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Political and Administrative Decentralization in Portugal: Four Decades of Democratic Local Government

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Local Government and Urban Governance in Europe

Part of the book series: The Urban Book Series ((UBS))

Abstract

The chapter examines and discusses the process of political and administrative decentralization in Portugal seen as the basic institutional framework for urban governance. It focuses, in particular, the period during which Portugal was under the Memorandum of Understanding on specific economic policy conditionality (MoU) and the proposals of the XXI Government (2015–2019) for the reform of local government, which are expected to revert part of the policy options taken during the recent economic adjustment programme (2011–2014/2015). The research on which the chapter is based uses a qualitative case study approach. The chapter shows that the transition from the authoritarian period (1926–1974)—the military dictatorship (1926–1932) and the authoritarian political regime of the Estado Novo (1933–1974)—to the II Republic, in 1974, marks a shift in the nature and in the modus operandi of sub-national regional and local self-government in Portugal. It also shows that these institutional changes and social progress, the result of decentralization from the state to sub-national tiers of government, were affected by the austerity policy implemented by the XIX Government (2011–2015) in the context of the assistance program. This counterrevolution in the local government system, produced in the name of an austerity policy imposed by international institutions in the context of the MoU, is expected to be reverted, at least partially, by the XXI Government, considering the electoral manifestos of the three political parties that support it and the government program approved in Parliament.

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Notes

  1. 1.

    Assembleia da República (2005). Constitution 1976, Article 6. See also: Canotilho and Moreira (1993), and Miranda (2007).

  2. 2.

    See: Barreto (1998), Caupers (2009), Oliveira (1996a, b), Sá (1989), Santos (1985), and Silva (2000a, b, c, d).

  3. 3.

    On the parishes (‘freguesias’), see: Santos (1995).

  4. 4.

    Citizens can also interfere in the local governance through local referendum (Law no. 4/2000, 24 August 2000; law no. 3/2010, 15 December; Law no. 1/2011, 30 November: ‘referendo local’).

  5. 5.

    For a more detailed description and analysis of this process, see, among others: Silva (1995, 2004a, b).

  6. 6.

    For the history of regional autonomy in Madeira, see: Carita (2007).

  7. 7.

    Since the end of decolonization process, in the mid 1970s, the territory of Portugal comprises the territory on the European mainland, the archipelagos of Azores and Madeira, the territorial waters, its exclusive economic zone, and the adjacent seabeds, as defined in Article 5 of the Constitution. According to the 1976 Constitution, Article 5 (7th Revision 2005), the state can only transfer any of the sovereign rights that it exercises over the national territory for the purpose of rectifying frontiers.

  8. 8.

    Silva (2002a), and Silva and Syrett (2005, 2006) provide a critical perspective of the various attempts to implement a form of metropolitan government in Portugal. See also Moreira (2007) and Amorim (2009) on more recent developments on this issue.

  9. 9.

    After the 2015 October election, the coalition PSD and PP formed a new government (XX Government, Decret-Law no. 249-A/2015, 9 November 2015; and Resolução do Conselho de Ministros no. 90-B/2015, 9 November 2015), which lasted only few weeks, as its program was rejected in Parliament (Moção de Rejeição no. 1-A/2015, 11 November 2015). A new government was then formed by the Socialist Party (‘Partido Socialista’) with the parliamentary support of the Communist Party (Partido Comunista Português), the Ecologist Party (Partido Ecologista ‘Os Verdes’), and the Left Bloc (Bloco de Esquerda). The new prime minister and his government were nominated by the President of the Republic on November 26, 2015 (Decreto do Presidente da República no. 129-C/2015, 26 November 2015). The XXI Government structure was approved by Decret-Law no. 251-A/2015, 17 December 2015. The council of ministers is regulated by Resolução do Conselho de Ministros no. 95-A/2015, 17 December 2015.

  10. 10.

