1. PEALINNA KOHT RIIGI KOHALIKU OMAVALITSUSE SÜSTEEMIS THE CAPITAL CITY IN THE LOCAL SELF-GOVERNMENT SYSTEM Prof PhD Sulev Mäeltsemees Tallinn University of Technology

2. 1. The Capital City in the system of settlements

3. 2. The Capital City and the national legal environment, including relationship with the central government and regional co-operation

4. 3. Management of the Capital City, including decentralisation

5. 4. The economic environment in the Capital City; the Capital City and the economic environment of the region and the country.

6. Population Total population Capital population of Capitals (in millions) of total population (in thousands) (%) Amsterdam 731 16.04 4.6 Athens 772 10.59 7.3 Belgrade 1,598 10.62 15.0 Berlin 3,387 82.33 4.1 Bern 122 7.23 1.7 Bratislava 447 5.40 8.3 Brussels 964 10.29 9.4 Bucharest 1,922 22.41 8.6 Budapest 1,812 10.19 17.8

7. Chisiniau 779 4.27 18.2 Copenhagen 501 5.36 9.3 Dublin 495 3.84 12.9 Helsinki 560 5.19 10.8 Kiev 2,637 49.09 5.4 Lisbon 557 10.02 5.6 Ljubljana 264 1.99 13.3 London 2,874 58.80 4.9 Luxembourg 77 0.44 17.5 Madrid 2,939 41.12 7.1 Minsk 1,699 9.97 17.0 Monaco 1 0.03 4.1

8. Nicosia 195 0.76 25.6 Oslo 513 4.51 11.4 Paris 2,116 59.19 3.6 Prague 1,179 10.22 11.5 Reykjavik 112 0.28 40.0 Riga 764 2.36 32.4 Rome 2,656 57.95 4.6 San Marino 4 0.03 14.7 Sarajevo 552 4.06 13.6 Skopje 444 2.04 21.8 Sofia 1,096 8.02 13.7 Stockholm 750 8.89 8.4

9. Tallinn 400 1.36 29.4 Tirana 427 3.16 13.5 Vaduz 5 0.03 16.5 Valletta 7 0.40 18.2 Vienna 1,550 8.13 19.1 Vilnius 543 3.48 15.6 Warsaw 1,618 38.64 4.2 Zagreb 779 4.38 17.8 TOTAL 40,848 583.11 7.0 Source: Der Fischer Weltalmanach 2004. Zahlen, Daten, Fakten

10. 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

11. Population (in thousands) 1990 2003 Bratislava435 447 Prague 1,211 1,181 Riga915 764 Tallinn490 400 Warsaw 1,651 1,632 Vilnius580 578

12. 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

13. PopulationPopulation as %SurfacePopulation density of national area,(inhabitants/km2) population km2 Athens 772 7.3 … … (Region of Attica) 3,003 29.1 3,808.2 906 Copenhagen 501 9.3 89.6 5,586 (Copenhagen 1,807 33.7 2,870.6 634 Capital Region) Dublin 495 12.6 115 4,305 (Dublin 1,123 28.7 978.7 1,147 County/Region) Helsinki 560 10.8 185 3,000 (total 686) (Great Helsinki) 934 18.0 744 1,255 Region of 1,318 25.4 6,366 207 Uusimaa

14. Lisbon 565 5.5 84.66,674 (Great Lisbon 1,947 18.81,0901,786 Lisbon Region) 2,662 25.7 11,931 279 Madrid 2,939 7.2 604.64,747 (Madrid Region) 5,423 13.18,025.5 676 Paris 2,125 3.6 105.4 20,238 (Ile-de-France) 10,952 18.7 12,011 912 Rome 2,460 4.21,2851,914 (Region 4,976 8.6 17,227 289 of Lazio) Stockholm 750 8.5 1874,031 (County of 1,839 20.66,490 273 Stockholm) Vienna 1,550 8.13 3154,920 (Vienna Region) 1,562 19.4 4153,765 Source: EU capital cities study 2003

15. Amsterdam 731 Rotterdam 593 Berlin 3,387 Hamburg 1,726 Bratislava 447 Košice 242 Copenhagen 501 Arhus 221 Helsinki 560 Espoo 217 Lisbon 557 Vila Nova de Gaia 288 London 2,874 Birmingham 1,010 Oslo 513 Bergen 231 Riga 764 Daugavpils 115 Stockholm 758 Göteborg 475 Tallinn 400 Tartu 100 Vienna 1,550 Graz 226 Vilnius 543 Kaunas 381 Warsaw 1,618 Lodź 807

16. The division of population between settlements of various sizes (%) in the European Union on average, in Finland and in Estonia The EU FinlandEstonia (15 countries, average) 1. Big towns (more than 250,000 201128 inhabitants) 2. Medium sized towns 202816 (50,000 – 250,000 inhabitants) 3. Small towns (10,000 – 50,000 4035 5 inhabitants) 4. Towns with less than 10,000202651 inhabitants and other settlements Source: Professor Jussi Jauhiainen 2000

