A. Legal Framework and Institutional Structure

4

Budapest-Challenge I

Giving full effect to the principle of subsidiarity by defining and legislating on the competences, structures and boundaries of local and regional authorities

4

Budapest-Challenge II  

Fostering effective relations between different levels of territorial administration, particularly between central and local authorities

8

Budapest-Challenge III

Encouraging and creating the necessary conditions for intermunicipal co-operation

9

New challenges

9

B. Democratic Participation and Public Ethics

10

Budapest-Challenge I   

Responding to the changing ways in which citizens engage in public life at local level and, in some cases, the decreasing willingness to do so.

10

Budapest-Challenge II

Ensuring ethical behaviour by local and regional authorities, elected representatives and officials, whilst respecting local and regional self-government as well as individual rights and legitimate interests.

11

Budapest-Challenge III

Addressing the low level of electoral turnout in elections at local and regional level in many countries.

12

Budapest-Challenge IV

Broadening the scope for participation by foreign residents in public life at local level.

13

New challenges

13

C. Local and Regional Finance and Public Services

14

Budapest-Challenge I-IV          

§  Reaching a level of resources for local and regional authorities which is commensurate with their responsibilities

§  Finding an optimum structure of income sources in order to allow local and regional authorities to offer their citizens services which are adapted to their requirements

§  Fostering the leadership and capacity of local and regional authorities to deliver good local and regional governance and providing citizens with services of the highest possible quality while respecting budgetary constraints

§  Striking the right balance between a high degree of freedom for local and regional authorities in managing their finance and a high degree of accountability

14

New challenges

18

D. Transfrontier and Interterritorial Co-operation

19

Budapest-Challenge I   

Finding ways and means of providing territorial communities or authorities and their transfrontier co-operation bodies with the capacity necessary to engage in and develop co-operation

19

Budapest-Challenge II  

Removing remaining legal and administrative obstacles to Transfrontier and Interterritorial Co-operation

19

Budapest-Challenge III

Establishing a clear and effective legal framework for institutionalised co-operation between territorial communities or authorities (euro-regions)

21

General challenge of transnational or transregional co-operation

Summary table

23

24

Legend

Heading                                                                      Political importance/ Technical complexity

PI – Political Importance                                              1 – very high                3 – medium

TC – Technical Complexity                                           2 – high                       4 – low

ILA – Involvement of Local and Regional Authorities

Time frame – Period specified for the issue addressed

ns – not specified

A. Legal Framework and Institutional Structure

Budapest-Challenge I

Giving full effect to the principle of subsidiarity by defining and legislating on the competences, structures and boundaries of local and regional authorities.

I.1.

Frontline Issue of Change:

General and comprehensive reforms to advance decentralisation

Country

Details

PI

TC

ILA

Time frame

Austria

Reform of the federal state and the financial system

Amendment of the constitution.

1

1

Yes

ns - open

Bulgaria

Comprehensive reform of Decentralisation

Municipalities given taxation power (2007);

Law on the procedure of exercising municipal fiscal power (2008);

Development towards strengthened local democracy and towards strengthened co-operation among the sub-national levels (Regional Development Act 2008);

Upgrading of regulatory framework of local self-government.

2

2

Yes

2006 - 2009

Czech Republic

Draft Act on Territorial and Administrative Set-up of the State

Harmonisation of all self-government and state administration units such as courts, police, labour offices.

2

1

Yes

2006 - 2011

Netherlands

Agreements with local and provincial authorities

Vigorous efforts to decentralise tasks and powers to provinces and municipalities with the aim of increasing their autonomy.

2

2

Yes

2007- 2011

Norway

Redistribution of tasks and responsibilities from central to regional level

White Paper and Green paper on the decentralisation of responsibilities to regional level.

2

-

-

2008 - 2010

Portugal

Decentralisation of competences in the field of education

Continuation of the process of transferring powers from central to local level, specifically with regard to: basic education pre-school education and non-educative questions such as school meals, after-school activities, or social issues.

1

2

Yes

2006 – 2010

Slovenia

Establishment of regions with competences

Act on Regions, Act on the establishing of regions, Act on the competences of regions.

1

1

Yes

2006 -2011

A. Legal Framework and Institutional Structure

Budapest-Challenge I (continued)

Giving full effect to the principle of subsidiarity by defining and legislating on the competences, structures and boundaries of local and regional authorities.  

I.2.

Frontline Issue of Change:

Modernisation of local and regional administration and service delivery

Country

Details

PI

TC

ILA

Time frame

Belgium (Brussels)

Taking forward the PGL (Plan of Local Governance)

To achieve greater transparency and dynamism in local management and to modernise the functioning mechanisms and management of local governance.

1

1

Yes

2007 –open

Hungary

Deregulation and supervision efforts

To increase the quality of services.

1

1

Yes

2006 - 2010

Italy

New code for local authorities

More efficient and effective organisation of local government.

2

2

Yes

ns - 2011

Portugal

Extension of the programme Simplex

To modernise and simplify the services of local and regional authorities.

2

3

Yes

2008 - 2009

Romania

Drafting of the Code of Administrative procedures¹ and of the Romanian Administrative Code²

Creation of coherent and unitary legal provisions to be implemented by central and local governments;

Simplification of the means of action to ensure predictability of the rules;

To ensure stability of the legal framework.

1

1

Yes

7/2007 – End 2009¹

3/2008 - 2010²

Slovakia

Preparation of a Municipal reform

Modernisation through introduction of IT and increasing the efficiency of processes within local self-government.

