Declaration of the 5th Forum of Cities and Regions of South-East Europe - 11th Economic Forum

Budva, Serbia and Montenegro, 11-12 October 2004

The participants at the 5th Forum of Cities and Regions of South-East Europe (11th Economic Forum) meeting in Budva on 11 and 12 October 2004 at the invitation of the City of Budva and at the initiative of the Congress of Local and Regional Authorities of the Council of Europe as part of the Stability Pact for South-East Europe, and in co-operation with the Foundation for the Economy and Sustainable Development of the Regions of Europe (FEDRE);

1. Extend their thanks to the Municipality of Budva for its warm welcome and the Union of Municipalities of Montenegro for its support for the Forum;

2. At political level:

2.1. Denounce the violence in South-East Europe, particularly in Spring 2004, and reaffirm that full respect for minority rights is an indispensable factor for civic peace and stability, and an essential condition for economic development;

2.2. Concerning Kosovo:
- hope that the framework document for the reform of local government and public administration in which the Council of Europe participated will facilitate acceptable political development for all the communities in the spirit of the European Convention on Human Rights and the European Charter of Local Self-Government;
- encourage the Pristina and Belgrade authorities to continue their dialogue aimed at improving living conditions and freedom of movement for all the communities;
- encourage all the communities:
. to contribute to the development of democracy and human rights;
. to participate fully in the upcoming elections to the Kosovo Assembly;
- request the political parties to fully respect and adhere to the electoral legislation and regulations;

2.3. Reaffirm the essential role that local and regional authorities must play in promoting political stability and economic development in South-East Europe with a view to European integration;

2.4. Underline the importance to develop the transfrontier cooperation between local and regional authorities in South-East Europe and in this context invite the governments of the region to sign and ratify the Outline Convention of the Council of Europe on Transfrontier Cooperation;

2.5. Back the European Union’s efforts to enhance the role played by local and regional authorities in the process of consolidating democracy in the West Balkan region, and invite the European Commission to associate the Council of Europe, particularly the Congress, in the implementation of the CARDS programme and the New Neighbourhood Policy;

2.6. Support the work of the Committee of the Regions of the European Union in this field and welcome the initiative for a Conference on local and regional authorities in South-East Europe to be organised jointly by the Congress and the Committee of the Regions in the Venice Region in Spring 2005, as a follow-up to the 5th Forum held in Budva;

2.7. Welcome the recent officialisation of the Network of Associations of Local Authorities of South-East Europe (NALAS Network), and notably the signature of its legal statutes during the 11th Plenary Session of the Congress in May 2004, and the forthcoming election of the Network’s President;

2.8. Recall that the NALAS Network is a concrete result of the previous Forums of Cities and Regions of South-East Europe held since 2000 and a major tool for cooperation between the local authorities of South-East Europe;

2.9. Welcome the proposal that the NALAS Network and the Association of Local Democracy Agencies (ALDA) be invited to the South-Eastern Regional Ministerial Conference on “Effective Democratic Governance at Local and Regional Level” (Zagreb, 25-26 October 2004, organised under the auspices of the Stability Pact for South-Eastern Europe and the Council of Europe);

2.10. Hope that this Zagreb Ministerial Conference will lead to concrete results, especially legislative improvements, closer dialogue between central and local government, stronger leadership and strategic management in local and regional authorities, greater citizen participation and better local public services;

3. Regarding the socio-economic situation at local and regional level in South-East Europe:

3.1. Are convinced that improving economic conditions at local and regional level is a key factor for the development of democratic institutions in South-East Europe;

3.2. Give their full support to the idea developed in the United Nations (UN) of securing “basic utilities” for the local population, namely access to water, energy, housing, health, education, etc. , and encourage the initiatives taken by FEDRE and UNITAR in this framework;

3.3. Underline the role that sustainable tourism can play in the improvement of socio-economic conditions. They stress the importance to prolong the touristic season, particularly by targeting retired people from Northern Europe, ensure good training of touristic managers, and to improve many tourist facilities and infrastructures;

3.4. Improve the use of European Union funds and all other financial resources by taking account at all level of the principles of sustainable development with a view of allowing candidate countries to join European Union in the best possible conditions;

3.5. Ensure that central and regional/cantonal authorities should grant powers and sufficient financial resources to local authorities, in the spirit of the European Charter of Local Self-Government so that they are able to carry out consistent policies and priorities;

3.6. Request the governments of South-East Europe to give local authorities power to administer public property in their respective municipalities, including properties which may be subject to privatisation and support the actions and contacts of FEDRE Foundation with private companies in this respect;

3.7. Ask for the development of public and private partnerships at local and regional level, particularly through public enterprise, namely for the quick realisation of highly needed infrastructure;

4. Regarding anti-corruption measures:

4.1. Recognise that unstable economic conditions, increase unemployment, uncontrolled privatisation and linking of private and public interests favour corruption and also that corruption is preventing investment, and therefore socio-economic development;

4.2. Consider that:

- It is necessary to ensure that local and regional authorities are fully supporting and participating partners in the process of drafting the National Strategies on Anti-Corruption, and notably their Action Plans containing specific anti-corruption measures;