    The chapter is part of an ongoing research interest focused on the local government system and policies in Portugal in the II Republic (1974–…), which is expressed, among other publications, in: Silva (1995, 1996, 2002a, b, 2004a, b, 2006, 2009, 2014, 2015a, b). Parts of the analysis presented in this chapter, in particular for the first decades of the II Republic, is taken from some of my previous publications listed here. The chapter adds new evidence and insights for the most recent period considered in the analysis.

  11. 11.

    For an historical overview of local administration in Portugal, see: Coelho and Magalhães (1986), Moreno (1986) and Oliveira (1996a, b).

  12. 12.

    See: Santos (1995).

  13. 13.

    For a discussion of the recent changes in the local political leadership model, see Silva (2009). The political minority in the elected local government boards have the right to develop a democratic opposition, according to Law no. 24/98, 26 May 1998 (‘Estatuto do Direito de Oposição’). Replaced Law no. 59/77, 5 August 1977. In 2005 was introduced legislation to limit the number of years in office for local councillors (Law no. 46/2005, 29 August 2005—‘estabelece limites à renovação sucessiva de mandatos dos presidentes dos órgãos executivos das autarquias locais’).

  14. 14.

    Law no. 8/2009, 18 February 2009—Youth Municipal Council (‘define o regime jurídico dos conselhos municipais de juventude’); Decret-law no. 7/2003, 15 January 2003—Education Municipal Council (‘define os conselhos municipais de educação’); Law no. 33/98, 18 July 1998—Municipal Security Council (‘define os conselhos municipais de segurança’).

  15. 15.

    The structure, competences, and the functioning of municipalities and parishes are regulated by the new local government act—Law no. 75/2013, 12 September 2013. This law represents to some extent a change in several aspects of the local government system. For a critique of this law and the process behind it, see Alexandrino (2014). It is expected to be changed again as part of the local government reform announced by the XXI Government (2015–2019). See Fonseca (2013) for a discussion of the proposed system of transference of competences for the parish (Proposta de Lei no. 104/XII).

  16. 16.

    There are different perspectives in relation to how municipal competences should be defined. The principle of generality offers more guarantees for local government autonomy, although this seems not to be the perspective of the national association of municipalities or of part of its members as expressed in the XXII Congress (ANMP 2015). But I do agree with the ANMP that it is necessary an additional act defining the limits between what is responsibility of municipalities from what belongs to central government, as was done in 1984 and to some extent also in 1999. See Fonseca (2013) for a discussion of the proposed system of transference of competences for the parish (Proposta de Lei no. 104/XII). The new local government act (‘Regime Jurídico das Autarquias Locais—Law 75/2013, 12 September) defines the competences of municipalities by the principle of generality, which is in accord with the Constitution, contrary to the previous Local Government Act (Law 159/99, 14 September 1999), which opted for a more detailed enunciation of these competences. The Decret-law 30/2015, 12 February, defines the delegation of competences from central government to the municipalities and inter-municipal entities. Nonetheless, this is clearly not a process of decentralization as a delegation is an ephemeral process, potentially unequal, and one that does not lead to the true reform of the state.

  17. 17.

    Carta Social.

  18. 18.

    Conselhos Locais de Ação Social.

  19. 19.

    For instance, in the conclusions of the ANMP XX Congress, in 2012 (ANMP 2012a, point 6).

  20. 20.

    Important to note here, although outside the aim of this chapter, is the gradual move, in some areas or sectors of municipal policy, from traditional modes of hierarchical government to modes of networked governance (see, e.g., Silva 2004a, b).

  21. 21.

    Decret-Law no. 116/84, 6 April 1984 replaced by Decret-Law no. 305/2009, 23 October 2009.

  22. 22.

    Law 49/2012, 29 August—new rules for municipal staff (senior officers) similar to those applied in central government (Law 64/2011, 22 December).

  23. 23.

    ANMP (2014c). Comunicado ‘Acordo ANMP—Governo sobre o Fundo de Apoio Municipal,’ Coimbra, July 8, 2014. For an analysis of the FAM (Fundo de Apoio Municipal) see Silva and Santos (2014). This municipal support fund (Law 53/2014, 25 August) is the instrument designed to support the new regime (PAM—Municipal Adjustment Program) intended to provide financial assistance to the municipalities in a situation of financial rupture, according to the local finance act (Law 73/2013, 3 September). The municipalities engaged in this program are subjected to several limitations and to mandatory actions, which clearly undermines the autonomy of local government.

