“Local governments are responsible for implementing up to 70% of the European Union acquis. Their role in the EU accession process is not optional—it is essential,” Manojlović emphasized. Mišela Manojlović“local governments are responsible for implementing up to 70% of the European Union acquis. Their role in the EU accession process is not optional—it is essential,” said Mišela Manojlović, Secretary General of the Union of Municipalities of Montenegro, at the opening of the conference “Building Bridges between Local and Central Governments – Multi-level Governance in the Western Balkans,” organized by SIGMA OECD and NALAS.
Manojlović recalled that local governments across the region are facing numerous challenges.
“In most Western Balkan countries, fiscal systems are not aligned with the responsibilities entrusted to municipalities, as highlighted in the *Fiscal Decentralisation Report for South-East Europe* prepared by NALAS. Local governments are also under significant pressure due to rapid urbanisation, depopulation, economic changes, and global crises. Without stronger financial foundations, they cannot meet citizens’ expectations,” Manojlović warned.
As these challenges are also present in Montenegro, the Union of Municipalities of Montenegro has long been advocating for deeper fiscal decentralisation.
“We are actively engaged in dialogue with the Ministry of Finance to revise the legal framework governing municipal financing, ensure a fairer share of public revenues for local governments, and reform the tax system. Our objective is clear – municipalities must have sufficient financial resources not only to fulfil their statutory and other responsibilities, but also to invest in development rather than merely maintain basic public services,” Manojlović stated.
The significant progress made by the Union of Municipalities in this area was also recognized in the *Fiscal Decentralisation Report for South-East Europe*, which was presented at the conference.
The Report notes that the Union of Municipalities advocated for compensation for revenue losses resulting from national tax reforms and for strengthening municipal fiscal autonomy, particularly through amendments to the Law on Local Government Finance.
“The Union of Municipalities of Montenegro advocates for fiscal autonomy and compensation for revenue losses resulting from national tax reforms, such as changes to the structure of the personal income tax. The Union has a strong internal organizational structure that contributes to its expertise in consultations and working groups with the central government,” the Report states.
In addition to Manojlović, the opening session featured remarks by the Minister of Public Administration Marash Dukaj, a representative of the European Union Delegation, Orlando Fusco, as well as the Deputy Head of the SIGMA Programme, Bianca Breteche.
The conference aimed to facilitate the exchange of experiences among public administrations across the Western Balkans on how to support, coordinate, and cooperate with local and regional governments in order to strengthen multi-level governance and examine the role of local authorities in the European Union accession process. It also sought to provide a platform for central and local government administrations to share experiences and good practices in intergovernmental cooperation and coordination.
For more than three decades, the SIGMA Programme has supported central governments in partner administrations in improving public administration and advancing the European integration process. Drawing on its extensive experience and recognizing the crucial role of local and regional authorities in democratic systems, SIGMA has expanded its work in the Western Balkans to include the promotion of multi-level governance.
NALAS is the leading network of local government associations (LGAs) in South-East Europe, bringing together 13 national LGAs and representing around 9,000 local governments. For more than two decades, NALAS has been at the forefront of promoting decentralisation and strengthening multi-level governance across the region. Through close cooperation with its member associations, national governments, and international partners, NALAS fosters intergovernmental dialogue, enhances policy coordination, and promotes effective local governance.
