Opinion of the Committee of the Regions on Local and regional government in Russia and the development of cooperation between the EU and Russia
Date: 2004-11-17
Institutions: European Committee of the Regions
Subjects: Russia, cooperation policy, regional cooperation, territorial enclave

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Official Journal of the European Union

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Opinion of the Committee of the Regions on Local and regional government in Russia and the
development of cooperation between the EU and Russia

(2005/C 71/03)

THE COMMITTEE OF THE REGIONS

Having regard to its Bureau's decision of 19 March 2004, under the fifth paragraph of Article 265 of the
Treaty establishing the European Community, to instruct the Commission for External Relations to draw
up an own-initiative opinion on local and regional government in Russia and the development of coopera-
tion between the EU and Russia;

Having regard to the statement by the President of the Russian Federation, Mr V. V. Putin, to the annual
meeting of Russian federal officials with high-ranking representatives of the business community and local
government on 1 July 2004, establishing a basis for the development of permanent dialogue between
Russian local and regional authorities and local and regional authorities in the European Union;

Having regard to the EU-Russia summit on 21 May 2004;

Having regard to the protocol to the Partnership and Cooperation Agreement (PCA), which was signed
by the EU and Russia on 27 April 2004 to extend the agreement to the ten new Member States as of 1
May 2004;

Having regard to the Communication COM(2004) 106 final of 10 February 2004 in which the Commis-
sion proposes measures to improve the effectiveness of EU-Russia relations;

Having regard to the European Parliament's report A5-0053/2004 final of 2 February 2004 with a
proposal for a European Parliament recommendation to the Council on EU-Russia relations;

Having regard to the Rome summit in November 2003;

Having regard to its opinion on the Northern Dimension – Second Action Plan 2004-2006 (COM(2003)
343 final), adopted on 9 October 2003 (CdR 102/2003 fin) (1);

Having regard to Federal Law No. 131-FZ of 6 October 2003 on the general organisational principles of
local self-government in the Russian Federation, and the current implementation thereof;

Having regard to the establishment of the four EU-Russia ‘common spaces’, as agreed at the St. Petersburg
summit in June 2003;

Having regard to the opinion of the European Economic and Social Committee on the EU-Russia strategic
partnership: What are the next steps? of 20 March 2002 (CES 354/2002);

Having regard to the letter of intent on cooperation between the Council of the Federation of the Federal
Assembly of the Russian Federation and the Committee of the Regions of the European Union of 30
March 2001;

Having regard to the 1999 EU-Russia ‘Common Strategy’, which laid down the EU's basic approach to its
relations with Russia;

Having regard to the European Charter of Local Self-Government ratified by the Russian Federation in
1998;

Having regard to the 1997 Partnership and Cooperation Agreement (PCA) between the EU and Russia;

Having regard to the constructive presentation by Mr Alexander Songal, Head of the International Rela-
tions Department of the Kaliningrad ‘oblast’ (regional) Duma, and the subsequent debate at the CoR RELEX
Commission meeting on 5 September 2003;

Having regard to the constructive presentation by Mr Alexander Viktorovich USS, President of the Parlia-
ment of Krasnoyarsk Territory, Member of the Governing Council of the Interregional ‘Siberian Accord’
Association, and the subsequent debate at the CoR RELEX Commission meeting on 17 September 2004;

(1) OJ C 23, 27.1.2004, p. 27

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Having regard to its draft opinion (CdR 105/2004 rev. 1) adopted by its Commission for External Rela-
tions on 17 September 2004 (rapporteur: Mr Lars Abel, member of Copenhagen County Council [DK/
EPP]);

Whereas:

1)

The COR believes that strong regional and local authorities rely on the principle of democratic legiti-
macy and accountability of their bodies.

The COR therefore urges the authorities in all European countries to develop and expand the prin-
ciple of local self-government in accordance with the European Charter of Local Self-Government of
15 October 1985, and to avoid any limitation of direct citizen participation at local and regional
level.