2

2

Yes

2/2007 – 6/2009

Turkey

Drafting of legal documents to strengthen local and regional authorities

To increase the service delivery by local and regional authorities.

1

2

Yes

2003 - 2010

I.3.

Frontline Issue of Change:

Municipal reform – reform on legal establishment of cities and villages

Country

Details

PI

TC

ILA

Time frame

Hungary

Merger of administrative tasks for several villages

Development and extension of notary districts carrying out administrative tasks for several villages to increase efficiency in terms of quality and economy of administration while ensuring adequate representation.

1

1

Yes

2006 - 2010

Stricter conditions for splitting of municipalities

To limit the number of villages or the creation of new villages.

Strengthening the status of the mayor

Villages require a population of at least 500 inhabitants to be granted a full-time mayor. The measure aims at limiting the expenditure at municipal level.

Slovakia

Amendment of the legislation on municipal establishment

Amendment of the Act No. 369/1990 on municipal establishment and resolution of obstacles in its implementation.

2

3

Yes

2008 – end 2009

Turkey

Legislation on settlement and merging of small municipalities

Increase efficiency in economical and qualitative terms.

1

2

Yes

2003 - 2010

A. Legal Framework and Institutional Structure

Budapest-Challenge I (continued)

Giving full effect to the principle of subsidiarity by defining and legislating on the competences, structures and boundaries of local and regional authorities.

I.4.

Frontline Issue of Change:

Reform and restructuring on local level

Country

Details

PI

TC

ILA

Time frame

Albania

Local territorial reform

To reduce the number of local units.

1

4

Yes

2004 – ns

Armenia

Enhancing the co-operation of municipal institutions within the municipalities

Strengthening co-operation between the Municipal Council, the Mayor and an Council Institute in accordance with European standards.

2

3

Yes

2008 - 2012

Azerbaijan

Comprehensive strengthening and restructuring of municipalities.

-

-

Yes

2008 – 2010

Estonia

Reforming local government units

To balance disparities between territorial areas and to foster economic stability.

1

1

yes

2008 - 2013

Creation of big city municipalities;

2

3

Improvement of supervision mechanisms;

3

3

Improvement of the legal basis;

2

3

Consolidation of small municipalities in their ability to solve social problems;

2

4

Enlargement of municipality institutions.

2

3

9/2008 – end 2009

Finland

Reform on reshaping the municipal structure and on strengthening the organisation of basic service delivery

Encouraging the merging of municipalities;

Diversifying the scale of municipal co-operation to ensure equal and good municipal service delivery.

1

3

Yes

2004 - 2012

Georgia

Reform of the local institutional structure

Improved institutional set-up at local level.

2

3

Yes

2006 - 2010

Latvia

Reorganisation of the local and regional structure

creation of 109 local governments and abolition of 26 regional governments.

1

2

Yes

1992 – finished (7/09)

Lithuania

New wording of the law on Local Self Government

Restructuring of municipalities, extension of competences and participation, change of procedures

1

1

Yes

2007 - 2008

Luxembourg

Territorial reorganisation and administrative reform

Reduction in the number of local authorities; reorganisation of intermunicipal co-operation; appropriate definition of relations with central level.

1

1

Yes

2004- 2017

Malta

Legislative reforms concerning terms of office, elections and representation

To strengthen local democracy with increased citizens’ participation.

1

3

Yes

5/2008 – end 2009

Spain

Draft of a basic law on local government and administration

Reforming the existing legal framework for local entities towards a strengthened role of the local level.

1

1

Yes

2005 - 2010

Switzerland

Fusion of local government units within Cantons

To increase economic efficiency and to facilitate collaboration.

2

2

-

ns - 2010

United Kingdom

Initiative for voluntary restructuring of local authorities in two-tier areas

Reduction of 44 English local authorities in two-tier areas to 9 unitary authorities to improve the delivery of local services in terms of efficiency, effectiveness and integration.

2

2

Yes

2006 – 4/2009

A. Legal Framework and Institutional Structure

Budapest-Challenge I (continued)

Giving full effect to the principle of subsidiarity by defining and legislating on the competences, structures and boundaries of local and regional authorities.  

I.5.

Frontline Issue of Change:

Reform at regional level

Country

Details

PI

TC

ILA

Time frame

Albania

Clarification of regional competences

Clarification of the function and competences of the Council of Regions.

3

2

Yes

2003 - ns

Finland

Reform on merging regional authorities

Decrease number of regional state authorities from six to two.

1

3

yes

2007 - 2010

Spain

Reforming the Statutes of Autonomy of the Regions

Better delimitation of the competences of the Regions, strengthened participation of the regions in the central decision making process.

1

1

Yes

2006 - open

Sweden

Reform of merging regional administrations

Merging of the County Councils, leading to the new regions.

1

2

Yes

2003 - 2014

I.6.

Frontline Issue of Change:

Elections and legitimacy

Country

Details

PI

TC

ILA

Time frame

Lithuania

Direct election of mayors

1

1

Yes

ns - 2009

Serbia

Changes to the legal framework for local elections

Adoption of the draft law on election at local level;

Adoption of the draft law on State Election Commission;

Adoption of the draft law on political parties;

Adoption of the draft law on the electoral list.

1

1

Yes

10/2008 – 9/2009

A. Legal Framework and Institutional Structure

Budapest-Challenge II

Fostering effective relations between different levels of territorial administration, particularly between central and local authorities.

II.1.

Frontline Issue of Change:

Central and Local Level

Country

Details

PI

TC

ILA

Time frame

Bulgaria

Comprehensive measures to strengthen the links and relationship between local and central level.

