Skopje, 13 August 2024 (MIA) - Prime Minister Hristijan Mickoski signed a memorandum of cooperation and understanding Tuesday with the Association of the Units of the Local Self-Government of the Republic of North Macedonia (ZELS).

As stated by the government press service, this memorandum of cooperation signifies a commitment to collaboration, defines how future cooperation will proceed, establishes priorities, and projects the development of the local self-government system in the country.

"The government and ZELS jointly declare their commitment to advancing a higher level of decentralization as a political process, which will legally result in transferring a broad range of powers from state authorities to local self-government units. To achieve these cooperation goals, both sides agree to create an annual program of priority activities to be pursued within the current year,” reads the press release.

The implementation of the goals and commitments established by this memorandum will be carried out through the formation of working bodies or joint committees, which will include selected representatives and officials, as well as representatives from the professional administration and external experts.

Both parties will apply a model for analyzing and implementing international best practices that have proven successful in the functioning of local self-government systems in the given field. They agree that the decentralization process should be prioritized by ensuring an increased amount of direct grants and revenue sources for each local self-government unit. The model for providing financial resources as revenue for municipalities through a specified percentage of collected funds from value-added tax (VAT) and personal income tax will be subject to mutual agreement, with a continual upward trend in the percentage allocated for local self-government. Both parties agree to hold annual budget negotiations between ZELS and the Ministry of Finance to harmonize the positions, needs, and possibilities of central and local governments.

As stated, both parties agree that funds allocated for capital investments should be source transfers with appropriate designations. Both the government and ZELS agree that no regulations related to urban planning, construction, or construction land will be amended or supplemented, or new proposals for laws or other regulations will be drafted without prior consultation with ZELS.

Both parties affirm that the adoption of urban planning and urban planning documentation is a prerequisite for achieving projected development. Therefore, both sides will prioritize this issue as the highest priority.

Both the government and ZELS agree to establish a practice of holding joint meetings between the government and the ZELS Management Board, where consultations will be conducted on progress, current priority issues, and an analysis of the problems faced by municipalities in the country, as stated in the press release.

Photo: Government