- Although widely recognised as a necessary process, decentralisation continues to progress slowly and faces numerous challenges. Nevertheless, important advances have been achieved through the initiative and strong advocacy of the Union of Municipalities of Montenegro, including amendments to the Law on the Coastal Zone and the restoration of municipalities' authority over spatial planning.
- In addition to advocating for a supportive legal framework that enables municipalities to focus on development, we are also working intensively to strengthen the capacities of local governments for European integration through training programmes, the exchange of best practices, and partnerships with institutions in Montenegro and abroad.
- The new Law on Local Self-Government will enable municipalities to operate more efficiently and strengthen cooperation with state authorities, unlike the current law, which has hindered their functioning and left local administrations focused on internal administrative issues for years instead of delivering projects and services for citizens.
Author: Dragica Šaković
Montenegro is widely recognised as one of the most centralised countries in Europe. The report of the Congress of Local and Regional Authorities on the implementation of the European Charter of Local Self-Government for the period 2016–2023, adopted by the Council of Europe in 2024, identified key manifestations of centralisation and issued recommendations for further decentralisation. According to Mišela Manojlović, Secretary General of the Union of Municipalities of Montenegro, although decentralisation is widely recognised as a necessary reform, it continues to progress slowly and faces numerous challenges.
"In practice, municipalities' participation in the legislative process for laws that directly affect their work is often merely formal, particularly when it comes to issues of financing and the sustainability of local budgets. Municipalities are expected to assume numerous responsibilities arising from national strategies or delegated functions without being provided with the necessary financial resources. A clear example is the operation of day-care centres for children and young people with disabilities, where local governments bear the majority of the costs, even though this is primarily a state responsibility. Such situations place a significant burden on municipal budgets. Centralisation is also reflected in the numerous approvals and opinions that municipalities are required to obtain from ministries, which considerably slows down the implementation of local decisions and affects the quality of services delivered to citizens. Furthermore, excluding municipalities from decision-making on issues that directly concern them—such as the financing of local projects through the State Capital Budget, the management of resources, or personnel matters—creates an additional obstacle to their development," said Manojlović.
She added, however, that certain progress has been made, with important advances achieved through the initiative and strong advocacy of the Union of Municipalities of Montenegro.
"Since the beginning of 2025, responsibility for spatial planning and construction has been returned to local governments. A process has also been launched to decentralise the management of the coastal zone, as well as to enable the transfer of certain responsibilities in the areas of social protection, pre-school education, and primary healthcare to selected municipalities. It is essential, however, that any such transfer of responsibilities be accompanied by adequate financial resources," Manojlović said.
"These are positive steps that give reason for optimism that the relationship towards local governments is changing and that genuine decentralisation is beginning to take shape in practice," Manojlović concluded.
POBJEDA: Are you satisfied with the Union of Municipalities' role in that process?
MANOJLOVIĆ: "The fact that the Union of Municipalities is increasingly recognised as an important voice for municipalities is reflected in a number of key achievements. These include our initiative on the management of the coastal zone, the restoration of municipalities' authority over spatial planning, and bringing important issues to the forefront, such as the abuse of certain legal provisions—particularly those related to the Law on Property Tax, the Law on Tax Administration, and the Law on Free Access to Information. In these areas, standardised appeals submitted by certain law firms have placed a significant financial burden on municipal budgets. We have also secured funding for the preparation of project documentation for municipalities that are beneficiaries of the Equalisation Fund, along with a range of other initiatives aimed at strengthening the influence of municipalities on public policies that directly affect them."
"In addition to advocating for a supportive legal framework that enables municipalities to focus on development, we are working intensively to strengthen the capacities of local governments for European integration through training programmes, the exchange of best practices, and partnerships with institutions both in Montenegro and abroad. At the same time, we advocate for greater decentralisation, stronger fiscal autonomy, and improved access to EU funding at the local level, so that municipalities have the genuine capacity to contribute to the European integration agenda."
POBJEDA: Do local governments recognise the role and benefits of the Union of Municipalities, and how has this changed compared to previous years?
