29 institut der regionen europas july 2013 institute of the regions of europe newsregion Europe Day in Satu Mare Romania

Celebrations on Croatia‘s EU accession FOCUS FOCUS EU EU accession accession Croatia Croatia Enormous regional differences in Ivo Josipović new EU member state Croatia President of the Republic of Croatia

A survey conducted by the Institute of the Regions of The capital Zagreb, which has a GDP of 14,781 Euros, is Europe (IRE) in February 2013 shows huge economic dif- not included in this comparison because its GDP is 30 A new chapter in Croatia‘s history ferences among the 21 Croatian regions. Based on the times higher than that of Lika-Senj. The ranking of the region´s GDP per capita, the measure of the economic Croatian regions shows that the majority of regions at Address by President Josipović on the celebration of Croatia‘s European Union accession performance of a region, the ratio is 1:10. The region the Adriatic coast have high GDP figures while the inte- (1.7.2013) Lika-Senj has the lowest GDP with 406 Euro, while the rior regions have a much lower GDP. This is clearly linked region Split Dalmatia has the highest with 3,898 Euro. to increased tourism in the Adriatic regions.

Today is a great and joyful day for our homeland, Republic of we jointly work on the fulfilment of our wishes and goals we 1. City of Zagreb 14.781 Croatia. This is the day when we open a new chapter in the are able to realise these wishes. In fact, the story of Croatian Croatian President becomes new 2. Split-Dalmatia 3.898 thick book of our history. This is the day when we fully become success is a story of community, persistence, ambition and visi- Member of the IRE BoardFrom of Patrons an accepted and full member of the greatest and most suc- on. This is the main message of this day. This is a message that 3. Primorje Gorski Kotar 3.748 cessful community of European states that has ever existed through community we can accomplish even the goals that 4. Istria 2.772 A few days before the official accession of the Republic of Croatia to on our Continent. This is the day when the dreams of not only seem to be very difficult to reach. There are many important, 5. Osijek – Baranja 2.396 the EU on 1 July 2013, IRE Chairman Dr. Schausberger received the this generation but many previous generations of our people not always easily attainable goals ahead of us. Freedom, de- official declaration of the Croatian President, Prof. Dr. Ivo Josipović, 6. Zagreb 2.360 come true. This is the day when we lay the foundations for a se- mocracy, prosperity, knowledge and success cannot be achie- to become an IRE patron. The President will therefore become a mem- cure, democratic and European future of our new generations. ved without courage, knowledge, persistence and community, 7. Varaždin 1.477 ber of the Board of Patrons along with former German chancellor without cooperativeness and hard work. Let the cloud of the 8. Sisak – Moslavina 1.417 Dr. Helmut Kohl, EU-Commissioner Dr. Johannes Hahn, Prime Mini- Europe was, is and will be an idea to which we belong. We were, economic crisis not overshadow our vision and optimism. The ster of Luxemburg Jean-Claude Juncker, former Austrian Chancellor 9. Zadar 1.444 are and will be Europeans. Europe is a key part of our national crisis is a challenge, an invitation to make tomorrow better Dr. Wolfgang Schüssel, Czech Foreign Minister Karel Schwarzen- identity. We belong to it not only because of our geographi- than today. 10. Dubrovnik – Neretva 1.337 berg, singer-songwriter and world musician Hubert von Goisern, cal position but also because of the values that we share with 11. Vukovar – Srijem 1.080 former EU-Commissioner Dr. Benita Ferrero-Waldner and former German Minister of Finance Dr. Theo Waigel. The deceased former others. In the first place, there is freedom. Freedom is the high- Thank you for your support during our transformation into 12. Karlovac 967 est value that we have. A free Croatia in a free Europe – this was a country of European values and virtues, a country which is mayor of Vienna, Dr. Helmut Zilk, was also a member of this board. 13. Koprivnica – Križevci 962 the guiding idea of many our generations. Now, we have achie- satisfied with success but not intoxicated by it; a country that Like all other members of the Board of Patrons, Dr. Josipović signed ved it. However, the idea of freedom also includes freedom of knows that a serious and responsible work is ahead to ensu- 14. Međimurje 930 the following declaration: individuals, freedom of every person to express and be what re further progress and to catch up with the most advanced 15. Slavonski – Brod – Posavina 919 The Institute of the Regions of Europe (IRE) as a European, supra- he is – without imposition or coercion. Freedom includes equa- countries in Europe. Thank you for your friendship and the trust 16. Šibenik – Knin 891 regional, non-party and independent institution for all European re- lity of large and small, majority and minority, people and states you have placed in us. The Republic of Croatia will be a respon- 17. Bjelovar – Bilogora 831 gions and municipalities inside and outside of the EU, with the aim that are mutually different, but respect one another and protect sible, constructive and active member of the European Union. to strengthen the political as well as the economic position of the freedom of others. Freedom includes solidarity among people. 18. Krapina – Zagorje 826 regions and municipalities in Europe. The IRE’s activity hence cor- The first European dawn of our homeland is breaking soon. See- 19. Virovitica – Podravina 508 responds to the idea of a “Europe of the Regions” at the basis of the For us, Europe is a community of peace and security. Our hi- mingly, everything will be the same as before: we shall get up 20. Požega – Slavonia 490 principle of Subsidiarity, which is one of the supporting pillars of the story was difficult, often tragic. We join Europe to ensure early, go to work, take care of our everyday business. However, European Union and which is also defined in the Constitutional Treaty. peace and stability for ourselves and forthcoming genera- this is the first day of our European future, the first day of a ma- 21. Lika – Senj 406 I do support the aims of the Institute of the Regions of Europe (IRE) and I tions. It may be because of our experience that we empha- jor opportunity that is offered to us, the first in a series of days agree on being member of the “Board of Patrons”. sise, on this occasion as well, that Europe came into being as that open up opportunities that should not be missed, oppor- an anti-war project and developed in a symbol of peace and tunities that mean a new job, success and recognition for many. With Croatia´s accession to the EU, the country IRE Chairman Schausberger called this a special honour to welcome cooperation. It is a guarantee of peace and security for all The Europe that we waited for is offering good opportunities will be able to take advantage of the EU regio- the President of the 28th EU Member State in the Board of Patrons. Fif- its residents. For this reason, we do not want Europe to stop for states and individuals but is not presenting them as gifts. nal funds to minimize the enormous regional teen regions at our borders. Let it be open to all countries and people of differences. The involvement of the regions in of Croatia are good will, to all who want to share the European dream and Long live and flourish Europe, its community and its ideals, the the funding management is crucial in order to already mem- the European future with others in peace and freedom. idea of freedom, democracy, security and prosperity of all Eu- ensure the purposeful and effective use of EU bers of the IRE ropean nations. funds. „It is not the national authority but the network and The accession to the European Union has aroused new hopes regional and local authorities themselves who therefore, the among our people. It is up to us to turn these hopes to reality. Long live Europe, long live European Croatia! know best what the money is needed for,“ says Institute is committed We have shown that when we really want something, when the chairman of the IRE Franz Schausberger. to support The latest figures of the GDP in Croatian regions the Croatian are from the year 2010. Because the GDP figures communities IMPRESSUM Media owner and publisher: Institute of the Regions of Europe, A-5020 Salzburg, Franz-Josef-Kai 1, Tel.: +43/662/843288-5010, Fax: +43/662/843288-5050, within the www.institut-ire.eu, [email protected] • Editor and layout: printmedia, 5020 Salzburg • Cover: http://www.novilist.hr/var/novilist/storage/images/vijesti/hrvatska/pusic- for all of Croatia have not changed much in the ljudi-uspjeli-smo!-cestitam-svima/2939623-1-cro-HR/Pusic-Ljudi-uspjeli-smo!-Cestitam-svima.jpg, Davor Kovačević • Photos: ire, Neumayr, Wikipedia, Friess, Petrisch, Edtstadler, last three years, it can also be assumed that there European From left: President Ivo Josipović (Republic of Croa- Schausberger, Fritz, René Deutscher , Public – Das österreichische Gemeindemagazin • Print: digitaldruck.at Union. tia) and IRE Chairman Franz Schausberger Insofar as this publication features only personal designations in their gender-specific forms, they relate – insofar as this can be considered with regard to the content – to were no significant changes in GDP in the regi- men and women on equal terms. ons.

