Opinion of the Committee of the Regions on Local and regional Government in Ukraine and the development of cooperation between the EU and Ukraine
Date: 2007-10-11
Institutions: European Committee of the Regions
Subjects: European Union, Ukraine, cooperation policy, cross-border cooperation, regional cooperation

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Official Journal of the European Union

15.12.2007

Opinion of the Committee of the Regions on ‘Local and regional Government in Ukraine and the
development of cooperation between the EU and Ukraine’

(2007/C 305/05)

THE COMMITTEE OF THE REGIONS

— notes that following the events which led to the ‘Orange Revolution’ at the end of 2004, Ukraine has
pursued an agenda of ambitious reforms to root democracy and the market economy firmly in the
country and to bring Ukraine closer to the EU; takes note nonetheless that these reforms are still in a
fragile state of development;

— welcomes that EU and Ukraine opened negotiations on a new Enhanced Agreement in March 2007;

— awaits with interest implementation of the next stage of the Ukrainian Administrative Reform Plan,
with particular emphasis on the competences of local and regional authorities, fiscal decentralisation,
and territorial reform;

— welcomes the proposed establishment of an institutional platform to facilitate consultation of civil
society actors in the EU and Ukraine, in the context of the ongoing negotiations on the new Enhanced
Agreement; but regrets that currently no provision has been made to ensure the same level of consul-
tation of cross-border and regional cooperation actors, and therefore invites the European Commis-
sion to establish a similar institutional platform committee for EU and Ukrainian local and regional
authority representatives;

— recommends that, with practical help from the European Commission, and in compliance with the
Partnership and Cooperation Agreement signed by the EU and Ukraine, it could draft a framework
agreement on cooperation with local and regional authorities in Ukraine and EU Member States; such
an agreement could form the basis for cooperation between local and regional authorities in EU
Member States and their counterparts in Ukraine;

— recalls that allocation of funds for cross-border cooperation on the eastern border of the EU represents
only 5 % of the ENPI; is of the opinion that the allocation of funds for the whole ENPI is insufficient
and requests that at least 10 % of the ENPI funds are dedicated to supporting cross-border coopera-
tion programmes.

Rapporteur: Mr István SÉRTŐ-RADICS (HU/ALDE), Mayor of Uszka, Vice-President of the RELEX

commission

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Policy recommendations

EU-Ukraine relations' strategy and main challenges

THE COMMITTEE OF THE REGIONS

1.
would like this own-initiative opinion to contribute to
promoting democracy in Ukraine on both regional and
local levels, and also to instigate and to add impetus to tangible
efforts in the context of
the Strategic Partnership and the
EU-Ukraine Neighbourhood Action Plan, in the framework of
the new European Neighbourhood Policy
already
underway. This own-initiative opinion should therefore more
specifically
solving common
problems through increased cross-border and regional coopera-
tion between the regional and local authorities of the EU and
Ukraine;

focus on opportunities

(ENP)

for

is of the opinion that the EU has an important strategic
2.
interest in Ukraine's political stability and economic develop-
ment, but the case for closer relations between the two entities
has become even greater following the enlargement and adhe-
sion of two new states that have land or maritime borders with
that Ukraine can best achieve
Ukraine. There is no doubt
comprehensive development by strengthening its position as a
prosperous market for EU exports and investments, as well as a
stable, predictable and cooperative partner
for peace and
security in Europe. These factors all have major influence on
stability, security and prosperity in the EU;

3.
recalls that Ukraine is currently engaged in self-governance
reform, so practical examples and models from EU Member
States would certainly be welcome. An important next step is,
however, to ascertain how consistently and how transparently
the legislation is being implemented. This includes institutional
capacity-building, which is necessary to ensure the development
of democracy as well good governance and compliance with the
European principles of subsidiarity, proximity and partnership.
These concepts are all pivotal to sustainable economic develop-
ment, which is the aim, not only of Ukraine, but of the EU as
well;

4.
recalls that as the shared border with the EU becomes
substantially longer, Ukraine, along with other NIS countries,
will become an even more prominent and strategic EU neigh-
bour; and that the EU needs to develop good and balanced rela-
tions with Ukraine — its second biggest neighbour — and it
should therefore promote good governance and democracy in
this country, not only on the national
level, but also on the
regional and local levels. Practical and tangible steps should be
taken in order to address the dynamic changes and new chal-
lenges posed by the ten plus two new EU Member States, which
have significant ramifications for the EU's relationship with
Ukraine;

