European Summit of Local Governments

Barcelona (Spain) 22-24 February 2010

Session C:

“Local governments in Europe: innovating towards a model of excellence”.

Speech by Günther KRUG,

Vice-President of the Chamber of Regions,

Congress of Local and Regional Authorities.

Mr Chairman,

Excellencies,

Ladies and Gentlemen,

Dear colleagues,

First and foremost, I would like to thank the organisers of this European Summit of Local Governments for having invited the Congress of Local and Regional Authorities of the Council of Europe to address you today.

This Summit is taking place at a time of a tremendous political, economic and social change across our continent. This change, set in motion by the collapse of Communist regimes in Europe, boosted European integration, on the one hand, but also decentralisation processes, leading to a remarkable shift of power towards the regional and local level.

Governments today recognise that solutions to even the most taxing problems require the involvement of territorial authorities. In this context, the global economic and financial crisis came as a test for this new, emerging system of the distribution of power and competences. Interestingly enough, the crisis has revealed a better capacity for innovative management and problem-solving at local rather than national level. Local and regional authorities, which in the European Union alone control two thirds of all public investments, have shown over the years a far better management of assets than their national counterparts.

At the same time, this shift of power means that there is more expected of local authorities – in terms of efficiency, in terms of concrete action, and in terms of innovation. Innovation is indeed key to finding solutions at a time of crisis, but also to better governance of our communities in the long term.

Innovation is central to today’s efforts of the Congress of the Council of Europe, and to many of its recommendations concerning local governance. The Congress is an assembly of local and regional elected representatives from 47 European countries – or, to put another way, an assembly representing more than 200,000 territorial communities of our continent. This pan-European dimension allows us to pool the experiences and best practices of local authorities operating in drastically different conditions – in areas that are central or remote, coastal or land-locked, sparsely or densely populated, mountain, rural or urban.

Over recent years, the Congress put forward a wide range of proposals to raise the quality of governance through innovative measures that can be taken at local level. I could refer you to our recommendations on a new energy culture, sustainable consumption, child-friendly cities, or provision of adequate public services in rural areas. Integration of migrants, access to social rights, participation of young people, intercultural dialogue at local level – these are only a few of the areas where the Congress has provided its input, and where innovation is part and parcel of action for improvement.

Finally, if we are speaking about a model of excellence, I would invite you to discover the new European Urban Charter: Manifesto for a new urbanity, adopted by the Congress two years ago. The Charter offers a new vision and model of urban living and governance. It calls for building towns and cities in a way which would make them citizen-oriented, cohesive, sustainable and modern, cities that would be driven by innovation, scientific knowledge and cultural development. Most importantly, it urges territorial authorities to place people at the heart of public action.

And this brings me to the three keys that would make innovation both more effective and lasting. Placing people at the heart of our public action also means having a sound democratic framework to make sure that the governance we have is accountable, accessible, transparent, ethical and therefore efficient. This is the first key.

We in the Congress are convinced that the basis for such a framework is the European Charter of Local Self-Government, this benchmark international treaty for local democracy. This Charter establishes the principles necessary for the independent and efficient functioning of local authorities. Making sure that these principles are upheld is the main task of the Council of Europe Congress, and I call on you, dear colleagues, to refer to the Charter when defending your rights vis-à-vis national governments – especially in this time of crisis, when a knee-jerk reaction is to re-centralise responsibilities and limit funding. The Charter provides guarantees for both, transfer of competences to local level and adequate local finances.

In fact, recent studies have shown that in most aspects, a higher level of decentralisation is linked to stronger economic growth and has a positive impact on economic performance. The reason for this is effectiveness: local authorities, as true managers of their communities, know best the preferences of their citizens and the needs of their companies, and when budgets have to be cut, it is usually their managers who know best where waste is occurring.

The second key to lasting innovation is citizen participation. Involving the local population in decision-making is a sure way of tapping into their great potential for innovative ideas. It also means ensuring transparency, efficiency and high ethical standards in local government action.

The Congress’ own innovation in this field is the European Local Democracy Week, an annual event which gives an opportunity for local authorities and community residents to meet together, engage people in decision-making and affirm their commitment to community affairs and local democracy. I invite your municipalities to join this year’s edition of the Week, which will be dedicated to local action in the face of climate change.

Modern technologies also offer excellent opportunities for citizen participation. This e-participation can include citizen consultations, e-voting and e-inclusion for vulnerable or disadvantaged groups, finally, the provision of e-services. The use of e-tools for national and local authorities was the subject of a Congress recommendation and the theme of the Council of Europe Forum for the Future of Democracy in Madrid in October 2008. Since last November, the Charter of Local Self-Government is also supplemented with an additional Protocol which guarantees democratic participation at local level.

Last but not least, the third key to lasting innovative work is a healthy network of vertical and horizontal power relationships: vertical, with regional and national governments and horizontal, with other local communities. Inasmuch as governments need the input of local communities into national policy-making, local authorities need political and financial support for their action from the national level.

National and regional governments should effectively involve their local authorities as partners for innovation. In this time of crisis, for example, this translates into changing the framework of governmental finance for local communities, aimed at improved targeting of social benefits. The social component of local action must remain strong if we wish to preserve social cohesion, and it is indispensable to avoid the decrease of local resources which have an immediate and direct impact on citizens. This is where regional and national financial intervention can come into play in response to innovative local proposals.

At the same time, exchanges and cooperation with other communities, both within the country and across the border, will make local innovative action much more effective – by spreading innovation that attracts investments, or by borrowing new ideas from others to complement your own. This is yet another axis of the Congress activities, aimed at promoting transfrontier cooperation and networking between European municipalities and regions.

Ladies and Gentlemen,

These are some of the ideas which I wished to share with you today. The issue of innovation at local level has of course very many aspects, and I look forward to hearing your ideas on this subject in our forthcoming debate.

Thank you for your attention.