Rapporteur: Mr Bernard SUAUD (France)
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EXPLANATORY MEMORANDUM
REGIONAL ECONOMIC PARTNERSHIP -FACTOR FOR SOCIAL COHESION IN EUROPE
FOR A EUROPE OF THE REGIONS
The Europe of the regions is advancing. The Chamber of Regions of the Congress of Local and Regional Authorities of Europe supports, as part of its statutory powers, the promotion and co-operation of the regions on the pan-European level. In particular it gives priority to the promotion of decentralisation and regionalisation policies enabling the regions to play an active part in the construction of the new Europe.
REGIONALISATION INITIATIVES
Regionalisation is advancing. Both in the countries of Western Europe and in the new member States of central and eastern Europe we can see that new initiatives are being introduced to strengthen or create regional or decentralised structures. Political and parliamentary debates are under way in Italy, where the powers of the regions are to be substantially increased. The United Kingdom is in the process of setting up a regional Parliament in Scotland, an Assembly in Wales and a regional Government in Northern Ireland. There was a recent referendum in Portugal and "pilot" regions have been created in Sweden. Decentralisation remains a topical issue in France. Under the 1983 Decentralisation Act, the regions in France are a source of impetus and co-ordination, often in conjunction with central and other levels of government. Their main fields of competence may be summarised as follows:
- Education: the regions have substantial responsibilities in secondary education, including the building, maintenance and running of general, vocational and agricultural "lycées" or upper secondary schools, but excluding teaching and payroll costs, which are covered by the state. The regions may also contribute, in conjunction with the state, the "départements" or the municipalities, to the financing of lower secondary schools and universities. They are also responsible for defining research priorities at regional level;
- Vocational training: the regions are responsible for implementing initial and in-service vocational training. They must prepare training plans tailored to actual demand and conclude contracts with the state specifying the funds and resources assigned to training. A regional initial and in-service vocational training fund finances these activities mainly with state funds;
- Economic development: since their inception in 1972, as public institutions, the regions have contributed to thinking and planning to foster economic development. Decentralisation having made them fully-fledged territorial authorities, the regions now negotiate joint investment plans with the state. These contracts specify the means allocated and which authority is responsible for what. The plans negotiated for the period 1993 to 1998 have been extended to the end of 1999. The regions may also grant direct or indirect aid to firms provided that it does not interfere with the principle of free and fair trade;
- Improving the quality of life: the regions are also active in the fields of non-urban road transport and rail transport, through agreements concluded with the SNCF or, in the six regions which have volunteered for the experiment, through the full transfer of responsibilities. In the housing sector the regions may supplement the work done by the state by subsidising rehabilitation work and the building of social housing.
In Eastern Europe, Poland is the first country to set up regional structures with a degree of self-government. In other countries, too, such structures are on the way, as in the Czech Republic and in Moldova, while the matter is under discussion in Bulgaria and Slovenia. This trend clearly shows that national governments are starting to recognise the usefulness and the advantages of a strong, operational administrative and political structure at regional level which complements to a certain extent the local autonomy generally accepted and implemented.
THE PRINCIPLE OF SUBSIDIARITY
The promotion and creation of regional structures corresponds to the principle of subsidiarity which is intended, in a modern pluralist democracy based on the respect of human rights and the rule of law, to bring government closer to the citizen, permitting him to participate more and take more responsibility in the decision processes concerning the organisation his living environment.
STRONG REGIONS THANKS TO REGIONAL DEVELOPMENT POLICY
Regional development policy is an important instrument for reducing the socio-economic disparities between the regions of a country and for creating a socio-economic and cultural regional identity capable of arousing new initiatives by political and economic actors and enhancing the responsibility of the civil society. The actions of the regions in the economic field should therefore be considered as being complementary to national economic policies.
One example is the successful co-operation initiative between the Pays-de-la-Loire region in France and the Balaton region in Hungary.
Signed on 6 June 1996 on Lake Balaton, the co-operation agreement between the counties of Somogy, Veszprém and Zala in Hungary, which together form the Balaton region, and the Pays-de-la-Loire region of France comprised a number of practical projects on the following themes, to be developed in partnership:
- integration in the European Union,
- education and training,
- tourism,
- economic development,
- culture.
I. Integration in the European Union
A Europe-Balaton information centre was opened in the town of Keszthely in the county of Zala. It is Hungary's first such pilot information centre, with documentary information, access to European databases and activities for the general public, young people and the press, in keeping with the communication plan developed by the Hungarian Government.
II. Education and training
The agreement provided for the achievement of several objectives born of the partnerships concluded between schools in the two regions following the first Education task force visit in February 1996.