MANOJLOVIĆ: "Yes, local governments increasingly recognise the importance of the Union of Municipalities and the tangible benefits it provides. This is demonstrated not only through words but also through actions. At the most recent meetings of the Union's Governing Board and Assembly, all decisions were adopted unanimously. Such consensus clearly reflects the confidence that municipalities place in the institution that represents them and strongly advocates for their interests."
"What makes the Union of Municipalities unique is its ability to bring together representatives of municipalities from different political backgrounds. Within the Union, however, they speak with one voice—in the shared interest of strengthening local self-government and creating better living conditions for citizens in their communities."
"This is the result of the Union's consistent commitment to addressing the concrete challenges faced by municipalities—whether through legislative initiatives, representing municipal interests before state institutions, strengthening local capacities for European integration, or creating the conditions for a more balanced, effective, and constructive dialogue with the central government."
POBJEDA: Do state institutions and ministries recognise the Union of Municipalities as a partner, and is there room for further improvement in that cooperation?
MANOJLOVIĆ: "To be completely honest, the situation varies from one ministry to another. However, compared with previous years, there has been significant progress—not only in terms of political declarations but also in practice, through the acceptance of a number of initiatives launched by the Union of Municipalities at the request of its member municipalities. We are working to strengthen cooperation and partnership with ministries, the Government, and the Parliament in the preparation of legislation affecting municipalities, as this is the only way to reinforce their financial and functional autonomy and promote balanced regional development. Achieving this also requires the establishment of a culture of managerial accountability at all levels of government. We enjoy excellent cooperation with the Ministry of Finance. The new Law on Local Self-Government, which is currently being drafted, will introduce significant reforms. The Union is actively involved in its preparation, and so far we are pleased with the Ministry of Public Administration's willingness to take our proposals into account. The new legislative framework is taking shape in a way that will enable municipalities to operate more efficiently and cooperate more effectively with state authorities, unlike the current law, which has significantly hindered their functioning and left local administrations focused on internal administrative matters for years instead of delivering projects and services for citizens."
Nevertheless, it is essential that cooperation with the Parliament and the Government be further strengthened and formalised.
POBJEDA: Decentralisation implies that municipalities would assume responsibility for sectors such as healthcare and education, which are currently under the jurisdiction of the central government. To what extent do local governments have the human resources, infrastructure, and institutional capacity to take on these responsibilities?
MANOJLOVIĆ: "Exactly. The essence of decentralisation is not simply the formal transfer of responsibilities from the central government to the local level. It also requires that municipalities have the genuine capacity to exercise those responsibilities effectively, supported by adequate financial resources, qualified personnel, appropriate infrastructure, and a sound legal framework. In other words, decentralisation must be carefully planned and implemented in a way that strengthens the institutional capacity of local governments."
"All municipalities will require additional institutional, human, and financial support. For this reason, the Union of Municipalities has been continuously strengthening local capacities through training programmes, strategic planning, and cooperation with both domestic and international partners. Since 2023, the Union has operated a Training Centre that delivers specialised training programmes tailored to the specific needs of municipalities. This function has been further reinforced through the establishment of professional networks bringing together municipal employees from across the country who perform the same functions. These networks facilitate the exchange of information, knowledge, and experience, while also promoting the consistent application of legislation and administrative practice across municipalities."
POBJEDA: The Union of Municipalities has adopted its Strategic Plan for the 2025–2029 period. What are its main priorities?
MANOJLOVIĆ: "Our vision is to achieve strong and sustainable development of local communities by fostering a dynamic partnership between municipalities and central government in the development and implementation of national legislation and strategies, while reducing centralisation through the strengthening of municipal powers and responsibilities."
"In addition to strengthening cooperation with central government, we actively promote inter-municipal cooperation as a means of addressing shared challenges more effectively. Our objective is to build stronger municipalities with well-developed human resources, placing particular emphasis on enhancing capacities for preparing projects financed through EU and other international funding programmes. Municipalities with greater financial autonomy, advanced digital solutions, and balanced regional development will become key drivers of public policies that improve the quality of life of all citizens. At the same time, one of our strategic priorities is to contribute to reducing corruption by promoting the principles of good governance and accountability, while providing municipalities with the logistical support and resources they need to achieve their common goals and better serve their communities."
