As they do every year, the Rapporteurs will review the credentials of the new members and any new procedures for the appointment of national delegations in the light of the current criteria of the Congress Charter and Rules of Procedure

Local and regional authorities responding to the economic crisis

Presentation by the Rapporteurs:

Barbara TOCE, Italy (L, SOC), and Svetlana ORLOVA, Russian Federation (R, EPP/CCE)

CG(25)5PROV

Resolution

Recommendation

The financial and economic crisis has had a particularly severe dual impact on local and regional authorities as they have had to face substantial decreases in their budgets – due to a shrinking revenue base caused by the economic downturn, cuts in budgetary transfers from national governments, decreasing local tax authority and the need to manage sometimes excessive debt burden – and, at the same time, an obligation to increase social assistance to citizens in economic distress. The report examines the current situation, takes stock of existing local and regional responses to the crisis, and puts forward recommendations to both national governments and local and regional authorities for further strategies and policy measures.

The report calls for local and regional authorities to be recognised as fully-fledged stakeholders in dealing with the crisis, and for the establishment of regular consultations between them and national governments to ensure coherent development policies and measures in response to the crisis, focusing on reviving investment to stimulate local and regional economic growth, innovation and employment. The report recommends greater decentralisation of competences and fiscal devolution to the local and regional levels, in particular in terms of budgetary autonomy and local tax authority, reinforcement of equalisation mechanisms, revision of government financing to ensure a steady level of transfers to local and regional levels, and exemption of local and regional social services from fiscal consolidation programmes, among others. The report urges that governments stop using the crisis as an excuse for recentralisation and forced mergers of local and regional authorities, and calls for increasing citizen participation in decision making at local and regional levels.

Specific recommendations to local and regional authorities concern local expenditure management, revival of investment, promotion of entrepreneurship and business development, rationalisation of service networks and improvement of service cost efficiency, greater transparency in governance (in particular in public procurement), social assistance management (in particular through partnership with the voluntary sector), development of inter-municipal and inter-regional co-operation to benefit from economies of scale, and the building of partnerships with both the private and non-governmental sectors.

Local and regional democracy in Hungary

Presentation by the Rapporteurs:

Artur TORRES PEREIRA, Portugal (L, EPP/CCE), and Devrim CUKUR, Turkey (R, SOC)

CG(25)7PROV

Recommendation

This report on the situation of local and regional democracy in Hungary follows up on Recommendation 116 (2002) and the Congress visit carried out in May 2012. The report welcomes the ratification by Hungary of the Additional Protocol to the European Charter of Local Self-Government on the right to participate in the affairs of a local authority in June 2010. It expresses regret, however, that this positive step is overshadowed by the recent reforms, which led to a deterioration of the legislative framework on local and regional issues in Hungary. In particular the report underlines a deep concern about the overall trend towards recentralisation of competences and the weak level of protection afforded, at constitutional level, to the principle of local self-government. It underlines the fact that the local authorities in Hungary remain strongly dependent on government grants, and that the consultation procedure needs reinforcement, bringing it in line with Charter provisions on timely and appropriate consultation practices. Lastly, local authorities do not have an effective judicial protection as regards their right of recourse to courts to guarantee their rights under the Charter.

It is recommended notably that the Hungarian authorities take steps to guarantee the implementation of the principle of self-government and the financial autonomy of local and regional authorities as set out in the Charter. The recommendation also strongly encourages the Hungarian authorities to clearly define the competences of local and regional authorities and to seek solutions which will provide local and regional authorities with the requisite human and material resources. It calls on the Hungarian Government to put in place an effective consultation procedure for all matters which concern territorial authorities directly as stipulated by the Charter, and to implement effective remedies which provide a right for representatives of local authorities to lodge a complaint to courts in order to protect their rights laid down in the Charter.

Prospects for effective transfrontier co-operation in Europe

Presentation by the rapporteur: Breda PEČAN, Slovenia (R, SOC)

CG(25)9PROV

Resolution

Frontier regions play a crucial role in European integration and cohesion. In these regions the mobility of people, goods and services, as well as the obstacles to their mobility, can be easily seen and monitored, which is why they have been referred to as laboratories of European integration.

This report follows a stock-taking conference on ‘Multi-level Governance in Transfrontier Co-operation’ which was co-organised by the Congress Governance Committee and the Euro-Institute on 30 May 2012 in Innsbruck, Austria. It lays down some theory behind transfrontier co-operation and how actors in this co-operation have developed a positive pragmatism to overcome the legal and administrative challenges they face.