EU enlargement has considerably extended the Union's common border with Russia. The EU should
secure good relations with Russia, its largest neighbour. For that reason, it should back the develop-
ment of good governance in Russia, not only at national level, but at regional and local level as well.
It is in the EU's own interest to work for an open, stable and democratic Russia that can act as a
strategic partner, defend common values, press ahead with reforms, meet its commitments and,
together with the EU, play a constructive role vis-à-vis the NIS countries.

A genuine partnership should be underpinned by a practical strategy and agenda designed to give
form and substance to political statements. Practical and concrete steps are needed to address the
changes and fresh challenges of the new, enlarged European Union and its relationship with Russia.

At local and regional level, it is vital to secure growth as the mainstay of future welfare and to adapt
developments to devolved authorities' differing circumstances. Education, the environment, trans-
port, enterprise promotion through private-public partnerships, social security and health: these are
key elements of regional development that must facilitate growth in Russia and the EU and
strengthen cooperation among local and regional authorities.

The EU should also devote special attention to those areas of the Northern Dimension region which
have particular development and growth needs, such as northwest Russia, including the Kaliningrad
region, and the Russian Arctic areas. It is important to focus on the difficult climate conditions that
impact on business development, education, health and the environment.

The Committee of the Regions intends to focus on those areas of action that fall under regional and
local authorities' remit. National authorities handle overarching issues affecting society as a whole,
while regional and local authorities focus on those areas that are important for sections of society
close to people's everyday concerns.

The Committee of the Regions must focus its active involvement on practical issues that can be
resolved through concrete cooperation between local and regional partners in the EU and Russia. By
developing cooperation at local and regional level, the EU can help foster the diversification of the
Russian economy that is needed to be able to attract more foreign investment with a view to gener-
ating new real capital and revamping infrastructure. The Committee of the Regions notes that the
Commission, in its analysis of this question (COM(2004) 106 final of 10 February 2004) points out
that much remains to be done to reform bureaucracy and the financial, housing, communal services,
healthcare and education sectors. To speed up the structural, social and institutional reforms that are
needed in Russia, improvements could be made to the investment and business climate and produc-
tivity could be increased in the production sector.

Through close cooperation on specific projects, the EU can have an input into the balanced imple-
mentation of reforms of the public service administration at both federal and regional level. By
working together on such projects, the EU can also help strengthen human capital through improve-
ments in specific sectors. The EU must continue to foster international contacts at grassroots level,
including education partnerships.

2)

3)

4)

5)

6)

7)

Adopted the following opinion at its 57th plenary session on 17 and 18 November 2004 (meeting
of 17 November):

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1. The Committee of the Regions' views

2. The Committee of the Regions' recommendations

THE COMMITTEE OF THE REGIONS

notes,

1.1
in the light of the findings of the April 2004
Permanent Partnership Council meeting, that the Partnership
and Cooperation Agreement (PCA) remains a key and stable
basis for developing cooperation between the EU and Russia.
The agreement lays down the framework for bilateral coopera-
tion and provides for the establishment of the bodies that are
most needed to discuss and decide on issues of common
interest at all levels, to exchange information and to resolve
conflicts;

is keen to play a constructive role in helping establish
1.2
and develop the four ‘common spaces’ agreed at the St Peters-
burg summit in May 2003, namely a common economic space,
a common space of freedom, security and justice, a common
space of cooperation in the field of external security, and a
common space of research, education and culture;

1.3
considers that many aspects of these four common
spaces naturally involve local and regional authorities, and asks
that the Committee of the Regions be directly involved in
helping develop the common spaces in areas that fall within
the Committee's remit and for issues handled under the open
method of coordination;

1.4 welcomes the fact that the letter of intent between the
Committee of the Regions and Russia has laid down specific
sectors for local and regional-level cooperation;

1.5
looks forward to the entry into force in 2006 of
federal legislation on the remit of Russian local and regional
authorities, and expects it to be a step forward for potential
cooperation between devolved authorities in the EU and Russia,
notably by clarifying competences with regard to cross-border
cooperation; on the basis of
the on-going communication
between the Council of Europe and Russia, the COR has every
confidence that the principles of the Charter of Local Self-
Government will be respected also in connection with the
recent legislative proposals in Russia;

