Europe-wide arrangements for credit to municipal and regional authorities

Recommendation 241 (1960)

Author(s):

Parliamentary Assembly

Origin

Assembly debate on 28th April 1960 (7th Sitting) (see Docs. 1103Docs. 1103, Report of the Committee on Local Authorities). Text adopted by the Assembly on 28th April 1960 (7th Sitting), after amendment.

The Assembly,

Having noted Opinions Nos. 10 and 11 adopted at the second session of the European Conference of Local Authorities, asking the Council of Europe to instruct experts to study the problems of setting up a European municipal credit institute and to lay down the measures appropriate for the establishment of such an institute ;

Having noted Resolution 19, adopted at the third session of the Conference, confirming the previous views of the Conference ;

Anxious to respond to the Conference's wishes reflecting the aspirations of local authorities which have been expressed on numerous occasions and, in particular, at the meetings of the States -General at Versailles, Venice, Frankfurt, Bad-Homburg, Liege and, lastly, at Cannes ;

Convinced that Europe-wide arrangements for credit to municipal and regional authorities would enable those authorities to obtain capital on better terms and might greatly benefit economic and social development in the areas and municipalities of member countries ;

Considering that these problems should be studied not only by representatives of the various financial bodies concerned with the granting of credit to local authorities but also by technical experts from Ministries of the Interior and of Finance, who are particularly well placed to assess the legitimate capital requirements of the municipalities concerned ;

Considering that, if experts of differing background and approach are to participate in the study, it ought to be directed by an independent politician resolved to bring it to a successful conclusion,

Recommends that the Committee of Ministers appoint as soon as possible an ad hoc committee of experts :

1 to consider the problem of the access of municipal and regional authorities to other European capital markets; to lay down suitable means of facilitating such access and making it easier for even the smallest municipalities to float loans; to assess the advantages and disadvantages of creating a European municipal credit institute ;

2 this committee to consist of representatives from Ministries of the Interior, Ministries of Finance and of financial bodies concerned with credit to local authorities, such as the Netherlands Bank voor Nederlandsche Gemeenteen, the Belgian Credit communal de Belgique, the Danish Kommunal Laanefond, the French Caisse des Depots et Consignations, the European Municipal Credit Community, the British Public Works Loan Board, Savings Banks, etc. ;

3 under the direction of an eminent politician appointed for the purpose by the Committee of Ministers.