The legislative delineation of powers, the financial stability of communities, the operational capacity of local councils in wartime, the reform of state regional policy, and special measures for frontline territories should become key priorities for the future work of the Parliament and the Government. These issues were discussed during the “Decentralisation 2026: Legislative Agenda” forum.

The forum was organised by DESPRO NGO with the assistance of EGAP Programme, which is implemented by the East Europe Foundation with the support of Switzerland.

 

 

Oleksandr Korniienko, First Deputy Chairman of the Verkhovna Rada of Ukraine, emphasised that the legislative agenda for local self-government should reflect the reality in which communities currently live and work. This concerns the long-term occupation of parts of the country, the needs of frontline communities, restoration, work with internally displaced persons, and the capacity of local authorities to plan their own development.

‘During this year, the system for managing issues affecting communities, territories, internally displaced persons, and frontline territories has changed. We need to adjust our expectations and plans, and work on improving the effectiveness of governance, recognising the challenges posed by the long-term occupation of these territories. Three or four years is already a long time, I think, as it is for everyone in Ukraine.’

According to Oleksandr Korniienko, issues affecting communities further away from the front line are increasingly becoming typical of local self-government, including matters such as budgets, resources, planning, services, and urban development. However, front-line territories require specific and urgent solutions.

‘It is a huge challenge – how to bring the country together in terms of governance nowadays. We need to start with the status of workers in these areas, ensuring that people do not leave and continue to fulfil their public duties. This covers a wide range of roles: civil servants, local government officials, teachers, doctors, police officers, and State Emergency Service staff. They all need to understand that this work, which often verges on heroism, deserves to be properly rewarded.’

The most immediate legislative issues he cited include the delineation of powers, the restoration of local councils’ authority, a package of measures for frontline territories and internally displaced persons, as well as budgetary matters.

‘The matter of the delineation of powers did not begin yesterday. We are currently engaged in both in-depth discussions with the European Commission and internal discussions on how best to define sectoral powers and enshrine them in law. We understand that this is a draft law from the Ukraine Facility package, and it will be a priority, just like all draft laws through which Ukraine can receive funding.’

Oleksandr Korniienko specifically highlighted the difficulty of achieving a quorum in small local councils: a problem that has become more acute during the war, and the necessity to maintain financial guarantees for communities.

‘My colleagues in the Parliament and I are looking for ways to speed up the resolution of the quorum difficulty in small councils. There is a problem – it needs to be resolved. What remains unchanged is what we say every year: we must retain 64% of personal income tax, we must preserve guarantees for local self-government, and then hold a substantive discussion on the revenue-sharing mechanism and other budgetary mechanisms.’

He stressed that, in the context of a difficult budgetary year, communities need predictability. Additional tasks delegated by the state to local governments should be supported by resources, and communities should be able to plan their expenditure and development.

Oleksandr Korniienko also emphasised the need to seek additional sources of revenue for local budgets – in particular through more equitable taxation rules, resource management, and community participation in the administration of local taxes and levies.

‘Experiments already conducted across the country show that even very small steps yield significant results. If a community starts working closely with the tax authorities, revenue increases. If any of this requires legislative regulation, we will respond and seek appropriate opportunities.’

The First Deputy Chairman of the Verkhovna Rada assured that the Parliament would continue to work with local self-government on legislative initiatives, ranging from budgetary matters to international cooperation, urban planning, housing policy, and administrative fees.

‘The Parliament will, as it has done for the past seven years, work with local self-government. We are always in contact; the profile committee, the leaders of the parliamentary groups and factions are all involved. Draft laws relating to local initiatives have to be implemented. Everything can be discussed and everything can be worked on.’

 

 

Vitalii Bezgin, Minister for Communities, Territories and Internally Displaced Persons of Ukraine, identified the completion of the legislative delineation of powers as one of the main unfinished tasks of the reform. In his view, this matter is important not only for European integration, but primarily for the ability of the state to act quickly and decisively in crisis situations.

‘If we consider the strategic aspect, almost everything has been done over the past 12 years. The only remaining task is the delineation of powers at the level of the law and, consequently, amendments to the Budget Code. This is not just about European integration; it is about common sense.’

He mentioned the example of the aftermath of the russian attack on Dmytrivka community. According to him, when addressing such situations, the importance of having clear algorithms for coordination between the State Emergency Service, the regional military administration, and the community is particularly evident.

‘This is a practical case study about people’s lives, about evacuation and similar matters, where the lack of clear delineation demonstrates the practical problems that citizens face. When we talk about the strategic framework for decentralisation and what can be regulated at the legislative level, this is our obligation to the reform that remains unfulfilled.’

The Ministry identifies the following specific priorities: updating state regional policy in line with the EU cohesion policy; reforming the State Fund of Regional Development; implementing systemic solutions for frontline territories; and maintaining the operational capacity of local governments and military administrations during martial law.

‘When we talk about frontline territories, we do not merely have a list of territories of active or potential hostilities set out in orders. We do not have a systematic support package. We therefore need to stabilise the situation and ensure that practical solutions work.’

 

 

Jean-Luc Bernasconi, Head of Cooperation at the Swiss Embassy in Ukraine, recalled that Switzerland has been supporting decentralisation in Ukraine since 2007. He emphasised that the essence of decentralisation lies not in the mechanical transfer of functions, but in the application of the principle of subsidiarity.

‘The key idea is subsidiarity. This involves the delineation of power and responsibilities so that they are exercised properly. The most appropriate level may be local, regional, or central (national). There is no single, infallible solution here.’

He also emphasised that the adoption of the law is only part of the process: its effective implementation is no less important. Switzerland, in his words, will continue to support Ukraine in identifying and implementing such solutions.

 

 

Olena Shuliak, Chair of the Verkhovna Rada Committee on the Organisation of State Power, Local Self-Government, Regional Development and Urban Planning, reported that the draft law on the principles of delineation of powers is undergoing preparation for its second reading. Once adopted, amendments will be required to the Budget Code and a significant number of sectoral laws.

‘The matter of delineating powers was identified as one of the objectives of the decentralisation reform back in 2014. Fourteen years have passed, but we have not yet resolved this issue legislatively. We are coordinating areas of competence with the respective committees and ministries. This is only the first step, as we will subsequently need to amend the Budget Code and more than 170 laws. But we have to start somewhere.’

She also named legislation on social housing, solutions for restoration, a draft law on the legitimacy of local councils under martial law, and the search for a consensus among communities regarding the distribution of personal income tax as other parliamentary priorities.

‘The matter of the distribution of personal income tax, like the matter of the delineation of powers, has been under discussion for several years. But the Parliament needs a consolidated position from associations and communities that it can rely on when making decisions.’

The forum demonstrated that, to accomplish the reform, communities need not just general declarations, but a coordinated package of decisions. This should determine who is responsible for what, what resources are allocated to these powers, and how the state supports communities operating under fundamentally different conditions: from the relative stability of the rear to the daily dangers of frontline territories.