17. Number of inhabitants per municipality, excluding Capital City Bulgaria28,000 Croatia 6,800 Czech Republic 1,500 Estonia 4,200 Hungary 2,700 Latvia 3,000 Lithuania58,800 Poland15,000 Romania 7,000 Slovakia 1,700 Slovenia 8, 800 Source: Local Finance in eleven countries of Central, Eastern and Baltic Europe. DEXIA 2000

18. Albania Act No. 7572 of 10 June 1992 on the Organization and Functions of Local Government Belarus The Law of 1991 on Local Self-Government in the Republic of Belarus Bulgaria Law on Local Self-Governance and Local Administration of 1991 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. L1990 on Local Self-Government Latvia The law ”On Local Governments” of January 1990

19. Lithuania Law on the Fundamentals of Local Government (12 February 1990) Macedonia Decree on General Principles for Internal Organization of the Administrative Organs 22 and 43/1991 Decision for Taking on Duties by the Republic Administrative Organs from the Municipal Organs 1/1991 Poland Act 95 of 1990 on Local Self-Government Romania Law No. 69/1991: Law of Local Public Administration, 26 November 1991 Slovakia Act No 369/1990 Local Government Act Slovenia The Local Self-Government Act (1993) Ukraine Law on the Forming of Local Organs of Power (3 February 1994) Sources: Local Governments in the CEE and CIS, 1994. Institute for Local Government and Public Service Budapest Decentralization: Experiments and Reforms. Local Governments in Central and Eastern Europe. Budapest 2000 Stabilization of Local Governments Budapest 2001

20. Berlin Verfassung von Berlin Brussels Special Act of 12 January 1989 on the Institutions of Brussels 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) Wien Wiener Stadtverfassung Zagreb The Law on the City of Zagreb

21. Members in the Election period City Council Amsterdam454 (2002-2006) Athens 414 (2002-2006) Bratislava604 (2002-2006) Berlinmin 1304 (141) (2001-2005) Brussels756 Budapest66 Copenhagen554 Dublin 515 (2004-2009) Helsinki854 (2001-2004) Lisbon 544 Ljubljana4 London 254 (2000-2004)

22. London 254 (2000-2004) Luxembourg276 Madrid 524 (2003-2007) Nikosia 265 Oslo 59 4 Paris 1636 Prague 4 Riga 60 4 Rome 605 (2001-2006) Stockholm 1014 Tallinn 63 4 Valetta 3 Vienna 1005 Vilnius 513 Zagreb 4

23. Population (in thousands) Population (in thousands) per member of City Councilper member of City Council Amsterdam16.2 Madrid56.5 Athens18.8 Nicosia7.5 Berlin24.0 Oslo8.7 Brussels12.9 Paris13.0 Budapest27.5 Prague21.4 Copenhagen9.1 Riga12.7 Dublin9.7 Rome44.3 Helsinki6.6 Stockholm7.4 Lisbon10.3 Tallinn6.3 London115.0 Vienna155 Luxembourg2.9 Vilnius10.6

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

25. Local Government Organization Act (Estonia) § 56. Rural municipality or city district A rural municipality or city district is a unit which operates in the territory and within the composition of a rural municipality or city pursuant to the statutes of the rural municipality or city district approved by the council. § 57. Formation of rural municipality or city district (1) The formation of a rural municipality or city district may be initiated by: 1) one fourth of the members of the council; 2) not less than one per cent of the residents of the rural municipality or city with the right to vote, however not less than five residents with the right to vote, by way of an application; 3) the rural municipality or the city government.

26. (2) The statutes of a rural municipality or city district shall provide: 1) a description of a boundaries of the rural municipality or city district; 2) the procedure for formation of the government of the rural municipality or city district; 3) the procedure for the appointment to office of the rural municipality or city district elder, whereby the term of the authority of the rural municipality or city district elder shall not exceed the term of authority of the rural municipality or city council; 4) the authority of the rural municipality or city district government and rural municipality or city district elder and the budgetary funds of the rural municipality or city allocated for the performance thereof; 5) the bases and procedure for supervision over the activities of the rural municipality or city district government and the rural municipality or city district elder, and for liquidation of the rural municipality or city district.

27. (3) A council shall decide to form a rural municipality or city district on the basis of an application or shall refuse such application. The council may organise an opinion poll of the residents concerning such issue, if necessary. (4) Rural municipality or city district governments and rural municipality or city district elders do not have the right to pass legislation of general application. (5) Rural municipality or city district elders may, within the limits of their authority and for the performance of their functions, issue orders as legislation of specific application and directives for the organisation of the internal operations of the government. (6) The requirements provided for in subsections 31 (1) –(5) of this Act to orders issued by rural municipality or city district elders. Orders shall be signed by the rural rural municipality or city district elder. (7) Supervision over orders issued by a rural municipality or city district elder is exercised by the rural municipality or city mayor pursuant to the procedure provided for in the statutes of the rural municipality or city. (8) The authority of rural municipality or city district governments and rural municipality or city district elders shall not be restricted and budgetary funds allocated to them shall not be decreased during the budgetary year of the rural municipality or city.