5.
stresses that the impact of EU enlargement does not only
affect Ukraine's relations with the current EU Member States,
but also Ukraine's relations with other NIS and Russia. There-
the state of current cooperation structures and other
fore,
networks have to be reassessed and improved in a way which
avoids disruption and first and foremost allows for more
tangible progress in the field of democratic stabilisation, genuine

is
decentralisation and territorial cohesion. Furthermore,
important to note that with accession of
the new Member
States the prospects for the area surrounding the Black Sea will
change dramatically. Politically and economically these new
challenges need to be addressed;

it

6.
outlines that in the past the EU has assisted in the devel-
opment of local democracy and effective local administration in
central and eastern European countries. This has, for example,
happened through the TACIS and Twinning framework
programmes. The coordination between programmes, however,
has been insufficient and it would therefore like to support a
more efficient approach to the administration of the new EU
external aid programmes such as the new European Neighbour-
hood and Partnership Instrument (ENPI) and new Neighbour-
hood Investment Fund. The linkage between all the old and new
policies and especially the programmes and financial
instru-
ments attached to them needs to be clarified from the perspec-
tive of local and regional authorities;

7.
recalls that the twinning between local and regional autho-
rities is especially recognised by the EU and it has proved to be
a useful way to increase administrative efficiency and people-to-
people contacts. It would therefore like to see such partnership
schemes continue and possibly be expanded in order to address
the special needs of local and regional institution building in
Ukraine and this geographic area. Furthermore,
local and
regional democracy is a key instrument for further development
of democratic institutions and capacity-building in Ukraine and
should send out a message of conformity not least with the
principles of the European Charter of Local Self-Government
therefore
adopted on 15 October 1985. The debate must
involve all parties concerned, including local and regional orga-
nisations as well as sub-national authorities;

8.
believes that a credible partnership should build on a
strategy and on a practical agenda based on common interests,
in order to pursue the policy goals which have been set. To this
end, specific practical measures must be adopted which are
capable of responding to changes and new challenges in rela-
tions between the recently enlarged EU and Ukraine. At local
and regional level, it is vital to ensure growth, given that it is
the foundation of future prosperity; also, development must be
adapted to the various tasks of local and regional authorities.
Education, environmental protection, transport, business devel-
opment based on public-private cooperation, social services and
healthcare are the main aspects of regional development able to
deliver growth in Ukraine and the EU and bring about closer
cooperation between local and regional authorities;

recommends that the EU must also pay close attention to
9.
regions in particular need of growth and development;
for
example, European Neighbourhood Policy Instrument must be
used to help areas which are lagging behind in economically
depressed Ukrainian regions. It is also important to focus on
adapting the principles of European structural and cohesion
policy to local conditions, taking into account the need for
improved living conditions,
and
enhanced regional competitiveness;

sustainable development

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10.
recalls that it intends to give priority to areas falling
within local and regional competences. National authorities are
responsible for issues affecting society as a whole, whereas local
and regional authorities focus their activities on areas of impor-
tance for individual sections of society and which are close to
citizens' daily lives;

11.
notes that through close cooperation at the level of indi-
vidual projects, the EU can help to ensure that reforms of public
administration and services are launched in a balanced way at
national, regional and local levels. Thus, at the level of projects
the EU can help to build up human capital through develop-
ments within individual sectors. The EU must continue devel-
oping personal relations in this area, in particular through part-
nerships forged in the field of education.

EU-Ukraine relations: recent developments

12.
notes that following the events which led to the ‘Orange
Revolution’ at the end of 2004, Ukraine has pursued an agenda
of ambitious
to root democracy and the market
economy firmly in the country and to bring Ukraine closer to
the EU; takes note nonetheless that these reforms are still in a
fragile state of development;

reforms

notes that the policy objectives defined in the Partnership
13.
and Cooperation Agreement
(PCA) of April 1998 and the
EU-Ukraine Action Plan of February 2005 remain an important
basis for the development of cooperation between the EU and
for
lays
Ukraine. The Agreement
bilateral cooperation and establishes the main forums and deci-
sion-making bodies, to ensure that matters of common interest
are dealt with at all
information is exchanged and
conflicts are resolved;

framework

down a

levels,

14.
welcomes that EU and Ukraine opened negotiations on a
new Enhanced Agreement in March 2007. The main aim of the
new Enhanced Agreement, reflecting the strategic importance of
developing EU-Ukraine relations, is to draw Ukraine closer to
the EU, enhance political co-operation, increase trade and invest-
ment and thus contribute to economic development and pros-
perity in Ukraine;

