ECR News - 7th edition

ECR News Committee of the Regions | 7th edition

CONTENTS President’s letter

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LOCALISM Policy Group on Subsidiarity and Localism 2 Success of the Juncker Plan depends on greater localism 2 Yes to localism, no to binding targets 3

JOBS AND GROWTH Local and regional authorities and the completion of the digital single market 4 Why knowledge centres are important 5

NATURAL DISASTERS Dealing with disasters: New global strategy must empower local and regional authorities

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MEMBERS ACTIVITIES Mr Zająkała receives an award for the long service in local government 7 Mr Zająkała meets the mayor of El Paso district 7

MEETINGS CALENDAR 8

President Gordon Keymer CBE

We need greater localism in Europe. This means ensuring that decisions are taken as close to our local communities as possible. Local and regional authorities are the closest level of government to the citizens. It is the level where grievances and where the first signs of economic success manifest themselves. If we want to see if EU legislation is having a positive or a negative impact, we have to go local.

In the EU we are again unveiling plans and tools to try to generate sustainable and inclusive growth and jobs. The unveiling of economic plans raise hope or scepticism about whether this time it really will deliver the results we need. None of our plans will succeed unless we think local.

The ECR Group in the Committee of the Regions has been working hard to help deliver EU decisions that are able to encourage rather than impede growth. In this edition of our newsletter you will find examples of our work on disaster resilience, improving EU tools and our joint work with our Group in the European Parliament to ensure that decisions are taken as close to our citizens as possible and at the EU only when necessary.

For a Europe that works, we need a Europe that goes back to the basics. We need to bring localism back to the heart of Europe.

Cllr Gordon Keymer CBE President of the European Conservatives and Reformists Group Committee of the Region European Union

ECR Group Secretariat Committee of the Regions

Rue Belliard/Belliardstraat, 101 1040 Bruxelles/Brussel

Tel: +32 2 282 2257 Fax: +32 2 282 2287

ecr@cor.europa.eu www.ecr.cor.europa.eu

LOCALISM AND GROWTH Policy Group on Subsidiarity and Localism: ECR Group in the Committee of the Regions and the European Parliament join forces to bring EU decisions closer to citizens The ECR Group in the Committee of the Regions and the European Parliament are going to be working together in a new policy group on subsidiarity and localism. The main objectives of the policy group, chaired

by Andrew Lewer MBE MEP, will be to pool the local, regional, national and EU expertise of the ECR political family to help ensure that decisions are taken at the lowest practicable level. The policy group will consider the cost and impact of centralising decisions in Brussels, provide recommendations on inter-institutional planning and anticipate future milestones.

areas where common action can offer added value to achieve shared goals.

“In the new mandate, we will continue to actively work with our political family in the EU to achieve a better working EU. We will be working to increase the EU’s democratic accountability, its competitiveness and growth, to ensure full respect for the principles of subsidiarity, greater localism and a strong voice for local and regional government in guiding EU policies” said Councillor Gordon K­ eymer, President of the ECR Group in the Committee of the Regions.

With the aim of developing new ideas that can change Europe for the better in a demanding international environment, the ECR Group in the European Parliament and the Committee in the Regions will be working together in policy groups such as the Policy Group on Subsidiarity and Localism. The ECR Group member Cllr Roger Evans (Chairman of the London Assembly) as member of the Committee of the Regions’ Subsidiarity Steering Group strongly welcomed the establishment of this new Policy Group that will be chaired by former Committee of the Regions member, Andrew Lewer MBE MEP.

Cllr Gordon Keymer CBE (left) and Andrew Lewer MEP (right)

The ECR Group political family is at the forefront of generating forward-looking policy proposals to design a European Union that can support its Member States by focusing on

“Such policy groups play an important role in helping new ideas and solutions to be developed. We established policy groups in the London Assembly that delivered many successful results and I look forward to being active in this new Subsidiarity and Localism Policy Group to help deliver a better functioning EU,” said Cllr Roger Evans, member of the Committee of the Regions’ Subsidiarity Steering Group.”

What is localism?

“In our priorities document, we have defined localism to mean the exercise of powers at the lowest practicable level and decisions that do not exceed the level of intervention necessary. Taking decisions at the lowest practicable level means by the individual where possible and by local or national authorities in preference to supranational bodies.”