2 newsregion 29 / july13 newsregion 29 / july13 3 FOCUS FOCUS EU EU accession accession Croatia Croatia Croatian Regions Regional elections in Croatia must get more involved by Slavica Hadžikarić the failure of Milanović‘s communication strategy was a rea- son for the defeat in so many cities, municipalities and coun- in EU Accession The SDP (Social Democratic Party), the party of Prime Minister ties. Another reason may have been Milanović´s insistence to Zoran Milanovic, remained far behind expectations in the first promote its favoured candidates in the cities of Zagreb and IRE chairman Franz Schausberger met the Croatian Presi- round of local elections in Croatia on Sunday, 19 May 2013. Dubrovnik. This led to a change of candidates during the elec- dent Ivo Josipović and the former President of the Region Only big cities, such as Rijeka, remained in the hands of the tion campaign, which probably unsettled voters. Milanović´s Istria Ivan Jakovčić during the Istrian regional statute ce- SDP. The former SDP politician Milan Bandić won the elections inconsistent debate about introduction of the Cyrillic alphabet lebrations on 28 March 2013 in Poreč. The main topic of the in the capital Zagreb but stood for election independently. on public buildings in Vukovar may have also contributed to fe- discussion was the role of Croatian regions in the upcoming However, run-off elections took place two weeks later, to elect wer votes. In the cities of Istria and Pula (Pola), it was probably EU accession of Croatia. Schausberger stressed that many mayors of important cities. The regional governors and mayors the confrontation with the IDS (Istrian Democratic Assembly) other Member States show how the involvement of the regi- were determined in a direct vote, where an absolute majority party which led to the defeat. The highly unpopular reforms ons and the broad transfer of responsibilities to the regional of votes is required, thus requiring a second ballot in some of combined with national and political disagreements resulted level is the best method to balance big regional economic the regions and cities. in the loss. Nevertheless, these reforms are part of Croatia´s differences in Croatia. Targeted and useful investments of EU path to the EU. regional funds will benefit Croatia in the medium term. The- Former President Ivan Jakovčić (Istria) at the Istrian regional The second ballot of regional and municipal elections in Croa- Sources: http://www.politikaplus.com/novost/80792/zagrebacki- re are currently big differences in the gross domestic product statute celebrations in Poreč. tia was held on 2 June 2013. sdp-narucio-strucnu-analizu-evo-zasto-su-izgubili-izbore-u-gla- (GDP) between the Croatian Regions; the GDP ratio between Such poor results for PM Milanović and the Croatian SDP in vnom-gradu-hrvatske the poorest and wealthiest region lies at 1:10. Even though the Ivan Jakovčić (Istrian Democratic Party), after 12 years in of- the local elections have not occurred in a long time. According http://www.vecernji.hr/vijesti/zvali-birace-obilazili-kuce-slali- regions take appropriate measures in administration and are fice, did not run for reelection as president of Istria on 19th May to Berto Šalaj, a political scientist at the University of Zagreb, poruke-plasili-otkazima-clanak-562977 well prepared, the involvement of regions for improving valu- 2013. Jakovčić is one of the founding members of the Institute able regional projects for the EU is currently not satisfactory. of the Regions of Europe (IRE).

Winner of Direct Election for Regions (županija) Nikola Dobroslavić (HDZ), Dubrovačko-neretvanska županija (IRE-Member) Božo Galić (HDZ), Vukovarsko-srijemska županija (IRE-Member) Right Opposition strongest force in the first Stjepan Kožić (HSS), Zagrebačka županija (IRE-Member) Željko Kolar (SDP), Krapinsko-Zagorska županija (IRE-Member) Stjepan Željko Darko Zlatko EU Election in Croatia Darko Koren (HSS), Koprivničko-Križevačka županija (IRE-Member) Kožić Kolar Koren Komadina Zlatko Komadina (SDP), Primorsko-Goranska županija (IRE-Member) Tomislav Tolušić (HDZ), Virovitičko-podravska županija (IRE-Member) Croatia has elected its first deputies to the European list. EU-skeptic Tomasic, with her nationalistic statements Milan Kolić (HDZ), Ličko-senjska županija Parliament (EP). The EU skeptic Ruža Tomašić enters in the media headlines, was surprised by her election suc- Danijel Marušić (HDZ), Brodsko-posavska županija the EP. The turnout was low. cess: „It looks as if all the attacks on me were a free cam-

paign for me,“ said Tomasic. After counting almost all ballots of the first European par- The Croatian deputies in the European Parliament would Winner of the Direct Election of Mayor liamentary elections in Croatia, the right-wing conserva- thus be: Stjepan Kovač (SDP), Čakovec (IRE-Member) tive HDZ (Croatian Democratic Union) was declared win- Ruza Tomasic, Andrej Plenkovic, Dubravka Suica, Da- Tomislav Božo Nikola Stjepan Dražen Barišić (HDZ), Velika Gorica ner on 14 April 2013 with 33.05 percent of the votes. vor Ivo bull, Ivana Miletic and Zdravka Busic of the list Tolušić Galić Dobroslavić Kovač As a result, the HDZ gained six out of twelve seats in the HDZ-HSP AS-BUZ for the European People‘s Party (EPP); Ivica Kirin (HDZ), Virovitica European Parliament. Tonino Picula, Biljana Borzan, Marino Baldini, Oleg Val- The HDZ formed a coalition with the Party of Right (HSP jalo and Sandra Petrovic Jakovina List of the SDP-HNS- Winner of the second ballot on 2nd June 2013 AS) and the Pensioners block (BUZ). The ruling parties in HSU for the Group of the Progressive Alliance of Socialists Croatia are led by the Social Democrats (SDP), which do- & Democrats in the European Parliament (S & D); and Niko- Damir Bajs (HDSS, HNS, HSU), BJELOVARSKO-BILOGORSKA Županija (IRE-Member) minated the opinion polls with a score of 31.72 percent, gi- la Vuljanic of the Workers‘ Party. The twelve members will Valter Flego (IDS, HNS, ZELENI), ISTARSKA Županija (IRE-Member) ving it five parliamentary seats. With polls of 5.74 percent, represent Croatia in the EP for one year until the regular EU Marina Lovrić Merzel (SDP, HNS, HSU, HSLS, DSU, HDRS, A - HSS, SPH, the Workers‘ Party (Laburisti) managed to pass the five elections in 2014. SISAČKO-MOSLAVAČKA Županija (IRE-Member) Matija Damir Marina Ivan Vučić percent threshold and thus entered into the EU Parliament Goran Pauk (HDZ, HSS, HSP AS, HČSP) ,ŠIBENSKO-KNINSKA Županija (IRE-Member) Posavec Bajs Lovrić with one seat. The Croatian voters directly elected their Lowest turnout Matija Posavec (HNS, HSLS, HSS, MS, SHUS), MEĐIMURSKA Županija (IRE-Member) Merzel candidates for the first time using the preferential voting. Ivan Vučić (HDZ, HSS, HSLS, HSP AS), KARLOVAČKA Županija (IRE-Member) The top candidate of the Social Democrats, Tonino Picula, The voter turnout was 20.75 percent, a record low in Cro- Milan Bandić, dipl. politolog (KANDIDAT GRUPE BIRAČA), GRAD ZAGREB received most of the preferential votes (46.32 percent). atia and one of the lowest in the European Union in EU elections. Experts blame this on the short campaign pe- Vladimir Šišljagić (HDSSB, ZELENI HR), OSJEČKO-BARANJSKA Županija EU-skeptic Tomašić in the second place riod from which citizens inferred that it was not a major Predrag Štromar (HNS, SDP, HSU) VARAŽDINSKA Županija election. The former foreign minister expressed disap- Alojz Tomašević (HDZ, HSS, HSLS, HSP AS, SU), POŽEŠKO-SLAVONSKA Županija In second place with 25.94 percent of preferential votes pointment over the low turnout. „It was difficult to the citi- Stipe Zrilić (HDZ, A - HSS, HČSP, HSP AS, HSU), ZADARSKA Županija was Mrs. Ruža Tomašić, former police officer and pre- zens to compare the activities of the European Parliament, Zlatko Ževrnja (HDZ, HČSP, HSP AS, HSLS, HDS, BUZ), SPLITSKO-DALMATINSKA Valter Goran Predrag Branko Flego Pauk Stromar Hrg sident of the HSP AS, who was ranked sixth on the HDZ because it is not present for them yet,“ said Picula. Županija

4 newsregion 29 / july13 newsregion 29 / july13 5 Croatia – country with big potential and FDI priority