15.
welcomes the proposed establishment of an institutional
platform to facilitate consultation of civil society actors in the
EU and Ukraine, in the context of the ongoing negotiations on
the new Enhanced Agreement; but regrets that currently no
provision has been made to ensure the same level of consulta-
tion of cross-border and regional cooperation actors, and there-
fore invites the European Commission to establish a similar
institutional platform committee for EU and Ukrainian local and
regional authority representatives;

that

points out

it views cooperation under the new
16.
European Neighbourhood Policy (ENP) separately from the EU
accession process,
i.e. cooperation in itself does not predeter-
mine EU membership; however, enhanced cooperation under

the new ENP can promote reform processes in Ukraine and
establish future long-term strategy of relations, possibly helping
to bring the country closer to the EU;

17.
is ready to participate constructively in identifying and
developing common area, including a common economic area,
a common area of freedom, security and justice, as well as
cooperation on external security, and research, education and
culture, as agreed at
the EU-Ukraine summits in December
2005 and October 2006;

18.
feels that that local and regional authorities have a legiti-
mate stake in many aspects of the common areas, and proposes
its direct participation in work on developing the common
areas in issues which fall within its remit and also in those
covered by the method of open coordination;

19.
awaits with interest implementation of the next stage of
the Ukrainian Administrative Reform Plan, with particular
emphasis on the competences of local and regional authorities,
fiscal decentralisation, and territorial
reform, and expects
progress on opportunities for cooperation between the local
and regional authorities of the EU and Ukraine;

trusts that the principles of

20.
the European Charter of
Local Self-Government of October 1985 will also be included in
forthcoming legislative proposals;

21.
is pleased that attention is being paid to cooperation
between local and regional authorities in the EU and Ukraine, as
this will mean prioritising solutions to shared problems which
are close to public concerns, at the level of local and regional
authorities;

considers that local and regional-level exchanges of infor-
22.
mation and best practice foster democracy and social and
economic development;

is pleased to note that the positive outcomes of projects
23.
implemented jointly by EU and Ukrainian local and regional
authorities have strengthened the desire for continued coopera-
tion under favourable conditions and would emphasise that
lasting cooperation between local and regional authorities is a
necessary and important precondition for the role of
those
developing joint projects.

The decision-making process and key priorities at local and regional
level

24.
would strongly call on local and regional authorities in
the EU and Ukraine to cooperate in areas of common interest,
given that there is scope for cooperation in numerous areas, for
example culture, social affairs, regional economies, environ-
mental protection, transport, agriculture, and specific initiatives
to promote private-sector research and development. These are
areas of particular
relevance to territorial competences for
regional development;

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25.
feels that health and to a large extent healthcare are the
main elements of society's growth potential, and are therefore
important sectors within the competences of local and regional
authorities which are linked to social matters and directly or
indirectly impact on other sectors too;
they have therefore
become key components of other sectors, helping to promote
and maintain social stability;

26.
recommends that, with practical help from the European
Commission, and in compliance with the Partnership and
Cooperation Agreement signed by the EU and Ukraine, it could
draft a framework agreement in cooperation with local and
regional authorities in Ukraine and EU Member States; such an
agreement could form the basis for cooperation between local
and regional authorities in EU Member States and their counter-
parts in Ukraine;

27.
is in favour of promoting the exchange of information
and dissemination of best practices in action areas, provided
that this takes place under conditions which are favourable for
society as a whole; it would be willing to help organise regular
debates on Ukraine to enable evaluation of EU-Ukraine coopera-
tion and relations; such debates would make a special contribu-
local and regional
tion to areas within the competences of
authorities;

28.
feels that the exchange of experiences and information
with the European Economic and Social Committee could
contribute to better mutual understanding between the EU and
Ukraine in areas of common interest; it would also open up
new possibilities for specific initiatives aimed at Ukraine in the
form of joint workshops, seminars, meetings and conferences,
given that both partners have an interest in this and would like
to contribute to closer EU-Ukraine cooperation.

