Building on the analysis of eleven cross-border regions and a thorough review of current literature on cross-border regions and policies, we identified four distinct governance models used in cross-border labour markets. In today’s post, we will explore the centralised governance model, highlighting its key features and approach.

Centralised governance models in cross-border labour markets are characterised by decision-making processes that predominantly occur at the national level, with minimal involvement from regional or local authorities. This can limit the ability of local actors to influence cross-border policies and address labour market issues effectively. An example of this is found in the Slovak-Hungarian border region, where most policy decisions are controlled by national governments. Despite significant cross-border commuting and shared labour market challenges, there is limited formal coordination at regional or local levels.

In regions like the New Aquitaine-Basque Country-Navarre Euroregion, collaboration with European institutions has helped foster some degree of cross-border cooperation. However, centralised social security systems and a lack of harmonised legal frameworks, particularly regarding benefits and access to healthcare, continue to pose obstacles to cross-border labour mobility. This model relies heavily on national governments, often resulting in slower progress toward integrated cross-border labour markets.

Such models can be efficient when addressing broad national policies but often struggle to address the specific needs of cross-border workers, such as differences in professional qualification recognition and social security systems. Additionally, centralised governance structures often fail to prioritise the creation of cross-border indicators and data-sharing mechanisms, leaving gaps in knowledge about cross-border commuting patterns and labour market needs. Without robust, harmonised data, it becomes challenging to effectively monitor cross-border labour market dynamics or design policies that respond to regional realities. 

While project-driven cooperation, funded by EU initiatives like Interreg, offers some solutions, centralised models generally suffer from a lack of formal regional structures to facilitate an ongoing, sustainable governance at this level.

The full report detailing the governance models and case studies will be available to the public after the project’s official conclusion in early 2025. In the meantime, if you have any comments or questions, feel free to reach out to us.