Increasingly, borders are not seen as barriers but as a source of unused potential co-operation for citizens on either side of the border. A 360 degree perspective in territorial planning in frontier regions can lead to shared public infrastructures and services. However, to overcome the challenges of such a close co-operation, training and capacity building programmes need to be specifically tailored to meet each frontier regions’ specific characteristics.

Revision of Congress resolutions on procedures for monitoring the implementation of the Charter and observation of local and regional elections

Presentation by the rapporteur: Lars O. MOLIN, Sweden (L, EPP/CCE)

CG(25)13PROV

Resolution 306(2010)

Resolution 307(2010)

Resolution 353(2013)

The three resolutions contained in the present document are updated versions of resolutions 306 (2010), 307 (2010) REV and 353 (2013) respectively. The revised versions of the abovementioned texts take into account the new institutional landscape of the Congress as well as the most recent reference texts, and develop the rules governing the activities of the Congress related to observation of local and regional elections and to the monitoring of the application of the European Charter of Local Self‑Government.

This document makes these revised texts available in consolidated form after approval by the Monitoring Committee at its meeting on 3 July 2013.

Local and regional democracy in Ukraine

Presentation by the rapporteurs:

Marc COOLS, Belgium (L, ILDG), and Pascal MANGIN, France (R, EPP/CCE)

CG(25)8PROV

Recommendation

This is the second report on the state of local and regional democracy in Ukraine since 2001. The report highlights the initiatives taken by the government in view of a substantial territorial reform that are considered positive and the fact that local authorities have been represented in this process by their associations through the consultation procedure. It notes, however, that the law limits local authorities’ autonomy of decision and management, that several cities, including the capital, have remained without a mayor for long periods of time, and that the financial autonomy of local authorities remains limited. The report also highlights the lack of a clear division of competences and administrative action between government departments and those of local authorities and, despite strong statements of intent made at the highest level of State for its implementation, the reform does not advance at the desired pace.

It is recommended that the Ukrainian authorities review their legislation in order to remove the restrictions on the powers of local authorities and enable them to fully exercise their competences. The authorities are encouraged to organise, in the shortest possible time, elections in the cities where the post of mayor is vacant. The recommendation underlines the need to strengthen the financial autonomy of local communities and to improve the equalisation system for the purposes of fairness and transparency. It invites the authorities to implement the reform in a timely manner. Finally, the recommendation calls on the Ukrainian authorities to ratify the Additional Protocol to the European Charter of Local Self‑Government on the right to participate in the affairs of a local authority (CETS No. 207).

Local and regional democracy in Albania

Presentation by the rapporteurs:

Zdenek BROZ, Czech Republic (L, ECR), and Åke SVENSSON, Sweden (R, SOC)

CG(25)11PROV

Recommendation

The present report on local and regional democracy in Albania follows upon Recommendation 201(2006). The report notes with satisfaction that decentralisation of the state power has been a major component of democratisation in Albania and that the legislative framework is in line with the Charter. It also notes, however, that regional authorities appear to be very weak, the local government associations appear fragmented and without a unified voice, and that there are no clear regulations for the process of consultation between the local and central governments. It draws attention to the fact that a territorial reform as well as a comprehensive and intensive fiscal reform could promote local economy.

The report recommends that the Albanian Government elaborate a territorial policy which can offer small communes and municipalities the possibility of performing their tasks and benefiting from economies of scale, to enhance local authority competences, to ensure concomitant financing of delegated competences and to clarify and increase regional competences. It encourages the government to develop legislation that will set up clear requirements for the central authorities to consult with local authorities on matters which concern them directly. It also invites the government to work with all the existing associations to achieve the establishment of a body that could represent all local authorities. It invites the authorities to sign and ratify the Additional Protocol to the European Charter of Local Self-Government on the right to participate in the affairs of a local authority (CETS No. 207).

Local and regional democracy in Denmark

Presentation by the rapporteurs:

Julia COSTA, Portugal (L, EPP/CCE), and Jean-Pierre LIOUVILLE, France (R, SOC)

CG(25)12PROV

Recommendation

This report on the situation of local and regional democracy in Denmark summarises the findings of the monitoring visit carried out from 2 to 5 October 2012. It highlights the overall positive (and, in some areas, exemplary) nature of local democracy in Denmark, where a "Charter culture" prevails in local government affairs, ensuring the implementation of the principles of self-government enshrined in the Charter. The report notes with satisfaction the existence of good practices which deserve be cited as examples for consideration by other member States of the Council of Europe, such as the procedure for amalgamation of municipalities, consultations with local authorities in decisions concerning them directly, and the participation of citizens in local public life. However, the report also expresses concern that certain competences are not clearly devolved to local authorities, creating the risk of overlapping competences, assignment of inadequate financial resources or an inequitable distribution of financial burden due to inadequate mechanisms and procedures for financial equalisation at local and regional levels. The report also underscores the limited competences of the regional authorities who are unable to raise taxes and do not have their own financial resources.

