CSPF 5th Meeting Key Points

CSPF 5th Meeting

SDG10 in the European Municipal Context

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)

Propitious

Environment: EU perspective on local/city governments finances

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

Examples of means for attaining

Municipal Banks

• 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

Examples of means for attaining

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)

Role for Municipalities/CSPF

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

Role for Municipalities/CSPF

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