Ion ȘTEFANOVICI: “Give us in 2025, the ADMINISTRATIVE-TERRITORIAL REFORM of ROMANIA through REGIONALIZATION, in the context of the functioning of the European Union.”

Between July 4 and 6, 2024, the Casino Baths Museum Center in Vatra Dornei will host the 18th edition of the Moldova Regional Economic Forum. This event has brought together experts, leaders, and decision-makers to discuss the planning and cooperation necessary to achieve the strategic objectives set for Moldova 2030

The central objective of the Forum was to ensure the necessary conditions for “Planning and Cooperation on the strategic objective: Moldova 2030.”

In the context of the 2024 Regional Economic Forum of Moldova held in Vatra Dornei, Ion Ștefanovici, the president of the Center for Regional Development Analysis and Planning (C.A.P.D.R.), delivered a speech on the necessity of implementing the Administrative-Territorial Reform in Romania based on the principles of REGIONALIZATION, in accordance with European Union standards.

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Implementing the ADMINISTRATIVE REFORM of ROMANIA based on the principles of REGIONALIZATION, in the context of the functioning of the European Union

1. Balanced regional development

Regionalization can contribute to reducing economic and social disparities between regions. Currently, Romania faces major imbalances:

• The Bucharest-Ilfov region has a GDP per capita of over 160% of the EU average, while the northeast and southwest regions are around 40-50% of the EU average.
• Regionalization could enable more balanced development through more efficient allocation of resources and development projects.

2. Adapting to EU policies and requirements

Regionalization would facilitate Romania’s alignment with European Union policies and requirements, ensuring faster and more efficient implementation of European directives and regulations.

• After adopting a system of regional autonomy, Spain managed to adapt its regional policies to EU requirements, benefiting from greater flexibility in managing funds and implementing European projects.

3. Improving the absorption of European funds

One of Romania’s major issues is the low absorption of European funds. Regionalization could help with better management and distribution of these funds. For example:

• After implementing regional reform in 1999, Poland saw a significant increase in the absorption of European funds. During 2007-2013, Poland absorbed approximately 101 billion euros, becoming one of the largest beneficiaries of EU funds.
• In Romania, the absorption rate was around 33% in 2013, among the lowest in the EU.

4. Increasing economic competitiveness

Larger and stronger administrative regions can develop economic growth strategies tailored to local specifics, leading to increased competitiveness on the European and international stage.

• Italy implemented regionalization that allows regions to develop their own economic strategies. For example, the Lombardy region has one of the strongest economies in Europe, thanks to its administrative and economic autonomy.

5. Increasing administrative efficiency and transparency

Regionalization can lead to more efficient and transparent administration, which could help reduce corruption and improve the management of public resources.

• Germany is a relevant example, where the federal structure allows for governance closer to the citizens, with a high level of efficiency and transparency in administration.
• In Romania, the Corruption Perceptions Index was 44/100 in 2022, according to Transparency International, highlighting the need for reforms to improve governance.

Including regionalization in Romania’s administrative reform could combat the negative effects of migration and depopulation by revitalizing villages and small towns through development projects tailored to local needs.

By creating strong and autonomous regional authorities, Romania could stabilize its demographics and offer better economic opportunities for residents, thus contributing to balanced and sustainable development across the entire country within the context of the European Union.

6. Combating depopulation and stimulating local development

Massive internal and external migration from Romania has led to significant depopulation of villages and smaller towns, negatively impacting local development and the regional economy.

• Statistical data: Between 2007 and 2017, over 3.4 million Romanians emigrated to other EU countries, according to Eurostat. Meanwhile, many villages and small towns in Romania have been depopulated, with population decline rates exceeding 20% in some regions.
• Negative effects: Depopulation has led to the closure of schools, hospitals, and other public services, exacerbating poverty and the lack of economic opportunities in these areas.