It is recommended that the Danish authorities clearly define the local authorities’ competences (including those specified in “municipal authority rules”), allocate them more financial resources covering all their domains of responsibility and improve procedures for financial equalisation between municipalities in order to make them compatible with the Charter. The report invites the Danish authorities to take inspiration from the Reference Framework for Regional Democracy for the development of Danish regions, revising the regions’ competences and providing them with an opportunity to raise taxes. Lastly, Danish authorities are encouraged to sign and ratify the Additional Protocol to the European Charter of Local Self-Government on the right to participate in the affairs of a local authority (CETS No. 207) in the near future.

II. REPORTS SUBMITTED TO THE CHAMBER OF LOCAL AUTHORITIES

Local democracy in Ireland

Presentation by the rapporteur: Merita JEGENI YILDIZ, Turkey (R, EPP/CCE)

CPL(25)PROV

Recommendation

This is the second report concerning the monitoring of local democracy in Ireland since 2001. It expresses satisfaction that Ireland has made important changes since then, and stresses the commitment of the Irish authorities to move from an almost fully centralised system to a certain level of decentralisation, through an ambitious Action Programme adopted in October 2012. The report notes, however, that the constitutional protection of local self-government is rather weak, local governments can still not be said to manage a substantial share of public affairs, the administrative supervision of their activities by the central level remains high and consultations with local authorities and their associations are not systematic or sufficiently regulated. The report also draws attention to the very limited powers of local authorities to levy taxes or to set rates within the limits of the law.

It is recommended to the Irish authorities that they revise their legislation in order to ensure that the subsidiarity principle is better enshrined and protected in the law, implement the Action Programme rapidly with a view to devolve more powers and financial autonomy to local governments and improve the financial equalisation procedure. The authorities are equally encouraged to continue in the existing regional development efforts. The Government is invited to develop the procedures and mechanisms of consultation with local and regional authorities on matters concerning them directly, so as to entrench these procedures in the domestic legislation and in practice. Finally, the recommendation calls on the Irish authorities to sign and ratify the Additional Protocol to the European Charter of Local Self-Government on the right to participate in the affairs of a local authority
(CETS No. 207).

Integration through self-employment: promoting migrant entrepreneurship in European municipalities

Presentation by the rapporteur: Henrik HAMMAR, Sweden (L, EPP/CCE)

CPL(25)2PROV

Resolution

Recommendation

The ongoing rise of migrant entrepreneurship in Europe is expected to contribute significantly to the integration of migrants at local level and to the economic development of their city of residence. Migrant entrepreneurship is also an important factor in the creation of new businesses and should be given greater priority in the implementation of the Europe 2020 strategy of the EU by national and regional governments and local authorities. However, specific national and local policies to improve conditions for migrant entrepreneurship are currently lacking. The report examines the existing situation and proposes measures to promote migrant entrepreneurship in European municipalities, in particular through less rigid regulation and simplified procedures, improved information to migrants, micro-financing, skills development, marketing assistance and creation of migrant business associations.

The report invites local authorities in Council of Europe member states to include migrant entrepreneurship in their economic development and integration strategies, implement deregulation measures and simplify administrative procedures to improve the business environment, encourage the setting-up of migrants’ business associations and the participation of migrant entrepreneurs in community affairs, and offer them advice and assistance in particular in getting access to finance and in improving their business skills.

The report also recommends that national governments and European institutions recognise the importance of migrant entrepreneurship for integration and economic growth, make their regulatory and structural frameworks more business-friendly for small and medium-sized enterprises in general and migrant enterprises in particular, facilitate access of migrant businesses to venture capital through micro-financing, and support local action in favour of migrant entrepreneurship.

Election of the members of the Avagani (Assembly) of the City of Yerevan, Armenia (5 May 2013)

Presentation by the rapporteur and head of delegation: Stewart DICKSON, United Kingdom (R, ILDG)

CPL(25)3PROV

Resolution

Recommendation

Upon invitation by the Prime Minister of the Republic of Armenia of 20 March 2013, the Congress appointed a delegation to observe the elections for the Assembly of Aldermen (Avagani) of the City of Yerevan, deploying six teams to more than 100 polling stations throughout the city on 5 May 2013. The Committee of the Regions of the European Union accepted the Congress’s invitation to join the delegation, sending three members.

