13 institut der regionen europas april 09 institute of the regions of europe newsregion The effects of the financial crisis took Regions and centre stage of the European Summit of Regions and Cities held in Prague on 5 Cities – Ways and 6 March 2009 and several other conferences. S. 2 out of the Crisis The Potential of the Regions in the Crisis European Summit in Prague: Key Role of Regions and Cities in Strategies against the Crisis At the European Summit of Regions and Cities Czech minister for regional development at the Summit. Pre- held in Prague on 5 and 6 March 2009, regional sident Barroso welcomed the initiative and highlighted the key role of local and regional authorities. „No-one can anti- and local politicians sent a clear demand to the cipate what the content of the new strategy will be. But one upcoming European Council and the G20 mee- priority for the post 2010 period will certainly be to increase ting in London for a coordinated approach to the involvement of local and regional authorities in policy- economic recovery. making. A recent Eurobarometer survey shows that almost 60% of European citizens would like to see regional and lo- cal authorities have a greater say in the EU decision-making process.“ Ladies and gentlemen! The members of the Committee of the Regions and elected representatives of regional and local authorities who gathe- The Lord Mayor of Prague, Pavel Bém, José Manuel Barroso, red in Prague Summit called for I grew up in the countryside and experienced President of the European Commission, Luc Van den Brande, • coordinated action at all levels of political responsibility President of CoR and Cyril Svoboda, Czech Minister for Regional the meaning of the rural area as supporting pil- in order to ensure the success of the European economic Development lar of our society and homeland from childhood recovery plan and to protect citizens against the negative on. The efficiency of the regions is substantial consequences of the economic slowdown and job cuts; • the restoration of confidence in the financial system by in- not only for the regional economic policy of a ons in third countries; troducing effective mechanisms for the surveillance of fi- • an integrated and comprehensive approach to migration country, but also for its cultural identity. nancial institutions; and integration based on the efforts of local and regional Franz Schausberger, Klaus Zeh, Minister for Federal and Euro- • the adoption after 2010 of a genuine European growth and authorities; pean Affairs, Thuringia, Michael Schneider, State Secretary for In difficult times like these, we are bound to employment strategy, based on the partnership between • multi-level governance which, in compliance with the prin- Federal and European Affairs, Saxony-Anhalt stand up to the crisis together. The European the European Union, the Member States and its regions and ciple of subsidiarity, fully involves local and regional autho- Union undertakes substantial efforts on all le- cities, which fosters long-term investment in education, rities in the Community decision-making process. training, research and innovation and the development of vels and with all instruments, in order to secure Luc Van den Brande, President of the Committee of the Regi- quality infrastructures and energy-efficient technologies; Focusing on the upcoming European elections in June 2009, the function of the financial markets and the ons (CoR), said at the Summit: “We wish to send a clear mes- sage from Prague to the upcoming Spring European Council. • the entry into force of the Lisbon Treaty, which will strengthen the Summit ended with a live TV debate between represen- financing of the national economies and the In these times of economic crisis, Europe’s regions and cities both Europe‘s capacity to decide and act in the world and tatives from four European political parties. It underlined that regions. Cooperation and the willingness to ne- are taking a strong stance against national protectionism. the shared responsibility of the different levels of power a stronger and more democratic Europe needs not only the gotiate are the correct means to take responsi- Centralisation is not the basis for a dynamic and effective for achieving common objectives, in accordance with the support of all layers of government but also, and most im- principles of subsidiarity and proportionality; ble actions. Europe. No recovery plan will ever be implemented properly portantly, the participation of citizens. President Luc Van den without the timely involvement of the regions and cities. We • a strong regional policy which can support all the regions, Brande invited all regional and local elected politicians to en- welcome the Czech EU presidency’s decision to host an