by Markus Ferstl, Croatia, putting it in an undesirable ‘un- better quality of life. sition from deve- Hypo Alpe-Adria d.d., CEO der the radar’ kind of stealth investment loping to invest- mode. With every new day it’s more evident ment-attractive Beside the EU accession, the year 2013 that the importance of traditional deter- and high-income Second issue is the crucial one, mea- will according to the present economic minants of FDI, meaning the size of local ones have all done ning the Croatia’s July 1st EU accession data regrettably be the year 2013 of re- markets can no longer be taken for gran- so by encouraging with and it Croatia becoming European structuring and rationalization for the ted and that globalization tends to in- entrepreneurship Union’s 28th member. The EU member- HBC HQ in Zagreb Croatian economy. Firstly on the level of duce a shift from purely market-seeking and environment ship is undoubtedly a positive milestone the State that will have to undertake ad- FDI to new types of FDI. Accordingly, the that promotes rat- and provides Croatia with a great oppor- ditional fiscal consolidation and structu- turns for the better could be generated her than inhibits tunity but it also brings some challenges ral reforms without which even the most through: modernization of public admi- competition. PROFILE Hypo Alpe-Adria-Bank Croatia for several industries that, in order to de- CEO Markus Ferstl modest short to mid term growth rates nistration, tax exemptions for investors * Y2012 non-audited and non-consolidated results (according to local regulation) velop or even survive, have to realize that will remain unachievable. (e.g. venture capital funds as well as low What does the the time of ‘introvertness’ is over, as the flat tax rate of 5% for the first three to five EU membership mean for Croatia? Hypo Alpe-Adria-Bank d.d. (HBC) is a universal bank and one of the leading banks local companies will have a very deman- The Government did engage itself in years for all new businesses created by in the Croatian market. With the total balance of HRK 34.69 billion and profit before ding task of needing to become relevant improving the economic situation, and young entrepreneurs), stimulation of pri- In terms of Hypo Alpe-Adria-Bank we are taxes amounting to 326.5 million HRK, which represents a substantial growth com- and competitive on a highly competitive it needs to be said that some of the vate investments (e.g. by quicker amor- among top 5 banks in Croatia and the EU pared to the year 2011, HBC fortified its place among the top 5 banks in Croatia. intragrated 500 million market. In 2012 HBC acquired 20.000 new clients totalling over 410.00 clients and it conti- measures did provide results but in tization or tax and deductions in P&L, accession changes nothing in our plans the end the economy and the business energy, IT), more flexibility in the markets as we will in years to come continue to nued to develop its business network covering the whole Croatia with 74 branches The third problem is a possibly an essen- community were/are still left waiting. Of through reform of the labour market. If develop our business and provide our and a network of 257 ATMs. tial key to this puzzle. And that is the issue course, following the four years of conti- this is achieved Croatia could become a clients with the best possible service and Hypo Alpe-Adria-Bank d.d. also confirmed itself as a strong partner of the Cro- of the poor present Croatian investment nuous recession it is unrealistic to expect sort of a hub for the whole region and products. One aspect where we have so atian economy, local and international companies and SMEs, with special empha- profile that needs to be improved as the- that the positive effects of a lot of these make up for the chance it missed in the far been very active and where we will sis placed on supporting production and export-oriented enterprises with a new re undoubtedly is a direct relationship measures could be achieved right away, last years when some investments went continue to provide quality support for placements amounting to HRK 4.6 billion in year 2012. between a country’s FDI profile, its level but the three crucial Croatian problems to other countries in SEE instead. local municipalities, entrepreneurs and HBC continuously develops new products and services that meet the individual of development and the development of remain an open issue, a limiting factor individuals are the EU funds, for which needs of its clients and enable the development of their business. Along with a the countries’ domestic firms. broad portfolio of lending, savings, card, e-banking, m-banking and investment and a big burden for the local economy. Business friendly environment is a we have in 2011 formed the Hypo EU prerequisite for any business Desk department that informs and edu- products / services HBC also provides added value services such as Hypo EU Desk, After FDIs were 4,2 billion Euros in 2008 Still the good news is that Croatian ban- cated interested parties on all aspects of through which it informs and advises clients on EU funds financing opportunities. (the last pre-crisis year) and taking in king system continuously proves to be Investments in Croatia in 2012 succumb the application process and helps them • Fifth place on the Croatian market with total balance sheet of 34.69 billion HRK consideration the downward trend with stable and secure, which is contributed to deteriorated mid-term growth pro- get the necessary funds from EU funds. • Profit before taxes totalled 326.5 million HRK (EUR 26.72 million according to them being only 973 million Euros (- 9.9% by the high capital adequacy of banks spects, corporate restructuring/dele- This will be especially important for local IFRS) yoy) at the end of 2012 it’s obvious that that is much higher than the legal limit. veraging and illiquidity issues. Looking economy, and e.g. agriculture due to the • Retail deposits grew by 100 million Euro, meaning 6.55 percent and amounted to this is a problem that needs to be ack- To be precise industry average is over into 2013, Hypo Alpe-Adria-Bank is fore- fact that with the EU accession the State 13.09 billion HRK nowledged, analyzed, addressed and 20%, while in case of Hypo Alpe-Adria- casting a 2.0% GDP decline, with net tra- subventions will be “off the table”, but • 8,51% market share dealt with. I think the situation requires Bank it’s over 30% making us the best de deterioration as weaker EU demand they can be compensated with EU funds. • Highest capital adequacy rate on the market – 30.19% (the best capital adequacy fundamental measures and it must be capitalized big bank in Croatia, but also and greater competitiveness pressures ratio from all big banks in Croatia and the region) considered as a very loud wake up call. one of the best in the whole region. Also upon the EU entry will likely offset ano- In terms of the banks due to the ‘open’ • New services introduced in Y2012: comprehensive m-banking service (first wi- Especially, as Croatia in terms of FDIs has in recent years the banks in Croatia pla- ther good tourist season. Investments in joint market citizens will have bigger thin the Hypo Alpe Adria Group), the loyalty program ‚Hypo club‘, Visa Classic experienced cases of significant down yed an important role in maintaining the 2013 will contribute positively, but even choice of banks to choose from and this Instalment card, EKO loans… just to name a few, and we established and conti- performance in comparison to some of liquidity of the system and placed loans then we estimate a notable impact from will affect the banking services in the nued cooperation with CBRD, HAMAG Invest and several insurance groups. its neighbouring countries. • 2013 plan: continued development of all business segments, strengthening of when at the same time in CEE some fo- capital-intensive public capex (largely in sense of; pricing, service quality, speed, reign banks downsized their loanbooks energy infrastructure) will come earliest product portfolio and client approach. the deposit base, acquiring new clients and active support of the Croatian eco- Investments need stability and mean and withdrew funds. in the second part of 2013. The EU membership will result with nomy as HBC plans to place over HRK 3,5 billion of new loans in 2013. jobs tougher competitiveness and the main Three critical issues The solution to this particular problem Good news is that there is room for pro- mission for the banks in this aspect will Croatian Macroeconomic Outlook – forecasts isn’t easy or one dimensional, but I belie- gress and beside the traditionally strong be to review their competitive position, (by HBC’s Economic Research Department) The first problem is the one of the ve that Albert Einstein’s said it best with: tourism I see pharmaceutical, IT, food, identify market segments where they food processing, health and energy in- add value and provide broad range of 2011 2012e 2013f 2014f country‘s rating and its connection to “We cannot solve our problems with the the risk premium that affects any chan- same thinking we used when we created dustry as the ones with substantial in- modern services and products. Real GDP (yoy, %) 0.0 -2.0 -2.0 0.3 ces of a more affordable financing and them.” And the reasons that brought the vestment attracting potential. Private consumption (yoy, %) 0.2 -3.0 -2.1 -0.7 significantly limits the banks possibili- local economy to where it is today, and In terms of the Croatian economy the EU Unemployment rate (ILO, avg., %) 13.5 15.8 17.2 18.0 ties to boost the economy. Last rating the inhibiting factors the foreign inve- Still the rate of economic improvement accession will be a major boost and a big downgrades weren’t dramatic but they stors are most critical of are: business- mostly lays in the Governments hands step forward in creating positive econo- CPI inflation (average, yoy, %) 2.3 3.4 3.0 2.8 undoubtedly affected the price of capital unfriendly regulatory environment, long and it needs to establish an economically mic environment and stimulating invest- Current account balance (% of GDP) -0.9 0.2 0.5 0.3 in the sense of stopping it from getting bureaucracy and administrative pro- sound framework that will enable a long- ment climate. And Croatia is a country External debt (% of GDP) 103.0 102.8 103.1 102.5 cheaper what was to be a likely scenario cedures, backlogged legal system and term sustainable economic growth wit- that definitely has the possibility and due to the previously undertaken fiscal a rigid labour law, all of which forget to hout which no business model, no mat- potential to grow and develop, especially State budget balance (% of GDP) -5.5 -4.6 -5.8 -5.3 consolidation measures. But still and the consider how investments and investors ter how good it looks on paper will work. taking into considerations all the doors EUR/HRK (average) 7.43 7.52 7.56 7.60 downgrade did in a way negatively label create new jobs and contribute to the The economies that have made the tran- the EU accession brings with itself. – PR –

6 newsregion 29 / july13 newsregion 29 / july13 7 FOCUS FOCUS

Western Satu Mare Balkans Romania Ethnic criteria should IRE raises more not be the basis for € decentralization in the than 4.000 Western Balkans for the „House