The partnerships are in the following disciplines:
- wine-growing: Montreuil-Bellay and Briacé schools in France and Balatonfüred school in Hungary
- tourism: Atlantique school in Luçon (France) and Siofok school (Hungary)
- hotels and catering: Saint Anne school (in Saint Nazaire) - Kaposvar school; Orvault school - Nagykanviza school; Edouard Branly school (in La Roche-sur-Yon) - Veszprém school
- clean technologies: Monge school - Papa school.
Practical projects include:
- exchange of instructors,
- pupil exchanges (study and training periods),
- training science transfer.
On the French side, participants going to spend several weeks in Hungary receive basic language coaching.
There have been a large number of exchanges of training instructors, pupils and trainees in recent years, together with the transfer of teaching know-how in the tourism, catering and agri-food fields.
III. Tourism
Three operations were covered by the agreement:
1. Development of rural tourism
The aims of this project include:
- informing the partners of the methods used in the Pays-de-la-Loire to prepare rural people for tourism,
- organising training sessions (one in each county), which were highly successful,
- preparing training for training instructors and providing them with appropriate teaching aids.
2. Tourism economic information network
The Pays-de-la-Loire Regional Tourism Committee presented its data collection method and assisted the steering group responsible for the operation in the Balaton region by:
- validating two pilot sites, in Siofok and Little Balaton West,
- training the people in charge of these sites and preparing data collection charts,
- providing information for the professionals and bodies concerned by the experiment.
The experiment was a success on both sites and the final report was produced early in 1998. There are plans to extend the project to other sites.
3. Establishment of a Regional Tourism Office and development of a marketing strategy
Several studies were carried out with a view to establishing a tourism federation in the Balaton region. The partners involved in tourism activities decided to set up a Foundation to market tourism in the region while, in application of the new spatial development plan, the Regional Development Council for the Balaton recreation zone decided to set up a Tourism Committee to supervise the development of tourism in the region.
A scheme to develop a marketing strategy was devised by the Regional Tourism Committee and transmitted to the Foundation and the European Commission, for funding under the Phare Partnership Programme.
IV. Economic development
A geographic and economic presentation booklet on the Balaton region was produced and 2,000 copies were printed in French and Hungarian. A summary presentation of both regions in two languages was also produced. An exhibition was organised to present the co-operation scheme, in the form of display panels in Hungarian on each of the counties, together with one in French.
The audit of the three Hungarian Chambers of Commerce carried out in 1996 revealed the training needs of their staff and an initial training session was held at the Chamber of Commerce and Industry in Vendée.
Finally, a visit by representatives of 7 firms in the Pays-de-la-Loire organised in April 1997 by the Vendée Chamber of Commerce and Industry and the Crédit Industriel de l'Ouest, led to the conclusion in late 1997 of four partnerships between firms in the two regions.
V. Culture
Four issues of the magazine "Panorama", which was created for the purpose of bringing these co-operation schemes to the attention of decision-makers, operators and the public in the two regions, have been published.
The Balaton region was guest of honour at the Holiday Trade Fair held in Nantes in late February 1997.
A symposium on the theme of translation and Hungarian literature took place in Nantes with the participation of Hungarian writers.
Some hitherto untranslated works of Hungarian literature were published by the Le Passeur publishing house in Nantes.
Orchestras, soloists, choirs and folk groups have taken part in various events in the five "départements" of the Pays-de-la-Loire region with the help of five associations founded to foster closer ties with Hungary.
Hungarian wines were presented at a wine exhibition in Loire-Atlantique.
A Hungarian week was organised in several small towns in the Pays-de-la-Loire region.
VI. Initial conclusions
The results of the projects on the various themes covered by the June 1996 co-operation agreement clearly show that the operation has surpassed expectations. This positive result is a measure of the interest shown by the partners in the co-operation scheme, which augurs well for French language teaching and French presence in this region of Hungary in the future.
It is also a strong incentive to start up new projects or further develop existing ones.
THE ACTION OF THE CHAMBER OF REGIONS
In this connection, the Chamber of Regions has undertaken to develop specific projects that can have direct economic benefits for their participants.
Thus since 1996 the Chamber has organised five economic meetings of the regions of Europe, the main aim of which has been to provide a forum for discussion and place of work for members of local and regional authorities responsible for promoting economic and social activities. For the results of the previous meetings reference can be made to the reports and recommendations submitted to the Chamber of Regions which have led to policy conclusions transmitted as Recommendations to the Committee of Ministers of the Council of Europe and to member governments.
These meetings in fact have two aims. First, there is a desire to make the advantages of interregional co-operation better known and to encourage representatives of the regions to join a pan-European solidarity and co-operation network in order to be able to benefit directly from the system of exchanges of information and experience between participants. Second, the work of these meetings clearly shows that policies to promote regionalisation are beneficial for the countries that take this path, as well as for the inhabitants of the regions who are the first to be able to benefit from endogenous economic dynamism.
