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Territorial Review Copenhagen - Region Hovedstaden

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24<br />

…supported by the main stakeholders…<br />

Main stakeholders will have to be involved in the agenda for<br />

<strong>Copenhagen</strong>, so that resources and instruments focus on the same goals. The<br />

Capital <strong>Region</strong> will need the co-operation of the municipalities in the area,<br />

as well as of the national government, to increase <strong>Copenhagen</strong>‘s global<br />

appeal. During the 1990s, the national government recognised the<br />

importance of <strong>Copenhagen</strong>‘s competition with other European cities; this<br />

formulation has been effective due to the central government‘s recognition<br />

of the value of <strong>Copenhagen</strong> and its co-operation with regional actors, despite<br />

the absence of a regional planning agency. Governance mechanisms can<br />

influence the efficiency with which the common agenda can be formulated<br />

and implemented, and whether policies, public goods and services can be<br />

delivered.<br />

…with room for governments in the<br />

area to implement this agenda<br />

Considering <strong>Copenhagen</strong>‘s crucial role in the national economy, all the<br />

actors concerned, including the central government, have a stake in ensuring<br />

that governance frameworks and policies help to boost the competitiveness<br />

of the <strong>Copenhagen</strong> metropolitan region. Many of the obstacles to its future<br />

competitiveness are directly or indirectly related to national policy:<br />

(i) national immigration and tax policy have made <strong>Copenhagen</strong> less<br />

attractive to high-skilled foreign labour, (ii) housing legislation has made it<br />

difficult to solve issues of housing affordability, (iii) particular differences<br />

in national legislation of Sweden and Denmark have hindered the functional<br />

integration of the Øresund region, and (iv) the national parliament maintains<br />

control over the introduction of local congestion charges. Although these<br />

national frameworks are commonplace in unitary countries like Denmark,<br />

flexibility is essential given the unique nature of <strong>Copenhagen</strong>‘s challenges<br />

as compared to the rest of Denmark. <strong>Copenhagen</strong> is better connected to the<br />

global economy, has more immigrants, higher housing prices, more air<br />

pollution and more congestion. National policies will have to take<br />

<strong>Copenhagen</strong>‘s competitiveness into account. From a financial perspective,<br />

sub-national autonomy has been limited drastically over the last few years.<br />

National government has now put constraints on local taxation,<br />

expenditures, deficits, borrowing and the use of alternative financial<br />

instruments. Although this is understandable from the perspective of fiscal<br />

discipline, it leaves little flexibility for investments in municipalities that<br />

seek to improve their competitive position, such as the City of <strong>Copenhagen</strong>

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