Multi-level governance in EU Cohesion policy Professor John Bachtler VI EU-China High-Level Seminar On Regional Policy Multi-level Governance And Support To Priority Areas In Regional Policy Brussels, 13 October 2011

MLG in EU Cohesion policy What is Multi-level Governance (MLG)? Evolution of the governance of regional policy MLG in Cohesion policy MLG in practice: –between the Commission and Member States –within the Member States Experiences and lessons

What is multi-level governance? Origins of multi-level governance –intergovernmentalism vs. supranationalism –debates about a Europe of the regions Main dimensions –vertical dimension – relations/interactions between levels (EU, national, regional, local) –horizontal dimension – state-society relations at different levels –applies to politics, policies and polities

Central government FirmsLocal authorities Evolution of regional policy: From top-down governance…..

Central government Regional offices of the State Regional govt authorities FirmsLocal authoritiesCommunities Evolution of regional policy: ……to multi-level governance…..

Central government European Union Regional offices of the State Regional govt authorities FirmsLocal authoritiesCommunities Evolution of regional policy: ……to multi-level governance…..

Central government European Union Regional offices of the State Regional govt authorities FirmsLocal authoritiesCommunities Para-statal organisations (quangos) Non-governmental organisations Evolution of regional policy: ……with new actors

MLG in Cohesion policy: principles Principle of shared management –Commission is formally responsible for implementation of EU budget, but implementation is decentralised to the Member States Principle of partnership –Regional/local authorities, economic and social partners, environment and gender equality bodies, NGOs and civil society –Monitoring committees Requirement for alignment with EU objectives –Lisbon Agenda and Europe 2020 –Translated into strategic guidelines and programmes

9 EU Cohesion & Rural Development policies, MLG in Cohesion policy: framework of shared management

10 MLG in Cohesion policy: framework of shared management Community Strategic Guidelines on Cohesion (Commission, Council, Parliament) National Strategic Reference Frameworks (Member States, Commission) Operational Programmes (Member States / regions) Programme management & delivery (Member States / regions) Strategic follow-up and annual debate (Member States / Commission / Council)

MLG in practice: management of the interaction between the Commission and Member States Regulations and guidelines –including programme negotiations Incentives and sanctions –financial management & control obligations –incentives to spend money Accountability and oversight –Monitoring Committees and annual meetings –Annual Implementation Reports and IT communication –evaluation –strategic reporting

MLG in practice: implementation in the Member States Centralised implementation systems –management by national ministries or other national bodies –sometimes limited decentralisation and partnership –examples: Denmark, Hungary, Latvia, Slovenia Mixed central-regional systems –implementation arrangements divided between national and regional levels, e.g. combination of sectoral and regional programmes shared responsibilities between regional authorities and regional offices of the state –examples: France, Poland Regionalised systems –significant devolution to regional self-governments –examples: Austria, Belgium, Germany, Spain

13 MLG in practice: implementation in the Member States Managing Authorities –single ministry for multiple programmes MA (e.g. Sweden, Latvia) –multiple MAs (e.g. Poland) Intermediate & Implementing Bodies Delegation of management to intermediate bodies: –central government ministries (smaller countries) –state agencies (e.g. Hungarian National Employment Office) –regional offices of the state (e.g. France) Delegation of delivery to implementing bodies (e.g. regional development agencies) Use of specialist management/ delivery bodies (e.g. Netherlands, U.Kingdom)

MLG in practice: implementation in the Member States Partnership principle has had several benefits –wider range of organisations engaged in economic development –joined up policymaking better programmes and projects – new public management practices and positive spillovers on domestic policy But…. –role of regions/local authorities varies greatly across the EU –participation or involvement of non-public sector actors is often low –sustainability issue – how to keep partnerships strong and active

Experiences and lessons Balance between top-down (prescription) and bottom-up (autonomy and experimentation) Balance between compliance and performance Need for credible and robust monitoring and evaluation systems - especially if linked to conditionalities and incentives Institutional capacity is important at all levels Involvement of non-public actors/private sector is difficult

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