THE BUCHAREST FORUM
In order to be able to accomplish these two tasks, the Chamber of Regions took the initiative to bring together the representatives of the regions again in 1998 in Bucharest, to focus on the specific subject of "Investment and regional development policies at pan-European level". This meeting enabled them to proceed to an exchange of information and experience on the possibility of defining, at regional level, a policy of investment and economic partnership (see Forum programme appended). On the basis of a pan-European co-operation and partnership network, the regions can thus create their own initiatives in the framework of their powers and develop economic projects that take account of the specific nature of regional economic structures and traditions. While the main aim of this Forum was help the regions of the countries in transition to enter the system of international competition through applying market economy mechanisms, it is obvious that topical problems such as unemployment and the technological revolution in the field of computers and communications also had to be addressed, from the standpoint of avoiding negative impacts on cohesion and social stability.
UNEMPLOYMENT – SCOURGE OF EUROPE
The central and eastern European countries experienced very high unemployment rates at the beginning of the transition period. It can now be seen that unemployment rates in certain Eastern and Western European countries are already very similar, as in the case of Poland and Germany, where the average unemployment rate varies around 10% of the active population. Unemployment, and especially youth unemployment, remains a scourge in all European countries, and the regions are called upon to take resolute action to combat it, both through job creation schemes and through training young people to be able to meet future economic needs.
THE PARTICIPATION OF THE REGIONS IN REGIONAL POLICIES
The Chamber of Regions has drawn up concrete proposals in this field. Regional development policy in European countries is very often a first step on the way to policy of decentralisation, or even regionalisation. Regional development policy and regional planning are closely linked. As pointed out in the Council of Europe’s Charter on regional/spatial planning, it is the regional authorities that constitute the most appropriate level for the implementation of these policies. It is therefore essential that the regions should have their place in the decision structures set up to frame and implement regional development policies. Several countries have recently set up appropriate structures in the form of regional development agencies. Such agencies are thus to be found in the United Kingdom, Poland, Romania and now also in Bulgaria. These bodies act at regional level very often with the support of the elected representatives, but do not generally have any policy making powers of their own. The Congress can but be pleased at the creation of regional structures, but regrets that very often it is a matter of a deconcentration strategy rather than a true decentralisation or regionalisation policy. However, the existence of these regional structures should be considered a positive factor for the prospects of having representatives of regional and local authorities take part in the government decision-making process concerning economic investments, the development plans for the region, communications and the ecological approaches necessary to adapt the socio-economic fabric to meet the challenges of the 21st century. It would be desirable for these agencies to be guided in their planning by the principles of subsidiarity and sustainable development.
DIRECT COMMERCIAL EFFECTS
The work of the Bucharest Forum revealed that regionalisation, decentralisation and economic development are closely linked and should contribute to the legal and democratic stability necessary for pursuing a policy of fruitful investment. The meetings between representatives of the institutions, and also between businessmen, made it possible to establish contact and forge economic and commercial links (see list of participants appended). Thus several Western European businessmen were able to conclude agreements for concrete investment and import-export projects. It is thus clear that at the Forum, the representatives of interested and motivated SMEs can derive direct benefit that goes beyond simply discussing projects and making political contacts. By way of example, we may mention the case of a French enterprise which was able to conclude a big contract for importing furniture made in Romania into France. Other projects were also negotiated and later led to concrete results.
PLATFORM FOR THE PRESENTATION OF THE REGIONS
In the context of a fair with some fifty exhibitors, the regions were able to demonstrate their economic, cultural and tourism potential. It may be mentioned by way of example that during the Forum the region of Harghita offered activities and information sessions that attracted participants and aroused interest in this region.
COLLOQUIES ON REGIONALISATION
A special session was devoted to the problems of regionalisation in Romania. In the presence of representatives of the Government, and in particular Mr Onisei, Secretary of State and former member of the CLRAE, the present state of regionalisation in Romania was discussed with the Council of Europe experts. The contributions of experts from Western European countries helped to advance thinking on this subject, strongly supported by the representatives of regional level.
In four specialist workshops the participants discussed matters relating to agriculture, tourism, industry, the construction sector, as well as policy and progress in the field of privatisation.
THE FINAL DECLARATION
On completion of the work of the forum, a final Declaration entitled "Regional economic partnership - factor for social cohesion in Europe" was unanimously adopted by the participants. This Declaration forms part of the draft Recommendation and is appended to this report.
The audio-visual media were very present at this Forum. They followed the debates and were informed of the conclusions at a press conference held at the end of the Forum (see press release appended).
In conclusion, it can be stated that this Forum was a success. It satisfied the expectations of both the organisers and the representatives of the political and economic world. The initiatives for organising future meetings are clear proof of the interest there is at regional level in pursuing this exercise. However, in order to rationalise the work of these meetings a make them more effective, it would be advisable in future focus these events on a limited number of problems for which concrete and realistic solutions can be worked out. To this end, the Chamber of Regions might do more to make its work more specific and facilitate the evaluation of its results.