Cllr Gordon Keymer CBE

A large number of policy fields are covered by existing EU legislation. These legislative acts usually contain review clauses allowing for the monitoring of the impact and effects of legislation. “We have a strong interest in providing well researched statements that can be trusted about what impact - negative or positive - EU legislation is having in local communities once it has been adopted” explained Andrew Lewer MBE MEP. The Policy Group on Subsidiarity and Localism shall develop its own “subsidiarity score board” indicating the areas in which it is more practicable for the matter to be handled by local or national authorities in preference to the EU. The Policy Group shall enable local, regional and national mandate holders from the ECR Group’s political family to collectively anticipate and implement EU legal provisions on subsidiarity and proportionality, and facilitate the contribution of national parliaments.

“Success of the Juncker Plan depends on greater localism” - By Mr Oldřich Vlasák As a returning CoR member, I will be working hard to increase the impact of EU funds in our local and regional communities. For sustain-

able, inclusive and smart growth, we need EU Funds that are fit for purpose and we need the Funds to be easy and simple to use with the right amount of checks and balances. The tool for achieving this is greater localism.

Through my political career, I have seen firsthand the important role of local and regional authorities in delivering results. Local and re-

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Newsletter | 7th edition

gional authorities implement most EU decisions and therefore they see first-hand their shortcomings and their strengths. The CoR has a crucial role to play in transferring the handson experiences of local and regional onto the EU decision-making process. The EUs new investment plan for growth and job creation, the “Juncker Plan”, aims to generate bottom-

ing Funds such as Horizon 2020 and the EFSI, which both target research and innovation.

In order to overcome the challenges, the current programming period (2014-2017) will need to be more results focused. This can be achieved through working with local and regional authorities.

Vice-President Oldřich Vlasák

up, sustainable and inclusive growth over the next 3 years through the use of public finance to leverage private funds. This plan requires local and regional authorities’ involvement.

The investment plan faces a number of challenges. The plan proposes re-working the EUs existing budget so as to spend less on simple grants for investment and putting more into special funds designed to provide high-risk capital for infrastructure projects that can then attract private financing. The first challenge will be in ensuring that the fund is business friendly in its design so as to attract private funds. The second challenge is going to be in ensuring that as the project pipeline develops, the investment Plan’s European Fund for Strategic Investments (EFSI) is not seen as an EU subsidy for unviable national projects. Thirdly, we will have to ensure coordination between exist-

To ensure that the projects selected for the EFSI deliver the intended local results, its Investment Committee who will be tasked with selecting projects, must also be open to local and regional consultations. A results-focused approach will also require increasing the use of EU Funds by increasing the synergies between the various EU Funds available and by making the Funds more user-friendly.

The absorption rate for EU Funds is low across most EU Member States. In the last programming period of 2007-2013, the average absorption rate was 77.96%. We need to build on the experiences of the last programming period to increase the absorption rate. EU Funds are intended as a tool to top-up the national Funds available. However, many local and regional authorities find it difficult to access the EU Funds as they are unable to co-finance them from their side. Financial instruments need to be developed in order to help overcome this.

We need to ensure that the total of €351.8 billion available for Cohesion policy for the period 2014-2020 as well as those available for the European Regional Development Fund and the European Social Fund are fully utilised.

Increasing the synergies among the various EU Funds available, old and new, is very important.

We should aim to strengthen the interconnectivity between the “Juncker Plan” and existing Funds so as to avoid overlap and achieve a multiplier effect of our finances. Local and regional authorities must be involved in the ongoing efforts to get maximum results from the funds to minimise this risk of overlap. Better use of synergies could be found for example between programmes that target research and innovation such as the Horizon 2020, the new EFSI and the Regional Funds for Innovation.

Furthermore, we need to simplify the EU’s financial instruments. They need to be simple and easy to use with the right amount of checks and balances. The controls performed at various levels need to be better coordinated so that unnecessary burdens for local and regional authorities are removed. With the help of local and regional authorities, these bottlenecks could be identified. Those considering applying to EU Funds must not be faced with a red-tape riddled EU system.

