Rapporteur: Mr Jacques-Médéric CHEVROT (France)
Co-Rapporteur: Mr Martin HABERMANN (Germany)
EXPLANATORY MEMORANDUM
THE REGIONS OF EUROPE AND INDUSTRIAL, TECHNOLOGICAL AND ENVIRONMENTAL CHANGE
Regional and inter-regional co-operation has been considerably stepped up in recent years and is generally making a direct contribution to the stability of democratic structures and the implementation of administrative and economic reforms. It can help to create a network of solidarity and partnership between the regions of Europe and is primarily aimed at providing mutual assistance in the defence of legitimate interests at regional level, resulting from application of the principle of subsidiarity.
When, in 1994, the Chamber of Regions of the Council of Europe made a commitment, in addition to work carried out on a political level, to promote economic cooperation between the regions of Europe, in particular between those of western Europe and those of the new member states of the Council of Europe in central and eastern Europe, the success and swiftness of the initiatives which have been developed since that decision could not be foreseen.
The regions have economic potentials and special skills and knowledge that can be mobilised on a European scale within a system of inter-regional co-operation, acting as additional forces to the efforts made by governmental institutions at national level. In many cases, the regions are seeking recognition of their right to have and increase links with each other, without state involvement, so that they can react at their own level and in accordance with their role and political and economic powers to the demands of the new situation facing Europe.
On the basis of Europe-wide regional solidarity the regions can, in this way, contribute to one of the Council of Europe's main aims, namely democratic stability and security in Europe. This stability may be achieved through economic and social development based on the principles of the rule of law, human rights and pluralist democracy.
For some years now the new member states of the Council of Europe in central and eastern Europe have been undergoing difficult periods of administrative, economic and institutional transition, in tandem with far-reaching democratic reforms. In order to facilitate that transition, the Chamber of Regions, with the support of a Working Group mandated to promote east-west economic cooperation, took the decision to launch an activity programme in the social and economic areas. This Working Group highlighted the key problems of economic transition in the new member states and backed the regular staging of meetings between the regions' politicians and industrial and business leaders.
It has become apparent, however, that the problems of economic and industrial transition were not only a major concern of local and regional authorities in central and eastern Europe, but were also an important task for certain regions of western Europe, also facing various problems connected with the restructuring of their economic and industrial fabric, in order to adapt it to the new needs stemming from the worldwide opening of markets. This particularly concerns regions where the main industry is textiles or where coal and steel industry installations are outdated.
Given all these facts, it comes as no surprise that the city of Dortmund, an industrial city in the Land of North-Rhine Westphalia, in Germany's Ruhr valley, undertook to host the second Economic Forum of the Regions of Europe, aimed at analysing the experiences of, and outlook for, industrial restructuring.
The mayor of the city of Dortmund, Mr Günter SAMTLEBE, extended his invitation to hold the next forum in his city after the first Economic Forum of Regions in Geneva, in January 1996. He wasted no time and did all he could to hold the second forum only six months later. As a result, the Regions of Europe were able to meet from 23 to 26 June 1996 in Dortmund's Exhibition Centre, the Westfalen-Hallen.
The schedule (see Appendix) was devised to meet the needs of regional delegations, ie to enable them to discuss major topics of common interest in plenary session and to examine economic, commercial and technical issues in greater depth in a number of workshops. Nine such workshops were held, dealing with specific subjects, such as:
1. the economic restructuring of the regions from the industry's point of view and switching from industrial mass production to innovative technology,
2. the privatisation of state owned companies and the creation of small firms,
3. the international division of labour and new multi-media communications,
4. the public services and new forms of water treatment and supply and waste disposal,
5. the importance of the tertiary sector for modernising the regional economy,
6. dealing with environmental problems by employing new techniques and industrial processes,
7. the significance of the banking sector for industrial change,
8. economic restructuring with social responsibility and setting up social dialogue,
9. scientific research and technology-transfer in regional restructuring.
The plenary sessions were addressed by top-level European political figures:
- Mr Johannes RAU, Head of the Government of the Land of North-Rhine Westphalia, who clearly highlighted the main challenges currently facing the Regions, both nationally and at European level,
- Mr Klaus HÄNSCH, President of the European Parliament, who spoke on "Europe at the crossroads - challenges facing the European Union at the turn of the century",
- Ms Monika WULF-MATHIES, member of the European Commission, in charge of regional policy, who spoke on "European structural policy and the role of the regions",
- Mr H. SWOBODA, of the City and Province of Vienna (Austria), who emphasised the importance attached to this programme by his authorities and announced his invitation to hold the fourth forum in his region in 1997.
In addition, eighty companies publicised their activities with a number of talks and debates held in the various stands and exhibition areas.
After the Forum discussions, conclusions were presented in the form of the "Dortmund Declaration", which summarised the debates and took stock of the conclusions reached by the participants (see Declaration appended to the draft Recommendation and Resolution).
The two main conclusions directly resulting from the Forum are:
- stepping up co-operation with the regional authorities of the Russian Federation and Commonwealth of Independent States, at a Forum to be held in Moscow on 25-26 November 1996,
- continuing the programme of East-West Economic Fora, with the fourth forum to be held in Vienna (Austria), in 1997.