Ethnic origins as the only criterion in the process of decentrali- of Friendship“ in zation and distribution of government powers in the Western Balkans will not work, says IRE chairman Franz Schausber- ger, representative of the Committee of the Regions (CoR), at the conference „The Western Balkans and its progress to- countries in particular requires a strengthening of central go- Satu Mare wards the EU: the contribution of decentralized cooperation“ vernment institutions, which are crucial for the state‘s opera- in Brussels on 10 April 2013. The situation in ethnically mixed tion. At the same time, the decision makers of autonomous As part of the IRE events for Europe Day 2013, the regions and municipalities must be heard; Schausberger Institute of the Regions of Europe has raised € stresses that the role of local and regional representatives 4,217 which were entirely donated to the „House is of fundamental importance in the enlargement process. Immediate involvment of the Therefore, the Committee of the Regions launches an opini- of Friendship“ in Satu Mare. This is a project by regions and municipalities in Serbia on on the enlargement strategy to the European Commission the Caritas of the Roman Catholic Diocese of Satu needed in EU accession negotiations every year and promotes institutional dialogue in a separate Mare, directed by its bishop Jenö Schönberger, Working Group on the Western Balkans. The role of the CoR is where children from socially disadvantaged to inform citizens and regional representatives about the chal- families are helped every day. lenges of the enlargement process in advance. Furthermore, it also supports the regions and municipalities of the Western Satu Mare is a city of 100,000 inhabitants located in North West Balkans in cross-border cooperation as well as the implemen- Romania, near the Hungarian and Ukrainian border. Among tation of cross-border projects. The exchange of best practices Romanians, Hungarians and Germans, there are also about between regions and cities of the EU member states and the 2,500 Roma, who mainly live in the „14 Micro“ district in dila- regional and local representatives from the Western Balkans is pidated apartment blocks. The Caritas of the Diocese of Satu extremely important, says Schausberger. Mare opened a day care center „Haus der Freundschaft” (House of Friendship) in 2002 and expanded in 2008. It is a meeting New Center for EU and International place for about 80 children and adolescents aged 6 to 16 ye- ars, who spend their leisure time there, get the opportunity Now that the EU Heads of State and Government decided Cooperation in Bale, Istria to bathe, and are supported in their educational and personal at the recent EU summit to enter in accession negotiations development. Regular school attendance is a precondition with Serbia in January 2014 at the latest, it is imperative The accession of Croatia to the EU on 1 July 2013 was a very im- to become part of the community and the pupils participate that representatives of the Autonomous Province of Voj- portant step for the country. Therefore, the Croatian Region Is- until they complete the eighth grade of primary education. vodina and the Serbian Towns and Municipalities are in- tria celebrated the European Week in the beginning of May. Istria A team of educators, social workers and psychologists works volved in negotiations from the very beginning. This was is one of the founding members of the IRE, has long been ac- with the children individually and also offers parental advice. agreed upon by the President of the Vojvodina (APV) Au- tively involved in EU projects as well as bilateral and multilateral The legal requirements for dispensing hot food were not met tonomous Province, Bojan Pajtic, and the Chairman of the cooperation and has contributed to the Croatian accession to in the “House of Friendship” for financial reasons; the children Institute of the Regions of Europe (IRE), Franz Schausber- the EU. The founding of the Centre of EU and International Coo- were served only cold food. The IRE donation helps to ensure ger, former Governor of Salzburg, during their meeting in peration is yet another example of Istria‘s dedication to the EU. that the kitchen is well equipped for hot food, which is a major Bishop Jenö Schönberger invited the IRE delegation to

Novi Sad. Representatives of the regions and local authori- advance in the care of children. have breakfast at the Bishop‘s palais. ties should at least sit in an advisory capacity in the negot- The inauguration of the Centre of EU and International Coope- iating committee between Serbia and the EU, so that they ration is part of the European Week and took place on 9 May 2013 in Bale, Istria. would know what challenges they would face as a result Meeting with the president of Satu Mare of EU accession and could prepare themselves in due time. The organization focuses mainly on education and informati- Bojan Pajtić expressed great interest in establishing a on about EU programmes and projects, regional development Joint Consultative Committee (JCC) between the regions and EU integration processes for the public as well as the pri- and municipalities of Serbia and the Committee of the Re- vate and civil sector in the Adriatic-Ionian region. Furthermore, gions of the EU. He announced intensive and dedicated the centre will deal with the preparation and implementation work on this committee, which should be set up imme- of EU projects and with research and development in coope- diately. Schausberger emphasized that these bodies had ration with the Juraj Dobrila University in Pula, the Associa- been very recently quite successful in Croatia. tion of Local Democracy Agencies and the AdriGov partners. Above: Branislav Bugarski, Member of the Regional The Center is financed within the Adri.Gov, IPA CBC ADRIATIC Government for Interregional Cooperation and Local Programme. Representatives of Croatian regions and Europe- Self-Government, Bojan Pajtić, President of the Auto- an institutions are invited to the round table called „The Role F.l.: Wolfgang Frieß (IRE), the president of the region of nomous Province of Vojvodina, Franz Schausberger, of the Regions in the EU“ to discuss regional policy within the Satu Mare Adrian Stef, Franz Schausberger (IRE), Mayor Former Governor of Salzburg , Chairman of the IRE European context. Director of the House of Friendship, Kinga Sipos, with IRE Chairman Franz Schausberger. Costel Dorel Coica and Karl Edtstadler (IRE).

8 newsregion 29 / july13 newsregion 29 / july13 9 FOCUS FOCUS Satu Mare Satu Mare Romania Romania IRE Europe Day in Satu Mare: Strong Regions for a strong Europe he Europe Day is composed of two events. First, a work- to the invitation and joined a public debate on European is- shop on “Regions in Europe – Questions and Answers” sues in a relaxed, coffeehouse atmosphere. The perspectives Europe Day is celebrated every Twas held in the morning in the city hall. More than 70 of Austria and Romania were discussed. The speakers, among year on May 9 in all EU Member mayors, community leaders and representatives of NGOs at- others, were: the IRE Chairman Franz Schausberger, the ma- States. It marks the Schu- tended the IRE workshop „Regions in Europe - Chance and yor of Satu Mare Costel Dorel Coica, the Austrian Ambassador Possibilities“ in the Schwabenhaus in Satu Mare, Romania. to Romania Michael Schwarzinger, the deputy trade commis- man-Declaration from „Know-how must be promoted in regional administrations in sioner of the Austrian Chamber of Commerce in Bucharest Ar- 1950 and the beginning order to increase the acquisition of EU funds for Romania,“ said nulf Gressel and the Romanian MEP Ioan Mircea Paşcu, who Franz Schausberger, IRE Chairman. A well-trained staff is a gave an introduction to the activities of the European Parlia- of European Integra- necessary prerequisite to access European funds and to effi- ment and stated clear demands to the EU regarding regional tion. Therefore, the ciently implement EU projects, even at sub-national level. The development for Romania. difficulty of co-financing projects was also discussed in detail. Institute of the Regi- The city of Satu Mare has been a member of the IRE net- The implementation of projects often fails because resources work since 2012. After the successful IRE Europe Day, which ons of Europe (IRE) are not available. This is especially an obstacle in the new EU took place in cooperation with the Austrian Foreign Ministry Member States. Representatives from the private sector sha- organized a Europe and the Austrian Federal Economic Chamber (AWO Europe red their expertise during the workshop. These representatives Day together with umbrella), the region of Satu Mare and its President Adrian included Letitia Mandache, senior analyst at the European Stef are also considering joining our network, which inclu- the City of Satu Mare Bank for Reconstruction and Development (EBRD); Johannes des more than 120 partners from 18 European countries. in Romania on 9 May Becker, Becker Consult; Magda Palfi, Regional Corporate Di- 2013. rector, Raiffeisen Bank SA; Mag. Arnulf Gressel, deputy trade commissioner of Austria in Bucharest; and Adrian Răducan, an expert on European funds and co-manager of Raiffeisen Bank SA in Bucharest. Raducan pointed out that the Raiffeisen Bank Romania offers and supports investment opportunities for ci- ties and regions. Expertise regarding the access of European financial funds and the successful implementation of EU-pro- jects was shared with mayors and public officials. In the afternoon, the Café d‘Europe Régional was held at Café Poesis Satu Mare. Numerous students and citizens responded

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10 newsregion 29 / july13 newsregion 29 / july13 11 FOCUS

Satu Mare Romania Franz Schausberger at the 6th General Assembly of the CEPLI in Ploiesti/Romania: Romania should develop its own model

