Strasbourg, le 17 juin 2010                                                                   LR-FS(2010)5

                                                                                                                         

COMITE EUROPEEN SUR LA DEMOCRATIE LOCALE ET REGIONALE

(CDLR)


COMITE D'EXPERTS SUR LES FINANCES AUX NIVEAUX LOCAL ET REGIONAL ET LES SERVICES PUBLICS

(LR-FS)

CONFERENCE SUR L’IMPACT DU RALENTISSEMENT ECONOMIQUE SUR LES COLLECTIVITES LOCALES EN EUROPE

ET REPONSES A CELUI-CI

(11-12 octobre 2010)

Note du Secrétariat

établie par la Direction générale de la

démocratie et des affaires politiques

Direction des institutions démocratiques


This document is public. It will not be distributed at the meeting. Please bring this copy.

Ce document est public. Il ne sera pas distribué en réunion. Prière de vous munir de cet exemplaire.


Introduction

La Déclaration d’Utrecht (I (A), 15-19) a préconisé :

•        de continuer le monitorage de la situation financière,

•        une conférence de suivi au cours de la seconde moitié de 2010, et

•        un examen des impacts globaux et les réponses au cours de la prochaine conférence ministérielle en Ukraine en 2011.

La Conférence « Impact du ralentissement économique sur les collectivités locales en Europe et réponses à celui-ci » co-organisée par le CDLR et la LGI (Initiative de réforme des autorités et des services publics locaux de l’Institut Open Society) se tiendra à Strasbourg les 11 et 12 octobre (matin) immédiatement suivie par la 46e réunion du CDLR.

Les objectifs de la Conférence seront :

•        mettre à jour l’analyse des impacts financiers de la crise sur les collectivités locales;

•        analyser les réponses politiques de la crise par les Etats membres dans le contexte des lignes directrices identifiées dans la Déclaration d’Utrecht ;

•        identifier les thèmes possibles pour délibération par les ministres en 2011.

En plus des membres du CDLR, des représentants des ministères des finances, des associations de collectivités locales, d’autres organisations internationales et des spécialistes techniques contribuant aux ateliers de travail, ainsi que le Congrès et l’Assemblée parlementaire participeront à la Conférence. L’OCDE, la Banque Mondiale, le CCRE et l’Assemblée des Régions d’Europe ont été identifiés comme partenaires ou contributeurs pour les activités prévues pour relever le défi que constituent le monitorage de la crise financière et les réponses à y apporter.

Les conclusions de la conférence seront présentées au CDLR pour examen dans la planification de la prochaine Conférence ministérielle en 2011.

Le projet de programme (en anglais uniquement) présenté ci-après est provisoire et sera finalisé par le Bureau du CDLR. Lors de la réunion du LR-FS, le Prof. Ken Davey (LGI) informera le Comité sur l’état de préparation de la Conférence. Le LR-FS aura l’occasion de faire toutes les suggestions qui lui semble opportunes concernant la conférence, sa préparation et le projet de programme.

Action requise

Le Comité est invité à prendre note de ce qui précède et à faire toutes les suggestions qui lui semble opportunes concernant la préparation de la Conférence.


(Version provisoire en langue anglaise)

Conference organised by the CDLR and the LGI (Local Government and Public Service Reform Initiative of the Open Society Institute)

“The Impact ofthe Economic Downturn on Local Government across Europe

and the Responses to”

 

Strasbourg, 11-12 October 2010

Draft programme

10 October 2010

Participants’ arrival

19.00 – 22.00

Alsacian wine tasting, Dinner

     

11 October 2010

9.00 – 9.30

Registration and coffee

9.30 – 10.00

Introduction

10.00 – 11.00

Plenary session: Overview and updated analysis of the financial situation of local government in Council of Europe member States

         

11.00 – 11.30

Coffee Break

11.30 – 12.30

Ministerial Conference from Utrecht to Kiev, the road ahead. Introduction to workshop topics     

12.45 – 14.15

Lunch

14.30 – 16.00

Workshops on policy responses. Round 1

16.00 – 16.30

Coffee Break

16.30 – 18.00

Workshops on policy responses. Round 1 continued

18.15 – 19.30

Cocktail in the Blue Restaurant of the Council of Europe

                                   

12 October 2010

9.00 – 11.00

Workshops on policy responses. Round 2

11.00 – 11.30

Coffee Break

11.30 – 12.30

Workshops on policy responses. Round 2 continued

12.30 – 13.30

Summary of workshops and Conclusions

13.45 – 14.30

Lunch

Workshops on policy responses: themes (provisional)

A: Inter-governmental Finance

The Utrecht Declaration detected a general contraction in local government revenues frequently with simultaneous growing demand for expenditure, particularly on social assistance and debt service. It predicted that this squeeze would continue in the short term due to cutbacks in national government support, time lags in revenue decline and increasing demand to support economic recovery and to address demographic change. It also noted that the assignment of more volatile tax bases, such as corporate profits and value added, to local governments with a high degree of regular operational commitments deserved reconsideration. It nonetheless cost doubt on the capacity of national budgets to offer local government increased budget support, except for short term fiscal stimulus, as they tended to be under even greater strain.

The workshop will discuss how far changes are being made or considered in:

·         the assignment of revenue sources to local government

·         the scope or scale of local expenditure responsibilities

·         the volume and distribution of inter-governmental transfers and shared revenues

·         the freedom of local authorities to vary the incidence and rates of their taxes and charges

·         access to credit.

It will also appraise the quality of dialogue and negotiation between national and local government over these issues.

B: Doing more with less: promoting efficiency

The Ministerial Conference concluded that the squeeze on local budgets was likely to continue for the foreseeable future and that local governments would be challenged to find long-term ways of making resources go further in the delivery of public services.

A number of contemporary approaches to increasing efficiency were identified at Utrecht and experience in their application will be discussed by the Workshop. These include

C: Local government contributions

to economic recovery and sustainable development

After recessions in the 1990s many local governments developed an active role in promoting local economic activity and employment. How relevant do they remain in the current economic circumstances and to what extent are they being diversified or reinforced?

D: Coping with the social impacts of recession and

demographic change

The burden and cost of social provision have increased markedly in the short term as a consequence of the recession, but will also continue to rise in the long term because of demographic trends in Europe. The fiscal aftermath of the financial crisis will limit the ability of the State (central or local) to shoulder extra burdens and increasing co-operation with other actors will be imperative.


The division of responsibility between national and local government for social assistance and care varies enormously between European countries. What is the value added of local government participation? Do local knowledge and preferences enhance effectiveness and resources or distort equity? Do divisions of responsibility (including those between tiers of local government) bias towards more expensive solutions for individual needs?

Both commercial and social enterprises are expanding rapidly their social sector roles. Are their activities sufficiently incorporated into an overall regulatory and financial framework? Family care remains the bedrock in most communities; how far and how well does local government support rather than supplant it?

Overall, how can this mixed economy of social provision be made to work more efficiently and equitably?