, the Council of Europe Congress of Local and Regional Authorities, representing more than 200,000 communities in 47 countries, offers a truly pan-European platform for cooperation and best practice exchanges among territorial authorities. The Congress’ activities are aimed at setting a normative framework for sustainable economic and social development, serving as a “factory of ideas” through its reports, resolutions and recommendations.

Over the years, the Council of Europe and our Congress have put forward many proposals for European legal instruments, such as the Charter on youth participation, the Convention on the participation of foreign residents, the European Urban Charter or the Charter of Regional Democracy. The two latter charters, to which I would like to draw your attention, were just adopted at the Congress plenary session in May, and we hope that they will receive full recognition and support of territorial authorities in Europe. Another recent example is the European Strategy for Innovation and Good Governance at Local Level, adopted in 2007, which recognizes the indispensable link between sustainable development in the economic and social fields and good local and regional governance.

Some of the new challenges related to good governance, on which we are currently focusing our work, are the use of new communication technologies in democratic process (known as “e-democracy”), in the provision of health services (e-health), or to bridge the so-called “digital divide” in our communities.

Ladies and Gentlemen,

In conclusion, I would like to stress once again that achieving economic sustainability of our communities is the road to the future of European democracy. It is the economy indeed which brings about social opportunities and prosperity which, in turn, lead to peace and further development. At the same time, we cannot ensure a sustained development and delivery of high-quality public services without providing a framework for good democratic governance.

This is why today’s economic development of cities and regions must rest on the solid foundation of values and principles aimed at increasing citizens’ participation, non-discrimination and inclusion of all segments of society, protection of the rights of migrants and minorities, gender equality, and access to services and economic opportunities for all.

By consolidating this framework at local and regional level, we will guarantee a better future to our communities.

Thank you.