CSPF 5th Meeting




Paradox of cities: Cities provide more economic opportunities, but also feature more inequality
In certain countries, cities have a higher percentage of people at risk of poverty (e.g. DE, FR, NL)
Satisfaction level concerning financial situation varies widely across cities in certain countries (e.g. ES, FR)
Local governments are becoming more pertinent in EU policy-making
• The EU semester country reports mentioning local governance;
• DG reform TSI emphasis and projects;
• Accession countries in Balkans required to undergo public administration reform potentiating multi-level governance
• Multi-purpose (including micro-finance , self-employed, small entities; equity loans or guarantee for young people, refurbishment of buildings for the poor people, public housing, social pensions)
• Risk is investment-type and customer-type dependant, but there is some evidence, requiring further study
• Could be pursued via consortium of municipalities for municipal loans, depending on legal and political climate
• Municipality could support “ethical banking” without itself setting up a bank
Financial Institutions’ Leverage
• Focus on ESG (Environment Social Governance) factors
• Define social impact and incentivise investments that deliver on this metric (including training and internships)
Multi-level policy compatibility:
• Make national norms, such as expenditure cap, compatible with EU policies, such as Just Transition and fiscal consolidation
KPI formulation:
• Need to produce transferable KPIs translating SDGs into municipal financial sustainability
• Some SDGs are particularly difficult to measure, as is the case of SDG 10, given that inequality and social inclusion are conceptually broad. Understanding how to measure the successful attainment of an SDG is necessary to link it with financial sustainability
Risk assessment formulation:
• Finance and operations risk assessment for cities pursuing SDG related projects
SDG Business Case formulation
• There is a need to make a business-case for SDGs and thereby encourage investment.
Strategy to affect regional, national and European policy:
• Need to produce best practice on city and local government successfully lobbying regional and national policy in SDG related area