local self-government in the czech republic irène bouhadana senior lecturer, university of paris 1,...

LOCAL SELF-GOVERNMENT IN THE CZECH REPUBLIC

Irène BOUHADANASenior Lecturer,

University of Paris 1, Panthéon-Sorbonne

William GILLESSenior Lecturer,

University of Paris 1, Panthéon-Sorbonne

Jaroslava KYPETOVASenior 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:

- 6258 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: - 6258 OBECK- More than 96% of the communities have less than 5.000 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

committee5 to 11

members(mayor and deputies)

Mayor

Deliberative body: The

municipal Council4 yearsDirect

universal suffrage5 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 yearsdirect 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 2009 Expected revenues for 2010 Difference 2010-09 Index 2010/2009

Regions, including Prague

Communities TotalRegions, including Prague

Communities Total RegionsCommunitie

sRegions

Communities

Value added tax 22,6 54,1 76,7 24,2 58,0 82,2 1,6 3,9 107,1% 107,2%

Corporate tax 12,2 34,3 46,5 13,2 36,6 49,8 1,0 2,3 108,2% 106,7%

Corporate tax 11,8 28,4 40,2 12,8 30,8 43,6 1,0 2,4 108,5% 108,5%

Corporate tax – paid by communities and regions 0,4 5,9 6,3 0,4 5,8 6,2   -0,1 100,0% 98,3%

Taxation of Individuals 10,6 29,1 39,7 11,3 34,6 45,9 0,7 5,5 106,6% 118,9%

Wage tax 0,8 2,0 2,8 0,9 2,1 3,0 0,1 0,1 112,5% 105,0%

Business tax 0,4 3,0 3,4 1,0 8,4 9,4 0,6 5,4 250,0% 280,0%

Payroll tax 9,4 24,1 33,5 9,4 24,1 33,5     100,0% 100,0%

Land tax   6,4 6,4   9,6 9,6   3,2   150,0%

Local and administration tax   7,7 7,7   7,8 7,8   0,1   101,3%

Ecological fees   6,2 6,2   6,2 6,2       100,0%

Total fiscal revenues 45,4 137,8 183,2 48,7 152,8 201,5 3,3 15,0 107,3% 110,9%

Financial means of local governments

In million millions

CZK

Expected revenues in 2009 Expected revenues for 2010 2010/2009

Communities, including

Prague

Voluntary corporations

within the communities

RegionsNUTS

councils

Non-consolidate

d total

Consolidated total

Communities,

including Prague

Voluntary corporations

within the communities

RegionsNUTS

councils

Non-consolidate

d total

Consolidated total

Total

Fiscal revenues 139,2   44,0   183,2 183,2 154,3   47,2   201,5 201,5 110,0%

Non-fiscal revenues 26,9 0,6 3,7   31,2 30,6 28,3 0,6 4,0   32,9 32,2 105,2%

Investment resources 14,2 0,1 0,5   14,8 14,8 14,1 0,1 0,5   14,7 14,7 99,3%

Proper resources 180,3 0,7 48,2   229,2 228,6 196,7 0,7 51,7   249,1 248,4 108,7%

Operating grants 58,9 0,9 80,6 0,8 141,2 137,2 59,4 0,9 75,9 0,2 136,4 132,4 96,5%

Investment grants 12,6 1,2 6,5 6,8 27,1 20,0 8,7 0,8 2,3 3,1 14,9 9,5 47,5%

Total grants 71,5 2,1 87,1 7,6 168,3 157,2 68,1 1,7 78,2 3,3 151,3 141,9 90,3%

Total resources 251,8 2,8 135,3 7,6 397,5 385,8 264,8 2,4 129,9 3,3 400,4 390,3 101,2%

Operating expenditure 188,0 0,8 117,3 0,8 306,9 302,3 189,4 0,9 112,3 0,2 302,8 298,1 98,6%

Investment expenditure 78,5 2,2 24,4 6,8 111,9 104,8 78,6 1,8 19,7 3,1 103,2 97,8 93,3%

Total expenditure 266,5 3,0 141,7 7,6 418,8 407,1 268,0 2,7 132,0 3,3 406,0 395,9 97,2%

Balance -14,7 -0,2 -6,4   -21,3 -21,3 -3,2 -0,3 -2,1   -5,6 -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.”