extra- which takes into account the effects of the current crisis, gage in the campaign. Since the regions carry promising potential and ordinary Summit with the social partners in May. I expect that particularly with regard to the eligibility of regions for power of innovation, they are important allies local and regional authorities will be there too.” structural funds after 2013, which incorporates as a crucial for me. They are not only responsible for a large challenge an urban policy for the sustainable development share of public investment, they also take re- European Commission President José Manuel Barroso said of European cities and which, through cohesion policy and that the CoR‘s message about national protectionism had complementary instruments, strengthens territorial coo- sponsibilities in social welfare. Together we will peration not only between EU regions but also with regi- take reasonable measures and will strive for the been heard: „I welcome your commitment to reject protec- tionism, that is clearly understood in Europe. The last extraor- future with optimism and drive. dinary European Council was united in its rejection of go-it- alone measures.“ Sincerely yours A major consultation of the regions and cities of Europe on the future of the Lisbon Strategy for growth and jobs was launched by President Van den Brande and Cyril Svoboda, IMPRESSUM Media owner and publisher: Institute of the Regions of Europe, A-5020 Salzburg, Franz-Josef-Kai 1, Tel.: +43/662/843288-5017, Fax: +43/662/843288-5050, www.institut-ire.eu, [email protected] • Editor and layout: printmedia, 5020 Salzburg • Photos: ire, Neumayr, Sazel, Wikipedia, Josef Pröll Schausberger • Print: Laber Druck, 5110 Oberndorf The exellent host of the summit, Lord Mayor of Prague, Pavel Michael Häupl, Mayor of Vienna, Vaira Vike-Freiberga, Former Insofar as this publication features only personal designations in their Federal Minister of Finance, Austria gender-specific forms, they relate – insofar as this can be considered with Bém and Franz Schausberger Latvian President and Michel Delebarre, First Vice-President of regard to the content – to men and women on equal terms. the CoR at one of the sessions. 2 newsregion 13 / april09 newsregion 13 / april09 3 Financial Crisis: Catastrophe or Chance for Municipalities and Regions On 14 February 2009, the Institute of the Regions of Europe held an world wide crisis is on the one hand a blem is that mic crisis strengthens the population’s expert conference on “Regional and Local Financing in Times of Crisis. central problem for the European Uni- banks among confidence in communal institutions, in on and its member states; on the other themselves public services, saving banks which are Possibilities, Problems and Chances.” in the Viennese Raiffeisensaal. hand its implications have to be coped have no con- in Germany public credit institutions. More than 100 representatives of regions and cities from several Euro- with regionally and locally. fidence and The Bavarian government has decided pean countries took part in this conference. Many a municipality has gambled with that no bank an economic stimulus plan of 1.9 billion risky but appearing to be lucrative in- wishes to lend Euros, which however is co-financed by vestments and has lost considerable money to 12.9 percent by municipalities. With all funds in the course of the financial crisis. another bank. measures taken against the crisis it has Also complicated financial transactions The delegation from Karlovac, Croatia The Austrian to be taken care that reasonable, sustai- such as the so called “Cross-Border- government has recognised the danger nable communal investment is trigge- Leasing transactions”, turn out now as of the moment and offered a package of red. financial adventure against which has 100 billion Euros. 15 billion are set for re- been warned. capitalisation of banks, 10 billion for de- Stefan Eder, IRE-Vice Chairman, Partner The crisis of many businesses has led to posit guarantees and 75 billion for credit DLA Piper, affirmed that the current cri- partly dramatic decrease of revenue for operations of the banking sector. sis is composed of several criteria: Finan- municipalities for instance concerning cial crisis, investment crisis, crisis of the business tax. Therefore even well-off Peter Havlik, Deputy Director of the public sector. These cumulate to a crisis municipalities feel the crisis now. Vienna Institute for International Econo- of confidence, From the point of view of regions and mic Studies referred to the difficulty with which is being communes of Eastern Europe, the in- The delegation from Vojvodina, Serbia forecasting in times of financial crisis. In fostered by itiative taken by Austrian Minister for any case