Improving institutional dialogue;

Setting up information centres and coordination mechanisms to improve the links between de-concentrated territorial units of the executive authority and municipalities;

Optimisation of competences for coordination of politics.

2

2

Yes

2006 - 2009

II.2.

Frontline Issue of Change:

Central and Regional Level

Country

Details

PI

TC

ILA

Time frame

Spain

Establishment of appropriate institutions enabling co-operation between the State and the regions

Setting up of bilateral commissions for co-operation between the state and newly upgraded regions.

1

2

Yes

2007 - open

II.3.

Frontline Issue of Change:

Relation Local and Regional Level

Country

Details

PI

TC

ILA

Time frame

Belgium (Flemish Region)

New decree on municipalities and adjustment of the new decree on provinces

More conformity between legislation on municipalities and provinces.

1

1

Yes

2007 - 2009

Finland

Kainuu experiment: model for organising the local and regional government within one region

Increased productivity, ensured service delivery.

1

2

Yes

2002 - 2012

Netherlands

Review of the framework for co-operation at local and regional level, allowing for co-operation on public law basis

Review of the Joint Arrangements Act (Co-operation of local and regional authorities act) to clarify the legal framework for co-operation.

3

2

Yes

2006 – finished (end 2007)

Strengthening co-operation of local and regional authorities on private law basis

Abolition of the legal requirement of prior approval for co-operation on private law basis.

2

3

Yes

2006 – finished (end 2007)

II.4.

Frontline Issue of Change:

Interregional level

Country

Details

PI

TC

ILA

Time frame

Switzerland

Increase legitimacy of interregional government co-operation

Participation of regional parliaments in the intergovernmental co-operation between regional governments.

2

2

No

ns - 2010

A. Legal Framework and Institutional Structure

Budapest-Challenge III

Encouraging and creating the necessary conditions for intermunicipal co-operation.

III.1.

Frontline Issue of Change:

Strengthening intermunicipal co-operation

Country

Details

PI

TC

ILA

Time frame

Bulgaria

Promotion and creation of the necessary conditions for intermunicipal co-operation

Legislative strengthening of municipal co-operation;

Access to EU funds;

Upgrading the regulatory framework for public-private partnership.

2

2

Yes

2006 - ongoing

France

Legislative reform to strengthen intermunicipal co-operation

Increased intermunicipal co-operation and a clear defintion of the different levels of intervention of state authorities.

1

1

Yes

2008 - ns

New challenges

IV.1

Frontline Issue of Change:

Working conditions

Country

Details

PI

TC

ILA

Time frame

Denmark

Working conditions of politicians at local level

Establishment of a working group to examine the current situation, concrete objectives still to be agreed upon.

2

2

Yes

Fall 2008 - 2010

Serbia

Adoption of a draft law on the communal police.

1

1

Yes

10/2008 – 9/2009

B. Democratic Participation and Public Ethics

Budapest-Challenge I

Responding to the changing ways in which citizens engage in public life at local level and, in some cases, the decreasing willingness to do so.

I.1.

Frontline Issue of Change:

Increasing citizen’s participation in the decision making process on local level

Country

Details

PI

TC

ILA

Time frame

Armenia

Enhancement of the role of the Municipal Council

Improving public participation at local self-government level.

2

3

Yes

2008 - 2012

Austria

Strengthening citizens’ involvement in local & regional government

Increasing participation of citizens in the work of the government.

2

2

Yes

ns – open

Belgium (Brussels)

Utilization of international tools, initiatives and Strategies

Support to the European Local Democracy Week;

Support to use of the CLEAR instrument for diagnosing local participation;

Implementation of the principles of the Strategy on Innovation and Good Governance at local level.

2

3

Yes

2007 – open

Bulgaria

Creation of conditions for citizens’ participation in the process of policy formulation and decision-making on local level

Amendment of current law on Local Self-government, Local Administration and the Regional Development Act;

Enhancing forms of direct democracy;

Development of consultation mechanisms.

2

2

Yes

2006 – open

Czech Republic

Strengthening citizens’ participation in the decision-making process.

3

3

Yes

2000 - 2006

Denmark

Assessment of tools and methods of municipalities to encourage local democracy and assessment of best practices

Publication of two studies, based on a recommendation of 2005 of the Committee on democratic participation at local level and headed by the Ministry of Social Welfare. Expected to be published in spring 2009.

2

3

Yes

2005 - 2009

Estonia

Strengthening contacts between NGOs and local authorities.

1

1

Yes

2008 -2010

Awareness raising among leaders of local authorities about their role as promoter of active participation.

3

2

Yes

2008 – 2010

France

To involve citizens in the designating process of executive bodies for intercommunal co-operation

To extend participation and increase control mechanisms through the integration of associations on the local decision-making process.

1

1

Yes

2008 - ns

Lithuania

Programme for financial support to local communities to strengthen citizens’ involvement

The programme aims to motivate the residents to participate more actively in the municipalities’ decision-making process and provides financial means for structural dialogue.

3

2

Yes

2007 - finished

Norway

Creation of new political initiatives

White paper on local democracy.

2

-

Yes

2006 – finished 3/2009)

Portugal

Achieving a more effective local democracy with strengthened monitoring powers for the Assembly of the Municipalities.

2

1

Yes

2007 - 2009

Slovenia

Finding new ways of participation at local level

3

3

Yes

In progress

Sweden

“Citizen Dialogue” project

Spreading of best practices .

