KOHALIKU OMAVALITSUSE ARENGU VAJADUSED ja VÕIMALUSED (PEALINNA KOHT KOHALIKUS OMAVALITSUSES) DEVELOPMENT NEEDS and OPPORTUNITIES of LOCAL SELF-GOVERNMENT (THE CAPITAL CITY IN THE LOCAL SELF-GOVERNMENT) Prof PhD Sulev Mäeltsemees Tallinn University of Technology

The National Capitals have the central role in the expression of national policy as well as in business and cultural life.

Population Total population Capital of Capitals (in millions) population (in thousands) (%) of total population Paris 2,116 59.19 3.6 Tallinn 400 1.36 29.4 London 2,874 58.80 4.9 Madrid 2,939 41.12 7.1 Reykjavik 112 0.28 40.0 Riga 764 2.36 32.4 Rome 2,656 57.95 4.6 TOTAL in 40,848 583.11 7.0 Europe

1. The Capital City in the system of settlements 2. The Capital City and the national legal environment, including the relationship with the central government, and regional co-operation 3. Management Model of the Capital City, including decentralisation 4. The economic environment in the Capital City; the Capital City and the economic environment of the region and the country.

Capital population of the total population (%) Up to 10.0% Amsterdam, Athens, Berlin, Bern, Bratislava, Brussels, Bucharest, Copenhagen, Kiev, Lisbon, London, Madrid, Monaco, Paris, Rome, Stockholm, Warsaw 10.1-20.0% Belgrade, Budapest, Chisinau, Dublin, Helsinki, Ljubljana, Luxembourg, Minsk, Oslo, Prague, San Marino, Sarajevo, Sofia, Tirana, Vaduz, Valletta, Vienna, Vilnius, Zagreb 20.1-30.0% Nicosia, Tallinn 30.1-40.0% Reykjavik, Riga. Source: Der Fischer Weltalmanach 2004. Zahlen, Daten, Fakten

Population (in thousands) 1990 2003 Riga 915 764 Tallinn 490 400 Vilnius 580 578

Municipal revenue in Estonia in 2001 Type of revenue Amount Percentage thousands thousands of kroons of euros 1. Personal income tax 3,942,133  251,958 36.3 2. Land tax 397,451 25,403 3.6 3. Local taxes 69,934 4,470 0.6 4. Income from property 1,619,112  103,484 14.8 5. Proceeds from economic activity 323,955 20,705 3.0 6. Settlements with other local authorities 1,081,713 69,137 9.9 7. Allocations from State Budget 2,434,151  155,577 22.3 8. Loans 738,016 47,169 6.8 9. Other income 296,686 18,962 2.7 TOTAL 10,903,151 696,865  100.0

Berlin 3,387 Hamburg 1,726 Lisbon 557 Vila Nova de Gaia 288 London 2,874 Birmingham 1,010 Paris 2,116 Marseille 800 Riga 764 Daugavpils 115 Tallinn 400 Tartu 100 Vilnius 543 Kaunas 381 Warsaw 1,618 Lodź 807

The division of population between settlements of various sizes (%) in the European Union on average, in Finland and in Estonia The EU Finland Estonia (15 countries, average) 1. Big towns (more than 250,000 20 11 28 inhabitants) 2. Medium sized towns 20 28 16 (50,000 – 250,000 inhabitants) 3. Small towns (10,000 – 50,000 40 35 5 4. Towns with less than 10,000 20 26 51 inhabitants and other settlements Source: Professor Jussi Jauhiainen 2000

Czech Republic Act of the Czech National Council No 367 of 1990 on municipalities Act of the Czech National Council No. 418 of 1990 about the Capital, Prague, amended by an Act of the Czech National Council No 439 of 1991 Estonia Local Self-Government Foundation Act of 10 November, 1989 Hungary Act No. LXV of 1990 on Local Self-Government Latvia The law ”On Local Governments” of January 1990 Lithuania Law on the Fundamentals of Local Government (12 February 1990) Poland Act 95 of 1990 on Local Self-Government Slovenia The Local Self-Government Act (1993)

Copenhagen Until 1998, the City of Copenhagen was governed under its own separate administration act. The Greater Copenhagen Authority (Hovedstadens Udviklinggsrad or „HUR“) was established on January 1st, 2000. Prague Act on the Capital City of Prague (131/2000) Paris Paris-Lyon-Marseilles Law (1982) Warsaw Act on the Local Self-Government of Warsaw (1994)

Members in the Election period City Council Brussels 75 6 years London 25 4 “ Paris 163 6 “ Riga 60 4 “ Rome 60 5 “ Tallinn 63 4 “ Vilnius 51 3 “

Brussels 12.9 Paris 13.0 Riga 12.7 Helsinki 6.6 Stockholm 7.4 Population (in thousands) per member of City Council Brussels 12.9 Paris 13.0 Riga 12.7 Helsinki 6.6 Stockholm 7.4 Lisbon 10.3 Tallinn 6.3 Vilnius 10.6

First municipal elections: Bulgaria 1991 Croatia 1993 Czech Republic 1990 Estonia 1989 Hungary 1990 Latvia 1991 Lithuania 1990 Poland 1990 Romania 1990 Slovakia 1990 Slovenia 1990

Capitals must often represent wider national interests than their own municipal interests. This has to be reflected in their legal status, and the central government must take it into account when funding the municipalities from the national budget. The administrative and financial support of the central government is also necessary because a capital has a decisive role as a driving engine for the surrounding region; this is often the case for the countries undergoing transformation.

As a metropolis, a capital needs to cooperate with its neighbouring municipalities. In some important fields where the parties may not be interested in voluntary cooperation (public transport, waste management, etc), specific legislation has to be adopted on the national level in order to provide services, without disruption, to the public.

Population of Capital City Districts Average City (in thousands) population in City District (in thousands) Paris 2,116 20 106 (arrondissements) Riga 764 6 127 (rajonas) (only administrative function) Tallinn 400 8 50 (linnaosa) Vilnius 543 21 26 (seniunas) (only administrative function)

Lasnamäe LO 111,494 Tartu 100,070 Narva 69,158 Mustamäe LO 64,607 Põhja-Tallinn LO 55,392 Kohtla-Järve 44,901 Kesklinna LO 43,837 Pärnu 43,654 Nõmme LO 37,639 Haabersti LO 37,033 Kristiine LO 29,286 Viljandi 20,601

Paris Paris is also a single commune, with 20 administrative districts or “arrondissements”. These sub-divisions are under the supervision of the Mayor of Paris. There is a single budget for the entire commune, with a special provision for the administrative costs of each arrondissement. Every six years, the Paris Council and the city´s 20 District Councils are elected the same day, on the basis of the same lists of candidates. Each district is represented on the Paris Council. These representatives are therefore members in both assemblies. Each District Council elects a District Mayor among its members (maire d`arrondissement). The district council has a consultative role on all matters related to the district, such as projects of the City Council concerning the district, the amount of subsidies given by the City Council to the district associations, or regeneration initiatives. These councils decide on the installation and development of facilities such as parks, day-care centres and stadiums.

According to the Local Taxation Act (Estonia), municipalities have the right to impose eight types of local taxes: 1) sales tax; 2) advertisement tax; 3) motor vehicle tax; 4) road and street closure tax; 5) animal tax; 6) entertainment tax; 7) boat tax; 8) parking charge.

GDP per capita (EUR) Paris 55,793 (Il-de-France) 34,770 North-Estonia 7,280 (Tallinn and Harju county) Estonia total 4,580