On October 16, the 47th plenary session of the Congress of Local and Regional Authorities of the Council of Europe (EP) unanimously approved the Monitoring Committee's report on the state of compliance with the principles of the European Charter of Local Self-Government and implementation in Latvia, which includes the autonomy of self-government and the equal distribution of finances and functions and the impact of reforms.
At the plenary session, the Latvian delegation was represented by the head of delegation, the chairman of the Latvian Association of Local and Regional Governments (LALRG), Gints Kaminskis, and the chairwoman of the Ropaži Municipality, Vita Paulāne.
In the approved report of the Monitoring Committee, international experts found insufficient independent income of local governments from taxes and fees, thus concluding that local governments in Latvia lack funding for the performance of basic functions. Similarly, municipalities do not have adequate resources for the implementation of new competences. In addition, the continuous dependence of local governments on state funding for the implementation of local government competences, the large proportion of targeted grants and the limited opportunity for local governments to use their own resources should be emphasized, which threatens the ability of local governments to effectively address local priorities. In addition to the lack of funding and the need to align local spending with state budget priorities, detailed regulations and centrally determined service standards are increasingly straining local government resources and limiting local autonomy.
Addressing the representatives of the Congress, G. Kaminiskis emphasized: "The LALRG supports all the recommendations indicated in the Monitoring report, therefore it will call on the Government of Latvia and the Parliament to implement them, thereby improving the national legislation and strengthening local government democracy. Particularly important is the support expressed in the recommendations for increasing the total income of local governments, restoring a fairer proportion between the state and local government budgets, in order to maintain and develop the quality of local government services. In order to improve the financial equalization system of local governments, it is necessary to ensure that mandatory functions and voluntary initiatives are performed in every local government at least to a minimum extent. At the same time, the motivation of local governments to promote business and the well-being of their residents must be maintained. This cannot be achieved only by redistributing municipal tax revenues, but the state must also contribute funds to the financial equalization of municipalities, thus allowing development of Riga City and the other self-governments that contribute to the equalization fund, at the same time providing funds for the other municipalities to perform their functions in such a way that residents throughout the territory of our country do not suffer. "
On the other hand, in her address, V. Paulāne expressed her satisfaction with the objective assessment of the Congress on the implementation of the Charter in Latvia and her hope for a positive reaction of the Latvian government. "Compared to previous observations, there are positive features in Latvia, such as the development of participatory democracy, a return to hearing the opinions of local governments, compared to the period of the 2021 Administrative Territorial Reform. Unfortunately, several negative aspects have developed, as well as the concerns expressed in the 2020 report have been confirmed. In order to improve fiscal decentralization, it is essential to increase the independent tax revenues of local governments in accordance with the scope of mandatory functions, to abandon the re-regulation of local government duties, and to abandon the financing of a unified social policy in the country at the expense of local government revenues", said V. Paulāne.
The report of the monitoring committee states that the procedure for removing the mayors of self-governments should be changed, entrusting the decision-making to the elected councils, in order to prevent disproportionate interference in the activities of democratically elected councillors. In order to ensure the citizens' right to decide on the amendment of borders, the law on municipal referendums should ensure the full operation of Article 5 of the Charter, which states that it is not allowed to make amendments to the borders of municipal territories without first consulting the inhabitants of the relevant territory by means of a referendum, when it is allowed by law.
The 47th plenary session of the Congress of Local and Regional Authorities of the Council of Europe (EP) took place in Strasbourg (France) from October 15 to 17 this year.