3

3

Yes

2006 - ns

United Kingdom

The Local Democracy, Economic Development and Construction Bill

The devolution of more power to local communities and the provision of greater involvement of local authorities in local and regional economic development will also strengthen the citizens’ involvement at local level.

1

1

Yes

3/2008 – 7/2009

B. Democratic Participation and Public Ethics

Budapest-Challenge I (continued)

Responding to the changing ways in which citizens engage in public life at local level and, in some cases, the decreasing willingness to do so.

I.2.

Frontline Issue of Change:

New approaches to increase electoral participation

Country

Details

PI

TC

ILA

Time frame

Latvia

Preparation of a Law on referendums of local governments

4

2

Yes

2008 – 9/2009

Lithuania

Amendment of the Law on Elections to Local Government Council

Gives citizens the possibility to nominate themselves as candidates for the Local Government Council. The requirement to be nominated by a party is abolished.

2

2

Yes

2007 - 2009

Netherlands

Revision of e-voting systems

To achieve more transparency in the e-voting process.

3

2

Yes

1998 - ongoing

Project to vote with a voter’s pass at any polling station in their own municipality

About 80% of all Dutch municipalities took part in the past.

3

3

Yes

2005 - ongoing

Budapest-Challenge II

Ensuring ethical behaviour by local and regional authorities, elected representatives and officials, whilst respecting local and regional self-government as well as individual rights and legitimate interests.

II.1.

Frontline Issue of Change:

Fight against corruption

Country

Details

PI

TC

ILA

Time frame

Azerbaijan

Increasing transparency about the municipalities’ measures to fight corruption

To increase the participation in local politics (rise of legitimacy) and to prevent corruption creating conditions.

2

2

Yes

7/2007 - 2011

Increasing the revenue from the use of land owned by municipalities

Increasing financial resources of municipalities.

2

2

Yes

10/2007 -2010

Bulgaria

Follow-up measures to improve the fight against corruption

Adoption and implementation of the Law for Prevention and Disclosure of Conflict of Interests served as a basis for regulations and institutional frameworks to fight corruption.

2

2

yes

2006 – cont.

Czech Republic

Ethics at local and regional level

Tackling the issue aims at the the creation of higher standards in service delivery and at fighting corruption.

2

2

Yes

2004 - 2010

B. Democratic Participation and Public Ethics

Budapest-Challenge II (continued)

Ensuring ethical behaviour by local and regional authorities, elected representatives and officials, whilst respecting local and regional self-government as well as individual rights and legitimate interests.

II.2.

Frontline Issue of Change:

Creation and strengthening of Codes of Ethics

Country

Details

PI

TC

ILA

Time frame

Hungary

Creation of the Civil Servant Ethic Code

Setting stricter rules for ethical behaviour and fostering more efficient carrying out of tasks.

2

2

-

2007 – open

Malta

Amendment of the Code of Ethics for Local Councillors

Inclusion of more stringent provisions.

1

2

Yes

5/2008 – end 2009

Norway

New legislation on issues of ethical importance for municipalities and county authorities

Strengthening the importance of ethical conduct.

2

-

Yes

2007 - 2009

Romania

Institutional strengthening of the role of ethical councillors

3

3

Yes

2008 - 2009

Spain

Reinforced requirements on transparency and public ethics of local representatives and civil servants

Measures are part of the draft project on local government and administration.

1

1

yes

2005 - 2010

Turkey

Identifying problems of public ethics and determining principles for the establishment of rules

Research Project Planning Practices in Local and Regional Governments and Ethics, part of a project on the prevention of corruption.

2

3

yes

2008 - 2010

Budapest-Challenge III

Addressing the low level of electoral turnout in elections at local and regional level in many countries.

III.1.

Frontline Issue of Change:

Electoral turnout

Country

Details

PI

TC

ILA

Time frame

Austria

Strengthening the involvement of citizens at local and regional level

Increasing participation of citizens in elections.

2

2

Yes

ns – open

Belgium (Flemish Region)

Assessing the use of new technologies and the simplification of electoral legislation

Based on the evaluation of elections for municipal and provincial councils, the assessment aims at increasing the electoral turnout.

1

1

Yes

2009 - 2011

Czech Republic

Strengthening participation of citizens in local elections

3

3

Yes

2000 - 2010

B. Democratic Participation and Public Ethics

Budapest-Challenge IV

Broadening the scope for participation by foreign residents in public life at local level.

IV.1.

Frontline Issue of Change:

Legal reform to allow foreign residents participation at local level

Country

Details

PI

TC

ILA

Time frame

Bulgaria

Creation of legal regulations for EU citizens on voting and standing as candidates in local elections

Amendment of the Law on Local Elections and approval of the Law on Election of Members of the European Parliament from the Republic of Bulgaria.

2

2

yes

2006 – finished (2007)

Czech Republic

Ratification of CETS 144

3

3

yes

2006 - 2010

Lithuania

Convention on the Participation of Foreigners in Public Life at Local Level (CETS 144)

Signed in February 2008, expected to be ratified by the Parliament in 2009/2010.

2

2

-

2/2008 - 2010

Luxembourg

Modification of the electoral law

Simplification of procedures and inscription for foreigners.

-

-

-

ns – finished (12/2008)

V.1.

Frontline Issue of Change:

Gender and tolerance

Country

Details

PI

TC

ILA

Time frame

Norway

Project Show window for women in local government

Objective: 50% of women in local politics.

2

-

Yes

2007 - 2011

Sweden

Inclusion, Exclusion and Radicalisation

Strengthening social cohesion, tolerance and respect in deprived areas at local level and prevention of religious radicalisation.