Oldřich Vlasák is the former Vice-President of the European Parliament responsible for the European Parliament’s relations with the Committee of the Regions. During his Vice-Presidency, the two institutions concluded a cooperation agreement that outlined areas under which cooperation would be deepened. He was among the first Czech members appointed to the Committee of the Regions as an observer in 2000 prior to being elected as an MEP in 2004. He is now a member of the Committee of the Regions and Vice-President of the ECR Group in the CoR.

Yes to localism, no to environmentally binding targets - By Cllr Kay Twitchen OBE The ECR Group opposes the creation of “binding targets” and has been arguing that all targets at the EU and international level should be “indicative”. We recognise that climate change is one of the most significant conservation challenges Europe faces today, an issue that needs to be addressed urgently. Europe needs solutions that work without undermining of jobs and growth. To this end, the ECR has been leading efforts to support the move to a low carbon economy and develop climate solutions that are economically feasible, and tested for their impact on European competitiveness.

On environmental policies, the European Un-

ion is moving towards a direction that is not in line with the principles of localism or subsidiarity. We are seeing a trend towards binding targets at the EU level. While this may sound great on paper, in reality it will impede environmental progress.

Towards the end of last year, the decision was taken in the EU to adopt binding targets to reduce domestic greenhouse gas emissions. We are now faced with the question whether the EU will now again go down the path of binding targets in its “Circular Economy Package”, which consists of six laws on waste, packaging, landfill, end-of-life vehicles, batteries and accumulators, and electronic equipment

waste. The European Commission says they are revising their initial proposal to make it “more ambitious”. What Europe’s cities and regions is not greater ambition but more localism and more realism.

Binding targets impede economic growth and social progress. They box local and regional authorities into committing their limited funds into one area at the expense of other equally important areas. Local and regional authorities should be given the flexibil-

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ity to adjust their budgets to the local needs.

No region is the same and a one-size-fits-all approach is not helpful. Local and regional authorities should be given indicative targets and should be trusted to use their understanding of local circumstances to decide their own pathways in achieving environmental targets. Action at EU-level does not entail any clear advantages in this area.

If we really want to tackle climate change, then we must use the new EU investment plan to invest in innovative solutions. Let’s support regional centres of excellence in research and development of energy development technologies.

Councillor Kay Twitchen OBE is the Deputy Cabinet Member for Customer Services, Libraries, Planning and the Environment at Essex City Council. She is the ECR Group Deputy Coordinator on Environment, Climate Change and Energy and has been a member of the CoR since 2006. Cllr Twitchen was Chairman of the County Council from 2012 till 2014. Since her election to the County Council in 1989 the Chairman has been involved in many aspects of County Council business. From 2001 till 2005 she was the Cabinet Member with responsibility for Waste and the Environment, and has served on a number of outside bodies, particularly with regard to waste management and the environment, and chaired the LGA Environment Committee for 4 years.

Cllr Kay Twitchen OBE

JOBS AND GROWTH Local and regional authorities and the completion of the digital single market - By Cllr Gordon Keymer CBE Our world is undergoing a digital revolution. It is transforming our economies and changing our labour markets. We must allow our communities to reap its benefits. The EU must complete the digital single market through “smart” investments removing bottlenecks that suffocate the market. We must also embrace e-governance.

The digital single market has huge potential for smart, sustainable and inclusive growth.

Intelligent connected machines are predicated to have the potential of adding more than €2000 billion to Europe’s GDP by 2030. Based on a G20 forecast, the Internet economy will grow by 8 per cent every year for the next 5 years. Even under cautious assumptions, failing to implement the Digital Single Market will cost Europe at least 4.1% of GDP by 2020.

Cllr Gordon Keymer CBE FCA

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This digital revolution is increasing efficiency and making it easier to start businesses. Innovations such as cloud services and data analytics are improving efficiency in industrial processes. Furthermore, in a recent survey of 96 mobile app developers the average cost of developing an app was €5700. This has positive implications for the inclusiveness of the growth for our regions. As shown in a study conducted by the University of Oxford and CitiGroup, technological progress is an essential ingredient for inclusive growth as eentrepreneurship typically requires less capital investment and digital technologies allow people in deprived areas to reach global markets, as even more traditional goods are made increasingly mobile.

