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Republic of Moldova

Republic of Moldova - Monitoring report

Date of the monitoring visit: from 12 to 15 June 2018
Report adopted on: 30 October 2025
Files : Report CG(2025) 49-16 | Recommendation 538 (2025)
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This report was prepared following a monitoring visit to the Republic of Moldova carried out from 4 to 6 March 2025 and builds on previous monitoring and post-monitoring visits organised in the Republic of Moldova since the country ratified the European Charter of Local Self-Government in 1997.

The rapporteurs note with satisfaction the progress made in implementing the previous Congress Recommendation 436 (2019), including improved collaboration between the central government and local authorities and the adoption of measures to enhance fiscal decentralisation. Furthermore, local authorities’ access to increased funding for infrastructure investments and the government’s demonstrable commitment to territorial reforms aimed at addressing the fragmentation of local government are positively noted.

However, the report raises several matters of concern regarding the structural and functional weaknesses of local authorities. These include territorial fragmentation, overlapping and unclear competences, and the limited discretion of local authorities to address matters of local importance. Additionally, local authorities continue to face limited financial autonomy, a lack of appropriate delimitation of municipal land, and an excessive reporting burden due to the involvement of multiple oversight bodies, compounded by a shortage of administrative and legal personnel.

The national authorities of the Republic of Moldova are therefore invited to continue implementing the reform agenda, revise and clarify the system of local competences, ensure the allocation of adequate financial resources to local authorities, enhance their fiscal capacity, and simplify and standardise reporting requirements to reduce the bureaucratic burden. The rapporteurs also recommend that the Republic of Moldova sign and ratify the Additional Protocol to the European Charter of Local Self-Government on the right to participate in the affairs of a local authority (CETS No. 207).

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Article 2
Constitutional and legal foundation for local self government - Article ratified

The principle of local self government shall be recognised in domestic legislation, and where practicable in the constitution.

Article 2 requires the principle of local self-government to be recognised at domestic level in an ‘open’ and ‘express’ manner, i.e. in written law. The practical and operational consequences of this recognition can be fully understood in the light of Article 11, according to which “the principles of local self-government as are enshrined in the constitution or domestic legislation” shall be protected by judicial remedies that local authorities can activate. Therefore, the written principles represent the standards for court’s ruling on the recourses submitted by local authorities against acts infringing their local autonomy.

In the Republic of Moldova, the Constitution establishes the fundamental principles of local autonomy, while the detailed regulation is reserved to organic laws. According to Article 72, paragraph 3, of the Constitution, “The organic laws shall govern: […] f) organisation of local administration, of the territory, as well as the general regulation of local autonomy”. According to Article 74.1, “Organic laws shall be adopted by the vote of the majority of the elected members of Parliament, following at least two readings”. Art. 111 paragraph 7 establishes that “The organic law that governs the special statute of the autonomous territorial unit of Gãgãuzia may be amended with the vote of three fifths of the elected members of Parliament”.

The general legislation on local government establishes and recognises the principle of autonomy, with explicit references to the Charter. The Constitutional Court has systematically underlined the importance of local autonomy and provided a clear definition, since the ruling No. 71/1999, in which the Court stated that “local autonomy presumes the right and effective capacity of local authorities to manage and solve, under the law, under their own responsibility and in favour of the local population, an important part of public affairs”.

For these reasons, the rapporteurs conclude that the requirements of Article 2 of the Charter are complied with in the Republic of Moldova.

Article 3.1
Concept of local self government - Article ratified

Local self-government denotes the right and the ability of local authorities, within the limits of the law, to regulate and manage a substantial share of public affairs under their own responsibility and in the interests of the local population.

The main question that must be addressed under this heading is whether, in the present situation, Moldovan local authorities regulate and manage a “substantial share of public affairs under their own responsibility and in the interests of the local population”. This provision requires an assessment which takes into account the rather “subjective” and relative nature of such concepts as “ability”, “a substantial share of public affairs”, “under their own responsibility” and “in the interests of the local population” since no official or universal method of measuring such substantial character has yet been developed. The question must be addressed considering the historical evolution, the culture and the constitutional traditions of the country under analysis. It is also closely linked to the assessment of the compliance with other parts of the Charter, such as Articles 4, 8 and 9 (Contemporary commentary, §36).