2

3

Yes

2008 – 2011

C. Local and Regional Finance and Public Services

Budapest-Challenge I

Reaching a level of resources for local and regional authorities which is commensurate with their responsibilities.

Budapest-Challenge II

Finding an optimum structure of income sources in order to allow local and regional authorities to offer their citizens services which are adapted to their requirements.

Budapest-Challenge III

Fostering the leadership and capacity of local and regional authorities to deliver good local and regional governance and providing citizens with services of the highest possible quality while respecting budgetary constraints.

Budapest-Challenge IV

Striking the right balance between a high degree of freedom for local and regional authorities in managing their finance and a high degree of accountability.

I-IV.1.

Frontline Issue of Change:

Financial decentralisation and deconcentration

Country

Details

PI

TC

ILA

Time frame

Albania

Local Financial Law

Preparation of a draft law on local budget procedures, mechanisms of budget allocation at local level, internal audit and control systems. A first draft has been prepared.

-

-

Yes

ns - 2010

Bulgaria

Increasing financial resources on and administrative powers on local level

Development of financial decentralisation; increase in the total equalisation subsidy; strengthening the capacity of local budgets for financing expenditure; increase to the Real Estate Property Tax; capacity building measures, strengthened administrative powers for delegated services and their financing; development of public-private partnership; Amendment to the Law of Concessions, Public Education and others.

1

1

Yes

2006 - open

Czech Republic

Reform of fiscal deconcentration

Budgetary allocation of taxes for territorial self-governing units.

2

1

yes

2009 - 2012

Hungary

Central budgetary support system reconstructed to bring it line with the supervision of tasks and duties.

1

1

Yes

2006 -2010

Italy

Fiscal Federalism

To create more accountability in the use of financial resources.

2

1

Yes

ns – 2009

Portugal

Establishing a legal framework defining the financial competences of municipalities.

1

1

Yes

2009

Slovenia

Act on Financing of Regions

As a part of the regional reform, the acts lay down the basis for the establishment of regions.

1

1

Yes

2006 - 2011

Spain

Reform of the regional and local financing system

To increase the financial resources and the economic responsibility of regional and local authorities. Participation of the three vice-presidents of the government in this process.

1

1

Yes

2006 - 2010

Turkey

Increased revenue to local and regional authorities.

2

1

yes

2003 - finished

United Kingdom

The Local Democracy Economic Development and Construction Bill

Provisions to provide for greater involvement of local authorities in local and regional development to enable them to take action to boost jobs and skills and support businesses.

1

1

Yes

3/2008 – 7/2009

C. Local and Regional Finance and Public Services

Budapest-Challenge I-IV (continued)

I-IV.2.

Frontline Issue of Change:

New financial instruments and non-fiscal sources of revenue

Country

Details

PI

TC

ILA

Time frame

Azerbaijan

Increase of financial sources of the local budget

The use of local resources to strengthen municipal ownership and financial independence.

3

4

Yes

9/2008 - 2010

Belgium (Flemish Region)

Elaboration of a new set of financial instrument for municipalities.

2

2

X

ns

Bulgaria

Increase possibilities of local authorities to develop proper financial sources

Upgrading of the regulatory framework of local authorities to determine independently the level of local charges and other non-fiscal sources of revenue.

Granting municipalities certain taxation authority, incl. revenue from new conceded taxes (2007-2009).

2

2

X

2006 - open

France

Fiscal reform on local level

Clarification of financing mechanisms for local authorities; compensation for the abolition of the trade tax.

1

1

Yes

2008 – ns

Georgia

Regional Development

To dispose of financing mechanisms to boost regional development.

3

2

Yes

2009 - 2011

Norway

Green Paper on a General Purpose Grant Scheme

The new scheme is expected for 2010.

2

-

X

2006 - 2009

Serbia

Draft law on public Property, Ownership and other Property Rights of the Republic of Serbia, Autonomous Province and Local Self-Governing Units

Solving problems of local finance.

3

2

Yes

9/2008 – 12/2009

I-IV.3.

Frontline Issue of Change:

Equalisation

Country

Details

PI

TC

ILA

Time frame

Austria

Task-oriented community financing

2

2

Yes

2008 – open

Denmark

Evaluation of socioeconomic criteria in theequalisation and the block grant scheme

To increase the information available on the socio-economic situation in order to adjust the equalisation and the block grant scheme and to facilitate estimating the expenditure needs of local authorities.

2

1

yes

2007 – mid 2009

Georgia

Local equalisation policy

Increased feasibility for more efficient equalisation.

4

1

yes

2009 - 2011

Latvia

Preparation of amendments on the law on financial equalisation of local governments

To be adopted by 1^st of June 2009.

1

1

yes

2008 – 6/2009

Luxembourg

Reform of local finances

Equalisation between communities, strengthened financial basis.

1

2

Yes

2008 - 2012

Malta

Amendment of procurement regulations

Ensure equity and speedy redress.

1

2

Yes

5/2008 – end 2009

Sweden

Committee on the revision of the equalisation system for local governments

The Committee is elaborating proposals for changes.

2

2

Yes

1/2009 – 4/2011

C. Local and Regional Finance and Public Services

Budapest-Challenge I-IV (continued)

I-IV.4.

Frontline Issue of Change:

Reforms on financing and service delivery

Country

Details

PI

TC

ILA

Time frame

Armenia

Increasing local authority budgets and improving service delivery

Improvement of financial equalisation mechanism, improvement of new types of local taxes; enlargement of local authorities; creation of intermunicipal unions.

