LOCAL SELF-GOVERNMENT IN THE CZECH REPUBLIC Irène BOUHADANA Senior Lecturer, University of Paris 1, Panthéon-Sorbonne William GILLES Senior Lecturer, University of Paris 1, Panthéon-Sorbonne Jaroslava KYPETOVA Senior Lecturer, CEVRO Institut, Prague

Historical context of the Czech Republic: subject to the Soviet influence from 1945 to 1989 emerged in 1993 from the dissolution of Czechoslovakia member state of the European Union since 1st May: Lisbon treaty has been ratified by the Czech president on 3rd November 2009; Launching of the Euro probably won’t happen before 2012

The process of decentralisation in the Czech Republic - has begun in 1990 … and continued after the dissolution of Czechoslovakia - In this perspective, local self-government is provided for in the Constitution (16th December 1992): - local authorities can have their own patrimony - … and are financially autonomous

A) Local governmental structure in the Czech Republic The local structure of the Czech Republic is based on two types of governmental bodies and one specific status for the capital: OBEC (communities) - 13 KRAJE (regions) - 1 COMMUNITY-REGION: the capital Prague is both a community and a region

1) The Obeck (communities) Significant splitting up: OBECK - More than 96% of the communities have less than inhabitants -… have the possibility to gather themselves and form inter-community associations

1) Les Obeck (communities) Scheme of the administrative structure Executive body (accountable to the municipal Council): The municipal committee 5 to 11 members (mayor and deputies) Mayor Deliberative body: The municipal Council 4 years Direct universal suffrage 5 to 55 members

2) The Kraje (regions) “Regions” replace “districts” since 2003 Executive bodies: Regional Council (executive body: president, vice- president and members elected by the regional assembly) + Regional committee (elected by the regional assembly) Deliberative body: Regional assembly run by a governor 4 years direct universal suffrage

3) The specific status of Prague Prague, the capital of the country (10% of the Czech population), has both: - the status of a community - and the status of a region.

B) The local governments’ competences Both communities and regions benefit from two types of competences: - “Proper” competences which correspond to actual decentralised competences - “Delegated” competences from the central government; by a specific law that is being practiced in the scope of decentralisation

C) Financial means of local governmental bodies: fiscal revenues Distinction between: - proper fiscal revenues - shared fiscal revenues: since 2008, repartition is made according to the following three criteria: - balanced number of inhabitants (94%) - number of inhabitants (3%) - territorial surface (3%)

C) Financial means: non-fiscal revenues The local Czech authorities also receive grants and subsidies from the central government. Last but not least, they also benefit from different resources like the subsidies from the European Union.

Financial means of local governments in million millions CZK Expected resources in 2009Expected revenues for 2010Difference Index 2010/2009 Regions, including Prague CommunitiesTotal Regions, including Prague CommunitiesTotalRegions Communitie s Regions Communitie s Value added tax22,654,176,724,258,082,21,63,9107,1%107,2% Corporate tax12,234,346,513,236,649,81,02,3108,2%106,7% Corporate tax11,828,440,212,830,843,61,02,4108,5% Corporate tax – paid by communities and regions0,45,96,30,45,86,2 -0,1100,0%98,3% Taxation of Individuals10,629,139,711,334,645,90,75,5106,6%118,9% Wage tax0,82,02,80,92,13,00,1 112,5%105,0% Business tax0,43,03,41,08,49,40,65,4250,0%280,0% Payroll tax9,424,133,59,424,133,5 100,0% Land tax 6,4 9,6 3,2 150,0% Local and administration tax 7,7 7,8 0,1 101,3% Ecological fees 6,2 100,0% Total fiscal revenues45,4137,8183,248,7152,8201,53,315,0107,3%110,9%

Financial means of local governments In million millions CZK Expected revenues in 2009Expected revenues for /2009 Communitie s, including Prague Voluntary corporations within the communities Regions NUTS councils Non- consolidated total Consolidate d total Communiti es, including Prague Voluntary corporations within the communities Regions NUTS councils Non- consolidated total Consolidate d total Total Fiscal revenues139,2 44,0 183,2 154,3 47,2 201,5 110,0% Non-fiscal revenues26,90,63,7 31,230,628,30,64,0 32,932,2105,2% Investment resources14,20,10,5 14,8 14,10,10,5 14,7 99,3% Proper resources180,30,748,2 229,2228,6196,70,751,7 249,1248,4108,7% Operating grants58,90,980,60,8141,2137,259,40,975,90,2136,4132,496,5% Investment grants12,61,26,56,827,120,08,70,82,33,114,99,547,5% Total grants71,52,187,17,6168,3157,268,11,778,23,3151,3141,990,3% Total resources251,82,8135,37,6397,5385,8264,82,4129,93,3400,4390,3101,2% Operating expenditure188,00,8117,30,8306,9302,3189,40,9112,30,2302,8298,198,6% Investment expenditure78,52,224,46,8111,9104,878,61,819,73,1103,297,893,3% Total expenditure266,53,0141,77,6418,8407,1268,02,7132,03,3406,0395,997,2% Balance-14,7-0,2-6,4 -21,3 -3,2-0,3-2,1 -5,6 x

D) Local participative democracy The participative democracy in the Czech Republic is based above all on the right to information on the activities of the local governments. For this purpose, article 17 of the Czech constitution says: “Freedom of expression and the right to information are guaranteed. [...] Organs of the State and of local self-government shall provide in an appropriate manner information on their activities.”

D) Local participative democracy Secondly, the participative democracy is based on the right for citizens to exercise popular initiatives. Thus, citizens can be behind a local referendum. Likewise, in accordance with article 18 of the Czech constitution, citizens have the right of petition : “The right of petition is guaranteed; everybody has the right to address himself or herself, or jointly with other individuals, organs of the State or of local self-government with requests, proposals and complaints in matters of public or other common interest.”