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Opinion | Doc. 12572 | 11 April 2011
Over-indebtedness of states: a danger for democracy and human rights
Committee on the Environment, Agriculture and Local and Regional Affairs
A. Conclusions of the committee
(open)The Committee on the Environment, Agriculture and Local and Regional Affairs congratulates the Committee on Economic Affairs and Development, especially its rapporteur, Mr Pieter Omtzigt, on having brought to the Assembly’s attention the issue of over-indebtedness of states as a danger for democracy and human rights.
The committee points out that local and regional authorities are directly affected by the problem of over-indebtedness and should find a long-term solution to the socio-economic consequences of public debt.
Therefore, the committee proposes the following amendments in order to emphasise the responsibility of local and regional authorities in tackling the consequences of the economic crisis:
B. Proposed amendments to the draft recommendation
(open)Amendment A (to the draft recommendation)
In the draft recommendation, paragraph 10, after the words “Forum for the Future of Democracy,” add the following words:
“the European Committee on Local and Regional Democracy”.
Amendment B (to the draft recommendation)
In the draft recommendation, after paragraph 11.3, add the following sub-paragraph:
“to promote fiscal stimulus programmes supporting local economic development and to improve the targeting of social benefits to ensure that vulnerable populations receive adequate assistance;”.
C. Explanatory memorandum by Mr Meale, rapporteur for opinion
(open)1. The problem of over-indebtedness of states, which
was one of the major causal effects of the present world economic
downturn, is of great concern for all European states. As is rightly
stated in the report of Mr Omtzigt, the consequences of this problem
are now threatening the quality of life of European citizens.
2. The rapporteur agrees with Mr Omtzigt that the Council of
Europe can be a good forum to discuss the consequences of the world
economic crisis on most of the greater European democracies.
3. On the initiative of the 26th Conference of European Ministers
of Justice held in Helsinki in 2005, the European Committee on Legal
Co-operation (CDCJ) was entrusted by the Committee of Ministers
with the task of preparing an instrument defining legislative and
administrative measures to prevent over-indebtedness. As a result
of this work, the Committee of Ministers adopted Recommendation
CM/Rec(2007)8 on legal solutions to debt problems, in which it calls
on governments to alleviate the effects of the recovery of debts
and respect the human dignity of over-indebted persons and families.
4. The follow-up to this recommendation was given by the Congress
of Local and Regional Authorities of the Council of Europe in its
Recommendation 279 (2009) on over-indebtedness of households: the responsibilities
of regions. In this recommendation, the Congress invited the member
states “to disseminate the approach developed by the European Committee
on Social Cohesion (CDCS) in the Multipartite Social Contract, encouraging
local and regional authorities and civil society organisations to
coordinate their efforts to assist and provide services to over-indebted
people, setting up a dialogue with them and allowing them in particular
to exercise their solidarity and civic responsibility”. 
5. The European Committee on Local and Regional Democracy is
also looking into the problem of the impact of the world economic
crisis on local and regional authorities. This problem was a focal
point for the discussions at the Utrecht Conference of European
Ministers responsible for local and regional government in November
2009, and subsequently at the Strasbourg Conference in October 2010,
which reviewed the evolution of local government finance in Council
of Europe member states since the Utrecht session of the Ministerial
Conference. The Ministerial Conference in Kyiv in November of this
year will also address the impact of the crisis and whether or not
responses to it have reduced or enhanced the freedom of local governments to
conduct local affairs and manage public services in conformity with
the needs and preferences of citizens.
6. During this crisis period, local and regional authorities
bear a major responsibility for ensuring the social rights of their
citizens; they must find immediate solutions to the reduction of
social programmes and public services, family support, investments
in education and health sectors at local level.
7. The committee believes that the respect of human rights standards
should be a guiding principle in developing recovery strategies
at local and regional levels. The right to social security, an adequate
standard of living, food, education, housing, health and work, which
are protected by the European Social Charter, should be taken into
account when adopting national financial strategies for the redistribution
of resources.
8. European governments should reform their financial and administrative
management at national and local levels to ensure the allocation
of social benefits to the most vulnerable populations.
9. In the light of the above comments, the Committee on the Environment,
Agriculture and Local and Regional Affairs considers that the role
of local and regional authorities in the financial management and
in discovering solutions to the socio-economic consequences of the
economic crisis should be highlighted in the draft recommendation.