  24. 24.

    Law 1/79; Decret-law 98/84; Law 1/87; Law 42/98; Law 2/2007; Law 73/2013. See Rocha and Pinto (2014) for an analysis of the different local finance acts. In practice, there was a decline in the share of local government in the national tax income after the first revision of the Law 1/79, an effect particularly important in small and medium-sized municipalities, namely those in the interior of the country and in the Azores and Madeira. The approval of Law 2/2007 motivated an extraordinary congress of the ANMP in 2006, in which the new law was rejected by the national association of municipalities.

  25. 25.

    ANMP statement, May 4, 2011 (Comunicado ‘Memorando de Entendimento da Troika: ANMP Contra a Proposta Para Redução dos Municípios,’ Lisbon, 4 May 2011). The ANMP refers that the municipalities had together a positive result of around 70 million Euros in 2010. In 2011, the ’superavit' was nearly 196, 1 million Euros. The total municipal debt had also a positive evolution in these years and represented only 4 % of the total public debt; the state debt is 96 % (ANMP 2012a).

  26. 26.

    Law 8/2012, 17 March [Lei dos Compromissos e dos Pagamentos em Atraso (LCPA)]. And Decret-law 127/2012, 21 June. It was required by the ‘Memorandum of Understanding on specific economic policy conditionality (MoU).’ Revised in 2015 by Law 22/2015, 17 March and Decret-law 99/2015, 2 July.

  27. 27.

    Law no. 73/2013, 3 September 2013 (defines the finance system of municipalities, parishes, and inter-municipal entities).

  28. 28.

    PEC—Programa de Estabilidade e Crescimento (Stability and Growth Programme): Programa de Estabilidade e Crescimento 2005–2009; Programa de Estabilidade e Crescimento 2006–2010; Programa de Estabilidade e Crescimento 2007–2011; Programa de Estabilidade e Crescimento 2008–2011; Programa de Estabilidade e Crescimento 2011–2014.

  29. 29.

    The MoU established the need to reduce at least 175 million Euros in the annual budget transfers from the state to the local and regional administration. This requirement leads to the revision of the Local Finance Act (municipalities and parishes), as well the Regional Finance Act (for the 2 autonomous regions).

  30. 30.

    The PAEL (Programa de Apoio à Economia Local) was approved in August/September 2012 (Law 43/2012, 28 August; Portaria 281-A/2012, 14 September). The program consisted in medium-/long-term loans to be used to pay municipal debts with more than 90 days on March 31, 2012. The program approved the proposals of 112 municipalities. Only in 2013 did the municipalities included in the program receive this support. Only 6 municipalities received a first parcel in the last week of 2012.

  31. 31.

    ANMP (2013a). Comunicado ‘A ANMP e as Taxas de IMI,’ Coimbra, May 17, 2013.

  32. 32.

    Law 53/2014, 25 August: FAM—Fundo de Apoio Municipal (‘Municipal Support Fund’).

  33. 33.

    ANMP (2014a, b, c, d, e, f). Comunicado ‘Acordo ANMP—Governo sobre o Fundo de Apoio Municipal,’ Coimbra, July 8, 2014. As part of this agreement, the government agreed the following: (1) to revise the ‘Lei dos Compromissos e Pagamentos em Atraso’; (2) to devolve the autonomy municipalities had previously in the organization of their services and in the management of their staff, having as the sole limit the total amount of salaries paid on average in the last 3 years; (3) to guarantee that the process of reorganization of the water and sewage sector would not involve the privatization of the water sector; and (4) to include incentives for municipalities in the green taxation reform being prepared at that time. The ANMP considered this was not the ideal agreement but was one that respected and reinforced the municipal autonomy. For an analysis of this new version, see Gomes (2015).

  34. 34.