1

1

Yes

2008 – 2012

Finland

Revision of the local government finance and state grant system.

The new system shall ensure equal and efficient services to all citizens while keeping taxes and fees at a moderate level.

2

2

Yes

2003 2010

Switzerland

General attempts towards more effectiveness, efficiency, economic stimulus and a reduction in the discrepancy  in tax issues between cantons.

1

1

Yes

ns

I-IV.5.

Frontline Issue of Change:

Other reforms

Country

Details

PI

TC

ILA

Time frame

Serbia

Intergovernmental Commission on the law of local finances

Improvement of the working methodology of the Commission aims at contributing to the resolution of problems of local finance.

3

2

Yes

9/2008 -12/2009

I-IV.6.

Frontline Issue of Change:

Reforming financing mechanisms

Country

Details

PI

TC

ILA

Time frame

Bulgaria

Reforming the mechanisms for transfering budetary allocations from central to municipal level.

Introduction and wider spread use of the system of delegated budgets in the educational system and in some other sectors.

Setting and upgrading minimum standards for delegated activities in municipalities and upgrading mechanisms applied to public information and used for transparency as regards the funding required for such activities and services.

2

2

Yes

2006 - 2009

I-IV.7.

Frontline Issue of Change:

E-government

Country

Details

PI

TC

ILA

Time frame

Czech Republic

Assessing e-government solutions at local and regional level

Simplification of public services process; increase in the quality of service delivery; development of a network of one-stop-shops; introduction of data boxes for communication.

1

1

Yes

2006 – 2014

Estonia

Strategy of local government information society 2008 – 2011

Enforcement of the digital registration and administration system; Increase in  compatibility of public sector databases and document exchange systems; unified web pages for local governments to increase user friendliness.

1

1

Yes

2006 - 2011

C. Local and Regional Finance and Public Services

Budapest-Challenge I-IV (continued)

I-IV.8.

Frontline Issue of Change:

Extension of services

Country

Details

PI

TC

ILA

Time frame

Azerbaijan

Delivery of social services

Expansion of service delivery to social issues.

2

3

Yes

9/2008 - 2010

I-IV.9.

Frontline Issue of Change:

Quality standards and efficiency

Country

Details

PI

TC

ILA

Time frame

Hungary

Strengthened sub-national co-operation

Establishment of an operational basis for strengthened co-operation between micro regions.

1

1

yes

2006-2010

Italy

Local public utilities

A more efficient organisation of local public utilities.

1

1

Yes

ns - 2009

Turkey

Determination of national standards on specific services

To increase quality, productivity and effectiveness of local public services in selected subjects.

2

1

yes

2009 - 2013

Slovakia

Strengthening the efficiency of public service provisions

As a part of the Municipal Reform, the objective is effective and optimal service delivery while decreasing the costs without a negative effect on quality. Handed to the Government of the Slovak Republic in June 2009.

2

2

Yes

2/2007 – 6/2009

I-IV.10.

Frontline Issue of Change:

Auditing

Country

Details

PI

TC

ILA

Time frame

Hungary

Supervision of the financial control system

Creation of greater transparency and stricter financial discipline.

1

1

yes

2006-2010

Netherlands

New auditing rules

To increase transparency for local authorities.

2

2

Yes

1998 – impl.

Sweden

Reform of the auditing rules for municipalities

Reformed laws increase the autonomy of municipalities in auditing.

3

3

Yes

2008 - 2011

I-IV.11.

Frontline Issue of Change:

Accountancy

Country

Details

PI

TC

ILA

Time frame

Malta

Amendments to existing financial and procurement regulations

Ensuring accountability and transparency.

1

2

Yes

5/2008 – end 2009

Netherlands

New budgeting and accounting rules (dualisation)

To increase transparency for local authorities.

2

3

Yes

1999 – impl.

I-IV.12.

Frontline Issue of Change:

Defining the scope for action

Country

Details

PI

TC

ILA

Time frame

Romania

Local Public Financial Code

To complete and improve the legal framework for financial activities of local governments.

1

1

Yes

2008 – 2009

Norway

Regulations on financial management on local level

Clarification of the ability of local authorities to take risks.

2

-

-

2007 - 2009

C. Local and Regional Finance and Public Services

New challenges

V.1.

Frontline Issue of Change:

Responding to the economic crisis and other emergencies

Country

Details

PI

TC

ILA

Time frame

Estonia

Economic stimulus package for local governments

State budget allocation of the central government to stabilize local governments in economic difficulties to avoid further aggravation of the financial situation. The package entails steady monitoring of the Ministry of Finance and consultation mechanisms with local governments during financial difficulties.

1

1

Yes

2009 - 2011

Romania

Law on the financial crisis and the bankruptcy within administrative-territorial units

The law will be the first legal instrument to regulate the financial crisis and cases of bankruptcy within administrative-territorial units. The law is to be forwarded to the Parliament for approval in the second quarter of 2009.

2

2

Yes

2008 – open

United Kingdom

Measures to face difficulties as a result of the financial crisis

The introduction of a regulation to allow authorities to delay accounting until 2010-11;

Funding of sector-led expertise for a number of local authorities.

Setting up a national and regional economic council;

A review of the guidance which central government publishes on local authority investments;

Consideration is being given to how central government might help local authorities deal with the effects of the downturn, for example, in maintaining levels of capital spending.

1

1

Yes

Autumn 2008 - ongoing

Portugal

Creation of a Municipal Emergency Fund

The fund aims at ensuring the financial means for the delivery of services in times of turbulence or catastrophy.

