Roles and responsibilities of mayors and local councillors in Armenia, Azerbaijan, Georgia, Moldova, Ukraine and Belarus Abbreviations and acronyms Congress: Congress of Local and Regional Authorities Charter: European Charter for Local Self-Government EaP: Eastern Partnership EU: European Union LGU: local-government unit LSG: local self-government NGO: non-governmental organisation Cover: SPDP Council of Europe Text : Congress of the local and regional authorities of the Council of Europe Print: Council of Europe Edition: January 2016 This document is being produced with the financial assistance of the European Union and the Council of Europe. The views expressed herein can in no way be taken to represent the official opinion of the European Union and the Council of Europe http://eap-pcf-eu.coe.int Table of Contents Executive summary of key findings, conclusions and recommendations ............................................................................ 6 1. Introduction ......................................................................... 17 2. The legislative framework regulating the legal status and other conditions of the office of elected self-government representatives ............................................................................... 18 3. Core legal and implementation issues determining the execution of roles and functions of elected LSG representatives ..... 31 4. Overview of main strengths and weaknesses ...................... 49 4.1 Local finance ................................................................. 49 4.2 Conditions of the office of local elected representatives 52 4.3 Relations between state and elected self-governments . 54 4.4 Relations between mayors and assemblies ..................... 57 4.5 Quality of local democracy ............................................. 57 4.6 Fragmentation and regional self-government ............... 59 5. Recommendations on strengthening the role and powers of local elected representatives to enable them to better contribute to local democratic governance. ........................................................ 60 5.1 Local finance ...................................................................61 5.2 Conditions of office of local elected representatives .......63 5.3 Relations between state and elected self-governments . 65 5.4 Relations between mayors and assemblies ..................... 67 5.5 Quality of local democracy ............................................. 67 Annex 1: Brief Characteristics of the Local Government Systems in the Eastern Partnership countries .................................................. 69 Annex 2: Congress recommendations on local democracy in Armenia (n° 351), and on local and regional democracy in Azerbaijan (n° 326), Georgia (n° 334), Republic of Moldova (n° 322) and Ukraine (n° 348) ......................................................................................... 103 Annex 3: Recommendation 383 (2015) on the “Conditions of office of local and regional elected representatives” ................................... 122 Annex 4: Resolution 368 (2014) on the “Strategy on the right of local authorities to be consulted by other levels of government” ........... 126 Foreword Mayors and local councillors play a vital role in promoting the principles of local democracy and shared values within their communities. Aside from the role prescribed in the legislation, it is upon them to establish standards of good governance, ethical behaviour and transparency in concrete terms as they are the public officials closest to citizens. The challenges faced at global level demand resolute actions in order to implement the principles of ethical governance, sustainable development and greater solidarity in public policies. Local authorities, more than ever, are compelled to propose innovative approaches to manage and respond to the challenges arising with today’s urban development. It is upon them and their political leaders to promote new initiatives and exercise their public responsibilities in an effective and inclusive manner. Analysing the respective national legislation and its practical application in Armenia, Azerbaijan, Georgia, the Republic of Moldova, Ukraine and Belarus, it is evident that the nature of this responsibility can vary due to differing trends, not only within the legal framework of a country and its capacity for further decentralisation, but also through the overarching vision and political will. While the principles of local democracy are a straightforward concept and based on the European Charter of Local Self-Government, the practice and the implementation vary from country to country. The study on the roles and responsibilities of mayors and local councillors in Armenia, Azerbaijan, Georgia, the Republic of Moldova, Ukraine and Belarus, commissioned by the Congress of Local and Regional Authorities, takes an integral look at the execution of roles and functions, the division and scope of responsibilities, and the financial situation faced by local elected representatives. By addressing the issues that local authorities encounter concerning the core legal structure, its implementation and the exercise of their powers, Professor Juraj Nemec, member of the Group of Independent Experts on the European Charter of Local Self-Government, with support from the respective experts in each of the countries concerned, has developed a set of practical recommendations in this regard. 