- Training of staff and elected representatives is a major tool for prevention of corruption and invite the Congress and the European Network of Training Organisation for Local and Regional Representatives (ENTO Network) to develop specific training activities based on the “European Code of Conduct for Local and Regional Elected Representatives” adopted by the Congress in 1999;

- Each local and regional authority should take specific measures to prevent of corruption, control and report corruption, and increase public awareness of the fight against corruption, while emphasising that corruption should be combated not just at national, but also at local and regional level, due to the specificities and nature of cities and regions;

- The establishment and enhancement of the Public Information Offices working to increase public awareness and perception of anti-corruption measures should not be run only by the central authorities but should also involve local and regional authorities closely;

- A programme of civic education to raise awareness in young people of the fight against corruption;

4.3. In this respect, propose that specific liaison committees involving representatives of all levels of authority (local, regional, national) be established with strong involvement of all National Associations of local and regional authorities in South-East Europe;

4.4. Support full use of Council of Europe instruments to prevent corruption (conventions, implementation by the member States of European norms, training and technical assistance);

5. Regarding the situation of refugees and internally displaced persons:

5.1. Call on all the governments concerned and the international community, in view of the problems faced by municipalities, to give them easier access to funding for the provision of adequate housing for refugees and internal displaced persons;

5.2. Welcome the transfer of the Migration, Asylum and Refugees Regional Initiative MARRI created in the framework of the Stability Pact for South Eastern Europe to regional ownership;

5.3. Call on Governments and local authorities to ensure unimpeded and non-discriminatory Access to Rights to refugees, returnees and displaced populations and particularly to employment, education and municipal services in line with international standards and acquis;

5.4. Call on governments to fulfill their commitment to resolve the issue of informal settlements as expressed in the Vienna Declaration on National and Regional Programmes regarding Informal Settlements in SEE, signed by Ministers from the Region on 28 September 2004;

5.5. Call on all the governments of SEE, with the support of the international community and the commercial and international finance institutions, to provide easier access to housing finance and cooperate in the development of national and regional guarantee funds;

5.6 Encourage municipalities in SEE to develop housing associations and cooperatives and explore public-private partnership options in order to develop a sound and balanced housing market accessible for all sections of society, including affordable and social rental housing based on existing best practice from post war reconstruction in Europe;

5.7. Request international organizations to associate the Congress and especially
UN-HABITAT for sustainable Housing solutions and socio-economic integration of Refugees and United Nations High Commissioner for Refugees (UNHCR), with its activities on return and integration of refugees and internally displaced persons at local and regional level and; in this connexion, take account of the Congress report on “Migration flows in South-East Europe: the role of local and regional representatives” adopted at the 11th Plenary Session of the Congress in May 2004;

6. Regarding the Association of Local Democracy Agencies (ALDA):

6.1. Welcome the forthcoming opening of a new LDA in Mostar and the extension of the ALDA’s activities to the South Caucasus, with the project for an LDA in Georgia;

6.2. In order to support the increasing number of activities of the Association in the fields of local democracy, transborder co-operation, inter-cultural dialogue and local economic development, invite Donors to continue and upgrade their financial and technical contributions;

7. Regarding the development of partnerships/exchanges with local and regional authorities in South-East Europe (decentralised co-operation):

7.1. Invite the Congress to continue and intensify its activities aimed at fostering the establishment of concrete co-operation projects between local and regional authorities, and more especially the Forums of Cities and Regions of South-East Europe (Economic Forums), the Local Democracy Agencies, the SEDECO Project (Service for Decentralised Co-operation in Europe) and the NALAS Network;

7.2. And, in this connexion to facilitate more especially exchanges of information on existing partnerships, partnerships sought and offered, European Union’s specific funding programmes and activities for the promotion of partnerships;

8. Concerning access by local and regional authorities of South-East Europe to European funds:

8.1 Invite the Council of Europe’s Development Bank to give local and regional authorities in South-East Europe easier access to loans for socio-economic development and particularly the building of housing for refugees;

8.2 Ask the European Union and its specific agencies, the World Bank and other funding institutions, to contribute to the improvement of infrastructure at local and regional level, especially in the fields of sustainable transport, environment, energy and water management;

9. Concerning co-operation in the Adriatic Region:

9.1 Welcome the joint Council of Europe’ Congress/Parliamentary Assembly initiative to promote co-operation between local/regional authorities around the Adriatic and the Ionian Sea (including Greece),

9.2 Trust that the Conference on “Transfrontier Co-operation and sustainable development of the Regions of the Adriatic Basin” (Termoli, Molise Region, Italy, 8th - 9th November 2004) will lead to the creation of a Euroregion, organised in a Council of the Adriatic and five specific committees. The major fields of co-operation will be: environment, tourism and culture, fisheries, agriculture, transport and infrastructure.

9.3 Consider that this initiative will provide a framework for efficient management of common resources, ensure the best conditions for sustainable development and prepare integration of these countries within the European Union;

9.4. Support the project of a Network of high schools and universities dealing with tourism and the hotel industry in the Adriatic Region which could be developed by the FEDRE Foundation particularly concerning evaluation, contacts and fund raising.