In order to assess compliance with this provision, both legislative and factual aspects should be taken into consideration.

As for legislative provisions, Art. 3 of Law No. 436 of 28-12-2006 regarding local public administration establishes that: “(1) Public administration in administrative-territorial units is based on the principles of local autonomy, decentralization of public services, eligibility of local public authorities and consultation of citizens on local issues of particular interest. (2) Local public administration authorities benefit from decision-making, organizational, managerial and financial autonomy, have the right to initiative in everything regarding the administration of local public affairs, exercising, under the law, their authority within the limits of the administered territory.” Art. 3 of Law No 435 of 28-12-2006 on administrative decentralization establishes: “Administrative decentralization is based on the following principles: a) the principle of local autonomy, which implies guaranteeing the right and effective capacity of local public authorities to regulate and manage, according to the law, under their own responsibility and in the interest of the local population, a significant part of public affairs”.

In practice, subnational government expenditure in the Republic of Moldova, as a percentage of public expenditure, according to a report of the Network of Associations of Local Authorities of South-East Europe, constitutes 24.6% for 2023. This is one of the highest indicators in South-East Europe, corresponding to the 9.7% of the GDP.

 

 

 

 

 

 

 

 

 

 

Source: NALAS : https://nalas-observatory.eu/publications/28

During the consultation procedure, CALM pointed out that the capacities of local authorities to exercise their competencies are being significantly limited by three factors, notably the lack of competencies in registering and punishing the contraventions, and thus also lack of efficient tools to enforce the legislation/regulations; the significantly contradictory legislation (between different acts and normative documents); and the rather negative effects of multiple crises, war and inflation upon local budgets (one of the highest in Europe).

Rapporteurs agree that in many cases, the lack of adequate human and financial resources prevents the local authorities from having the necessary capacity to manage their responsibilities. While strongly encouraging the government to improve the local authorities’ capacities, the rapporteurs consider that the decentralisation is effective in the Republic of Moldova, representing a pillar of its democratic transition and democratic consolidation.

Therefore, the rapporteurs conclude that in general the Republic of Moldova complies with Article 3, paragraph 1 of the Charter.

Article 3.2
Concept of local self government - Article ratified

This right shall be exercised by councils or assemblies composed of members freely elected by secret ballot on the basis of direct, equal, universal suffrage, and which may possess executive organs responsible to them. This provision shall in no way affect recourse to assemblies of citizens, referendums or any other form of direct citizen participation where it is permitted by statute.

Article 3.2 is the main statement of the democratic principle in the provisions of the Charter. The right to self-government must be exercised by democratically constituted authorities. The concept of local autonomy does not involve the mere transfer of powers and responsibilities from central to local authorities but also requires local government to express, directly or indirectly, the will of the local population.

In the Republic of Moldova, local authorities are governed by a council which is elected every 4 year (Article 156 of Electoral Code). The mayor is also directly elected, while the president of the district council is elected by the council. An election is declared invalid if a turnout rate of 25% of the registered voters is not achieved in the first round and 20% in the second round (Article 175 of the Electoral Code). The turnout requirement in the second round was added to the Electoral Code in 2022. Following the Venice Commission and OSCE/ODIHR opinion, Article 177 of the Electoral Code was amended to avoid a succession of failed elections, establishing that “3) Repeated voting… shall be considered valid regardless of the number of voters who participated in the voting”.

The last local elections took place on 5 November 2023, for the first round. The second round was held in 265 administrative-territorial units on 19 November 2023. The turnout for the first round of the 2023 local elections amounted to 41,4%. The second round of elections saw a lower turnout with only 36.73% of voters availing of the opportunity to vote. The turnout in the parliamentary elections of 2021 was of 48,41%.