6 Five main areas were identified for further action to enhance local democracy. The findings and recommendations were developed through an inclusive approach involving the relevant ministries and associations of local and regional authorities in each country. Furthermore, the study analyses the relevant legislation within each country, highlighting their compliance with the European Charter of Local Self-Government – a unique legal instrument, ratified by all 47 Council of Europe member States. The promotion of the principles of the Charter and their practical implementation is at the core of the Congress’ activities to advance the rights of local authorities. It is with this perspective that the study has been developed to contribute to strengthening the role and powers of local leaders, in order for them to take full ownership of their actions for the development and well-being of their communities. I would like to give my sincere thanks to all involved in this process. Andreas Kiefer Secretary General The Congress of Local and Regional Authorities 7 Executive summary of key findings, conclusions and recommendations This study, which focuses on the roles and responsibilities of mayors and councillors in the Eastern Partnership countries, has been developed within the Council of Europe/European Union Eastern Partnership Programmatic Co-operation Framework (PCF) 2015-2017, and is related to Theme V “Promoting Democratic Governance”, jointly implemented by the Directorate General of Democracy and the Congress of Local and Regional Authorities of the Council of Europe. The aim of this study is to provide a clear picture of the legislative and practical lacunae that hinder the effective implementation of the tasks incumbent on local elected representatives in the region and to suggest proposals to improve the situation (as of autumn 2015). The European Charter of Local Self-Government (CETS No. 122), hereafter “the Charter”, represents the core source and the benchmark for the improvement of local government systems in Europe and also in turn for the analysis and the synopsis in this study. Within the Eastern Partnership region, the Charter was ratified by the Republic of Moldova and Ukraine in 1997, Armenia and Azerbaijan in 2002, and Georgia in 2004. Armenia, Azerbaijan and Georgia ratified the Charter with reservations. Belarus is not a member state of the Council of Europe and has not signed the Charter. The Additional Protocol on the right to participate in the affairs of a local authority (CETS No. 207), opened to signature in 2009, was ratified by Armenia in 2013 and by Ukraine in 2014. When reforming their public administration systems, all countries included in this report created their own legislative framework, thereby determining the distribution of powers and competences between government bodies, as well as the main rules to govern the functioning of local self-governments (LSGs). However, certain gaps (on a different scale in each country) remain and every system requires improvement in order to fully comply with all Charter principles. 8 In Belarus and Azerbaijan, most powers at the local level lie with state administration bodies. Systemic changes to the constitution and local government laws are core future reform tasks in these two countries. The local government system in Armenia is highly dependent on central government. The level of independence, as well as the level of decentralisation, is low. Local government units (LGUs) do not have sufficient power to deliver essential public services at the community level or to organise community life properly. This is mainly due to the low level of decentralisation in Armenia – the relationship between LGUs and the territorial state administration (Marzpetarans) is not properly regulated. However, the LSG situation might improve as the result of constitutional changes from made in December 2015. In Georgia and the Republic of Moldova, the legal base for local government appears to be highly compliant with the Charter principles. Nonetheless, these countries are facing concerns connected with limited fiscal decentralisation and, to a different extent, challenges linked with excessive influence of political parties. In Ukraine, the local government system prior to 2015 was mainly in compliance with the Charter principles, but most powers were allocated to the state authorities on the second and third levels. The concept of the reform of local self-government and territorial organisation of power, approved by the government on 1 April 2014, followed by a set of legal changes, promised that many changes would be introduced. The way in which the amalgamation of the first level will be implemented will show how pertinent these changes are. There are different local self-government systems functioning in the region and these include both “mayoral” and “representative” forms. From the point of view of the legislation regulating the legal status and the conditions of the office of local elected representatives, the concrete arrangements differ significantly between countries of the Eastern Partnership region. In Armenia (except for the capital city Yerevan), Georgia, Republic of Moldova and Ukraine, the mayors are directly elected by citizens. In Georgia and Ukraine, the law stipulates that the mayor is the highest executive authority of the municipality; whereas in the Republic of Moldova, the mayor is the head of local government. In Azerbaijan, the mayors are elected by the local councils. In Belarus, deputies of local councils elect the chairman of the 9 local council of deputies (the word “mayor” is not applicable to this post). In each respective country, national experts and their research respondents have reported a number of legal and implementation issues. This report lists these issues country by country and indicates that the most important of them are connected with the following: local finance, division and scope of responsibilities between public administration levels, relations between self-governments, central and decentralised state administration, relationship between core local self-government bodies (i.e. between the mayor and the council) and the quality of local democracy. The core of this report (see Chapter 4) summarises the findings, presents the main strengths and weaknesses of the system and, where appropriate, benchmarks the situation regarding the Charter principles. The findings show that the main barrier to the full exercise of the responsibilities of local elected representatives in all six EaP countries is local finance. Inadequate funding and funding systems are only too visible – the only country in the region that spends around one-third of public expenditure through local authorities is the Republic of Moldova; but because of the low economic performance of the country, this sum in absolute value is not sufficient to cover the expected own and delegated responsibilities. In comparison with the Republic of Moldova, the total local government revenues in Azerbaijan comprise less than 0.14% of the consolidated state budget (Table 1). 10
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