The Future of Local Self-Government in Europe

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The Future of Local Self-Government in Europe

• Univ.-Prof. Dr. Sabine Kuhlmann

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• The local and regional dimension of European
  democracy was born out of the conviction that the
  excessive concentration of power in the national
  centers must be counterbalanced by stronger
  development of the power base at the grassroots,
  at local and
  regional level.
• (Keith Whitmore, 2011)

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Structure

• Importance of Local Self-Government in Europe
• Different Local Government Cultures in Europe
• Trajectories of Reform
• The Changing Role of Local Government
• Challenges and Future Prospects

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The Importance of Local Self-Government
91,200 municipalities 1,100 second-tier LG
50 of EU-total public employment
Ø 16 of EU-GDP 34 of EU-public spending
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The Importance of Local Self-Government More
than service-delivery!

• Participation opportunity for people to be
  directly involved in democratic processes (grass
  roots democracy)
• Trust considerably higher in the local/regional
  authorities than in national governments
  (Eurobarometer)
• Stability local level in Europe important for
  stabilization/ acceptance of national/supra-nation
  al political systems
• Counterbalance to centralizing tendencies
  (EU-integration/globalization)
• Reform-Frontrunners most active level in some
  countries (reform pressure seriously affected by
  crisis)
• Proximity Direct contact to the citizens/voters
• But is there a one and best way of LG in
  Europe?

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Different Local Government Cultures in Europe
North Middle Europ. Group (e.g. Germany, Sweden) Franco Group/ Napoleonic tradition (e.g. France, Italy, Spain) Anglo Group (e.g. UK, Ireland)
Functionally strong municipalities multi purpose model of local self-government Functionally weak municipalities strong territorial state single purpose model of locally operating state offices Ultra vires-principle functionally strong municipalities multi purpose model of local self-government
Partly separation (Sweden)/ partly integration (Germany) of state and local government tasks weak (Sweden)/ medium (Germany) control from above Integration of state and local government tasks fused system strong control from above Separation of state and local government tasks separational system/ dual polity weak control from above
Politically strong, parliamentary/presidential Politically strong powerful mayors cumul des mandats Politically weak, no community identity/ leadership
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Different Local Government Cultures in Europe
Territorial Variances

• North-European Type Large-scale units big is
  beautiful (Sweden, Norway, Denmark, Finland, UK
  some German States, e.g. NRW, Hesse)
• South-European Type Small-scale units mainly
  Napoleonic State tradition (France, Italy,
  Portugal, Spain, Greece some German States, e.g.
  RhP, SH)

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Different Local Government Cultures in Europe
Traditions of Local Service Provision
Tradition of Local Self-Production Tradition of Contracting Out
- Régie municipal empires Stadtwerke municipalizzate - Germany (except social services), Sweden,Italy, UK Purchaser-Provider-Split PPP, model of délégation, concessions, local governance France (big private firms)
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Trajectories of Reform similar discourses
different paths
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Trajectories of Reform Decentralization/De-Conce
ntration

• Political Decentralization Transfer of state
  tasks including political decision-making
  competencies for the local council (France) ?
  but units too small
• Administrative Decentralization Transfer of
  state tasks without political decision-making
  competencies for the local council (Germany) ?
  but decrease in local autonomy/reductions in
  voluntary tasks/privatizations
• De-Concentration Creation of locally operating
  single purpose state agencies substituting local
  governments (England) ? but more state
  intervention

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Persisting Differences Proportion of Public
Sector Employees by Level (2005)
Municipal State/Region National Special Sector
Germany 35 53 Federal 12
France 30 51 Public Health System 19.0
U.K. 56 16.9 National Health Service 26
Sweden 83 17
Italy 13.6 3.8 54.7 Public Health System 20.3
Spain 23.6 49.9 22.5
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Trajectories of Reform Territorial Consolidation
North-European Reform Type South-European Reform Type
Up-Scaling Mergers Enforcement of mergers through binding legislation Subordination of municipality under parliamentary decision-making authority Objective Performance improvements efficiency, effectiveness, productivity UK, S, DK, German states (NRW, HE) Small-scale municipal structures preserved further fragmentation Principle of Voluntariness Mergers only with consent of municipalities Inter-municipal formations as instead of mergers Massive local resistance to territorial reform F, I, many CEE countries German states (RhP, SH)
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Country Ø Inhabitants per municipality Ø km² municipalities lt 5,000 PT municipalities gt 100,000 PT
Czech Rep. 1,640 13 96 5
France 1,720 15 95 37
Hungary 3,170 29 91 9
Spain 5,430 62 85 58
Estonia 5,930 199 80 2
Germany 6,690 29 77 81
Italy 7,270 37 71 43
Greece 10,750 128 53 8
Finland 12,660 813 52 6
Poland 15,390 126 25 39
Bulgaria 29,090 420 11 11
Sweden 31,310 1,552 4 13
Denmark 55,480 440 3 6
Lithuania 56,570 1,088 2 5
UK 139,480 562 Not relevant 68
EU27 5,410 47 82 500
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The Changing Role of Local Government in
EuropeTrends towards Strengthening