of regionalization without time pressure IRE- Expert Conference on Active Ageing in Europe, 27th of May 2013 Although it is good news that the Romanian government is planning further regionalization of the state, the mere creation of new structures does not guarantee an incre- ase of the EU funding for the funding period 2014-2020, explained IRE Chairman Franz Schausberger as represen- Those Who Work Longer, tative of the President of the Committee of the Regions (CoR) at the 6th General Assembly of CEPLI (European Confederation of Local Intermediate Authorities) on 17 May 2013 in Ploiesti / Romania. The Romanian government plans a comprehensive reform of Stay Active Longer the state until autumn 2013 introducing eight regions with the hope of securing more funding from the structural fund in the time period of 2014-2020. This new regional structure would mean that in addition to the national level, the inter- nder the direction of Astrid amples in the second session. The dis- mediate level (consisting of the counties, with the President The representative of the State of Salzburg in the Com- Spatzier, the University of cussion provided an opportunity to and Assembly) and the municipalities, a regional level is to mittee of the Regions, Franz Schausberger (right), and USalzburg conducted a study exchange experiences and discuss rele- be introduced. The prefects as representatives of the central the representative of the City of Sofia, Bulgaria (left), Vla- in cooperation with the NÜRNBER- vant factors from different perspectives. government on the sub-national levels will not be removed. dimir Kissiov, as speakers at the 6th Conference of CEPLI GER Versicherung AG Austria titled Proper implementation of eligible projects requires well- in Ploiesti. “Awareness-Rising in the Field of Care One of the presenters, Mr. Kurt Molte- trained regional and local administrations, the involvement of Provision,” which found that the public rer, chief executive of the NÜRNBERGER regional and local authorities in the management of structu- often lack knowledge about age and Versicherung AG Austria, presented the structure of the state. ral funds from the very beginning, and the de-politicization of care provision. Furthermore, the on- 3-Pillar-Model as a possible solution, f.l.: Anton Schaller, Helmut Mödlhammer, • The broadest possible political consensus on the reform the funding allocation as well as the ability of co-financing it. going demographic change will have which combined provisions from state, Franz Schausberger, Kurt Molterer and Astrid must be provided. remarkable consequences in society, business and private funds. Mr. Helmut Spatzier. Schausberger explains that past experiences of regionali- • There should be no temporary transitional arrangements as IRE Chairman Franz Schausber- Mödlhammer, mayor and presi- zation show that the following conditions lead to successful for domestic political reasons, even with the intention to ger pointed out in his opening speech dent of the Austrian Association Arnoldas Abramavičius, Ma- reforms of state structures: implement reforms a few years later. Very often, temporary at conference hosted by the Institute of of municipalities, stressed the im- yor of Zarasai, Lithuania, and • The institutions of the new regions must be politically legi- arrangements unfortunately become permanent facilities. the Regions of Europe held in the Heff- portance of creating age-based President of the ECOS Com- timate; pure statistical planning regions have never been • Reforms should not take place under time pressure and terhof in Salzburg on 27 May 2013. The and age friendly cities and vil- mission of the Committee successful. need to be underpinned by serious studies in terms of conference, held in cooperation with lages that will actively involve the of the Region, Rapporteur • The new regionalized governmental structure and the allo- geographical, cultural, historical, economic and social si- the federal state of Upper Austria, the elderly in everyday life. The elder- on „Active Ageing“ and IRE cation of responsibilities between the different levels must tuations. NÜRNBERGER Versicherung AG Austria ly people in our society also hold Intern Magdalena Rückauf be protected at a high-level, i.e. in the constitution, so it • Romania should take into account experiences and models and the HILFSWERK of Salzburg, was on immense potential, which can be cannot be changed by any subsequent government in an from other states, but eventually adopt a separate model the topic of “Age Development in Euro- used for the functional living of ordinary legal procedure. that corresponds to the historical, cultural, geographical pe and the Challenges for Care Policy of young and old citizens. Furthermore, he • Referendums must be carried out on the new regionalized and constitutional realities of the country. Regions and Municipalities.” The confe- requests better cross-border coopera- rence consisted of presentations of se- tion in the field of healthcare. The Swiss veral best-practice solutions, showing healthcare system, with the Spitex- Romania‘s regionalisation a focus in a conversation with that imminent demographic changes System, creates incentives to retire later provide an opportunity to explore new work longer than officially requested Romanian Ambassador in Vienna and innovative forms of social infra- and thus strengthens individual respon- structure. Two panel discussions took sibility for care provision. This happens The regionalization of Romania was at the centre of talks between H.E. Ambassador place in the afternoon, the first regar- exclusively in the frame of private and Silvia Davidoiu and IRE Chair Franz Schausberger on 3 June 2013. The ambas- ding “Care Policy from ‘Food on Wheels’ non-profit benefits, reports Mr. Anton f.l.: Helmut Geil (Nürnberger AG), Chri- sador explained that Romania faces pressure to create regions because of a con- to the residential care home”, followed Schaller, president of the Zurich Senior stian Struber (Hilfswerk Salzburg), Annette stitutional reform. The schedule for this reform is tight because of the presidential by a presentation of best-practice ex- and Pensioner Association. Sombekke (Bundesozialamt), Bernhard elections next year and the new EU-funding period (2014-2020). The latter requires Schausberger (Moderator, ORF), Philip Steiner new regional structures in the country. Additionally, a referendum on the new con- (Nürnberger AG), Harald Seiss (SGKK), Her- stitution needs to be held. Many questions concerning the reform are still open, Kindly supported by: bert Prucher (Land Salzburg – Soziales) except that EU-Funds will no longer be distributed on a national but on a regional F.l.: H.E. Ambassador Silvia Davido- level. Some details are still to be negotiated. IRE chair Schausberger has offered the iu und IRE chair Franz Schausberger expertise of the IRE in order to strengthen the regionalization in Romania.

12 newsregion 29 / july13 newsregion 29 / july13 13 IRE-expert-conference in Dresden on „Regional Parliaments as Mediators between Citizens and the European Union“

Matthias Rößler Saxonia’s President of the Parliament „United Regions of Europe“

By Georg Loderbauer sion makers and experts what regional legislative bodies need to do in order Barbara “The radical reform of the European Uni- to communicate EU policies effectively. Richtstein on in a post-national sense is needed,” Member of claims Prof. Böttcher from the Univer- The second day in Dresden started with the sity of Aachen. According to his vision, speeches by Saxonia’s President of the Parliament of informed citizens in communities and Parliament Matthias Rößler, Member Brandenburg regions who will be affected by regional of the Parliament of Brandenburg Bar- policies should be involved in the deci- bara Richtstein, President of the Parlia- sion-making process. The supranational ment of the German-speaking commu- level of the EU-institutions remains with nity in Belgium, Alexander Miesen and Peter a few core competencies. The national the Director of the Institute for Federa- Bußjäger level can only be found in a mediating lism Peter Bußjäger. The final part of and weak position. Böttchers vision of the conference was the panel discussion Director the “United Regions of Europe” is very on concrete activities for regional legis- of the Institute for controversial even among regionalists lators to bridge the gap between the EU Federalism but was a great starting point for the and its citizens. conference. The speeches emphasized intercon- On 12 and 13 of June, the IRE hosted a nectivity between the regional parlia- Alexander conference on the role of regional legis- ments in order to support each other communication of EU agendas to ci- Miesen lative bodies and their effort to connect in the EU decision making process. Not tizens. Transparency and publicity are EU citizens with EU institutions. The only can legislative matters lead to a the most effective in sparking citizens’ President of event has been conducted in coopera- better connection between citizens the Parliament interest in EU questions. tion with the Parliament of Saxonia, the and the European Union, but they can of the German- speaking European Commission and the Austrian also serve as methods of outreach. For The final part of the event was the panel community in Federal Ministry for International and example, Brandenburg, which has the discussion about concrete activities for Belgium European Affairs (BMeiA). lowest European Parliament election regional legislators in order to bridge Representatives from various legislative turnout in Germany, is the first regional the gap between the EU and its citizens bodies responded to the invitation and legislative body for which EU citizens was. The participants were Gregor Ra- contributed to a fruitful discussion. The living in the region vote . Thus far, this ible, Director of the Bavarian EU-repre- conference started off with greetings regulation only applies for municipali- sentation in Brussels; Regina Poersch, by the hosts, IRE Chairman Franz ties. Electoral inclusion is just one way Member of the Landtag of Schleswig- Schausberger, President of the Saxo- of bringing the EU closer to its citizens. Holstein; Werner Jostmaier, Member nian Parliament Matthias Rößler and Citizen’s assemblies and public commit- of the Landtag of NRW and CoR; Heinz representative of the Austrian Embassy tee meetings for pressing issues, such as Lehmann, Member of the Landtag of in Berlin Klaus Famira. While Rößler the Euro crisis, are held in the German- Saxonia and CoR; and Reinhard Tro- and Schausberger pointed out the speaking community in Belgium and per, Representative from European Af- impact new legislation. Additionally, the Reinhard Troper, Heinz Lehmann, importance of regional actors in com- are an effective way to increase interest fairs Dpt. in the City-Administration of importance of cross-border regional co- Werner Jostmaier, Karl Edtstadler, municating policies, Famira empha- in EU-affairs. However, these methods Vienna. One of the main obstacles for operation was stressed during the con- Regina Poersch and Gregor Raible. sized the varying, contextual identities are also strongly dependent on the size connecting the work of the regional ference, especially in regarding educa- Fotos (7): René Deutscher of European citizens. Indeed, 2013 was of the constituency. The effective use of legislative bodies with the European tional programs, such as EU-education labeled the European Year of Citizens. interior media in order to provide jour- level is the EU deadline for subsidiary in schools. f.l.: Klaus Famira (Austrian Em- Two contrasting trends have emerged nalists and interested citizens with infor- complaints, which is currently set at 8 bassy in Berlin), Prof. Winfried among European citizens: On one hand, mation is another way of increasing the weeks. Therefore, regions have to be Ultimately, every political body and Böttcher (University of Aachen), citizens are better informed about EU communication flow. Live streams and very creative if they want to be involved legislator has the responsibility to pro- Matthias Rössler (President of institutions, but on the other hand, they online storage of plenary meetings, ef- in a bottom-up way of the EU decision- pogate EU policies in a way that shows the Saxonian Parliament), Franz lack understanding and are growing fective usage of social media and direct making process. As mentioned in the both positive and negative develop- Schausberger more skeptical of the EU. The goal of interaction with citizens at the visitor discussion, Bavaria uses its resources ments. Through education, publicity this expert-conference was to ask deci- center are the key to a comprehensive in Brussels in order to directly contact and the use of media-tools, it might Kindly supported by: the EU-Commission and other relevant even be possible to incorporate the in- actors in the drafting-period of new le- formed citizens that are necessary for gislation. Vienna uses various contacts Prof. Böttcher‘s vision of a “United Regi- at the European level to learn about and ons of Europe”.

