Contract No. 2008.CE.16.0.AT.040 / 2008.CE.16.CAT.014 Distribution of Competences in relation to Regional Development Policies in the Member States of the European Union FINAL REPORT SUBMITTED BY: FEBRUARY 2010 TABLE OF CONTENTS EXECUTIVE SUMMARY................................................................................................................4 GLOSSARY......................................................................................................................................14 INTRODUCTION............................................................................................................................17 CHAPTER 1. LITERATURE REVIEW: FORMS THAT THE DISTRIBUTION OF COMPETENCES BETWEEN CENTRAL AND SUB-NATIONAL LEVELS MAY TAKE..20 1.1. FORMS OF DECENTRALISATION .................................................................................................20 1.2. FORMS OF INTERGOVERNMENTAL RELATIONSHIPS....................................................................21 1.3. GOVERNMENT SYSTEMS............................................................................................................22 1.4. GLOBAL FACTORS DRIVING DECENTRALISATION IN EUROPE ....................................................25 1.5. SUB-NATIONAL TAX AND FISCAL FEDERALISM..........................................................................27 1.6. FINAL CONSIDERATIONS ON CHAPTER 1...................................................................................32 CHAPTER 2. MAIN FEATURES OF THE TRENDS IN DECENTRALISATION OBSERVED IN EUROPE OVER THE PAST FIFTEEN YEARS ............................................34 2.1. INTRODUCTION .........................................................................................................................34 2.2. TRENDS OF DECENTRALISATION IN EUROPE..............................................................................34 2.3. MAIN FEATURES OF THE DECENTRALISATION PROCESS IN THE EUROPEAN COUNTRIES .............35 2.4. CONSULTATION MECHANISMS BETWEEN SUB-NATIONAL GOVERNMENTS.................................42 2.4.1. General overview ..............................................................................................................42 2.4.2. Examples of institutional arrangement for coordination..................................................44 2.5. THE EUROPEAN OUTLOOK: EXPENDITURE AND REVENUE OF DIFFERENT ADMINISTRATIVE LEVELS ............................................................................................................................................53 2.5.1. Expenditure .......................................................................................................................53 2.5.2. Revenue .............................................................................................................................69 2.6. FINAL CONSIDERATIONS ON CHAPTER 2....................................................................................77 CHAPTER 3. THE EVOLUTION OF COMPETENCES IN THE AREAS RELEVANT FOR REGIONAL DEVELOPMENT .....................................................................................................79 3.1. COMPETENCES ON DEVELOPMENT POLICIES IN DIFFERENT GROUPS OF EU MEMBER STATES ...79 3.1.1. Federalised States .............................................................................................................79 3.1.2. Regionalised states............................................................................................................81 3.1.3. States with ‘Northern systems’..........................................................................................83 3.1.4. Other Unitary States..........................................................................................................84 3.2. AN ANALYSIS OF EXPENDITURE IN THE SECTORS MOST RELEVANT FOR REGIONAL DEVELOPMENT.................................................................................................................................90 3.2.1. The definition of public expenditure for development.......................................................90 3.2.2. The scale of expenditure for development.........................................................................92 3.2.3. Expenditure for development: a focus on its composition ..............................................104 3.3. FINAL CONSIDERATIONS ON CHAPTER 3.................................................................................110 CHAPTER 4. TERRITORIAL DISTRIBUTION OF COMPETENCES................................112 4.1. INTRODUCTION .......................................................................................................................112 4.2. MAIN RESULTS FROM THE COUNTRY STUDIES.......................................................................114 2 ISMERI EUROPA – APPLICA 4.2.1. Austria .............................................................................................................................114 4.2.2. Germany ..........................................................................................................................121 4.2.3. Spain................................................................................................................................129 4.2.4. Italy..................................................................................................................................136 4.2.5. France .............................................................................................................................145 4.2.6. The UK ............................................................................................................................150 4.2.7. Sweden.............................................................................................................................159 4.2.8. Portugal...........................................................................................................................162 4.2.9. Poland .............................................................................................................................166 4.2.10. Hungary.........................................................................................................................170 4.2.11. Czech Republic..............................................................................................................174 4.3. FINAL CONSIDERATIONS ON CHAPTER 4 ..................................................................................176 CHAPTER 5. CONCLUSIONS AND POLICY IMPLICATIONS ..........................................181 6. REFERENCES...........................................................................................................................191 7. ANNEX 1 – COUNTRY NOTES (MS NOT COVERED IN THE CASE STUDIES).........194 7.1. BELGIUM.................................................................................................................................194 7.2. LUXEMBOURG.........................................................................................................................199 7.3. DENMARK ...............................................................................................................................203 7.4. FINLAND .................................................................................................................................207 7.5. THE NETHERLANDS ................................................................................................................211 7.6. SLOVENIA ...............................................................................................................................215 7.7. IRELAND .................................................................................................................................218 7.8. GREECE...................................................................................................................................222 7.9. SLOVAKIA...............................................................................................................................226 7.10. MALTA..................................................................................................................................229 7.11. LATVIA .................................................................................................................................232 7.12. LITHUANIA............................................................................................................................236 7.13. ESTONIA ...............................................................................................................................240 7.14. BULGARIA.............................................................................................................................243 7.15. ROMANIA..............................................................................................................................247 7.16. CYPRUS.................................................................................................................................251 7.17. CZECH REPUBLIC ..................................................................................................................254 8. ANNEX 2 - METHODOLOGICAL APPROACH: FINAL CLASSIFICATIONS AND TEMPLATES.................................................................................................................................258 8.1. INTRODUCTION .......................................................................................................................258