1

1

-

2009

D. Transfrontier and Interterritorial Co-operation

Budapest-Challenge I

Finding ways and means of providing territorial communities or authorities and their transfrontier co-operation bodies with the capacity necessary to engage in and develop co-operation.

I.1.

Frontline Issue of Change:

Capacity Building on EU funding opportunities

Country

Details

PI

TC

ILA

Time frame

Bulgaria

Funding identification and capacity building to access the funding opportunities, to network and to develop transfrontier co-operation

The objective is to develop co-operation within the eligible frameworks: The European Regional Development Fund (EU internal co-operation programme, external co-operation programme, programme for the Black Sea Basin, programme for trans-national co-operation in the South East European Space, INTERREG IVC, INTERACT II, ESPON 2013, URBACT II), facilitated through the organisation of seminars for capacity building of administration on transfrontier co-operation and project development and through network activities.

2

2

Yes

2006 – open

Budapest-Challenge II

Removing remaining legal and administrative obstacles to Transfrontier and Interterritorial Co-operation.

II.1.

Frontline Issue of Change:

Agreements and treaties with third countries

Country

Details

PI

TC

ILA

Time frame

Bulgaria

Dismantling certain legal and administrative barriers to Transfrontier and Interterritorial Co-operation

1.    Treaties and agreements for cross-border co-operation with neighbouring countries to facilitate economic co-operation

2.    Organisation of bilateral, international and regional seminars and business meetings to develop cross-border co-operation.

2

2

Yes

2006 –open

Malta

Strengthening ties with European municipalities through enhanced co-operation arrangements .

2

2

yes

5/2008 - ongoing

Portugal

Reinforcing transfrontier co-operation with Spain

Relevant areas of co-operation include strengthening competitiveness and employment promotion, environment, heritage, risk prevention, land-use planning and socio-economic and institutional issues. The objective is to overcome legal and other obstacles to promote the development of the Spanish-Portuguese border regions by strengthening existing economic relations and co-operation areas.

2

2

Yes

2007 - 2013

Slovenia

Bilateral transfrontier and interterritorial agreements in progress

Ratification to be expected in the near future.

3

3

Yes

2002 - 2010

D. Transfrontier and Interterritorial Co-operation

Budapest-Challenge II (continued)

Removing remaining legal and administrative obstacles to Transfrontier and Interterritorial Co-operation.

II.2.

Frontline Issue of Change:

Reform of national legislation

Country

Details

PI

TC

ILA

Time frame

Czech Republic

Simplification of possibilities for transfrontier co-operation in the light of EU legislation and regional policy initiatives

To reach a higher level of participation of self-governing units in transfrontier co-operation.

4

2

Yes

2007 - 2010

Romania

Legal provision allowing transfrontier co-operation

The new provision of the Law 215/2001 on local public administration allows local public authorities to set up associations of intermunicipal development with territorial and administrative units from abroad and to develop transfrontier and interterritorial projects.

2

2

Yes

2006 - finished

Switzerland

Implementation of the new law on regional policy aiming at achieving better economic equilibrium between regions

Transfrontier, transnational and interregional co-operation is expected to favour programmes and projects which aim at stimulating innovation and competitiveness of the regions. That includes objective 3 under the cohesion policy of the EU.

1

1

Yes

2008 - 2013

II.3.

Frontline Issue of Change:

Participation under the structural funds of the EU

Country

Details

PI

TC

ILA

Time frame

Estonia

Implementation of objective 3 of the EU’s Structural Funds

8 programmes are being carried out to increase territorial cohesion and co-operation with neighbouring countries, diminishing the socio-economic disparities in border areas.

2

3

Yes

2005 - 2013

Bulgaria

Development of co-operation under objective 3 of the EU structural Funds

Among the areas addressed are: urban – rural areas; access to basic infrastructure; promotion of joint use of infrastructure facilities; development of institutional and administrative capacities.

2

2

Yes

2006 - open

II.4.

Frontline Issue of Change:

Others

Country

Details

PI

TC

ILA

Time frame

Georgia

Cross-border co-operation instruments

To develop proper cross-border co-operation mechanisms.

4

2

Yes

2009 - 2011

D. Transfrontier and Interterritorial Co-operation

Budapest-Challenge III

Establishing a clear and effective legal framework for institutionalised co-operation between territorial communities or authorities (Euro-regions).

III.1.

Frontline Issue of Change:

Euroregions and the Madrid Outline Convention

Country

Details

PI

TC

ILA

Time frame

Armenia

Euroregion co-operation model

Attempts to co-operate within the Euroregion model and – in this way – to benefit from EU structural funds.

2

2

Yes

2008 - 2009

Belgium (Flemish region)

Draft third protocol to the Madrid Outline Convention on Euroregional Co-operation Groupings

Working towards a not too detailed legal instrument.

4

3

yes

x ns

Hungary

Ratification process of the Additional and Second Additional Protocol to the European Outline Convention on transfrontier co-operation between territorial communities or authorities

To provide a wider legal framework for transfrontier co-operation.

2

2

Yes

3/2009 – end 2009

Spain

Compatibility of the European Outline Convention of Madrid and EGTC

Searching for compatible actions carried out under both frameworks in order to strengthen the consistency of territorial co-operation across Europe.

2

2

Yes

2007 - open

III.2.

Frontline Issue of Change:

The Benelux Convention

Country

Details

PI

TC

ILA

Time frame

Belgium – Flemish Region

The Benelux Convention on Transfrontier Co-operation

The convention is to be updated to create an efficient and suitable legal instrument which facilitates transfrontier co-operation for local and other authorities.

