Intermunicipal cooperation in Flanders CEMR, Brussels, 29.09.2005

1. Intermunicipal cooperation in FlandersCEMR, Brussels, 29.09.2005 Christof Delatter Association of Flemish Cities and Municipalities (Vereniging van Vlaamse Steden en Gemeenten – VVSG) www.vvsg.be Tel. +32 2 211.55.99 E-mail: christof.delatter@vvsg.be

2. This Presentation • History of IMC in Flanders • Actual legislation in Flanders • Will Europe make IMC impossible?

3. History of IMC in Flanders (1)

4. History of IMC in Flanders (2) • Today: intermunicipal cooperation in all kinds of policy fields: • Legal assistance • Waste management • Waste water management • Operating of crematories • Utilities (electricity, gas, water) • Media of communication (internet, television) • ICT • Regional economical development • Sport and recreation • Social welfare

5. History of IMC in Flanders (3) • Belgian constitution: municipalities can cooperate for all matters of municipal interest • First law on IMC: 1922 ! • Municipalities often started IMC because of: • Risk-bearing ventures • Lack of know-how or means • Search for more efficiency • Dissatisfaction of services provided within contracts (concessions)

6. History of IMC in Flanders (4) • Last ‘Belgian’ law: 1986 • IMC existed both with and without participation of private companies (< 50%) • 1993: regions became the competent authority on most matters concerning municipalities and intermunicipal cooperation

7. History of IMC in Flanders (5) • 1997-2001: preparations for new legislation on intermunicipal cooperation in Flanders • Discussion about private sector participation • Transparancy of IMC • Need for more flexible structures for cooperation • July 2001: completely new Flemish decree on IMC provides 4 different forms of intermunicipal cooperation going from very low to very intensive

8. Actual legislation in Flanders (1)

9. Actual legislation in Flanders (2) • Some interesting aspects: • Municipalities decide wether they participate, but are committed after decision to associate • Transfer of competences = municipalities lose the right to act solely or in cooperation with other companies • Board of Directors contains representatives from political majority and opposition (observer) • Important decisions require an agreement of the municipalities (city council) • Still possibilities for partnerships with private companies, but on intermunicipal level • Structural Public Private Partnerships (PPP) • PPP based on contracts • Specific legislation for cooperation between Local Centers for Public Welfare in not-for-profit organisations

10. Will Europe make IMC impossible? • Services of General Interest • Directive on services on the internal market • Discussion on “in-house” activities • Infringement-procedure against Belgium • DG Economy: • “IMC ≠ in-house” • “Agreement for intermunicipal cooperation should be subject to a tender”

11. The future…. • Subsidiarity ? • Does Europe really believe in the importance of local government? • IMC has often prooved to be the benchmark for quality and costs for certain services also provided by private companies • Does Europe fear for a larger number of ‘players’ on the market….?