Women are underrepresented at local level in the Republic of Moldova. While gender quotas have been in use for national elections, the 2023 local elections were the first occasion in which mandatory 40% quotas were applied to all lists for district and local councils: the placement requirements ensured at least four candidates of each sex for every ten positions (Article 68.3 of the Electoral Code). Financial incentives also encourage parties to nominate women in local elections, as 7.5% of public funding is allocated to parties in proportion to the women actually elected in local elections (Article 27 of the Law on Political Parties). However, the women elected resulted 33,3% in the councils of districts and municipalities and 40,3% in local councils, while only 24,13% of mayors were women.

Some interlocutors considered that 2023 local elections were marred by irregularities and external interferences, contributing to disrupting the democratic process and eroding public trust in institutions. During the consultation procedure, CALM stressed this aspect, complaining about irregularities affecting the electoral campaign and about some aspects of the new electoral code.

The Congress, in its report on electoral observation, stated that, overall, the 2023 local elections were conducted in a calm and transparent manner, despite challenging circumstances, and within a renovated and consistent legal framework. It also expressed its concerns on a number of issues, which were extensively covered in the mentioned report, and proposed relevant recommendations.

Moldovan legislation provides for other forms of citizen participation. According to the “statute framework”, approved by Law No. 436/2003 on the Framework Statute of the village (commune), city (municipality), “the statute establishes, under the terms of the law, the method of consulting by referendum the inhabitants of the village (commune), city (municipality) on issues of particular importance for the administrative-territorial unit and determines the specific issues considered to be of particular importance. Referendums, citizens' assemblies, consultations, public hearings and discussions may be organized in all localities of the administrative-territorial unit or only in some of them. Citizens' assemblies are organized in villages - in rural areas, and in sectors or streets - in urban areas. Citizens' assemblies, consultations, public hearings and discussions may be held on the initiative of the mayor or the local council”.

The Electoral Code (Articles 215-243) regulates local referendums. The most controversial form of local referendum is the one that may be organised to recall or dismiss the mayor of the city/village/municipality. Congress Recommendation 436 (2019)  expressed concern regarding the dysfunctional use of the recall referendum and invited the authorities of the Republic of Moldova to “adopt the necessary legal and regulatory arrangements to avoid the possible distorting consequences of the application of local recall referendums in local political life; and in the meantime, revise the legal provisions regulating the grounds for calling such a referendum, in order to provide for more legal certainty and to reduce the scope of discretionary decisions in triggering such popular consultations”. Some changes to the legal framework of the recall referendum have been introduced by the Electoral Code, which entered into force on 1 January 2023. In addition, the delegation was informed that the practice of local referendums to recall mayors is less frequent than in the past and no special complaints have been raised on this issue during the monitoring visit.

Therefore, the rapporteurs consider that Article 3, paragraph 2 is respected in the Republic of Moldova.

Article 4.1
Scope of local self government - Article ratified

The basic powers and responsibilities of local authorities shall be prescribed by the constitution or by statute. However, this provision shall not prevent the attribution to local authorities of powers and responsibilities for specific purposes in accordance with the law.

Article 4, paragraph 1, of the Charter requires that the basic powers and responsibilities of local authorities are prescribed by the constitution or by statute, so as to ensure predictability, permanence and protection for the benefit of local self-government. Therefore, the tasks of local authorities should not be assigned on an ad hoc basis and should be properly enshrined in written parliamentary legislation. Establishing local powers and competences by means of administrative regulation should be avoided and goes against the spirit of the Charter (Contemporary Commentary, §49).

In the Republic of Moldova, legislation attributes to the local authorities several competences. The main legislative reference are Law No. 436-XVI on Local Public Administration, Law No. 435-XVI on Administrative Decentralisation and the Law on Public Finance. In addition, the sectoral legislation also stipulates responsibilities for local authorities. As stated above, the main responsibilities for first-level local authorities are: socio-economic development; territorial and urban development;  construction and maintenance of roads, streets, local bridges and traffic management;  maintenance and operation of water supply systems, sewerage, water treatment, sanitation and domestic waste; social housing;; local public transportation; bus and train stations; maintenance of buildings for pre-school education; public cultural institutions; maintenance of libraries and museums; sports facilities and sports schools; markets and other public places; protection of consumer rights; registration and maintenance of households; management of local property assets; fire departments; maintenance of parks and green spaces; environmental protection; management of land; maintenance of cemeteries; green areas; waste management.