14 newsregion 29 / july13 newsregion 29 / july13 15 FOCUS FOCUS New New opinions & opinions & statements statements Two-thirds of public capital Adoption of the Opinion on Devolution Strong Regions as investments originate from in the Committee of the Regions local and regional authorities, counterparts to a strong EU

Decentralisation and division of competences in the EU but only cause 14 percent of Member States is one of the key aspects of the subsidiar- tiy principle that the Committee of the Regions (CoR) re- the dept gularly monitors, reviews and strongly defends. It plays an important role, especially in current times of economic It has been proven that regions and municipali- turmoil, when citizens expect actions to be taken at the ties are increasingly playing a key role in Europe‘s closest possible level. growth, especially in terms of innovation, public In the opinion “Devolution in the European Union and the investment, and promotion of small and medium place for local and regional self-government in EU policy ma- enterprises, education and vocational training. king and delivery,” adopted on 12 April 2013, which evaluates Therefore, a bottom-up approach of the implemen- the state of devolution in the EU and place for local and regio- tation of Europe’s 2020 strategy needs to be con- nal self-government in EU policy making and delivery, rappor- sidered, instead of the usual top-down approach. teur and member of the CoR Franz Schausberger was pleased IRE Chair Franz Schausberger during his speech to assess that European integration has contributed in a de- These were the main findings of the working groups com- CoR General Secretary Gerhard Stahl, Vice President cisive way to local and regional devolution. „I regret that since posed of the Committee of the Regions (CoR), the Europe- The future picture of a common Europe is to be drawn as Mercedes Bresso, the Head of President‘s Cabinet, Rappor- the economic and financial situation began to deteriorate, the- an Investment Bank (EIB) and the Irish EU Presidency on follows: „The proven and growing disempowerment of the teur Franz Schausberger and Expert Joanna Chmielecki. re is a growing trend towards centralisation in the EU. The eco- 13 May 2013 in Brussels, under the chairmanship of Franz nation states over the global challenges continues to trans- nomic crisis and austerity measures implemented throughout Schausberger, representative of the State of Salzburg in fer more power to the European institutions and requires possible level, if possible in their constitution. He argues that Europe should by no means be used as an excuse for further the CoR and chairman of the Institute of the Regions of Eu- a strengthening of the regions as a counterbalance,“ said functioning local and regional administration and effective de- centralisation of power or for the devolution of power without rope (IRE). The topic discussed was „The impact of the crisis Franz Schausberger in his speech on the 64th Europe’s Day volution should be based on the principles of subsidiarity, pro- consequent financial resources,“ he stated. on the autonomy of the regions, cities and towns of Europe“. in EU on 5 May 2013, organized and hosted by the district portionality and multilevel governance, conducted through The rapporteur noted that the growing trend towards centra- of Berchtesgarden and the Europe-Union of Berchtesgar- democratically elected and fully representative bodies that are lisation is based on the mistaken assumption that transferring The representative of the OECD Isabelle Chatry reported that dener Land in Bad Reichenhall, Germany. President of the accountable to their people. public services to the central government level will make them regions and local authorities in the OECD gained more than a Euregio Georg Grabner (head of district authority, District Drawing on the findings of the recent European Commission more cost-effective. Indeed, in the context of the sovereign third of public spending and two-thirds of direct investments Berchtesgaden) talked about a common Europe in diversity report on Public Finances in the Economic and Monetary Uni- debt crisis, the merger of municipalities is very often used as an in 2011, but only caused 14 percent of the public debt. Due to and called for not only expanding but also further strengthe- on, which shows a growing trend towards fiscal decentralisa- economic argument to achieve cost savings, but which Franz the necessary austerity measures the direct investments of the ning of the Union. Even after the accession of Croatia on 1 tion and a greater efficiency of own resources versus relying Schausberger considers lacking adequate studies or analyses. sub-national levels fell by 20 percent between 2009 and 2011, July 2013 the process of integration will be not completed. on transfers as a funding tool, the opinion also encourages the Schausberger reiterates that in accordance with the princip- which most likely will have negative long-term effects on the Member States to replace transfer payments, as far as possible, les of good governance and better lawmaking, regional and entire economy. Investment needs to be improved in order to The ceremony was organized by Stefan Wieneke, Chair- with their own financial resources, i.e. independently raised local authorities, as well as the parties responsible for imple- meet the quality of savings requirements by having a more ef- man of the Europe-Union Berchtesgardener Land. The po- sub-national taxes or charges. The European Commission is en- menting EU policy at sub-national level, must be more actively ficient coordination among the various levels of government, litical and economic participants who took part in this event couraged to repeat this review of sub-national public finances and effectively involved as early as possible in designing and involvement of private investors, improvement of expertise in numbered 150. The Bad Reichenhall Philharmonic orchestra every year. implementing EU policies and legislation. In this context, he the administrative institutions, and improvement of integrity played music by French composers at the ceremony as a sign ​Furthermore, the Committee of the Regions (CoR) made it clear calls on all EU Member States to establish an appropriate le- and transparency in government procedures, etc. of solidarity and of German-French friendship. gal framework for their sub-national authorities at the highest that demands for autonomy and independence movements on the part of a region must be seen as internal matters for the Member State concerned. The CoR also plainly emphasized that in the hypothetical situation where such a region would become independent and wants to remain in the EU, it would have to apply to become a member of the EU like any state. In the opinion by rapporteur Franz Schausberger, adopted by a large majority, members of the CoR stressed that neither IRE is sponsored Strategic Partner the EU nor the CoR is meant to interfere in questions of inter- nal organisation related to the constitutional arrangements of Member States, including developments in the direction of the independence of a region. by of the IRE The question about the EU integration of a region that has achieved independence was also a main focus of the debate and was heavily discussed. CoR members agreed on the view that such a new sovereign state wishing to join the EU should be required to make a formal application to the Council and to follow the accession procedure as laid down in the EU Treaties, in the same way as any other country wishing to become an EU Member State.

Source: EPP/ Press Release of CoR on 12 April 2013 Photo: Public – Das österreichische Gemeindemagazin 16 newsregion 29 / july13 newsregion 29 / july13 17 Das Neue Regional elections Musiktheater in Linz Results of the Tyrolean State Elections 2013 Europas wohl modernstes Opernhaus steht in Oberösterreich! Austria‘s far-right Freedom Party (FPÖ) lost ground on 28 April 2013 at a third consecutive state election. Heinz-Christian Strache‘s Freedom Party - which had stumbled badly in two Seit 11. April 2013 hat Oberösterreich ein neues kultu- other state elections this year, including in its heartland of Carinthia - fell below 10 percent in the western province of relles Wahrzeichen: das Musiktheater am Volksgarten Tyrol, according to provisional results. More good news for in Linz. Schon jetzt gilt der Neubau aufgrund der tech- the centrist coalition in Vienna, Eurosceptic billionaire Frank nischen, architektonischen und ökologischen Qua- Architektonisch wie künstlerisch setzt das Musikthea- Stronach‘s new party failed to clear the minimum vote hurdle, litäten sowie des Komforts und der hervorragenden ter einen Meilenstein in der Landeshauptstadt. halting its momentum from the two previous state elections in Akustik im Zuschauerraum als das modernste Opern- Fotos (3): Sigrid Rauchdobler which it won 10 percent. Team Stronach‘s national parliamen- haus Europas. tary leader Robert Lugar blamed the poor showing in Tyrol on the party infighting, saying: „We will do better in the national Nach seiner feierlichen Eröffnung am 11. April 2013 nahm das ergonomischen Werkstätten und Lagerräume und natürlich elections.“ Günther Platter was reelected for another 5 years. auf die modernste computergesteuerte Bühnentechnik. Opernhaus, das nach einem Entwurf des Londoner Architekten source: salzburg.com Terry Pawson von der ArchitekturConsult ZT (Wien/Graz) er- Partners in the federal coalition - the conservative People‘s Par- richtet wurde, am darauf folgenden Tag mit der vom Publikum Modernste Technik ty (ÖVP) and center-left Social Democrats (SPÖ) - fell to their begeistert aufgenommenen Uraufführung der Oper „Spuren worst post-war results in the state but still finished first and se- Herzstück ist die multifunktionale Transportdrehbühne mit Results of State elections in Tyrol 2013 der Verirrten“ von Philip Glass seinen Betrieb auf. cond in a fragmented field of 11 parties. The People‘s Party fell 32 Metern Durchmesser, die mehrere Bühnenbilder zugleich (%, in comparison to 2008) below 40 percent but still took first place in Tyrol where it has Das Musiktheater bietet allen Besuchern beste Akustik und un- bewegen kann. In diese integriert sind wiederum eine Spiel- long dominated, lending some support to national leader and eingeschränkte Sicht. Bequeme Sitze mit viel Beinfreiheit ver- drehbühne mit einem Durchmesser von 15 Metern und eine ÖVP Citizens´ SPÖ FPÖ Green Team Vor- Deputy Chancellor Michael Spindelegger (ÖVP). Chancel- sprechen höchsten Komfort. Der Große Saal umfasst im Nor- Hubpodienlandschaft mit 3 Podien von je 15 x 4 Metern, die Forum Party Stronach wärts lor Werner Faymann‘s Social Democrats (SPÖ) fell below 14 malbetrieb etwa 1.000 Sitzplätze, mit Sonderbestuhlung bietet sich sechs Meter anheben oder absenken lassen. Ebenso bie- Tyrol (Fritz) percent on the second place. State governor Günther Platter er rund 1.200 Personen Platz. Sein akustisches Raumvolumen tet die Podienbühne die Möglichkeit, mit schrägen Flächen zu (ÖVP) was reelected for another 5 years. 39,35 5,61 13,72 9,34 12,59 3,36 9,54 arbeiten. Beispiellos sind auch die vollautomatischen, compu- entspricht fast jenem der Mailänder Scala, dennoch wird kein -1,15 -12,79 -1,74 -3,07 +1,86 n/s n/s Besucher weiter als 27 Meter vom Bühnenportal entfernt sein. tergesteuerten Dekorationslager im Theatergebäude. Diese The turnout was 60, 4 %, almost 5% lower than in the 2008 Dieses wiederum ist flexibel und hat eine Höhe von bis zu 10 modernen Lagersysteme wurden zuvor auf Flughäfen erprobt elections. source: reuters.com Metern und eine Breite zwischen 11 und kommen nun erstmalig in einem und 16 Metern. Theater zum Einsatz.