    Law no. 50/2012, 31 August 2012 defines the regime of these local public enterprises. Replaced Law no. 53-f/2006, 29 December and Law no. 55/2011, 15 November. In the case of the water, waste, and sewage, municipalities can create special services (Decret-law no. 194/2009, 20 August 2009—‘estabelece o regime jurídico dos serviços municipais de abastecimento público de água, de saneamento de águas residuais e de gestão de resíduos urbanos’). In the same area/sectors can be created multimunicipal systems, defined in Decret-law no. 92/2013, 11 July 2013—‘define o regime de exploração e gestão dos sistemas multimunicipais de captação.’ tratamento e distribuição de água para consumo público, de recolha, tratamento e rejeição de efluentes e de recolha e tratamento de resíduos sólidos’. Silva (2000c) examines the introduction of these entities in the local government system in the late 1990s and early 2000s.

  35. 35.

    It was the case of Lei no. 45/2014 de 20 de Março. Municipalities and its national association opposed the privatization of the public enterprise ’Empresa Geral de Fomento.' See, among other, ANMP (2014b, d).

  36. 36.

    As referred in the conclusions of the XX ANMP Congress (2012a, point 8).

  37. 37.

    ANMP (2014a, b, c, d, e, f). Comunicado—‘ANMP considera “inaceitável e intolerável” não ser chamada a participar na elaboração dos regulamentos do Portugal 2020.’ The same happened with other important issues, as was the case of changes associated with the ‘green taxation’ (ANMP 2014a).

  38. 38.

    Entidade Reguladora dos Serviços de Águas e Resíduos (ERSAR). See: ANMP (2014b). Comunicado sobre as propostas de Lei que estabelecem o regime jurídico dos serviços municipais de abastecimento público de água, de saneamento de águas residuais urbanas e de gestão de resíduos urbanos. Coimbra, 5 February 2014.

  39. 39.

    ANMP (2012a, b). Comunicado ‘Municípios têm de ser ouvidos na questão do encerramento de Tribunais Judiciais,’ Coimbra, January 31, 2012; ANMP (2013b). Comunicado ‘A ANMP e o mapa judiciário ou a deslocalização e encerramento de mais serviços públicos de interesse geral,’ Coimbra, October 23, 2013. The ANMP opposition to this policy included others forms of public expression (e.g., the presence of over 100 councillors in the Parliament during the plenary discussion of this legislation, on May 2, 2014, as a form of protest; regional meetings of municipal councillors to discuss this and other issues related to the governmental decisions derived from the implementation of the MoU, such as reorganization and closure of other local public services, other than tribunals, namely primary schools, the PAEL—Programa de Apoio à Economia Local, and the Fundo de Apoio Municipal). See also the conclusion of the XXI ANMP Congress (ANMP 2013d).

  40. 40.

    ANMP (2014e). Nota do Conselho Diretivo Proposta de Diploma: ‘Estatuto das Estradas da Rede Rodoviária Nacional,’ Coimbra, September 2014.

  41. 41.

    Based on Law no. 22/2012, 30 May 2012; Law no. 11-A/2013, 28 January 2013 (administrative reorganization of the parishes' territory); and Law 81/2013, 6 December. The national association of municipalities (ANMP) was against this process, as clearly stated in its XX Congress in 2012. On the contrary, it was in favor of the reinforcement of the metropolitan areas and inter-municipal Communities and creation of administrative regions. For the ANMP, the fusion or aggregation of parishes should be done based exclusively on the initiative of each local authority or the respective local populations. Parallel to the national reform in the number of parishes, the municipality of Lisbon was already conducting a reform of its parish administrative division, which was approved by Law no. 56/2012, 8 November 2012 (administrative reorganization of Lisbon), reducing the number of parishes from 53 to 24 (Belém, Ajuda, Alcântara, Benfica, São Domingos de Benfica, Alvalade, Marvila, Areeiro, Santo António, Santa Maria Maior, Estrela, Campo de Ourique, Misericórdia, Arroios, Beato, São Vicente, Avenidas Novas, Penha de França, Lumiar, Carnide, Santa Clara, Olivais, Campolide, Parque das Nações).