2

2

-

2009

Netherlands

Update of the Benelux Convention on Transfrontier Co-operation

Process of considering whether to update the Convention was expected to be finished in 2008.

3

2

Yes

2007 - 2008

D. Transfrontier and Interterritorial Co-operation

Budapest-Challenge III (continued)

Establishing a clear and effective legal framework for institutionalised co-operation between territorial communities or authorities (Euro-regions).

III.3.

Frontline Issue of Change:

European Groupings on Territorial Co-operation

Country

Details

PI

TC

ILA

Time frame

Belgium (Flemish Region)

Follow-up of established EGTC

1.    The Eurometropole Lille-Kortrijk-Tournai;

2.    West-Vlaanderen/ Flandre-Dunkerque-Côte d’Opale.

2

2

x

2008 – ns

Bulgaria

Starting on EGTC

2

2

Yes

2006 - open

France

Implementing regulation 1082/2006 on EGTC

On 16^th of April a law was adopted regulating the EGTC and harmonising it with the 2^nd additional protocol of the Madrid Outline Convention.

2

1

yes

4/2008 - ns

Hungary

Implementation of the Hungarian Act on EGTC

The framework prioritises informing the public and the local self-government units about the EGTC.

2

2

Yes

8/2007 – open

Italy

Process of harmonization of national legislation and the EGTC

2

-

Yes

Yes - 2010

Latvia

Preparation of a law on EGTC

To be adopted in the future.

2

1

No

ns

Lithuania

Law on the EGTC

The law reduces the significant difficulties of implementing and managing actions of territorial co-operation. The law was adopted in 2008.

2

2

-

2008 - finished

Luxembourg

Implementing the EGTC

Possibility of establishing EGTCs introduced. Implementation was expected to be concluded in April/May 2009.

2/1

3

No

End 2007 - finished

Netherlands

Implementation of the regulation 1082/2006 on EGTC

4

2

Yes

2006 – finished (2007)

Slovakia

Adoption of the Act No. 90/2008 on EGTC

The Act came into effect on 1^st May 2008

2

3

5/2008

Spain

Authorisation procedures on EGTC

2

2

Yes

2007 - open

Sweden

Implementation of regulation 1082/2006 on EGTC

3

1

Yes

2006 - 2009

D. Transfrontier and Interterritorial Co-operation

General challenge of transnational or trans-regional co-operation.

IV.1.

Frontline Issue of Change:

Unspecified attempts of strengthening transfrontier co-operation

Country

Details

PI

TC

ILA

Time frame

Austria

Developing relations and co-operation between the Austrian regions and the respective neighbouring regions.

2

2

Yes

Ns - ongoing

Belgium – Brussels

Continuing process of multilateral and bilateral co-operation

2

1

-

Since 1989

Netherlands

Improvement of transfrontier co-operation between local and regional authorities

The basic policy principle was formulated by the Ministry of the Interior and Kingdom Relations in October 2006 and stresses the importance of provinces in directing and coordinating transfrontier co-operation in border areas. In accordance with the principle to decentralise where possible, and centralise where necessary, the central government stimulates and, if necessary, facilitates the seizing of opportunities and solving of bottlenecks in the border areas.

3

2

Yes

2000 - ongoing

Switzerland

Strengthening co-operation between authorities in conurbations covering two or more countries or cantons

3

3

Yes

ns

Summary table

Identified frontline issues by member state, allocated to the Budapest challenges and Budapest themes

Legal Framework and Institutional Structure

 Democratic participation & public ethics

I

II

III

IV

I

II

III

IV

General and comprehensive reforms to advance  decentralisation

Modernisation of local and regional administration and service delivery

Municipal reform – legal reform of  the establishment of cities and villages

Reform and restructuring at local level

Reform at regional level

Elections and legitimacy

Central and Local Level

Central and Regional Level

Local and Regional Level

Interregional level

Inter-municipal co-operation

New challenges

Increasing citizen’s participation in the decision making process on local level

New approaches: electoral participation

Fight against corruption

Creation and strengthening of Codes of Ethics

Electoral turn out

Participation of  foreign residents at local level

Gender and tolerance

Albania

Armenia

Austria

Azerbaijan

Belgium – Brussels

Belgium – Flanders

Bulgaria

Czech Republic

Denmark

Estonia

Finland

France

Georgia

Hungary

Italy

Latvia

Lithuania

Luxembourg

Malta

Netherlands

Norway

Portugal

Romania

Serbia

Slovakia

Slovenia

Spain

Sweden

Switzerland

Turkey

United Kingdom

TOTAL

8

6

3

13

4

2

1

1

3

1

2

2

17

3

3

6

3

4

2

36

6

2

2

20

9

3

6

46

38

Summary table

Identified frontline issues by member state, allocated to the Budapest challenges and Budapes themes

Local and Regional Finance and Public Services

Transfrontier & Interterritorial
co-operation

I - IV

V

I

II

III

Financial decentralisation and deconcentration

New financial instruments and non-fiscal sources of revenue

Equalisation

Reforms on finance & services

Other reforms

Reforming financing mechanisms

E-government

Extension of services

Quality standards and efficiency

Auditing

Accountancy

Defining the scope for risk taking

Responding to the economic crisis and other emergencies

Capacity Building using EU funding

Agreements & international treaties

Reform of national legislation

Action under the EU structural funds

Other

Euroregions and the Madrid Outline Convention

The Benelux Convention

EGTC

Unspecified attempts

Total number of Measures

Albania