Strengthening Bulgarian Local Finances Using European Experience

Joeri Buhrer Tavanier

On 30 and 31 October the fourth and final workshop of the programme The Role of Parliament in Strengthening Local Self-Government in Bulgaria was held in Sofia. The workshop treated the topic of Strengthening Bulgarian local finances using European experience and has been co-organised by the FLGR, the East-West Parliamentary Practice Project (based in the Netherlands) and the Committee on Local Self-Government, Regional Policy and Public Works of the Bulgarian National Assembly.

Participants in this workshop included Members and staff of the Bulgarian National Assembly, mayors and experts, as well as experts and politicians from Denmark, Latvia, Poland and the Netherlands. The participants discussed the structure and types of local revenues and expenditures in various EU countries, in order to see which foreign experiences could be applicable for reforming the present local finance system in Bulgaria. The main questions were how municipal budget revenues and expenditures can be organised, and how more investments and funds can be attracted.

To set the frame, the present situation of Bulgarian local finances was sketched. Furthermore, special attention was paid to the organisation of the local budgets of the Netherlands and Denmark (since these countries are both EU members they could give examples of how EU regulations work in practice and on which EU laws and requirements Bulgaria should concentrate first. Poland and Latvia, which in an earlier stage than Bulgaria faced similar problems reforming legislation and taxation competencies in their countries were used as examples of systems in transition. The foreign participants showed which steps they have taken and what this means in their daily work.

In two breakout sessions, the participants agreed on recommendations and conclusions for further development of the municipal budgets revenues and expenditures and investments. These results, together with a summary of the proceedings and background information, will be published in a workshop report that the FLGR and EWPPP will publish at the end of this year.

The programme has been evaluated with Members of the Committee on Local Slef-Government, Regional Policy and Public Works. They have stated the importance of the current programme and expressed the wish to develop a follow-up programme. The FLGR and EWPPP are currently working on developing such a programme. In the meantime, a handbook containing a comparative analysis of EU requirements and the Bulgarian status quo in the area of planning regions will be prepared.

Concluding, on behalf of the EWPPP I would like to take the opportunity to express my sincere gratitude to Ginka Kapitanova and Marina Dimova of the FLGR, for all the valuable work they have done for the programme and - through this joint programme - for raising legislators awareness of the importance to reform local government in Bulgaria. I am looking forward to co-operate again with the foundation on a future FLGR/EWPPP programme.