Don't overlook the value of regional authorities for enterprise policy, says Committee
The European Commission's communication on the 'Challenges for enterprise policy in the knowledge driven economy' and proposal for a Council decision on a multi-annual framework programme for enterprise and entrepreneurship (2001 to 2005) is, generally, 'a visionary and constructive contribution towards the renewal and refocusing of EU enterprise policy,' according to the Committee of the regions. But it urges the Commission not to underestimate the role of regional authorities in achieving its aims. In an opinion, published recently in the Official Journal of the European Communities, the Committee agrees with the European Commission's view that EU enterprise policy and related programmes must be refocused if the Community is to realise Commission President Romano Prodi's vision of 'enterprise Europe' in a knowledge driven economy (as outlined by the Heads of State at last year's Lisbon summit). But, the Committee feels that the Commission's communication on the proposed multi-annual work programme for enterprise and entrepreneurship, 'does not adequately reflect the conclusions from Lisbon regarding the interdependence of the new knowledge driven economy and the welfare society.' Social security systems must be adapted to the new, knowledge driven economy so as to both promote entrepreneurship and self-employment and meet the interests of the workforce.' The Committee calls for more thought on the place of local and regional authorities in the new knowledge-driven economy, and their contribution in framing solutions to the challenges the EU is facing from globalisation and the changing economic scenario. 'It is an established fact that in many Member States the devolved authorities play a key role in undertaking public welfare responsibilities,' says the Committee of the regions. 'These authorities therefore expect to be assigned a central place in the transition to the new knowledge-based economy.' The Committee would prefer the role of the regions to have a higher profile in the communication at a number of levels. It is surprised, for example, that while an earlier Commission communication 'recognise(d) the importance of the local and regional dimension in employment and enterprise policy....that is not the case in the present Communication and proposed multi-annual programme.' And the Committee 'regrets that the local and regional authorities have not been assigned a formal role in the new open coordination - 'BEST procedure' - methodology.' The Committee hopes the Commission's forthcoming White paper on governance, which is expected this summer, will define how local and regional authorities can play a greater part in European action. 'In the Committee's view, the Commission should preferably already at this stage incorporate this approach into the Communication and the multi-annual programme so that the local and regional authorities are assigned institutional status in EU policy.' The Committee advises the Commission to set out the first year's initiatives for enterprise and entrepreneurship in a more detailed programme: 'The committee accepts that the new multi-annual programme focuses mainly on strategy development and broad activities even if that is not entirely compatible with the 'think small first' principle,' it concludes. In addition, it believes that the trend of regional clustering of centres of excellence, characterised by a combination of cooperation and competition has 'several obvious implications for regional economies besides contributing specific regional facets to enterprise and entrepreneurial policy.' EU policy in this area 'should take greater account of the fact that success will hinge on the capacity for multidisciplinary cooperation and to establish partnerships and physical or virtual networks with entrepreneurs and enterprises in other regions and introducing and responding to new technologies, says the Committee. 'The image of the single inventor, artisan or engineer as founder of Europe's new entrepreneurs will hardly hold good in the years to come. Future entrepreneurs or enterprises will increasingly organise physical or virtual networks in which the capacity for regional cooperation and organisation is vital for success.' A more detailed study of the knowledge driven economy, highlighting regional aspects and their impact on Europe is needed, it adds. And it calls on the Commission to give greater consideration and draw up a communication on the local and regional authorities' role and tasks in the sphere of enterprise policy. Finally, asking for future consultation on this matter, the committee urges the Commission to involve local and regional authorities in framing and implementing the 'best procedure' methodology: 'The Committee specifically encourages the Commission to examine more closely, as part of its benchmarking exercises, ways in which the impact of enterprise policy is influenced by the apportion of tasks between private and public entrepreneurs and the division of work between public authorities. It will then be possible to ascertain which tasks are best catered for by the private and public (including the regional authorities) sectors respectively in the sphere of enterprise policy.'