“Decentralization and the financial performance of local governance” is the conference that brought together central government and mayors of municipalities across the country to discuss decentralization of local governance as partnership between the central and local governments with the aim of improving public services to the citizens.

In his remarks at the conference, Prime Minister Edi Rama underlined that financial discipline at local government level is an imperative and more than ever needed.

“Financial discipline, new sources of income and higher responsibility in relation to citizens in terms of services, digitalization, and complete modernization of the entire service system are an imperative of today,” PM Rama stated.

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It is worth underlining today that the financial discipline of municipalities is an imperative and more than ever needed, in all the context we live in, but also in the context of what the minister just underlined a bit earlier and which has to do with deepening the local governance decentralization as a responsibility, not only as autonomy, but also as a responsibility.

I would like to briefly focus on several main aspects:

First of all, I would focus on the arrears in local governments, as we have actually discussed previously and as I have had the opportunity to communicate to you before, we will usher in a phase of austerity without tolerance, certainly based on the parameters we have agreed upon.

On the other hand, enhancing the performance of municipalities is our top priority  for all of us and there is no way to improve the performance of municipalities if their financial discipline is not strengthened and if municipalities do not really and seriously start to think about boosting their financial resources with market revenue.

It is incredible that no economic activities are operational, including construction, at the municipal level, from Tirana to the smallest and remotest municipality.

To go on with a gangrene, namely the water supply. Why on earth certain areas still face even serious water supply shortages, while a considerable number of various municipalities fail to deliver on their duty and tasks, but allow debts to deepen further, and allow the continued abuse with this wealth for the sake of their electoral comfort? Therefore, this treasure is not sent where it should be sent and yields nothing but increasing debt. Let alone other municipal services, namely cleaning, public transport which are not easy services to be arranged and be efficient ones.

How am I supposed to explain that the government is devising a new  programme for children, sports movement  and nothing has happened even though a previous meeting has been held to discuss this issue, even though relevant individual requests have been forwarded, even though the minister, who is attending this meeting, has been constantly calling each and every one of you asking you to provide an inventory of grounds you can make available for kids and the sports movement. What does this supposedly mean? Not only that, but we are also offering financial support for their construction.

We believe that the potential for economic, financial, profitable activity by the municipalities is all there and failure to tap this potential is unjustifiable. We must definitely open this chapter; municipalities must organize their profitable financial economic activity.

However, what the minister declined to say since she most likely wanted me to announce it – as the  cabinet members always allow me to announce the bad news – and the bad news is that we will take due measures in case of failure to fulfil the financial obligations in terms of the financial discipline, as it is the case around the world, by taking the municipality under administration as it actually happens in Italy and France when the municipalities head towards the collapse and the financial situation further deteriorates  and becomes a deep hole that can’t be filled by turning a blind eye to it.

On the other hand, as we did with the cleaning, we will do the same with the budget discipline. The Municipal Councils won’t be able to approve local budgets if not within the financial parameters designed to guarantee the financial stability of the municipalities.

Last but not least, it is impossible to justify irresponsible behaviour and abuse of office by failing to collect water bills and other service tariffs. The property tax is the most important municipal tax across the globe.

The message of this meeting is financial discipline, new sources of income and higher responsibility in relation to citizens in terms of services, full digitalization and modernization of the entire public service system.

Thank you!