Regionalization could help combat these negative effects by:

1. Strengthening regional authorities: Creating strong regional authorities to directly manage local issues could contribute to developing infrastructure, creating jobs, and improving public services. This could reduce internal and external migration by offering better prospects for residents in affected areas.
2. Regional development projects: Regional authorities could implement development projects tailored to local needs, such as revitalizing infrastructure, supporting agriculture and small businesses, promoting local tourism, etc.
3. Success stories:
   • Poland: After regionalization in 1999, Polish regions developed specific development strategies that contributed to economic growth and demographic stabilization. For example, the Podkarpackie region implemented projects to support the aerospace and IT industries, thus attracting skilled labor.
   • Germany: German regions have significant autonomy in managing local issues. The East German regions, initially affected by depopulation after reunification, managed to attract investments and stabilize demographics through specific regional strategies.

4. Improving public services: Regionalization would allow for better allocation of resources and improve access to essential public services such as education, healthcare, and public transportation, thereby reducing reasons for residents to leave.
5. Resistance to change and political challenges

Administrative reform based on regionalization principles may face significant resistance from politicians and mayors who fear losing their constituencies and political influence

Politicians and electoral constituencies

• Political losses: Politicians who lose their electoral constituencies due to administrative consolidation may strongly resist reform, fearing the loss of their electoral base and, consequently, their seats in Parliament.
• Examples: In other countries where similar reforms have been implemented, political resistance has been considerable. For instance, in Italy, proposals to reduce the number of administrative regions faced opposition from local politicians who feared losing political influence and regional funding.

Mayors and local administrative units

• Impact on mayors: Administrative consolidation will lead to the disappearance of smaller administrative units, resulting in the loss of mayor positions for some local leaders. They will oppose the reform to maintain their positions and control over local resources.
• Examples: In France, the territorial reform of 2015 faced strong opposition from mayors of small communes, who feared losing autonomy and local control.

8. Resizing the state apparatus and streamlining public administration

Administrative reform will also lead to resizing the state apparatus at the local level, which involves significant adjustments and streamlining.

Reducing the number of public servants

• Streamlining administration: Consolidating administrative units will lead to a reduction in the number of public servants by eliminating redundant positions and optimizing administrative structures.
• Financial savings: A more efficient administration will generate significant savings in the public budget, which can be redirected towards regional development projects and improving public services.

Examples from other countries

• Sweden: The administrative reform in Sweden, which reduced the number of municipalities from over 2,500 to approximately 290 during the 1950s-1970s, led to a more efficient and less costly local administration.
• Denmark: In 2007, Denmark implemented a major reform, reducing the number of municipalities from 271 to 98 and establishing 5 administrative regions. This reform resulted in significant savings and improved coordination of public services.

9. Improving citizen participation and local democracy

Regionalization can facilitate greater citizen involvement in decision-making processes, leading to a more robust local democracy.

• Increased participation: Larger and stronger regional structures can develop more efficient mechanisms for public participation, such as citizen consultations, local referendums, and digital platforms for civic engagement.
• Successful examples: In Germany, the states (regions) have significant autonomy and frequently organize public consultations and local referendums, which result in active citizen involvement in decision-making processes.

10. Modernizing regional infrastructure

Regionalization can contribute to the modernization of infrastructure through coordinated regional projects, attracting investments and improving quality of life.

• Infrastructure development: Larger and stronger regions can plan and implement larger and more complex infrastructure projects such as highways, railways, energy, and water networks, which are essential for economic development.
• Examples: In Spain, autonomous communities have efficiently managed European funds to modernize infrastructure, such as the high-speed train network (AVE), connecting major cities and stimulating regional economic development.

11. Adapting to climate change and environmental protection

• Regionalization can enable better management of natural resources and strategies for adapting to climate change.
• Natural resource management: Larger administrative regions can develop and implement integrated strategies for managing natural resources, protecting biodiversity, and combating pollution.
• Adaptation strategies: Regionalization can facilitate the creation and implementation of effective strategies for adapting to climate change, such as flood protection, sustainable forest management, and promotion of renewable energies.
• Examples: Regions in the Netherlands have implemented regional water management and flood protection programs, using European funds and local expertise to create sustainable and efficient solutions.

 

Administrative reform based on regionalization principles, despite facing significant challenges, promises numerous benefits that outweigh initial costs and resistance to change.

Reducing regional disparities, improving the absorption of European funds, streamlining public administration, combating depopulation, modernizing infrastructure, and adapting to climate change are just a few of the advantages of such a reform.

By learning from the successful experiences of other EU member states, Romania can implement administrative reform that contributes to its sustainable and balanced development, benefiting all its citizens.