Cross-border and regional cooperation

that

points out

the new
29.
neighbourhood programme is due for
implementation in
2007-2013, and is likely to open the door to closer and more
effective cross-border cooperation, with specific outcomes;

stage of

second

the

30.
shares the view that more technical and political support
is needed to ensure permanent cross-border and interregional
cooperation between the EU and neighbouring countries on the
other side of the shared border over the 2007-2013 period, and
that the new European Neighbourhood and Partnership Instru-
ment (ENPI) should be used to provide firm support for terri-
torial cooperation objectives;

31.
welcomes the European Commission's ENPI Country
Strategy Paper (CSP) for Ukraine 2007-2013 that recalls that
for cooperation
cross-border cooperation as a key element
between neighbours; stresses that this form of cooperation is
the best way to overcome misgivings over the introduction of
the Schengen border, and also represents great benefits for

border regions on both sides, irrespective of the current state of
development of the EU's eastern border region;

32.
recalls that allocation of funds for cross-border coopera-
tion on the eastern border of the EU represents only 5 % of the
ENPI;
is of the opinion that the allocation of funds for the
whole ENPI is insufficient and requests that at least 10 % of the
ENPI funds are dedicated to supporting cross-border coopera-
tion programmes;

considers — in this light — that

33.
the priorities for
cross-border cooperation need to be very carefully defined to
maximise synergies and avoid an unproductive dispersal of
funds; such a small amount of money should not be used to
support general economic and social development programmes
in border regions; likewise, it is unrealistic to expect that this
small financial envelope will cover other priority EU objectives
such as providing effective and secure borders which must be
addressed under other EU policies;

of

reinforcing

recommends

34.
of
cross-border cooperation — namely a) solving common border
infrastructure and integrated
problems including joint
regional development, b) people-to-people contacts and c) devel-
opment of human resources and support for education, science
and research in border regions;

priorities

three

local

it

that

points out

35.
is advantageous to stimulate and
develop an interest in cooperation — particularly in the fields
of culture and education — based on cultural activities and
indigenous local and
traditions which are characteristic of
regional cultures;

looks forward to the possible future role of the European
36.
Grouping for Territorial Cooperation (EGTC) legal instrument in
the above mentioned areas, particularly on the fields of public
health, public transport, disaster preparedness or the creation of
transnational structures for tourism. Moreover EGTCs will be
able to serve as an additional instrument to implement public
private partnership strategies; therefore invites the competent
national authorities,
in Ukraine and in the neighbouring EU
Member States, to take the appropriate steps for allowing the
participation of Ukrainian partners to future EGTCs, as allowed
by the Regulation (EC) 1082/2006;

considers it important for the EU to step up financial
37.
cooperation with Ukraine, in particular by means of the ENPI
and by launching new instruments such as the Neighbourhood
Investment Fund, which Member State institutions providing
development aid could use to stimulate investment
in ENP
countries, and also proposes that Ukraine contribute to the
signing of a joint financing agreement, to be implemented by a
joint foundation;

emphasises

38.
twinning
importance
programmes in contributing to the exchange of information in
specific action areas;

town

the

of

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39.
welcomes the European Commission's insistence on the
importance of
local ownership, while assuring national-level
support; but
in the context of building better cooperation
the implementation of bilateral programmes
that
suggests
should also be taken into account within the EU-Ukraine Neigh-
bourhood Action Plan;

The particular situation of regions directly bordering the EU

40.
emphasises that Ukrainian regions directly bordering on
the EU are most affected by international relations between the
EU and Ukraine;
it therefore supports closer cooperation in
these regions through interregional relations and partnerships
between local authorities;

urges a quick conclusion of bilateral agreements between
implementing the
by Regulation

41.
Ukraine and bordering Member States,
local
border
No 1931/2006/EC;

established

regime

traffic

Brussels, 11 October 2007.

emphasises

42.
the importance of helping economically
depressed, backward regions to catch up, and feels that this
requires a government strategy in the Ukraine which is consis-
tent with the principles of European regional policy, as well as
the development of a system of instruments and institutions;
Member State regions could assist in this through knowledge
transfer, with opportunities for all stakeholders to participate in
specific projects, cooperate in particular areas envisaged by the
EU-Ukraine Neighbourhood Action Plan, and also contribute to
the dissemination of best practice. It is extremely important to
make financial resources available for implementing the specific
content of the EU-Ukraine Neighbourhood Action Plan; these
resources must be readily accessible;

43.
in multicultural regions, emphasises the importance of
people-to-people contacts, particularly in the fields of culture
and education, and also in cooperation between young people.
It is precisely the pooling of experience and knowledge that can
act as a major spur to cross-border cooperation and may help
Ukraine to carry out indispensable reforms.

The President

of the Committee of the Regions

Michel DELEBARRE