Structure and operation of local and regional democracy Finland Situation in 1997 Council of Europe Publishing French edition: Structure et fonctionnement de la démocratie locale et régionale: Finlande ISBN 92-871-3610-6 Studies appearing in the series "Structure and operation of local and regional democracy": 1st edition 1992: Austria, Belgium, Bulgaria, Denmark, Finland, France, Germany, Greece, Iceland, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Slovakia, Spain, Sweden, Switzerland 1993: Czech Republic, Estonia, Hungary, Lithuania, Malta, Turkey, United Kingdom. 2nd edition The second edition of the files was started in 1996. It will include an individual study for each of the member states of the Council of Europe. Already published: Bulgaria, Denmark, Finland, Lithuania, Luxembourg, Malta, Norway, Portugal, Slovenia, Spain, Sweden. For further information, please contact: Territorial Authorities, Transfrontier Co-operation and Regional Planning Division Directorate of Environment and Local Authorities Council of Europe F-67075 Strasbourg Cedex Tel.: +33 (0)3 88 41 22 36 Fax: +33 (0)3 88 41 27 84 Reproduction is authorised provided the source is mentioned Council of Europe Publishing F-67075 Strasbourg Cedex ISBN 92-871-3611-4 © Council of Europe, April 1998 Printed at the Council of Europe - 3 - TABLE OF CONTENTS Page 1. LEGAL BASIS.................................................................................................... 5 1.1. Constitutional provisions relating to local authorities ........................................ 5 1.2. Main legislative texts ........................................................................................... 5 2. STRUCTURE OF LOCAL AND REGIONAL AUTHORITIES......................... 5 2.1. Main subdivisions................................................................................................ 5 2.2. Statistical data .................................................................................................... 6 2.3. Regulations governing the changes in structure................................................ 6 2.4. General units of state administration ................................................................. 7 3. ORGANS OF LOCAL OR REGIONAL AUTHORITIES ................................ 10 3.1. Municipal council............................................................................................... 10 3.2. Executive board ................................................................................................ 11 3.3. Political head..................................................................................................... 11 3.4. Head of the administration ............................................................................... 11 3.5. Division of power and responsibilities .............................................................. 11 3.6. Legal provisions concerning the internal structure........................................... 12 4. DIRECT CITIZEN PARTICIPATION IN DECISION-MAKING ...................... 12 4.1. Referendums.................................................................................................... 12 4.2. Other forms of direct participation.................................................................... 12 5. STATUS OF LOCAL ELECTED REPRESENTATIVES ............................... 12 5.1. Elections and terms of office............................................................................ 12 5.2. Duties and responsibilities of local representatives ......................................... 13 5.3. Working conditions ............................................................................................ 14 5.4. Representation of sexes.................................................................................... 14 6. DISTRIBUTION OF POWER BETWEEN THE VARIOUS CATEGORIES OF LOCAL AND REGIONAL AUTHORITIES................................................. 14 6.1. Principles of governing the distribution of power............................................... 14 6.2. Participation of local authorities in national economic and spatial planning ........................................................................................... 15 7. CO-OPERATION AND OTHER TYPES OF LINKAGE BETWEEN LOCAL/REGIONAL AUTHORITIES............................................ 19 7.1. Institutionalised co-operation ............................................................................. 19 7.2. Associations at national level............................................................................. 19 7.3. International co-operation .................................................................................. 19 - 4 - 8. FINANCE........................................................................................................... 20 8.1. Taxes ................................................................................................................. 20 8.2. Grants ................................................................................................................ 21 8.3. Fees and charges............................................................................................... 21 8.4. Borrowing........................................................................................................... 22 9. CONTROLS OVER LOCAL AUTHORITIES .................................................. 22 10. REMEDIES FOR INDIVIDUALS AGAINST DECISIONS OF LOCAL/REGIONAL AUTHORITIES................................................................ 23 11. LOCAL AUTHORITIES' STAFF ...................................................................... 23 12. REFORMS ENVISAGED OR IN PROGRESS................................................ 24 - 5 - 1. LEGAL BASIS The structure and operation of local democracy is based on locally elected municipal councils. There are not any regionally elected councils in Finland. That is why this report mainly concentrates on describing Finnish municipal administration. 1.1. Constitutional provisions relating to local authorities According to the Constitution, local government administration must be founded “on self- government by citizens as provided in separate acts”. Local self-government is thus constitutionally enshrined. Finland has also accepted the European Charter of Local Self- Government. The new Local Government Act has been passed by the Finnish Parliament and came in force on 1 July 1995. The provisions governing local authority finances, accountancy and audit procedures came into force on 1 January 1997. The management of the municipalities is based on self-government by the citizens, in accordance with section 51, paragraph 2 of the Constitution Act of Finland, as provided in specific acts. The municipalities have a general competence. Within its sphere of competence, a municipality may take responsibilities concerning the area of the municipality or its inhabitants that do not fall under the jurisdiction of some other authority. 1.2. Main legislative texts The main legislative texts in the field of local government are the Local Government Act (365/1995), the Self-Administration in Åland Act (1144/91) and the Helsinki Metropolitan Area Council Act (253/85), the Municipal Boundaries Act (73/1977) and the Municipal Election Act (361/1972). 2. STRUCTURE OF LOCAL AND REGIONAL AUTHORITIES The structure of local democracy is based on self-government of municipalities. The structure of intermunicipal co-operation and division of local and regional state administration is based on municipal boundaries and the municipality is the basic administrative unit. 2.1. Main subdivisions As indicated above, the municipal is the only level of self-government. The total number of municipalities is 455. - 6 - In addition, there are 279 joint municipal boards. Compulsory joint municipal boards to all municipalities are joint municipal boards for special hospitals (twenty districts), for the handicapped care (fifteen districts) and for regional planning (nineteen districts). These three organs are regional by nature. The principles of their administration are provided in the Local Government Act. Members in the councils of the joint municipal boards are not elected directly but nominated by the local municipal councils. The municipalities provide the current and investment expenditures of the joint municipal boards. 2.2. Statistical data Total number of units today is 455. On 1 January 1950 it was 547. Local authorities' surface and population references Surface Population Smallest 5.90 sq. km 129 (Sottunga municipality, in Åland) Largest 15 172.80 sq. km 515 765 (Helsinki) Average 662.16 sq. km 11 206 The Helsinki metropolitan area consists of Helsinki, Vantaa, Espoo, Kauniainen (population 17% of the total population in Finland). Municipalities' population Number of inhabitants Number of municipalities Percentage of total Under 999 22 4.8 1 000 - 4 999 202 44.4 5 000 - 9 999 120 26.3 10 000 - 49 999 98 21.5 50 000 - 99 999 7 1.5 Over 100 000 6 1.3 2.3. Regulations governing the changes in structure Since 1993 municipalities have had primary responsibility for drawing up local government boundaries. Changes to municipal boundaries are decided upon in conformity with the Municipal Boundaries Act. According to this, changes in municipal boundaries can be made if they are required to facilitate the arranging of municipal services or to promote population and economic resources or for other important public reasons. Changes to municipal boundaries