The competences of the second-level local authorities include: management of public property; construction of roads of district interest;  regional public transport; spatial planning; economic development support; local gas and heat distribution; maintenance of buildings for pre-university education, except pre-school education; cultural, tourism and sport management; coordination of the activities of the local councils in order to provide public services at district level; management and maintenance of systems and infrastructure providing services to different towns and villages.

In addition to these competences, local authorities may receive “delegated” tasks from central authorities and legislation. Moldovan local authorities also have regulatory powers, since they can approve local binding regulations imposing duties, conditions and obligations on the local residents.

Therefore, it appears to the rapporteurs that Article 4, paragraph 1, is respected in the Republic of Moldova.

Article 4.2
Scope of local self government - Article ratified

Local authorities shall, within the limits of the law, have full discretion to exercise their initiative with regard to any matter which is not excluded from their competence nor assigned to any other authority.

According to Article 4, paragraph 2, local authorities must have the right to exercise their initiative on matters not explicitly excluded from their competence by law. In addition, they must have “full discretion to exercise their initiative”.Restrictions on local bodies’ full discretion can also stem from management, fiscal and budgeting rules that require a sound legal basis for spending (Contemporary Commentary, §59).

Recommendation 436 (2019) expressed concerns with respect to this issue, inviting the authorities of the Republic of Moldova to “allow local authorities to have more discretion in adapting the exercise of their tasks to local conditions”.

According to the information collected by the delegation, the situation has not changed, and Moldovan local authorities do not enjoy full discretion to exercise their initiative “with regard to any matter which is not excluded from their competence nor assigned to any other authority”. Local authorities are supposed to act strictly within the domains and spheres where the law has attributed competence to them. As it was stated after the 2018 monitoring visit, the lack of operational capacity of most Moldovan local authorities still prevents them from exercising new or innovative actions outside the circle of competences identified in the law.

During the consultation procedure, CALM particularly highlighted the fragmentation of competences in water sector, as a consequence of some substantial changes approved in 2023-2024. CALM pointed out that the entire sector will be managed exclusively by the operators, while direct administration by local authorities will end.

It appears to the rapporteurs that Article 4, paragraph 2, is not complied with in the Republic of Moldova.

Article 4.3
Scope of local self government - Article ratified

Public responsibilities shall generally be exercised, in preference, by those authorities which are closest to the citizen. Allocation of responsibility to another authority should weigh up the extent and nature of the task and requirements of efficiency and economy.

Article 4, paragraph 3 of the Charter articulates the general principle of subsidiarity.It establishes that “Public responsibilities shall generally be exercised, in preference, by those authorities which are closest to the citizen. Allocation of responsibility to another authority should weigh up the extent and nature of the task and requirements of efficiency and economy”.

This principle has been incorporated in the legislation of the Republic of Moldova, namely in Article 3 of Law No. 435/2006, which refers to “the principle of subsidiarity, which implies the exercise of public responsibilities by the authorities that are closest to the citizens, except in cases where the intervention of higher-level authorities presents obvious advantages resulting from the volume and nature of the responsibilities and the need to ensure the effectiveness of public action”.

However, as it was already stated after the 2018 monitoring visit, this principle does not seem to be really implemented. The recentralisation of the competences on social services (RESTART reform) and the ongoing process of recentralisation of education doesn’t correspond to the essence of the subsidiarity principle. While the rapporteurs are well aware of the difficulties in implementing the National Decentralisation Strategy and the Public Administration reform in this challenging time, they encourage Moldovan authorities to refer in their reform efforts, as a guidance, to the principle of subsidiarity, as enshrined in the Charter and in the legislation of the Republic of Moldova.

