C2.2 R4-I1 Further optimisation and decentralisation of local and regional government units through support for functional integration

Beneficiary: Ministry of Justice and Public Administration 

The objective is to establish a high quality, efficient system of local and regional self-government through functional integration of local government units, in order to ensure efficient, high quality and transparent provision of services to citizens, so that their needs and interests are equally met no matter where they live.

A system will be created for financing joint performance of some of the functions of local units from their self-governing scope, as well as other professional tasks performed by units for their own needs. Through cooperation, local government units can more easily overcome the problem of insufficient capacity, improve the quality and quantity of services provided and make more efficient use of available resources. The joint performance of tasks will be incentivised through co-financing. The criteria for determining the amount of co-financing will depend, inter alia, on the number of functions carried out jointly by the units and will be laid down in a special law. Units that decide to merge functionally will be obliged to jointly perform the function(s) for a minimum period of 5 years in order to qualify for co-financing. Furthermore, a functional or actual merger of units will have a positive impact in the process of awarding grants and co-financing from EU funds. 

Value of investment: EUR 2.8 million 

Estimated completion: June 2025

Contact person: Katarina Serdar, jlprs@mpu.hr