Newsletter | 7th edition

We must also look for ways to cut burdensome regulations that inhibit digital growth. Some of our regulations are leading to local microenterprises shutting down. For instance, currently digital businesses need to pay VAT in the country of the customer not the country of sale. While this is aimed at big businesses who sell via low tax countries, in reality it is also shutting down micro-enterprises such as e-books, online designs or online knitting patterns. Micro-enterprises cannot afford to check on customers in 28 Member States and if they refuse to sell to customers from other EU Member States, they are told they may be breaking EU anti-discrimination laws. This must be addressed. We should also be making it easier for businesses to register a website by, for example, dispending with the requirement for a physical address in the country providing the domain name.

We must couple these efforts to make the market more business-friendly with investment in promising technologies. The new €315 billion EU growth plan aims to kick-start our economies. Its financial instrument, the European Fund for Strategic Investments, must explicitly target promising technologies. As illustrated

in the University of Oxford and CitiGroup study, investment in promising technologies for the future could also help drive job creation. New occupation titles which did not exist 5 years ago are also emerging out of the digital revolution such as biomass plan technicians and solar energy system engineers. Supporting the development of such new innovative fields can help develop the job market.

These digital developments also require a new system of governance. Increasing the use of innovative e-government across our Member States in the EU is crucial. It has the potential of generating significant savings for taxpayers and increasing efficiency. Two aspects of digital economy that I would especially like

to highlight as having particular economic potential are e-commerce and online digital services. Local and regional authorities must make the most of e-services and e-solutions in order to make the lives of our citizens and businesses easier, more efficient, and less dependent on bureaucracy.

Digital public services are an everyday reality in some Member States but almost non-existent in others. Only 33% of Internet users within the EU Member States have used online forms to send information to public authorities, ranging from 69% in Denmark to 6% in Romania. Only 26% of general practitioners in Europe use eprescriptions to transfer prescriptions to phar-

macists over the Internet, but this varies from 100% in Estonia to 0% in Malta.

It is crucial to increase this percentage and we must try to do it at the grass-root, local and regional level. To achieve this goal we need not only reliable, high speed connectivity in all regions but also appropriate training programmes.

Cllr Gordon Keymer CBE FCA is the President of the ECR Group in the Committee of the Regions (CoR) and a founding member of the Group. He is a member of the CoR Bureau and has been a member of the CoR since 1998. He is also the Leader of Tandridge District Council and Vice-President of the Executive Bureau in the Council of European Municipalities and Regions.

Why knowledge centres are important - By Mr Rob Jonkman jointly established in 2002 by the Dutch Ministry of the Interior and Kingdom Relations, the Association of Netherlands Municipalities, the Interprovincial Consultative Committee and the Dutch Water Authorities. The shared service centre is located in The Hague.

The concept of Europa Decentraal can be summarised as bridging the gap in knowledge, expertise and understanding of EU law at the local and regional government levels by answering legal questions, clarifying complex legal wording and sharing its knowledge publicly through various services. Europa Decentraal is recognised as a best practice by the Netherlands and the European Commission.

Mr Rob Jonkman

Knowledge centres act as sources for queries and advice concerning law and legislation and their correct application. They are key tools in facilitating the correct and timely transposition of legislation and help to save money and generate comparative advantage for their users leading to increased competitiveness. Knowledge centres can help central, local and regional governments as well as other organisations for example in the implementation of fair procurement by acting as providers of knowledge and expertise.

Knowledge centres such as the Dutch “Europa Decentraal” serve local and regional authorities as a first source for queries and advice concerning application of European law.

Non-profit foundation Europa Decentraal was

In daily practice of Europa Decentraal, information and advice on the correct application of the European internal market regulations, for example state aid rules and the state aid modernisation programme is actually in high demand with local and regional authorities, and is still increasing. I expect that this trend will continue in future years especially in relation with the other internal market queries such as public procurement rules and competition law. The connection with the new European Structure and Investment Funds and the European Fund for Strategic Investment is also expected to be of significant importance. It is therefore crucial that local and regional authorities receive all the assistance they need.

This is particularly important in policy areas as complicated as those concerning state aid rules. Knowledge centres must therefore be focused in particular on the provision of legal information on the correct application of all of these relevant and applicable European rules.

