Eurostad the new Randstad…

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Border effects

The ‘Atlas voor gemeenten 2019’ was released on 22 May 2019. It compares the 50 largest municipalities in the Netherlands annually. These can be different policy areas that local, regional and central governments deal with. This year’s focus is ‘Growth & Shrinkage’. Report’s conclusion: border regions benefit greatly from a borderless Europe.

This is immediately visible in the residential attractiveness index, which shows two rankings; a ranking when border barriers are taken into account and a ranking without taking these into account. Maastricht was in position 37 and shoots up to position 7 when those border barriers are taken into account, Heerlen stood at place 43 and also shoots up to place 10. Venlo, from 47 to 11, and Sittard-Geleen, from 49 to 23, also show huge upward jumps.

The report brings nothing new under the sun, at least that depends on whose perspective you look at it from. For border regions, such as Euregio Maas Rijn, Euregio Maas Rijn Noord, Euregio Rijn Waal, Euregio Scheldemond, it is one and all recognition and they see confirmation in the report. However, many others are not (yet) aware that there are gains to be made at the border. This report will now contribute to that.

Various elements play a role in the choice of where to live and work. Cities with highly educated, creative people attract other highly educated people, where the supply of jobs and commuting time play a role, how the (road) infrastructure is arranged as well as what cultural facilities are available.

There are plenty of opportunities and possibilities in the border regions, yet they have not (yet) been cashed in. The border barriers in the labour market are diverse in nature and, mind you, they do not always have to be solved through laws and regulations. Understanding and knowing how to deal with language and cultural differences can pave the way as well as ensure good information provision.

There is not always a need to adapt tax laws and legislation around pensions and social security, for example, but rather to understand the cross-border consequences when someone decides to work on the other side of the border without moving.

This does not alter the fact that in some situations adaptation or new legislation is needed or a double taxation treaty needs to be re-examined, as has taken place with Germany and is currently ongoing with Belgium. In such cases, it is important that the legislator or treaty negotiator properly identify the potential border effects right from the initial plan and ensure from the outset that no new border barriers are created.

So what can we learn from Atlas municipalities 2019? That we should exploit the untapped potential of border regions. This is also encouraged by State Secretary Raymond Knops of the Ministry of the Interior and Kingdom Relations, who has cross-border cooperation in his portfolio. ‘Not limit growth, but grow at the border’ is therefore his motto.

So in addition to the Randstad, a Eurocity could suddenly emerge just like that in the south of the country. The agglomeration power of this area of the Euregio Meuse-Rhine (11,164 km2; for comparison Randstad 8,287 km2) without border barriers is enormous and is also located in the economic heart of Europe. The Eurocity with 5 universities located in close proximity to each other (Maastricht, Heerlen, Aachen, Hasselt, Liège), 7 campuses (UM Brightlands campuses, Aachen, Liège, Genk), more than 170,000 students, more than 250,000 companies, 3 academic hospitals and a labour force of 1.86 mio and 4 mio inhabitants.

Eurostad the new Randstad…

Prof. Anouk Bollen-Vandenboorn
Professor of cross-border tax pension law, Maastricht University-ITEM