The proceedings of the Dortmund Forum and its conclusions demonstrate the considerable interest shown by politicians and economic and industrial decision-makers alike in seizing any opportunity to meet, to strengthen contacts and develop dialogue, and even to create partnerships so that the Regions can take an active part in the creation of the new Europe, at both political and economic levels.
Particular attention should be paid, in this connection, to the need to bring about up cooperation between the public and private sectors. The public authorities cannot perform the tasks carried out by the private sector while, on the other hand, the private sector needs the right support and institutional organisation to develop its own projects. This calls for continuous and intensive co-operation between the public and the private sectors.
The themes dealt with made it clear that the regional authorities in co-operation with the Chambers of commerce and industry have an important role to play in restructuring the regional economic fabric. The possible ways in which they can act vary from the direct management of economic activities and action based on a range of different tools, such as direct or indirect aids to firms and general or non-material aid. Direct aids include subsidies, premiums or loan guarantees, or even making land available at low prices. The possibilities of indirect aid are more numerous, including the development of industrial and commercial areas, aids for vocational training, back-up infrastructures or even partnerships between public services and companies. It also emerged that it is not enough to concentrate on a single type of aid but instead a variety of different types should be made available and continually tailored to structural changes and economic development.
Another point requiring special care is the development of new technologies and promotion of small firms in this area. It is the small firms that adapt most swiftly to restructuring and are most flexible at meeting new market needs. As a result they more quickly create new jobs, in particular among the new professions linked to the computerisation of society.
The privatisation of state companies creates considerable problems for local and regional authorities, in particular in respect of the management of existing structures during transition periods. Privatising companies such as electricity or water suppliers calls for the application of market criteria in a sector in which the new member states rarely have any experience or properly qualified staff. As a result, staff training in government departments is a key to facilitating the privatisation and management of these new economic units in accordance with the laws of the market economy. In this respect the international associations of the regions have an important role to play in the organisation of training for the personnel of administrations. In this context should also be mentioned the European Network of Training Organisations for Local and Regional Authorities (ENTO) which is directly supported by the Congress. The regional training centers co-operate in this network of which they represent an important part.
Any policy for assisting local and regional authorities must bear in mind the requirements of environmental protection and sustainable development policies. The Forum showed that incorporating environmental policies into the economy is not only desirable but necessary, and can even prove economically advantageous since positive economic effects may be felt in the medium to long term. Environmental management has now become a major concern of local and regional authorities and considerable progress has been made, in particular in sectors such as transport, energy, and water management and treatment; ecological quarrel however persist when discussing major infrastructures, TGV or main water ways (like Rhine-Main-Danube or Rhine-Rhone waterway).
Incorporating ecological considerations into sectoral policies seems to be the most effective way of contributing to sustainable development in that it is better to prevent environmental deterioration than to try and remedy harm already done.
Integrating ecological considerations into economic strategies may also make a major contribution to the development of new industries which may be regarded as growth sectors and job creators.
However, applying ecological standards in a transition economy is a complicated task, also calling for specific training, so that decision-makers can be convinced that such a policy is useful. Local and regional authorities have an important part to play in this area.
For its part technology has adapted to new ecological requirements and found solutions which have been used as spring-boards for new growth industries. Mastering environmental problems should, therefore, be undertaken at several levels: training, information, promoting new technologies and applying new industrial processes.
Scientific research is closely linked to these processes. The regions in transition should not only modernise their current economic structures but also diversify their components. Any regional development policy in this area should take into account the importance of research for economic growth and promote the creation and installation of educational and research bodies on their territory. The computerisation of industrial processes and everyday life provide a parameter which should be borne in mind in regional development policies.
European co-operation needs decentralised and diversified structures in order to increase the exchange of information and experience. There already exist in western Europe a number of bodies forming a very dense network of contact points, bureaux and observatories, offering advice and lending assistance to industries and businesses in search of contacts and partners. Extending the geographical spread to cover the whole of the new Europe means that, in the future, the regions of central of eastern Europe should be given their proper place in the process of European co-operation and should be entrusted with special tasks and duties in the organisation of that co-operation. From this point of view, thought might be given to creating co-operation structures in those regions of central and eastern Europe particularly concerned and dovetailing them with the contact network in western Europe. That network could be extended in this way to the new member states of the Council of Europe. If observatories and liaison bureaux for developing economic contacts and promoting partnerships were created in the regions of central and eastern Europe, a substantial boost would be given to their development, their social and economic stability and their integration into the European economy.
To conclude, it could be said that the Dortmund Forum was a major step towards implementing the recommendations drafted at the first East-West Economic Forum of the Regions of Europe, in Geneva last January. It was decided at that Forum that a great dynamic should be set in motion in all social and economic sectors where local and regional authorities now have experience and powers.
The fact that the third Forum will be held in Moscow in November, once again bringing together the politicians and economic and industrial decision-makers of Europe's regional authorities demonstrates the new potential which the Congress has unleashed in this new area of co-operation.
It is hoped that other regions, especially in Southern Europe, will follow these examples and undertake to continue this series of Fora. That would give this programme a continuity which, in the end, will help to stabilise the new democracies and improve the living standards of every European region.