During the consultation procedure, CALM pointed out that, before the launching of the “RESTART” reform, CALM proposed the delegation of competences related to the provision of social services to the first-level local authorities, with the allocation of necessary and sufficient financial resources to exercise this competence, in accordance with the principle of subsidiarity, emphasising that social services are mostly provided at community level. This proposal was also due to the already existing experience of managing local centres providing social services to the elderly, disabled persons and children from socially vulnerable families, including social canteens, which were opened with the financial support of international donors and partially financed for a period by transfers from the Ministry of Finance. Many municipalities were unable to further finance these centres without additional financial support, but in particular they could not withstand the Covid-19 crisis.

Therefore, it appears to the rapporteurs that in practice Article 4, paragraph 3, is still not complied with in the Republic of Moldova.

Article 4.4
Scope of local self government - Article ratified

Powers given to local authorities shall normally be full and exclusive. They may not be undermined or limited by another, central or regional, authority except as provided for by the law.

Article 4, paragraph 4, provides that “Powers given to local authorities shall normally be full and exclusive. They may not be undermined or limited by another, central or regional, authority except as provided for by the law”. The law may certainly introduce limitations on the powers given to local authorities, but such limitations should be exceptional, based on objective reasons and interpreted narrowly. In addition, overlapping responsibilities can become a threat to local autonomy (Contemporary Commentary, §66-67).

Recommendation 436 (2019) invited the Moldovan authorities to “revise and clarify the system of local competences in order, inter alia, to avoid situations of overlap between local and central competences, and to allocate concomitant finances to local authorities”. Since then, the situation has not changed. Many interlocutors pointed out that, in practice, the assignment of responsibilities is imprecise. In particular, the delimitation of the competences among the first and second-level authorities is unclear, as well as between subnational governments and central government entities or State-owned enterprises. Powers given to local authorities cannot be considered as full and exclusive, as they have to comply with too many regulations, not only by the government but also by other State bodies adopting regulations.

The delegation was informed by the State Chancellery that Moldovan government and parliament are working, in the framework of the Public Administration Reform Strategy of the Republic of Moldova for 2023-2030, to clearly delimitate the competences of local authorities. The rapporteurs encourage all the interlocutors to keep working together to revise and clarify the system of local competences.

During the consultation procedure CALM pointed out that the problem of delimitation of competences persists. Some effectively delegated competences have been "masked" as local authorities’ own competences (protection of monuments of any type, libraries, social housing, fire and rescue services, etc.). In addition, there is no clarity regarding the list of delegated competences, and the process of centralizing some public services of local interest has taken place without mechanisms for consultation/participation of local communities (social assistance, medical care, etc.).

In the meantime, it appears to the rapporteurs that Article 4, paragraph 4, is not complied with in the Republic of Moldova.

Article 4.5
Scope of local self government - Article ratified

Where powers are delegated to them by a central or regional authority, local authorities shall, insofar as possible, be allowed discretion in adapting their exercise to local conditions.

 

Article 4, paragraph 5, refers to delegated responsibilities, establishing that local authorities shall, insofar as possible, be allowed discretion in adapting their exercise to local conditions. The delegation of powers between different levels of government is a long-standing tradition in many European States. Central government benefits from the territorial network formed by local and regional authorities: they are closer to citizens and offer local knowledge, they reflect local conditions and provide economies of scale. Local bodies and services therefore discharge delegated functions on behalf of higher-level authorities, most commonly on behalf of the State (Contemporary Commentary, §71).

According to Article 6 of Law No. 435/2006, “(1) Competences belonging to central public authorities may be delegated to local public authorities of the first and second levels, respecting the criteria of effectiveness and economic rationality. (2) The delegation of powers may be carried out by Parliament, upon the proposal of the Government. (3) The delegation of powers may concern all local public authorities of the first and second levels (general delegation) or only some local public authorities. (4) The delegation of powers is necessarily accompanied by the provision of the necessary and sufficient financial resources for their implementation. (5) The delegation of powers may be unlimited in time determined in time. (6) The delegation of powers is effective only from the moment the necessary and sufficient financial and material resources have been transferred”.