  42. 42.

    Portugal: Memorandum of Understanding on specific economic policy conditionality. 3 May 2011 (EC/ECB/IMF 2011; Silva 2014).

  43. 43.

    ANMP statement, May 4, 2011 (Comunicado ‘Memorando de Entendimento da Troika—ANMP Contra a Proposta Para Redução dos Municípios,’ Lisbon, May 4, 2011). Three main reasons were referred: First, the extinction of municipalities is a competence of the Parliament not a governmental competence; second, such reform should be considered within a larger process involving also the reform of the state; and third, the Portuguese municipalities are among the largest on average in Europe, whatever the criteria used, including the demographic one.

  44. 44.

    For a perspective from inside the political process behind this reform of local administration, see Relvas and Júlio (2015). The authors of this book are the former minister and secretary of state responsible for the reform of local administration during the XIX Government. For a discussion about the need of this reform, see: Oliveira (2011). See also the document (Green Book) prepared by the XIX Government and on which the reform of local administration was based: Governo de Portugal (2011). And Carneiro (2012) for a discussion of these proposals.

  45. 45.

    For an analysis of the impacts of the MoU on other dimensions of local government, see Alexandrino (2012).

  46. 46.

    Comunicado do Conselho de Ministros, 14 January 2016.

  47. 47.

    For instance, several project laws presented, in November 2015, by political parties that support the XXI Government: PCP (project-law 23/XIII; 25/XIII) and BE (project-law 47/XIII; 48/XIII; 49/XIII; 50/XIII), concerning the ‘privatization’ of public transport in Lisbon and Porto—Carris, Lisbon Metro, STCP, and Porto Metro.

  48. 48.

    IRS (Personal Income Tax), IRC (Corporation Income Tax), and IVA (Added Value Tax).

  49. 49.

    Projeto de lei no. 119/XIII (1.ª), 30 January 2016: Procede à alteração do regime de permanência dos membros das Juntas de Freguesia (presented by the party PAN—Pessoas, Animais, Natureza). This proposal will change the current system defined in: Article 27.º, Law no. 169/99, 18 September 1999; and in the Article 5.º and Article 7.º Law no. 11/96, de 18 April 1996. The statute of local councillors is regulated by Law no. 29/87, 30 June 1987 (‘Estatuto dos Eleitos Locais’), changed by Law no. 97/89, 15 December, Law 1/91, 10 January 1991; Law 11/91, 17 May 1991; Law 11/96, 18 April 1996, Law 127/97, 11 December, Law 50/99, 24 June, Law 86/2001, 10 August 2001; and Law 22/2004, 17 June 2004, changed and republished by Law no. 52—A/2005, 10 October.

  50. 50.

    For a detailed perspective of this historical process, namely in the first decades after the adoption of the 1976 Constitution, see the texts quoted in note 2. See also Carita (2007) for the case of Madeira.

  51. 51.

    For instance, the case of the ministries of health, education, agriculture, environment, and so on.

  52. 52.

    CCDR—Comissão de Coordenação e Desenvolvimento Regional. The boundaries of these regional divisions have changed over the years. They were first created in the last years of the Estado Novo, as part of the 5-year development program, being renamed several times since then, besides the adjustments in their geographical areas and in its competencies. CCDR is now an institution more open to the participation of different local interests. For an historical overview of this process, see: Oliveira (2008).

  53. 53.

    See Carita (2007) for the case of Madeira. Despite the differences among political parties, on some key points it is possible to talk of a national political consensus in favor of the regional autonomy in Azores and Madeira. This political commitment in favor of the regional autonomy is well expressed in the 2015 electoral manifesto of the Socialist Party (‘Partido Socialista, 2015, pp. 48.’), the party that supports the current XXI Government (2015–2019). The same can be found in the 2015 electoral program of the coalition between the Social Democratic Party and the Popular Party (Coligação Portugal à Frente 2015, pp. 129)—‘Agora Portugal Pode Mais—Programa Eleitoral—the main opposition political block in the current parliament (2015–2019). This political commitment in favor of the regional autonomy is also expressed in the 2015 electoral manifesto of Bloco de Esquerda (2015, pp. 59–64)—‘Manifesto eleitoral–Bloco de Esquerda, Legislativas 2015’—and in the 2015 electoral program of the Communist Party (‘Partido Comunista Português, 2015’, pp.70). Finally, it is also expressed in the program of the XXI Constitutional Government (2015–2019), pp. 85–86.

