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Newman and Thornley (1996) explained that, in Europe, the notion of Weltstadt historically denoted the cultural dominance of a few European cities, London, Paris, Vienna and Berlin, in the 1920s, essentially as a result of globalisation. Elgendy et al (2006) explained that many European cities have witnessed a rapid urban growth for several decades in the twenties century especially the second half of it. This urban growth was initiated by an intensive increase in industrial investments after World War II, mainly in the 1950s and the 1960s. The resulting growth in job opportunities led to a similar increase in population to fulfil the demand on labour force and consequently on housing areas, services areas as well as infrastructure and roads.

In 1999, a non-binding document called the European Spatial Development Perspective (ESDP) was signed by the ministers of each member state of the EU. One of the key non-contested ideas of the ESDP was the introduction of polycentricity, a key element of spatial planning, which is the concept of avoiding excessive population and economic concentration within the EU’s core area and creating a more balanced and sustainable development, within the context of globalisation. This type of planning is known as supra-national planning.

Although the ESDP had no obligatory status, it has been particularly influential in managing spatial planning policies in the EU and creating cohesion and competition (Shaw and Sykes, 2004). However, some argue that there has been an emphasis on urban competitiveness rather than on cohesion, and ignorance of sustainability. Some may argue that some of the aspects of spatial planning have taken a backseat to improving economic sustainability.

Also, there is an increasing debate over whether strengthening certain centres within the EU will actually increase the overall competitiveness and also that co-ordination between different governments and the public/private sectors is lacking. It may be argued that bottom-up approaches, such as in France and Finland may be the way forward in the context of globalisation.

Another important step in EU spatial planning was the introduction of financial support to applicant states to assist them in aligning legal and administrative systems, policy and practice (e.g. The Common Agricultural Policy funds). This ‘radical’ type of spatial planning has been very important in the EU’s objectives of enlargement and has had a positive impact on countries such as Portugal (mentioned below). In many cases, EU funding accompanied by EU spatial planning policy has led to improvements in national-level planning. Many EU member states apply mechanisms of national planning such as planning guidance and indicative national spatial plans (Module 2.2 course material).

The property development industry has itself responded to the challenge of globalisation. There have been two significant international trends in Europe. The first is the internationalisation of utilities companies and their interest, not just in service provision, but in development and providing planning expertise to local governments (Newman and Thornley, 1996). The second is the lead taken by many banks, and property companies in transforming urban decision-making in Eastern Europe. These trends in property markets and the development industry have impacts on all cities, not just those at the top of the hierarchy.

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