Qualität ist Trumpf „Grünes Theater“ am Volksgarten A Financial Scandal, a Tough Election Campaign and a Change of Power: Der Bühnen- und Orchesterbereich Das neue Musiktheater ist nicht nur im neuen Haus ermöglicht nun auch aus technischer Sicht und in Sachen Regional Elections in Salzburg in May 2013 Produktionen, für die das Landesthe- Besucherkomfort zukunftsweisend. ater an der Promenade zu klein war. Es ist auch ein ökologisches und by Magdalena Rückauf vast amount of taxpayers‘ money in the last few years through Sämtliche Opern, Musicals und Ope- energieeffizientes Vorzeigeprojekt. high-speculative financial transactions. Only a few days after retten können nun in voller Orche- Als Niedrigstenergiehaus, hat es sich On the 5th of May, preterm regional elections were held in the the scandal became known, the ÖVP, under the party leader sterbesetzung gespielt werden. So den Beinamen „grünes Theater“ ver- federal state of Salzburg, Austria. Wilfried Haslauer, called for prompt reelections. The SPÖ, un- wird die Qualität, die Landestheater- dient. Each state in the federal republic of Austria has an elected le- der the current state governor Burgstaller, who claimed he did Ensemble und Bruckner Orchester Das großzügige Hauptfoyer bietet viel Von städteplanerischer Bedeutung gislature (the Landtag), a state government (Landesregierung) www von jeher bieten konnten, die aber Raum und einen offenen Ausblick in den ist die Lage des Musiktheaters am and a governor (Landeshauptmann). The regional elections im alten Theatergebäude keine an- Volksgarten. Ende der größten Linzer Einkaufs- determine the distribution of the 36 seats in the Landtag gemessene Infrastruktur fand, end- Hoher Komfort, beste Akustik und freier meile und direkt am neu gestalteten proportionally according to the parties‘ results for a five-year lich umfassend erlebbar! Blick auf die Bühne zeichnen alle Sitzplätze Volksgarten. Dieser wird so zum Vor- period. The Landeshauptmann is elected by the Landtag, thus Dadurch können auch die bislang im Großen Saal aus. garten des Theaters, und das Theater forming a coalition is usually necessary in order to secure the angebotenen vier Theatersparten wird zur Kulisse für den Park. required majority. Oper, Schauspiel, Ballett sowie Kin- The former government was a coalition of the Social Demo- Gerade in einer Zeit, wo auch Le- der- und Jugendtheater um eine crats (SPÖ) and the conservative Austrian People`s Party (ÖVP) bensqualität und das kulturelle fünfte erweitert werden: das Musi- under the rule of state governor Gabi Burgstaller (SPÖ). Angebot wichtige Faktoren für die calensemble wird künftig pro Jahr 3 Earlier in December 2012, the whole state of Salzburg and its Standortwahl von Unternehmen bis 4 Produktionen zur Aufführung government was shaken by a major financial scandal which sind, trägt das Musiktheater sicher bringen. was responsible for the snap elections five months later. On 6 auch zum weiteren Erfolg Oberö- December 2012, the responsible minister and vice-governor, Stolz ist man auch auf die zweck- sterreichs als Wirtschaftsstandort David Brenner, informed the public that Salzburg may have mäßig angeordneten, tageslicht- bei, was das breite internationale experienced a book loss of 340 Million Euros, due to unknown hellen Garderoben der Ensemble- Medieninteresse an der Eröffnung high-risk speculations. According to the first pieces of infor- mitglieder, auf die modernen und unterstreicht. – PR – mation, a single public servant had „gambled“ with, and lost, a Wilfried Haslauer source: news.at

18 newsregion 29 / july13 newsregion 29 / july13 19 www not know about the risky speculations, defended itself and cal- The final results are as follows: led for a thorough investigation of the management of public finances rather than for early elections. Eventually, all parties 2013 2009 Seats accepted the request for reelections in the Landtag on 16 Ja- SPÖ 23,8 % (-15,6%) winning 9 seats (-6) nuary. ÖVP 29,0% (-7,5%) winning 11 seats (-3) In the course of the scandal, the aforementioned civil servant Greens 20,2% (+12,8%) winning 7 seats (+5) was dismissed and her superior was suspended. Mr. Brenner, FPÖ 17,0% (+4,0%) winning 6 seats (+1) the head of the ministry of finance, claimed to have no know- ledge of the finance businesses of his subordinate. He had to Team 8,3% (+8,3%) winning 3 seats (+3) step down from his position in January 2013. Stronach Others 1,6% A parliamentary investigation committee under chairman Turnout was 71,0% (-3,4%) Astrid Rössler (Green Party) was established to examine the entire background of the scandal, the failed internal control mechanisms and the current state of debt in Salzburg. The The SPÖ experienced a major loss in votes and has only nine committee closed its investigations in April and found some seats left in the Landtag, thus falling to second place behind unsatisfying background information regarding the entire fi- the ÖVP. The ÖVP, who also experienced a major loss, could be- nancial management of the Land of Salzburg since 2001: come the leading party again with 11 seats. The Greens could The total sum of the losses due to the speculations could not nearly triple their result from 2009 and gain up to seven seats. be calculated yet, since the exit of the business finances is a The FPÖ won one seat in 2009 and now holds six, and Team gradual, sensitive process aimed to prevent any further losses. Stronach managed to join the Landtag with three seats. The The financial speculation began in 2002, when the former mi- other parties did not reach the 5% minimum threshold. nister of finance, Mr.Wolfgang Eisl from the ÖVP, signed an The result left very few coalition options; the only possible authorization giving permission for the civil servant to engage two-party coalition would between the ÖVP-SPÖ, as all other in various security bond and derivative activities. options would involve a third party. It was clear that Haslauer, as the winner of the election, would start negotiations with all Mr. Eisl’s successors, Mr. Othmar Raus and Mr. David Brenner parties, but after the tough campaign, the SPÖ was definite- (both SPÖ) later expanded and adopted this authorization. ly not in an ideal position. It was also clear from many post- The Salzburg Landtag is the main legislative organ through election surveys that the voters primarily blamed the SPÖ and which all laws have to pass, thus it also had a significant role in Governor Burgstaller for the financial scandal, and that they the development of the tax money gamble. With the approval favored the participation of the Greens in the future govern- of the draft budget of 2005 and 2006, the Landtag fully and ment of Salzburg. unknowingly legitimized the speculative practices through the votes of all parties. Exploratory talks began immediately following the elections, and the ÖVP soon entered into closer coalition negotiations Ultimately, the committee’s investigations clearly showed that with the Greens and Team Stronach, excluding the SPÖ. About the finance management of the Land of Salzburg was chaotic a month after the election, the new government of the Land and inefficient over the last ten years, and internal as well as of Salzburg was confirmed: the new governor Wilfried Has- external control mechanisms failed completely. The investi- lauer (ÖVP) and his vice-governor Astrid Rössler (Greens), gation also revealed that many obligatory rules of action, con- two ministers from both the ÖVP and the Green Party, and one trolling principles and cooperating systems between different minister from Team Stronach. Therefore, on 19 June, the new branches either malfunctioned or were not applied at all. cabinet consisting of seven members (3 ÖVP, 3 Greens, and 1 TS) was inaugurated. In view of these incidences, the results of the elections on 5 May 2013 were anticipated with great interest. The campaign was, as for a regional election, comparatively tough. In parti- cular, the SPÖ under governor Burgstaller and the ÖVP under the top candidate Haslauer blamed each other for the finance. The opposition parties, primarily the Greens under Ms. Rössler (who, as the chair of the investigation committee, experienced great publicity), and the FPÖ under Karl Schnell both blamed IRE is sponsored the long-ruling parties of the SPÖ and ÖVP for the financial ma- nagement mess. During these elections, another political party emerged in Salzburg: the newly founded Team Stronach under the ex-ÖVP member Hans Mayr, who tried to attract the pro- by test voters. The Pirates Party and the Communists (KPÖ) were on the ballot in only some districts.