We advocate for an active role of local governments in the European integration process.
POBJEDA: Montenegro is expected to become the 28th member of the European Union by 2028. To what extent are local governments prepared for this, and what steps do they need to take as a matter of priority?
MANOJLOVIĆ: "The Union of Municipalities advocates for an active role for local governments in Montenegro's European integration process. Representatives of the Union participate in the work of several negotiating chapters that directly affect the local level, including those covering the environment, regional development, transport, public services, fundamental rights, and other relevant policy areas."
"To help municipalities prepare concretely for EU membership, the Union of Municipalities has launched the project Municipalities for the EU, implemented with the support of the Delegation of the European Union to Montenegro and the Ministry of Public Administration. As part of this project, the Union is currently preparing a Handbook on EU Funding Opportunities for Local Self-Government Units and a Guide to the Role of Local Governments in the EU Integration Process. In addition to establishing the Network of Municipal Project Managers, last year we created a Network of External Experts with proven experience in EU and international project management. This network is available to municipalities through the Union to support the preparation of project applications and the implementation of approved projects. We are also the authors of the Practical Guide to Project Proposal Writing for Local Governments in South-East Europe*, which serves as an important tool for strengthening municipalities' capacities to access international funding."
"However, for local governments to be fully prepared for EU membership by 2028, it is essential to further strengthen their professional and administrative capacities and to ensure greater involvement of local authorities in shaping negotiating positions and reform measures. This is crucial to ensuring that EU-related reforms are implemented effectively and deliver tangible results at the local level."
Supporting young people leaving the "Mladost" Children's Home
POBJEDA: Beyond the Union's already extensive and diverse portfolio of activities, which projects would you highlight as particularly significant?
MANOJLOVIĆ: "One of the projects I would particularly highlight is our initiative to support children and young people leaving alternative care, the first phase of which is already underway. We are currently working to provide comprehensive support to four young people who will leave the Mladost Children's Home in Bijela this May. When I say 'comprehensive support', I mean addressing the wide range of challenges these young people face—many of which the public is not fully aware of. These include access to housing, employment, psychological and social support, as well as practical life skills such as managing personal finances, obtaining essential documents, paying utility bills, and ensuring that employers understand their specific needs. Many of these young people are not adequately prepared for independent living and are at increased risk of abuse, poverty, social exclusion, and even suicide. For this reason, we organised specialised training for psychologists who will serve as mentors, as well as for volunteer students from the University of Donja Gorica studying psychology, who will support the mentors in their work. We have also signed a Memorandum of Cooperation with the Montenegrin Red Cross to develop new social and child protection services, with a particular focus on supporting children and young people who have lived in institutional care at the Mladost Children's Home in Bijela or in foster families."
"Another project of particular importance is our initiative to integrate health, eco, rural, and other forms of tourism with organic agriculture and healthy lifestyles across all municipalities in Montenegro. The objective is to elevate Montenegro's tourism brand to a new *Bio & Eco* level, enhance its international reputation, and attract much-needed foreign investment. The Union of Municipalities has already taken the first and most important step by preparing the terms of reference that will serve as the basis for a comprehensive feasibility study. Montenegro has excellent natural conditions for developing a competitive and profitable health tourism sector which, combined with the expansion of agri-tourism, has the potential to make a significant contribution to the country's overall economic development and balanced regional growth."
"In this way, the existing tourism offer could be expanded in a healthy and natural environment by making use of rural accommodation facilities, mountain settlements (katuns), and other locations with natural therapeutic potential, such as areas known for their clean air, mineral springs, or healing mud. These destinations could offer complementary and traditional approaches to preventive healthcare and wellness, alongside organic agricultural products, medicinal and aromatic herbs, and activities promoting healthy lifestyles. Such an integrated approach would diversify Montenegro's tourism offer, extend the tourism season, and create new opportunities for sustainable local development."
