The Cabinet of Ministers of Ukraine supported the draft law ‘On the Principles of Delineation and Distribution of Powers between Levels of Public Administration’ developed by the Ministry for Development through extensive consultations.

The draft law lays down the foundations, principles and approaches to the delineation and distribution of powers between local governments at different levels, local governments and executive authorities on the basis of subsidiarity and decentralisation. This approach will help to ensure the accessibility and quality of public services and the effective use of budget funds.

‘This Draft Law is about a clear delineation of responsibilities between levels of authority. It will help state and local governments to work in harmony, make decisions faster, use resources more efficiently and provide people with quality public services: from transport to social support. Services should be provided at the level closest to the person, ensuring the best quality,’ said Oleksii Kuleba, Deputy Prime Minister for Restoration of Ukraine – Minister for Development of Communities and Territories.

Why is it important?

There are still areas of uncertainty in Ukrainian legislation: it is often unclear who is responsible for a particular service – the local council and its executive bodies or the executive authorities, and at what level of the administrative-territorial structure. And, most importantly, how it should be financed. This has led to a blurring of responsibilities and queues for services.

Key innovations of the Draft Law:

• the legal basis for the delineation and distribution of powers is defined;
• principles of delineation of powers;
• levels and bodies of public administration;
• classification of powers of public authorities;
• criteria for delineating the own and delegated powers of local self-government, as well as criteria for delineating powers between levels of local self-government;
• conditions for delegating state powers to local self-government;
• features of the exercise of powers of the state and local self-government in conditions of martial law or a state of emergency;
• resource provision for the exercise of powers by public authorities;
• limits of the autonomy of local governments in decision-making;
• responsibility of local governments for the exercise of powers.

The concept of optional powers is also to be introduced – a flexible tool that allows communities to voluntarily take on additional functions if they are ready to perform them at the appropriate level.

The draft law was developed in close cooperation with Ukrainian MPs, representatives of relevant ministries and agencies, all-Ukrainian associations of local governments, and with the support of the Council of Europe and international technical assistance projects, taking into account consultations in the ‘Strasbourg format’.

The document paves the way for the enhanced implementation of the provisions of the European Charter of Local Self-Government, thereby facilitating the fulfilment of Ukraine’s European integration commitments. The approval of this draft law is an important part of the work to implement indicator 9.3 of Ukraine’s Plan and opens up the possibility of attracting around EUR 440 million in European financial support for recovery through an orderly system of governance.