1.6
recognises the importance of cooperation between
local and regional authorities in Russia and the EU that focuses
on possible ways of resolving issues of common concern at a
devolved, grassroots level;

considers that

1.7
local and regional-level exchanges of
information and best practice foster democracy and social and
economic development;

1.8
is pleased to note that the positive outcome of projects
between local and regional authorities in the EU and Russia is
fuelling the desire for effective cooperation;

THE COMMITTEE OF THE REGIONS

2.1 Key local and regional priorities and decision-making processes

2.1.1
calls on the EU and Russia to work together at a
devolved level on issues of common interest. Taking the letter
of intent between the Committee of the Regions and Russia as
a starting point, cooperation is possible on many fronts.
Specific initiatives could be proposed in the fields of culture,
social affairs, the regional economy, the environment, trans-
port, agriculture, research and enterprise promotion. Broadly
speaking, these cover a substantial part of devolved authorities'
remit for local and regional development;

considers that health – and public health in particular
2.1.2
– are key factors in strengthening society's growth potential
and are thus an important part of local and regional authorities'
sectoral responsibilities. Health is not specifically mentioned in
the letter of intent but it does have a bearing on social policy
and an impact – direct or indirect – on other sectors. As such,
it is a significant element of those other sectors and helps
secure and maintain stability within society;

2.1.3 would like to see the Committee of the Regions,
with the practical support of the European Commission,
in
compliance with the Partnership and Cooperation Agreement
(PCA) between the EU and Russia, and in cooperation with
Russian local and regional authority representatives, work out a
new instrument – a standard agreement
in the form of a
Memorandum of Understanding (MoU), complete with appro-
priate guidelines – which could be used to underpin specific
cooperation agreements between local and regional authorities
in the EU Member States and similar authorities across Russia.
This offers local and regional authorities in the EU and Russia
worthwhile and encouraging prospects for consolidating the
key ‘bottom-up’ process and removing bureaucratic constraints;

2.1.4
urges devolved authorities in the EU and Russia to
join forces in practical cooperative ventures, projects and part-
nerships in fields that build on the areas of cooperation set out
in the letter of intent between the Committee of the Regions
and Russia. The list of areas of cooperation is not exhaustive
but can be expanded to reflect the circumstances of the relevant
individual Russian or EU local authorities and regions;

1.9 would stress that, within the projects, the concept of
common ownership is a key pre-condition for sustainable
cooperation among devolved authorities.

proposes that all agreements should contain clear
2.1.5
objectives, and guidelines for drawing up action plans and
timetables. Funding principles should also be included as well
as rules and deadlines for assessing the agreement;

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2.1.6
backs moves to promote the exchange of information
and best practice in areas of action that benefit society as a
whole. The Committee of the Regions' Commission for External
Relations would welcome regular consultations about Russia in
to review progress in cooperation and in relations
order
between the EU and that country,
focusing particularly on
responsibilities that fall within local and regional authorities'
remit;

2.1.7 would welcome the establishment of a permanent
forum for regional and local politicians from the EU and Russia
aimed at discussing issues of common interest, such as the
prospects for the new EU neighbourhood policy at local and
level, and at specific initiatives for devolved tiers of
regional
government, with a view to submitting proposals to the
Commission and to the Russian government
for enhanced
future cooperation between the two sides.
It points to the
constructive experience gained with the EU-Russia industry
round table set up in 1997;

2.1.8
considers that exchanges of experience and informa-
tion between the Committee of the Regions and the European
Economic and Social Committee can help engender better
understanding between the EU and Russia on issues of
common interest and broaden the scope for practical initiatives
concerning Russia, possibly including workshops, seminars,
meetings and conferences, since both parties are keen to help
boost cooperation between the two sides;

2.2 Interregional cooperation – now and in the future

2.2.1
calls attention to the importance of the first phase of
the new neighbourhood programme which is scheduled to run
from 2004 to 2006 and which it is hoped will prove to be the
way forward for more effective and more streamlined cross-
border cooperation for the EU and Russia – and produce prac-
tical results.
It therefore endorses the new TACIS Regional
Cooperation Indicative Programme and the National Indicative
Programme for Russia, which sets out the EU's response in
more detail and highlights the objectives and priorities for the
period 2004 to 2006;

2.2.2 would welcome a new, common neighbourhood and
partnership instrument for 2007-2013 in order to promote
ongoing interregional cooperation between the EU and neigh-
bouring partners outside the Union, including common appli-
cation deadlines and procedural and reporting arrangements;

2.2.3
calls for Russia to contribute to and take part in a
common financing instrument based on joint initiatives and
ownership so that both the EU and Russia recognise the advan-
tage to be gained from enhanced cooperation;

underscores the importance of the local and regional-
2.2.4
level twinning scheme for exchanging experience in specific
fields;

Brussels, 17 November 2004.