The polls predicted a neck-to-neck race between the ÖVP and SPÖ, but with some losses on both sides. Some polls still saw Wenn sich das große Staunen vor deine Füße legt. Wenn dich die the SPÖ ahead while others claimed the ÖVP had a slight head Film ab! start. The opposition parties could win a few percentage points Magie des Augenblicks verzaubert. Wenn dein Glück für einen Moment according to the polls. Nevertheless, the actual result on 5 May unendlich wird. Dann hast du ihn entdeckt, deinen ganz persönlichen differed strongly from the predicted outcomes: Logenplatz. Und Logenplätze gibt es viele im Salzburger Almsommer. 20 SALZBURGERLAND.COM newsregion 29 / july13 newsregion 29 / july13 21 IRE conference programme 9th Conference of European Regions and Cities Fireside Talk in the Austrian Embassy in Budapest (CERS) Expert Conference Regional Assemblies and Parliaments as Intermedia- Cross-border Cooperation as a Future ries between Citizens and the European Union Strategy for Politics and the Economy Franz Schausberger: „Prove first, judge later.“ Vukovar (HR) IRE General Assembly and Expert Conference 17th –18th September 2013 In a discussion with Deputy State Secretary of the Hungarian 2000-2006. Schausberger sees certain parallels between the in Pamhagen, Austria / Sopron, Hungary Ministry of Foreign Affairs Gergely Pröhle on 18 April 2013 in era of Chancellor Wolfgang Schüssel in Austria and the cur- Please register at: 13th –15th October 2013 Budapest, Chairman of the Institute of the Regions of Europe rent Government of Viktor Orbán, especially with regard to E: [email protected] the reactions from abroad. The Schüssel government has been and former governor of the state Salzburg Prof. Franz Schaus- Venue: Vila Vita Ressort Pamhagen, Burgenland (AT) heavily criticized at European level as well as by many Mem- berger presented the book The Controversial Turn of Austria Topics: • Renewable energy and cross border cooperation; ber States. However the criticism reflects a lack of knowledge • Regional cooperation in health policy; about the government’s program and the actual behavior of IRE Integration Conference • Cross border tourism strategies; the Austrian government from 2000 until 2006. The imposed Integration policy on regional and local level • Trans-regional traffic projects (and financing); „sanctions“ were a flop and had to be canceled when it became Best practice examples from Europe • Best practices of regional and local administatio- obvious that the Schüssel government passed a necessary „re- City Hall, Graz (AT) nal cooperation. form program“ in Austria. German magazines such as “Spiegel” December 4th 2013 and “Stern” praised Austria’s reform policy on their front pages. Please register at: T: +43 (0)662 / 84 32 88- 5010 Hungary is experiencing similar circumstances at the moment. F: +43 (0)662 / 84 32 88- 5050 Schausberger declared that it is unfairly criticized at the EU You can find us on Facebook E: [email protected] level and by various Member States even though the exact www.institut-ire.eu content of the reform measures of the Orbán government is https://www.facebook.com/institut.ire unknown. State Secretary Pröhle pointed out that the current Hungarian government has to deal with a disastrous econo- mic and financial situation. Without major reforms, Hungary would eventually be in the same situation as Greece or Cyprus. from left to right: Prof. Schausberger, IRE Chairman, Mo- Strong Cooperation on derator Prof. Dr. Dieter Binder (University of Graz), Deputy Robert Kriechbaumer, Franz Schausberger (Hg.): Die umstrittene State Secretary of the Hungarian Ministry of Foreign Af- Wende. Österreich 2000 – 2006. Böhlau Verlag. 848 Seiten. Wien, Common Cultural Heritage Human rights on fairs Gergely Pröhle Köln, Weimar 2013. IRE Chairman Franz Schausberger and Secretary-General Joa- chim Fritz met the Vice President of the Autonomous Province regional level of Vojvodina, Slaviša Grujić, in Salzburg on 14 April 2013. Pos- Issues regarding the implementation of human rights and grossglockner. at sibilities of a closer cooperation were discussed in an intensive meeting, especially in the areas of culture, heritage and the freedom of religion at the regional level were discussed in media. The future cooperation shall focus on the common hi- a meeting between Austrian Minister of Foreign Affairs Mi- Grossglockner Hochalpenstrasse story of Austria and Vojvodina. The year 2016 marks the 300th chael Spindelegger and IRE Chairman Franz Schausber- anniversary of the important Battle of Petrovaradin, where the ger on 30 April 2013 in Salzburg. Furthermore, Schausber- High Alpine Road Austrian Imperial army, led by Prince Eugene of Savoy, defea- ger informed the Austrian Foreign Affairs Minister about ted the Ottoman army. The historical evaluation of common the different activities and events of the IRE. historical circumstances is the main theme of future coopera- tion. Slaviša Grujic, a former radio and television journalist, is THE MOUNTAIN. Vice President of the government of the Serbian Autonomous THE ROAD. Province of Vojvodina and in charge of culture and informati- THE ADVENTURE. on. He is the only member of the League of Social Democrats of Vojvodina (LSV), a regionalist and social-democratic political Party of Vojvodina in Serbia, currently in government.

HIGH ALPINE ADVENTURE FOR NATURE LOVERS AND LEISURELY DRIVERS The Grossglockner High Alpine Road is one of the most fascinating panorama roads in Europe, leading over a length of 48 kilometers into the Hohe Tauern National Park. Towering high above the Pasterze Glacier, the Grossglockner seems almost within reach. Changing exhibitions, themed trails, children‘s playgrounds and grandiose views are your guarantee for a memorable day. From left: Vice President of AP Vojvodina Slaviša Grujić and IRE chair Franz Schausberger, Minister of Foreign Af- fairs and Vice-Chancellor Michael Spindelegger InfoCenter: Großglockner Hochalpenstraßen AG, Tel. +43 (0) 662 / 87 36 73-0, [email protected] IRE Chair Franz Schausberger

GrohAG12_Ins_Newsregion_170x120_ENGL_1206.indd 1 13.06.12 12:02 22 newsregion 29 / july13 newsregion 29 / july13 23 ZENTRALE DREHSCHEIBEN CENTRAL COMMERCIAL HUB DER WIRTSCHAFTSKOMMUNIKATION IN FOR BUSINESS COMMUNICATION IN AUSTRIA, ÖSTERREICH UND IM ALPEN-ADRIA-DONAU-RAUM THE ALPS AND THE ADRIATIC DANUBE REGION

sterreichs Messegeschehen konzentriert sich – aufgrund seiner ue to its geographical position, its trade fair infrastructure and its Ögeographischen Lage sowie Messe- und Verkehrsinfrastruktur – Dexcellent position within the European traffic and transport networks, auf die Wirtschaftsachse Salzburg-Wien. Im europäischen Schnittpunkt Austria’s main axis of trade fair activity is located between Salzburg and zwischen West und Ost, Nord und Süd gelegen, bedienen die (Fach-)Messen Vienna. Being situated at the very heart of Europe, fairs in Salzburg and in Salzburg und Wien nicht nur den hochattraktiven heimischen Markt, Vienna serve an impressive domestic market and also form a gateway sondern eröffnen auch den Zugang zu den Nachbarländern und, speziell to neighbouring countries. Vienna in particular provides a bridge to the von Wien aus, zu den Wachstumsmärkten des CEE- und SEE -Raumes. growing markets of the CEE and SEE regions.

Reed Exhibitions ist als Organisator von Publikums- und Fachmessen Reed Exhibitions has been the leading organiser of public access and trade sowie Business-Events in Österreich seit vielen Jahren Marktführer: only fairs and business events in Austria for many years now. In 2012, 35 35 (Fach-)Messen aus dem eigenen Portfolio, die mehr als 40 Branchen fairs from our own portfolio cover over 40 trade sectors and 114 external repräsentieren und 114, von unserem Third-Party-Team der Reed events cared for by our third-party Reed Exhibitions Messe Wien team in Exhibitions Messe Wien, betreute Gastveranstaltungen mobilisierten Vienna attract over 12,100 exhibiting businesses and around 920,000 trade 2012 rund 12.100 ausstellende Unternehmen und rund 920.000 (Fach-) visitors from home and abroad. As we are not tied to any one city or venue Besucher aus dem In- und Ausland. Als standortunabhängiger Veranstalter we basically stage trade shows wherever the market demands them, as is realisieren wir Messen grundsätzlich dort, wo der Markt sie braucht, also the case in Linz and Graz. beispielsweise auch in Linz und Graz.

Unsere Gesellschaften in Salzburg und Wien sind als Tochterfirmen von Our subsidiaries in Salzburg and Vienna belong to Reed Exhibitions in London Reed Exhibitions in London (www.reedexpo.co.uk) Teil der Reed Elsevier (www.reedexpo.co.uk) and are therefore parts of the Reed Elsevier Group Group (www.reedelsevier.com). Reed Exhibitions gilt mit mehr als 500 (www.reedelsevier.com). Reed Exhibitions stages over 500 events in 39 Events in 39 Ländern rund um den Globus als führender privater Anbieter countries around the globe and is the world’s number one private company von Fach- und Publikumsmessen – ein internationales Netzwerk und responsible for staging trade fairs and public access shows, offering an Ressourcen, die unseren Ausstellern und (Fach-)Besuchern entscheidende international network of businesses and resources of great benefit to our Vorteile bieten. exhibitors and trade visitors.

Reed Messe Salzburg GmbH Reed Messe Wien GmbH Am Messezentrum 6, PF 285 Messeplatz 1, PF 277 Weitere Informationen A-5021 Salzburg A-1021 Wien For further information T: +43 (0)662 44 77-0 T: +43 (0)1 727 20-0 F: +43 (0)662 44 77-4809 F: +43 (0)1 727 20-4709 E: [email protected] E: [email protected] www.messe.at

RX13_A4_I.M. Austria.indd 1 15.01.13 12:24