• Functional dimension de-centralization, transfer
  of state tasks upgrading of LGs functional
  profile more decision-making competencies of
  local councils (political de-centr.)
• Political dimension introduction of
  participatory elements, direct democracy, citizen
  involvement, consultations
• Territorial dimension up-scaling of
  LG-boundaries, territorial consolidation
  (amalgamation/cooperation), more viable
  LG-structures
• Administrative dimension citizen and
  costumer-oriented administrative
  structures/procedures performance improvements,
  competition/benchmarking (NPM)

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The Changing Role of Local Government in
EuropeTrends towards Weakening

• Functional dimension over-burdening of
  LGs/losses in autonomy due to excessive
  devolution of state tasks hollowing out through
  (NPM/EU-triggered) privatization
• Political dimension strengthening of local
  executives (direct election) to the disfavour of
  the council weakening of the council due to
  contracting-out/privatization
• Territorial dimension Growing institutional
  thickness through new inter-municipal levels,
  regional bodies, cooperation structures (e.g.
  France, Italy) transaction costs
• Administrative dimension negative effects of NPM
  (steering deficits fragmentation decreasing
  staff motivation increasing state intervention,
  e.g. UK)

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Challenges and Future Prospects Task Portfolio

• Challenges
• Increasing functional responsibilities partly
  without equivalent (political) decision-making
  competencies (e.g. Germany) false
  de-centralization
• More tasks with supra-local impacts (environment,
  pollution control)
• Increasingly interconnected tasks cross-cutting
  policies
• Requirements for the future
• Emphasis on political decentralization
  including the council (see Sweden, France)
  instead of only administrative decentr. (Germany)
• Supra-local tasks cannot solely be discharged by
  local authorities (bad experiences in Germany) ?
  not all tasks transferrable
• Strengthening cross-policies-coordination in the
  territory ? principle of territoriality
  (instead of only functionality)
• Strengthening the territorial basis for viable
  LGs (consolidation)

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Challenges and Future ProspectsLocal
Finances/Resources

• Challenges
• Increased demands to cope with fiscal constraints
  (financial crisis ? particularly South European
  LGs affected Germany, too, debt brake)
• More tasks, less resources (e.g. LG-staff
  cutbacks in Germany by 1/3 since 1990 ?
  decreasing quality of service delivery?)
• Requirements for the future
• Solid resource basis for local task fulfilment
  noticeable fiscal autonomy as core requirement
  for viable local self-government
• Critical review of re-centralization tendencies,
  e.g. UK of local taxes 80 ? 40 ? 14
  (Thatcher) ? 22 (Blair) ? Coalition Gov.?
• Learning from good practices, e.g. Sweden (70
  local taxes) increased proportion also in France
  (60)

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Challenges and Future ProspectsDemocratic
Participation/Political Accountability

• Challenges
• Increasing disenchantment with politics/representa
  tive democracy (decreasing turnouts/party
  memberships)
• Increasing demands of local electorate to be
  (directly) involved in decision-making processes
  (engagement in interest groups etc.)
• Strengthened political accountability of the
  directly elected mayor (partly also recall
  possible) ? too much mayoral powers? (France)
• Requirements for the future
• Finding instruments/procedures to continuously
  include various local interests into
  decision-making processes
• Participation management in LG avoid
  participation overkill (France)
• Implementation of results take participation
  results seriously in political decision-making
  processes (although not legally binding)
• More direct democracy (local referenda etc. exp.
  of Germany)

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Challenges and Future Prospects
Europeanization/EU-Policy-Making

• Challenges
• Centralizing effects of EU-integration
• LG involvement in EU-decision-making considered
  inadequate
• EU-regulation as a burden for local policy
  implementation bureaucratization overburdening
  of the local level
• EU-liberalization policies as a danger for
  traditionally protected local markets (e.g.
  German Stadtwerke)
• Requirements for the future
• Enhancing local EU-competencies (internal
  organization, staff qualification EU-Lobbying
  inter-local cross border cooperation etc.)
• Further strengthening of local self-government as
  a fundamental basis of EU-integration and in
  EU-law (see Lisbon treaty)
• Watching over the compliance with the
  subsidiarity principle in Europe to guarantee
  task fulfilment at the best suited level

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• The Union shall respect the equality of Member
  States before the Treaties as well as their
  national identities, inherent in their
  fundamental structures, political and
  constitutional, inclusive of regional and local
  self-government ().
• (Art- 3a sec. 2, Treaty of Lisbon 2009)
• The Unions blindness regarding local
  self-government has come to an end
  since the Lisbon-Treaty.
• (Articus Chief Executive of the German Cities
  Assoc. 2009)

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• Thank you for your attention!