2.2.5
notes the particular advantage to be gained by
launching and developing cooperation in the fields of culture
and education, which are largely predicated on the activities,
traditions and cultural identity of people at local and regional
level;

2.3 The Northern Dimension in the EU and Russia – Kaliningrad,

the northwest Russian regions and the Arctic Circle

2.3.1
stresses that international relations between the EU
and Russia impact first and foremost on the Russian regions
directly bordering the EU. Northwest Russia and Kaliningrad
are thus an integral part of the EU's Northern Dimension;

2.3.2
notes the importance of the Northern Dimension's
Second Action Plan, under which any Northern Dimension
stakeholder has the opportunity to join in practical projects,
cooperative ventures and exchanges of best practice in specific
areas outlined in the action plan. It is also important to provide
easy access to funding to implement the substantive elements
of the action plan if, as a geographical region, the Northern
Dimension is to develop both socially and economically for the
benefit of the EU as a whole;

2.3.3 would draw attention to the status of the Kalinin-
grad region as a special economic zone and at the same time
the scope for cross-border cooperation with the
point out
countries directly bordering Kaliningrad and which therefore
share the challenges and opportunities of the region;

2.3.4 would also like to see due account taken of projects
between Kaliningrad and the EU in the funding arrangements
for the Northern Dimension Action Plan so that a basis can be
created for cross-border technical cooperation at
local and
regional level;

2.3.5
proposes that the EU and Russia focus on geogra-
phical areas within the Northern Dimension that are not
readily accessible, that have a harsh climate and that are thus
sometimes poorly served in terms of development, a sustain-
able environment, enterprise promotion, social services, health-
care and education as a result of severe weather conditions,
vast distances with little infrastructure and small population
groups. The Committee would draw attention to the Arctic
Window plan and relations among the sixteen countries and
regions in the northwest Arctic and semi-Arctic areas around
the Arctic Circle;

2.3.6 would reiterate that the Committee of the Regions
naturally considers itself in a position to play a key role in
setting up a unifying, coordinating, consultative body that
brings together local and regional representatives from across
the Northern Dimension region.

The President

of the Committee of the Regions

Peter STRAUB

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Appendix

Letter of intent

on cooperation between the Federation Council of the Federal Assembly of the Federation of Russia and the
Committee of the Regions of the EU

In the interests of strengthening relations between the Federation Council of the Federal Assembly of the Federation of
Russia and the Committee of the Regions of the EU, we welcome the commitment of their presidents to developing
dialogue in order to encourage an exchange of information on regional and local issues.

On behalf of the Federation Council of Russia and the Committee of the Regions of the EU, we recognise that the
process of globalisation is creating a world which is increasingly open and accessible for all.

We are aware of the importance of a thorough knowledge of the characteristics and specific features of each party, and
so recognise that good relations are important and necessary between the Council of the Federation of Russia and the
Committee of the Regions of the EU.

In this spirit, we welcome a broad exchange of information to ensure that our citizens are more involved in decision-
making at regional and local level. It is important to have a better knowledge of our partners.

We express our common determination to encourage the development of relations in the following key areas:

— culture;

— social life;

— regional economy;

— environment;

— rural and urban development;

— local and regional transport;

— agriculture;

— research;

— training of managers.

We undertake to strengthen ties between the Committee of the Regions of the EU and the Council of the Federation of
Russia with a view to bringing the citizens of EU and the Federation of Russia closer together.

Moscow, 30 March 2001.

Committee of the Regions of the European Union

Council of the Federation of Russia

Jos CHABERT

President

Yegor STROEV

President