  54. 54.

    Law 56/91, 13 August established, among other aspects, the organization and competences of the regions. It was approved by unanimity in Parliament. The Law 19/98, 28 April, on the creation of regions was approved by an overall majority.

  55. 55.

    The literature on the attempts to institutionalize the administrative regions in Portugal after 1974 is extensive. For an historical overview of the first decades of this process, see, among others, the texts quoted in the note 2; see also, MEPAT (1998). Syrett and Silva (2001) examine the creation of regional development agencies, one of the various attempts made over the years to create regional-wide institutions.

  56. 56.

    Law 45/2008, 27 August on the Inter-municipal Communities (CIM). The last reform of inter-municipal entities, carried out by the XIX Government, is defined in the Law no. 75/2013, 12 September 2013. For an analysis of this new regime of inter-municipal entities, see Gonçalves (2014). In 2012, a pilot study on the new competences and financing of these entities was published by central government (DGAL 2012).

  57. 57.

    For the specific case of inter-municipal cooperation in the metropolitan areas (‘metropolitan government’), see: Silva (2002a, b), Amorim (2009), and Moreira (2007).

  58. 58.

    On municipal associations, see: Silva (1993, 2006), Lopes (2009), Moreira (2007), and Amorim (2009).

  59. 59.

    NUT-II and NUT-III regions follow the European nomenclature.

  60. 60.

    The two metropolitan transport authorities (Lisbon and Porto) were instituted by Law 1/2009, 5 January and were abolished by Law 52/2015, 9 June. Their competences were inherited by the two metropolitan entities (Lisbon and Porto).

  61. 61.

    Inter-municipal Communities: Alto Minho, Cávado, Ave, Alto Tâmega, Tâmega e Sousa, Douro, Terras de Trás-os-Montes, Região de Aveiro, Região de Coimbra, Região de Leiria, Viseu Dão Lafões, Beiras e Serra da Estrela, Beira Baixa, Oeste, Médio Tejo, Alentejo Litoral, Alto Alentejo, Alentejo Central, Baixo Alentejo, Lezíria do Tejo, Algarve.

  62. 62.

    ANMP (2013c). Comunicado ‘Iniciativa da ANMP de suscitar a inconstitucionalidade do diploma sobre o estatuto das comunidades intermunicipais coroada de êxito,’ Coimbra, May 29, 2013.

  63. 63.

    The regime of administrative tutelage is currently regulated by Law no. 27/96, 1 August 1996 (‘Regime jurídico da tutela administrativa’).

  64. 64.

    In 1982, 1989, 1992, 1997, 2001, 2004, and 2005 (CRP 2005). A new constitutional revision was expected to take place during the period 2009–2013, as announced by the two main political parties in Parliament. Nonetheless, the political crisis that lead to the overthrown of the XVIII Government in the middle of its mandate, in 2009, and the following economic adjustment program implemented by the XIX Government changed the terms of this issue.

  65. 65.

    For an analysis and discussion of some of these issues, see: Silva (2009, 2015a, b).

  66. 66.

    For more on this, see: Silva (2014, 2015a, b), Caupers (2009), Oliveira (1996a, b, 2008), and Sá (1989).

  67. 67.

    PEC—Plano de Estabilidade e Crescimento.

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Nunes Silva, C. (2017). Political and Administrative Decentralization in Portugal: Four Decades of Democratic Local Government. In: Nunes Silva, C., Buček, J. (eds) Local Government and Urban Governance in Europe. The Urban Book Series. Springer, Cham. https://doi.org/10.1007/978-3-319-43979-2_2

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