28. Population of City City DistrictsAverage population (in thousands) in City District (in thousands) Amsterdam731 15?49 Bergen229 829 Berlin 3,387 12282 (Bezirksverordnetenversammlung) (with a´55 members each) Bratislava447 1726 (with 9-40 members) (Bratislava has 5 districts – seats of district offices) Brussels964 1951 Göteborg465 2122 Hamburg 1,726 7247 Lisbon 557 5311 (Freguesias)

29. London2,874 32 90 (boroughs) Madrid2,939 21 140 (only administrative function) Malmö257 10 26 Oslo 513 15 33 (with a`13 members each) Paris 2,116 20 106 (arrondissements) Prague 1,179 57 21 Riga 764 6 127 (only administrative function) Rome 2,656 19 140 (circoscrizioni/municipi) (only administrative function)

30. Sofia 1,096 2446 Skopje444 763 (only administrative function) Stockholm750 1841 Tallinn400 850 Warsaw1,618 1890 Vienna543 2324 (Bezirksvertretung) (with 40-60 members) Vilnius543 2126 (seniunas) (only administrative function) Zagreb779 1746 (gradski ćetvrti)

31. 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

32. Brussels Brussels is divided into 19 autonomous and semi-autonomous communes with their own town hall, council and mayor. The mayor is the commune´s representative and the representative of central government. Lisbon There are 53 communes (Freguesias, close to the definition of parishes) in the City of Lisbon. Each commune has an Assembly (which is responsible for establishing local taxes under the proposal of the District Council – District of Grande Lisboa) and an administrative Council. The latter is responsible for establishing the work programme, the budgets and carrying out the activities which have been delegated to it by the Municipal Council. The Assembly is elected by universal suffrage by eligible residents according to the system of proportional representation. Candidatures may be presented by political and citizens´ groups. Madrid City of Madrid is divided into 21 districts with no political institutions (only with District Administration).

33. Paris Paris is also a single commune, with 20 administrative districts or “arrondissements”. These sub-division 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 6 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.

34. Rome The city of Rome is divided into 19 boroughs (circoscrizioni/municipi). In January 2001, in the light of decentralisation, the City Council adopted new rules that modified the administrative structure of the city by establishing new powers and competences. Citizens elect the president of the boroughs and the president nominates the 4 deputies (assessori circoscrizionali) who constitute the borough executive committee. At present, a debate is ongoing on the possibility of giving Rome the status of “citta´ metropolitana” (metropolitan city). This would provide it with additional powers and define its independence from the province and the region. Zagreb A general form of territorial self-government in Croatia is a territorial committee established for part of a larger settlement or a town, for only one settlement, for several small and mutually connected settlements. The territorial committee as a rule does not have an administrative apparatus. The bodies of a territorial committee are the council and the president of the council. It is possible, therefore, that the members of the council are elected at the territorial citizens´ meeting by public vote.

35. 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.

36. Although the law of the 1989 allowed local authorities to borrow. Municipalities can borrow to cover the investments prescribed by the municipal development plan. The amount to be borrowed cannot exceed 60% of the budget revenue of the current year and the repayment profile has to be drawn up so that the repaid amount does not exceed 20% of the revenue in each given year. Civil servants have been granted the right to check municipal borrowing since the decision of the municipal council to borrow must be submitted to the county governor within three days after it is adopted, and the transcript of the loan agreement must be submitted to the Ministry of Finance within five days after it is concluded. Since 2002, the Government can stop allocation of any subsidies of general purpose to the municipality, if the latter requirement is not met.

37. The three state imposed taxes (personal income tax, land tax and natural resources user fees) are significant because the total amount of the taxes determines the amount of subsidies for general purposes allocated to municipalities from the State Budget. The total amount of the above three taxes paid by a municipality are divided by the population of the municipality. The amount of subsidy for general purposes due to the municipality from the State Budget is calculated on the basis of a formula which takes into account the demographic structure of the municipality (the number of children at pre-schools, the number of students etc). More than 90% of municipalities in Estonia are entitled to the above subsidy for general purposes. The municipalities surrounding the capital Tallinn are the exception since the revenue they raise from personal income tax is extremely high. Some municipalities in the North-East region of the country do not receive the above subsidy for general purposes either since they generate quite a lot of revenue due to natural resources user fees.

38. GDP per capita (euro) Amsterdam 69,400 Athens 12,547 Berlin 22,495 Brussels 46,989 Copenhagen 35,800 Dublin 21,987 Helsinki 32,913 Lisbon 14,744 London 25,382

39. Luxembourg 47,900 Madrid 19,363 Paris 55,793 (Il-de-France) 34,770 Rome (Region of Lazio) 21,633 County of Stockholm 33,783 (Stockholm Region) 25,369 Vienna 32,922 Source: EU capital cities study 2003

40. TÄNAN TÄHELEPANU EEST