The Council of Europe Congress of Local and Regional Authorities has adopted a set of recommendations to the Croatian government following its June 2023 monitoring of the country’s implementation of the European Charter of Local Self-Government.
The report, drawn up by Gobnait Ni Mhuimneacain (Ireland, L, ILDG) and Cecilia Dalman Eek (Sweden, R, SOC/G/PD) welcomed the fact that counties had taken over administrative functions after state administrative offices were abolished, that tax reform was ongoing, that voluntary mergers were being encouraged and that the process of consulting local and regional representatives had improved, particularly on financial and fiscal matters.
Weaknesses in the administrative and revenue-generating capacity of many small municipalities and cities remained a concern, as did the inadequacy of financial resources available to local and regional authorities, the unclear delineation of responsibilities, and the lack of effectiveness of the financial equalisation mechanism.
The central state administration still held extensive supervisory powers over local self-government, notably to suspend or annul an act made by a local authority without prior judicial review or ruling; dissolve representative bodies; dismiss executive representatives and give instructions on local affairs: all a “potential hindrance” to autonomy, the report warned. Therefore, legislation on supervision should be revised to align it with the principle of proportionality. Furthermore, a formal consultation mechanism with local and regional authorities needed to be set up, and the division of responsibilities required clarification. Croatia should also sign and ratify the Charter’s additional protocol on the right to participate in the affairs of a local authority, which is applied in practice.
The report – the fourth since Croatia ratified the Charter - recommends that Croatian authorities continue supporting inter-municipal co-operation; provide incentives for municipal mergers and adequate financial resources for subnational authorities; revisit the conditions governing local taxation; explore opportunities to diversify subnational income sources; reduce earmarking of grants and transfers and reconsider the criteria on which the equalisation system is based.
Contact person: Panos Kakaviatos, Spokesperson/Media Officer, Directorate of Communications, Council of Europe, tel. +33 6 98 37 64 04
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