No special concerns on this paragraph have been expressed by Recommendation 436 (2019). Both during the visit and in the written answers to the rapporteurs, no issues have been raised by the interlocutors on the delegation of competences.

During the consultation procedure, CALM highlighted that the lack of sufficient and often any financial resources for delegated functions has been a long-standing practice in the Republic of Moldova. This is particularly evident in areas such as military conscription, the preparation and organisation of elections, education (including the maintenance of school buildings and related investments), social care for vulnerable groups within communities, refugees and migration support, the population census, and others. The Rapporteurs will consider this aspect, as it relates to the principle of commensurate financial resources under Article 9.2 of the Charter.

Therefore, the rapporteurs consider that Article 4, paragraph 5, is respected in the Republic of Moldova.

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Article 4.6
Scope of local self government - Article ratified

Local authorities shall be consulted, insofar as possible, in due time and in an appropriate way in the planning and decision-making processes for all matters which concern them directly.

 

Article 4 para. 6 of the Charter provides that “local authorities shall be consulted, insofar as possible, in due time and in an appropriate way in the planning and decision-making processes for all matters which concern them directly”.

Consultation is a key principle of the Charter. The Charter does not define or prescribe the forms of consultation or substantially regulate the consultation process. Since its basic function is to establish the general approach and framework for consultations, it may be concluded that the main process of consultation is dependent on three basic conditions: (a) local authorities should be able to obtain full information on decisions and policies that concern them directly, and this information should be available at the initial stage of the decision-making process; (b) local authorities should have the possibility of expressing their opinion on decisions and policies before these become legally binding documents; and (c) local authorities should have the time and ability to prepare recommendations or alternative drafts and submit them for consideration (Contemporary Commentary, §80).

In its Recommendation 436 (2019), the Congress expressed concerns regarding the lack of consultation mechanisms and of fruitful and transparent dialogue between the central government and the local authorities either on financial issues or on any other matter of interest to the latter, and it asked Moldovan authorities to “reinstate a fair consultation process with local authorities and a political dialogue, in order to come to an agreement on the planned measures that may affect the interests of local authorities”.

Specific mechanisms for institutional dialogue were eventually set up or revitalised following the adoption of the Government Decision No. 652/2022 on the amendment of Government Decision No. 608/2010 for the implementation of some provisions of Law No. 435/2006 on administrative decentralisation. The most important ones are the Joint Commission for Decentralisation (commonly called the “Parity Commission”) and several “working groups” for decentralisation. The Parity Commission is composed of representatives of central government and the local authorities. It works as an advisory body that examines and eventually validates policy documents regarding the reform of local public administration. The Parity Commission was revitalised, its first meeting being organised on 17 November 2022. Each working group is composed of at least one specialist from the State administration, who manages areas subject to the decentralisation process, and at least one representative of the local authorities, the State Chancellery and the Ministry of Finance. These working groups are supposed to play an essential role in the basic structure of consultation and dialogue between the government and the local authorities.

With regard to the involvement and consultation of CALM in the decision-making process, the delegation was informed during the meeting with the State Chancellery that, in the process of approving draft normative acts, representatives of CALM are always included. Moreover, a CALM representative is regularly invited to take part in the weekly meeting of the general secretaries of the ministries. Parliament informed the delegation that the Committee on Public Administration and Regional Development consults CALM on all draft law directly concerning the local public authorities and invites their representatives to all the public hearings and public consultations. CALM representatives were also included in the composition of the Working Groups for the negotiations of the accession of the Republic of Moldova to the European Union, in accordance with the coordination mechanism of the accession process of the Republic of Moldova to the European Union and the way of organization and operation of the negotiation team within this process, approved by Government Decision No. 180/2024.

For its part, CALM agreed that dialogue with the government worked quite well up until the end of 2023, but it started depreciating in 2024-2025. On the one hand, CALM complained that they are usually consulted at a late stage in the decision making, when there is no longer a set of open alternatives. They would like to be consulted at an earlier stage, when the different alternatives and options are still open and available for discussion and negotiation. CALM also complained about the unstable functioning of the Parity Commission and Sectoral Working Groups: the Parity Commission is convened infrequently, with long intervals between meetings. Most of the sectoral working groups within the Parity Commission attached to ministries (9 in total) are not functioning, except for a few involving Ministry of Regional Development and Infrastructure, Finance, and Environment.  However, according to CALM, even with these institutions can be sensed the reflections of the diminished political will at the highest levels.

