City Deals, Contracts and Agreements in selected European countries Sara Davies Presentation to the Department of Regional Policy, Ministry of Local Government and Modernisation, Oslo, 22 November 2016

Overview EU Cohesion policy Long-standing approaches Integrated Territorial Investments Community-Led Local Development EU Cohesion policy France – City Contracts (& other contractual approaches) Long-standing approaches Germany – Regional Budgets under the Regional Joint Task Experimenting in regional policy Netherlands – City Deals UK – City Deals & other Deals New approaches outside RP Sara Davies, European Policies Research Centre, University of Strathclyde

EU Cohesion policy 2014-20 Strong emphasis in 2014-20 Complex EU rules Key issues MS must allocate >5% ERDF Local authorities must be responsible for project selection Integrated sustainable urban development Can combine different EU funding sources Managing authority can delegate powers to a local authority Integrated territorial investments (ITI) Similar to LEADER Led by broad Local Action Groups Community-led local development (CLLD) Sara Davies, European Policies Research Centre, University of Strathclyde

France – Urban & regional policy Focus on socio-economic difficulties of deprived urban areas Aim to bring together actors & policies to address complex urban problems eg housing, jobs, justice, environment, social… Urban policy State funding for Regions Regenerating defence areas Regenerating central towns Rural areas Long-standing contractual approach Sara Davies, European Policies Research Centre, University of Strathclyde

France: City Contracts 2015-20 Structure State sets framework (goals, areas …) Inter-Municipal Association -> develops a strategy for a smaller ‘priority area’ -> negotiates contract with the State Other public & private entities also sign Citizens’ Council active in all stages Finance Contract includes a financial plan Limited new funding A way of focusing State, Region & local funding on an area Themes State requires a focus on 3 themes: Social cohesion Living environment & physical urban regeneration Economic development & employment Sara Davies, European Policies Research Centre, University of Strathclyde

France – City Contracts in practice Tutoring during school holidays Awareness eg health, recycling Support for job-seekers & start-ups Regeneration of social housing Local events - bring people together In practice: 435 signed (Larger) inter-municipal strategy for a (smaller) priority area Local strategy vs 3 State-set themes Administrative capacity Citizen Councils Evaluation & indicator-setting Challenges Sara Davies, European Policies Research Centre, University of Strathclyde

Germany – Regional Joint Task (GRW) Joint policy of federal govt & Länder for structurally weaker areas Multi-annual agreement (2014-20) between federal level & Länder Projects draw on equal federal & Land funding Governance Each Land selects from options: Business investment aid Business-oriented infrastructure Bottom-up instruments, including Regional Budgets Themes / instruments Sara Davies, European Policies Research Centre, University of Strathclyde

Germany – Regional Budgets Structure Land decides whether to fund RB -> call Functional areas with population >100,000 – ie between Land and local authorities Existing regional structures & consensus-based strategy Finance Region manages a block of funding: <€300,000 annually for <3 years (can be extended) Projects can receive <80% of costs Themes Themes agreed between federal level & Länder Improve regional cooperation Strengthen regional growth potential Strengthen regional marketing Ensure the supply of skilled workers Sara Davies, European Policies Research Centre, University of Strathclyde

Germany – Regional Budgets in practice RB for 14 Regional Growth Clusters Agreement between the Cluster & local authorities <€150,000 annually for each Cluster Themes: skilled labour; knowledge transfer; regional cooperation Brandenburg Regions with >250,000 inhabitants to ensure enough firms & partners Involve firms, chambers, sectoral associations & local banks Region-specific opportunities & risks Ensure well-functioning structures Lessons from Thüringen Sara Davies, European Policies Research Centre, University of Strathclyde

Netherlands: Urban policy & Contractual approaches Shift from neighbourhood regeneration to cooperation between cities to maintain competitive position Dialogue between State, cities, firms, knowledge institutes & CSO Urban agenda Aim to remove barriers to help get sustainable initiatives off the ground Supplements existing instruments (legislation, incentives…) 176 Deals agreed in 2011-14 (1090 partners); c.20 new Deals each year Green Deals Sara Davies, European Policies Research Centre, University of Strathclyde

Netherlands – City Deals Structure Group of Cities makes a proposal to State -> negotiation (9 signed); also businesses & CSOs Workplan: specific tasks, quantified inputs & outputs, who does what Finance Pool existing funding State aims to enable & accelerate new partnerships (inc temporary adjustment of regulations) Themes Integrated approach to growth, innovation & welfare Innovative solutions to urban problems Sara Davies, European Policies Research Centre, University of Strathclyde

Netherlands – City Deals in practice Hague Security Delta: cybersecurity Groningen : bicycle parking at stations Eindhoven: combined care, housing & unemployment services Utrecht Health Campus: research entities & firms In practice e.g. More strategic Deals with more partners have more potential for upscaling & knock-on impact Good for putting new ideas into practice - a phase when projects often encounter barriers Success factors Sara Davies, European Policies Research Centre, University of Strathclyde

UK – Regional policy context 27% of UK population & 38% of GDP is in London & South East Maintain London’s financial sector vs rebalance to other regions/sectors? Economic & demographic concentration Elected parliaments & more powers in Scotland, Wales & N. Ireland Devolution of powers Abolition of Regional Development Agencies & Regional Government Offices (except London) Initiatives for functional areas e.g. Local Enterprise Partnerships (LEP) England’s regional policy since 2010 Sara Davies, European Policies Research Centre, University of Strathclyde

UK – Growth Deals, City Deals & Devolution Deals Structure Local authority/ies or LEP makes proposal to State for funding & powers ie each Deal is different State may require new structures to manage new powers in combined Local Authority areas Long-term approach eg 30 years Finance Elements of State funding devolved to local actors Local area may gain power to retain higher % of local business tax or increase borrowing powers Themes GD mainly local economic/business development CD eg transport, skills, infrastructure, business DD eg transport, business support, further education, housing, planning, health & social care Sara Davies, European Policies Research Centre, University of Strathclyde

UK – Growth, City & Devolution Deals in practice 40+ Growth Deals; 30 City Deals; 10 Devolution Deals Stimulus to strategy-building, local cooperation, new structures, & tools for priority-setting In practice Complex governance & negotiated decisions -> accountability & transparency? Diverse themes & powers -> hard to assess Cuts to Local Authorities’ funding – how manage complex policies? Challenges Sara Davies, European Policies Research Centre, University of Strathclyde

To sum up: Looking across countries Negotiation between State & Local Generate new solutions Bottom-up decision-making Strategy building Need for administrative capacity Commonalties Theme/s: broad vs specific Cooperate with firms & civil society Consistent vs differentiated Coordinate across policies Detailed plan with inputs & outputs Differences Sara Davies, European Policies Research Centre, University of Strathclyde

In thinking about City Deals, what is most important? Target a specific theme Negotiate between Ministry & City Cooperate with firms & civil society Bottom-up decision-making Administrative capacity More efficient use of funding Coordinate across policies Generate new solutions Detailed plan with inputs & outputs Sara Davies, European Policies Research Centre, University of Strathclyde