Addressing specifically the procurement rules, these are not merely about purchasing goods and services, but can also be an instrument to shape the future of Europe, and in particular main goals to deliver growth and jobs, to encourage innovation and to reach better regulation. Procurement officers on all levels, but especially on local and regional level, need to be well informed about for example options for including sustainability criteria in their tenders. The dissemination of practical and suitable information can be achieved especially through knowledge centres such as Europa Decentraal.

I would also like to underline the importance of the full, timely and correct transposition and use of the provisions of the new legislative package on public procurement. Knowledge centre Europa Decentraal is of crucial importance in delivering input in the process of implementation of European (procurement) law, by sharing its experience with the execution of current European procurement rules for example on local level. In its so called “notification box on troublesome European legislation”, Europa Decentraal flags issues, which can be used in improving both the application and the compliance of procurement legislation and also to support the Better Regulation Program of the EU.

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The new legislative package on procurement is also aimed at supporting innovation and growth by making the EU public procurement framework modern, cheaper and more effective. It contains measures to make procurement easier and administratively less burdensome and to create flexibility for public authorities enabling better procurement outcomes. E-services and e-government need to be accessible to all. Knowledge centres will play a key role here in helping local and regional authorities to correctly transpose these tools.

Finally, EU rules on procurement have to leave enough room for public authorities and companies to award contracts they need and to be able to take into account all relevant local circumstances. We do not need unnecessary details on EU level that will only cause red tape.

By using the experience of a centre like Europa Decentraal and by sharing knowledge within the EU, all Member States will profit in the end.

Rob ­Jonkman is an alderman of the Dutch municipality of ­Opsterland. He is a Coordina-

tor for the CoR’s Commission on Economic Policy (ECON) with a focus on state aid and public procurement. Mr Jonkman also represented all Dutch municipalities during the negotiations on the EU procurement directives. Currently he is a member of the Board of Europa Decentraal, a knowledge centre for local and regional governments in the field of European law and policy, with a special focus on procurement and state aid. He combines this with the internal market portfolio in the Netherlands Association of Municipalities.

NATURAL DISASTERS Dealing with disasters: New global strategy must empower local and regional authorities er our local and regional authorities and we need to work with the private sector through public-private partnerships”. Sharing the CoR position during the conference, he also welcomed the new International Framework for Disaster Risk Reduction noting that “Disasters know no borders. We need to think local and act global. We also need to now think about what this new framework means for us in Europe.”

Cllr Harvey Siggs (left)

The European Committee of the Regions (CoR) has contributed to the UN’s 3rd World Conference on Disaster Risk Reduction (WCDRR) where a new international framework and indicators for disaster risk reduction were adopted. Representing the CoR within the EU’s delegation, Counsillor Harvey Siggs (ECR Group) - member of Mendip Council in the UK - called for local and regional authorities to be given resources that match their responsibilities.

This should allow them to manage disasters and to improve communication strategies

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by exploiting digital technology. He also underlined the critical importance of developing public-private partnerships.

The UN conference on disaster reduction took place from 14-18 March in Sendai, Japan, and brought together more than 8,000 delegates from all over the world. The delegates reviewed the implementation of the “Hyogo Framework for Action” and adopted a post-2015 framework for disaster reduction.

Speaking at the conference, Cllr Siggs said, “the best way to minimise the devastation caused by disasters is by empowering local and regional authorities and allowing them to build resilient communities as they are the first level of government to respond to disasters. Sub-national authorities are often responsible for civil protection yet are often not given the right resources. We need to empow-

Newsletter | 7th edition

Between 2002 and 2012 disasters were responsible for more than 80,000 deaths and cost around €95 billion in the EU alone. The CoR has argued that preventative expenditure is needed rather than reactive expenditure citing that changing existing structures to make them safe typically cost 10% to 50% more and even more if energy grid, transport or water networks need to be relocated. The United Nations International Strategy for Disaster Reduction estimates that the cost/benefit ratio is 1:4.

Cllr Siggs stated that when it comes to dealing with natural disasters, local authorities have three clear roles: (1) preparing through improved resilience; (2) reacting with improved coordination; and (3) dealing with the impact after disasters. In all of these three pillars local and regional authorities should work in partnership with the private sector in well-defined areas. “To manage disaster risks and achieve resilience we must work together with the private sector. Private insurances play an important role in disaster risk management. They contribute to sustainable public finances and can help reduce the impact.