According to CALM, on some topics, dialogue is absent, with no consultation or cooperation, which is particularly true for the local public administration reform process and amalgamation, marked by non-transparency and lack of involvement. It argues that the concept of public administration reform, including local administration, was developed by foreign consultants without the involvement and full consultation of local authorities and CALM. The Association pointed out that several reforms, such as RESTART on social assistance reform and the Education reform (reorganisation of district directorates), were either not consulted or the consultation was not meaningful, and the opinions of CALM were ignored.

During the consultation procedure, CALM further informed the rapporteurs about some developments that occurred after the monitoring visit. Another meeting of Parity Commission was convened in a constructive and cooperative manner, with a sufficiently broad spectrum of issues on the agenda. On the other hand, many issues were addressed in general terms, as forthcoming parliamentary elections and their constraints for concrete actions dominated the discussion. One of the issues discussed in a rather general manner was EU growth plan for Moldova (1.9 billion + 2.5 billion projects of relevant banks and donors). Even though CALM received assurances that local authorities would be supported within these programmes, it seemed to CALM that there were no funds within these programmes and no investment projects for local authorities, apart from the municipality of Chisinau. Given the scale of the financial package for the country and considering that up to 70% of the implementation of Acquis Communautaire falls under the responsibility of local authorities, CALM raised concerns about the allocation of pre-accession funding.

The rapporteurs would like to refer to the Contemporary commentary, clarifying that “the requirement that consultations be conducted in an “appropriate way” implies that they should be organised in a way that allows local authorities to formulate and present their own comments and proposals. This does not mean that national and regional authorities will accept those proposals, but it is a requirement that opinions and proposals from local governments be presented, discussed and taken into consideration before a final decision is taken” (Contemporary Commentary, §77).

The rapporteurs appreciate the progresses, and especially the agreement on draft amendments to institutionalise dialogue between central and local authorities. This initiative involved the Prime Minister’s Office, the State Chancellery, the Parliament, the CALM, and various mayors. The amendments aim to strengthen the normative framework, ensuring a structured consultation mechanism (initiative no. 332 of 15.11.2024). However, the draft law on institutional dialogue is yet to be examined by the parliament. The rapporteurs encourage all the actors to keep working together towards the institutionalisation of this important collaboration mechanism.

In the light of the above elements, the rapporteurs consider that Article 4, paragraph 6, is partially complied with in the Republic of Moldova.

Article 5
Protection of local authority boundaries - Article ratified

Changes in local authority boundaries shall not be made without prior consultation of the local communities concerned, possibly by means of a referendum where this is permitted by statute.

 

This article requires that local communities should be consulted in case of changes of local authorities’ boundaries. It is therefore a mandatory procedural requirement that no change in local boundaries may be adopted without consultation, which must take place at a timely stage before a final decision on the matter is made. Consequently, a boundary change carried out without consulting the local community would be in breach of Article 5 (Contemporary Commentary, §90).

The procedure for changing local authorities’ boundaries is established by Law on Administrative and Territorial Organisation of the Republic of Moldova No. 764-XV of 27 December 2001, as amended. According to Article 17: “(1) The formation, dissolution and change of the status of the administrative-territorial unit shall be carried out by the Parliament after consulting the citizens. (2) An independent administrative-territorial unit is formed if it has a population, as a rule, of at least 1500 inhabitants and has sufficient financial means to maintain the city hall apparatus and social sphere institutions.  (3) In exceptional cases, Parliament may establish, by organic law, the formation of an independent administrative-territorial unit with a number of inhabitants lower than that provided for in paragraph (2), amending the respective annex to this law”. Art. 18 provides: “(1) The modification of the borders of the administrative-territorial unit caused by the need to transfer localities from one administrative-territorial unit to another, as well as the transfer of the administrative centre, shall be carried out by the Parliament after consulting the citizens”.