With the exception of individual incidents in a few polling stations, the Congress delegation assessed the elections as technically well-prepared, in keeping with international standards, and carried out in a calm and orderly manner. In pursuance of the Congress’s recommendations, with the new Electoral Code of Armenia, the authorities undertook a positive shift from a partisan to a non-partisan model at the level of the Central Election Commission and the Constituency Electoral Commissions. The composition of the Precinct Election Commissions ensured better opportunities for the contestants to scrutinise each other. More generally speaking, the Congress delegation recognised some progress in respect of the strengthening of the system of checks and balances and with regard to media freedom and anti-corruption measures.

The question of citizens who no longer live in Yerevan but remain on the population register and thus on the voters’ lists is an issue which needs to be examined to avoid potential misuse. The Congress delegation was informed by interlocutors about pressure exerted on public service employees to vote in a certain way and heard allegations of vote-buying. These issues should be addressed by the Armenian authorities in order to avoid a loss of confidence of citizens in the electoral system.

Local elections in “The former Yugoslav Republic of Macedonia” (24 March 2013)

Presentation by the rapporteur and head of delegation: Jüri LANDBERG, Estonia (L, ILDG)

CPL(25)4PROV

Recommendation

Resolution

Following the invitation of the government of “The former Yugoslav Republic of Macedonia”, the Congress appointed a delegation to observe the municipal elections on 24 March 2013.

The delegation stated that, with a few exceptions, the elections were held in a calm and orderly manner without major incidents. It highlighted the active and competitive campaign in the run-up to these elections but said that partisan media coverage and a blurring of state and party activities did not always provide a level playing field for the contestants. Election Day was technically well prepared and the members of the electoral boards were largely aware of the procedures. On the whole, the electoral legal framework was assessed positively but there was mention of certain lacunae in the Electoral Code still need to be addressed.

In particular, the Congress delegation referred to room for improvement in respect of: the accuracy of voters’ lists; the secrecy of the vote and prevention of family and group voting; the counting process and the accessibility of polling stations for people with disabilities.

The situation of the media remains a matter of specific concern for the Congress delegation – in respect of these elections but also in the broader context.

The Congress stands ready to assist the authorities of “The former Yugoslav Republic of Macedonia” in developing programmes and strategies to address these matters.

III. REPORTS SUBMITTED TO THE CHAMBER OF REGIONS

Regions and territories with special status in Europe

Presentation by the rapporteur: Bruno MARZIANO, Italy (R, SOC)

CPR(25)2PROV

Resolution

Recommendation

Regions with special status exist in several member states of the Council of Europe. Such regions enjoy more numerous and stronger guaranteed legislative, administrative and financial powers. They are established with a view to responding to particular needs of certain territories due to, inter alia, their history, geographical position, culture or linguistic characteristics, without challenging the overall state structure. This Report, based on a comparative analysis of special status regimes across Europe, demonstrates, in particular, that the principles of regional democracy are more firmly guaranteed in special status regions.

Migrants’ access to regional labour markets

Presentation by the rapporteur: Deidre McGOWAN, Ireland (R, GILD)

CPR(25)3PROV

Resolution

Recommendation

The rapidly growing cultural diversity of European societies has brought to the forefront the questions of both integration of migrants into the host community and their participation in the economic development, in particular at regional and local levels. Migrants’ access to the labour market constitutes a central dimension of such integration. In the period prior to the economic crisis, from 2000 to 2007, third-country nationals contributed to a quarter of the overall rise in employment in Europe. However, during the crisis, their employment situation has deteriorated more rapidly than that of natives.

According to OECD’s 2013 International Migration Outlook, raising the employment levels of migrants to that of the native-born would generate significant economic returns, due to the higher educational achievement levels and socio-economic positions of today’s migrants. Yet this migrant human capital remains widely underused, to a large extent due to the lack of recognition of foreign qualifications, complexity of procedures for obtaining work authorisation as well as discriminatory attitudes and prejudice towards hiring migrants. Regional policy can directly influence the conditions of migrants’ employment, as in many countries, regional authorities have significant competences in regulating employment and access to labour markets. However, in many regions, even highly skilled migrant workers are still unable to work and integrate professionally.

This report examines the context of the integration process and barriers for migrants’ access to regional labour markets, and proposes a general framework for implementing policy measures to improve such access and to facilitate migrants’ employment. The resolution proposes mainstreaming migrant employment policies and strategies into regional economic development plans, and puts forward measures to facilitate the evaluation of qualifications and procedures for work authorisation; to combat discrimination through intrercultural policies, education and staff training; to pursue inclusive hiring policies; and to improve education and training opportunites for migrants, among others. The recommendation in particular calls on governments to enforce non-discrimination measures with regard to employment, consider shortening the duration of work restrictions for certain categories of migrants, and reduce bureaucratic hurdles and excessive requirements for certain categories of jobs.