Well-designed insurance policies can discour-

age risky behaviour and promote risk awareness. We also need to work with the private sector to apply an open data policy so that disaster management data can be recorded, retrieved and analysed and used to plan for and mitigate the effects of future disasters”.

As a member of the UNs Making Cities Resilient Campaign expert panel, Cllr Siggs also contributed to the development of the new “Ten Essentials” which aim to support mayors and local government leaders in accelerating urban resilience. These new essentials are indicators for future local reporting under the Post-2015 Framework which aim to address resilience in a larger sense while contributing to other reporting processes.

Cllr Harvey Siggs (second from right) presenting CoR recommendations at the 3rd World Conference on Disaster Risk Reduction

The World Conference on Disaster Risk Reduction is a series of United Nations conferences on preparing for, responding to and mitigating the risk of natural disasters. The conference takes place every 10 years and includes the participation and contribution of all relevant stakeholders like government officials, non-governmental and civil society experts, intergovernmental representatives and other specialists from around the world.

The last conference was held in Kobe, Japan, in 2005 where the Hyogo Framework for Action 2005-2015 was adopted. The aim of this 2015 conference was the adoption of the new Framework for disaster reduction: 2015-2030, which was adopted on 18 March.

MEMBERS ACTIVITIES Mr Zająkała receives an award for his service to local government Mr Jerzy Zająkała (Mayor of Łubianka in Poland) received a civil award from the President of Poland Mr Bronisław Komorowski for his contribution to the development of local government in Poland.

The ceremony took place on 9 March in Warsaw in connection with the 25th anniversary of adoption of the constitution on territorial local government. “The local government reform has been of considerable importance for the development of our country during the last 25 years”, underlined the President.

“I am very happy that my long-time work experience at local government level is be-

ing appreciated.” remarked Mr Zajakała. “This gives me motivation to work even harder and tobe more persistent. We have to build capacities and strength of our country from the bottom-up through efficient local government administration”. Mr Zająkała attaches great importance to the award. “We did a lot for the development of local government in Poland. There is always something that could have been done better or refined even further.

However, we built a basis at the local government on which we can continue to build a calm and secure future for our citizens”, he concluded.

President of Poland Bronisław Komorowski (left) with his wife (in the middle) and Mr Jerzy Zająkała (right)

Mr Zająkała meets the mayor of El Paso district Mr Jerzy Zająkała (Mayor of Łubianka in Poland) met on 26 February with Ms Veronica Escobar, County Judge of the El Paso district in Texas. The meeting focused on the exchange of experience linked to the func-

tioning of municipal and district local government on both sides of the Atlantic.

“I did not suggest any bilateral cooperation at this moment as there is after all a significant distance between Łubianka and El Paso. I do,

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however, perceive these debates as a way of further developing my knowledge about the functioning of local governments in other countries. During our talks we paid special attention to social problems in cross-border areas. We also discussed various tasks of local government in the field of health protection in Poland and the US, and exchanged information about local government systems” explained Mr Zająkała.

“Part of our discussion focused on financial flows from the central to the local level of governance which should enable local gov-

Ms Veronica Escobar (left) and Vice-President Jerzy Zająkała (right)

ernments to fulfil their tasks. Furthermore, we discussed various means of influencing decision makers and interest groups, noted Mr Zająkała.

“The experience imported from other countries can enrich the local government in Poland. The exchange is moreover very important for the economic development of both regions. We are all – as responsible local government representatives – obliged to build a good climate for such cooperation” concluded Mr Zająkała.

MEETINGS CALENDAR MEETING

PLACE

DATE

Citizenship, Governance, Institutional and External Affairs (CIVEX)

BRUSSELS

24 APRIL

Social Policy, Education, Employment, Research and Culture (SEDEC)

SANTANDER

29-30 APRIL

Environment, Climate Change and Energy (ENVE)

BRUSSELS

4 MAY

Natural Resources (NAT)

BRUSSELS

5 MAY

RIGA

12-13 MAY

Economic Policy (ECON)

BRUSSELS

7 MAY

BUREAU MEETING

BRUSSELS

2 JUNE

PLENARY SESSION

BRUSSELS

3-4 JUNE

CAFA

BRUSSELS

12 JUNE

Territorial Cohesion Policy and EU Budget (COTER)

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