As noted above, the fragmentation of local authorities is one of the main issues addressed by the Public Administration Reform Strategy 2023-2030, approved by Government decision No. 126/2023. According to point 223, activity 1.1, the development, adoption and implementation of a coherent and well-organised voluntary amalgamation process at the first-level of local public administration is carried out between 2023 and 2026. Also, at the latest by the end of 2026, the results of the voluntary amalgamation process will be assessed and will be identified the most effective policies for further territorial consolidation of first-tier local government, including the option of applying a regulatory model. The Parliament adopted Law No. 225 of 31-07-2023 on the voluntary amalgamation of administrative-territorial units, as an instrument for first-level local authorities. In order to implement Law No 225/2023, the Government (by Government Decision No 925/2023) approved the Methodology for voluntary amalgamation of administrative territorial units.

During the meeting and in its written documents, the government pointed out that the application of it is entirely voluntary and takes place at the discretion of the local authorities and their inhabitants. For its part, CALM complained about the lack of consultation on the legal framework for amalgamation, and on the fact that the census has not been updated, determining a miscalculation in population, considering the relevant number of people leaving temporarily abroad.

During the consultation procedure, CALM reiterated its concerns regarding the way the population is calculated in the census.  Furthermore, it emphasised that no amalgamation has been finalised to date. With elections scheduled for autumn 2025 and the expectations that a functional government will be in place from 2026, the experience of voluntary amalgamation would at best span one year, and this would be a limited timeframe to be able to draw meaningful conclusions for normative amalgamation.

The rapporteurs consider that, according to the normative framework, voluntary amalgamation is based on decisions of the respective local councils. Consultation of the inhabitants of all the local authorities involved is ensured. Article 8 of Law No 225/2023 refers to the fact that “First-level local public administration authorities:  a) ensures consultation of their population in the decision-making process regarding voluntary amalgamation, according to the provisions of Law No. 239/2008 on transparency in the decision-making process”. Article 11 provides that “After the development and approval of the respective draft decision by the joint working group, the local public administration authorities of the participating ATUs shall ensure public consultation of the draft decisions on voluntary amalgamation, in accordance with art. 11 of Law No. 239/2008 on transparency in the decision-making process”. The period of public consultations may not be less than 30 days, and only after the public consultations have been completed, the respective local councils shall examine the draft decision on voluntary amalgamation, together with the summary of the proposals and objections received during the public consultations and adopt the appropriate decision. The decision on voluntary amalgamation shall be adopted by a vote of two-thirds of the elected councillors.

Therefore, the rapporteurs consider that the requirements of Article 5 are satisfied in the Republic of Moldova.

Article 6.1
Appropriate administrative structures and resources for the tasks of local authorities - Article ratified

Without prejudice to more general statutory provisions, local authorities shall be able to determine their own internal administrative structures in order to adapt them to local needs and ensure effective management.

Article 6, paragraph 1 of the Charter covers the administrative organisation of the main local government’s bodies. It provides that local authorities shall be able to determine their own internal administrative structure: the power to organise their own affairs is accordingly a part of the autonomy enjoyed by local entities. “Consequently, domestic local government legislation may lay down fundamental guidelines for the internal administrative organisation of local authorities but must leave local authorities room for discretion so that they can choose and set up their own organisational structure. The power to take decisions in this field will depend on different factors, such as the existence of directly elected mayors or mayors elected by the council” (Contemporary Commentary, §97).

In the Republic of Moldova, local authorities have the power to determine their own internal administrative structures, within the framework set by Law No. 436/2003 of 06.11.2003, which establishes a framework statute. According to the Law, “Based on this Framework Statute, the village (communal), town (municipal) council shall develop and approve the statute of the respective administrative-territorial unit”. This is done on the basis of a proposal from the mayor. The mayor, as the executive head, also has moderate powers to introduce changes and adaptations in the executive apparatus of the local authority.

However, the limited human and financial resources impact on the possibility to freely determine their own organisation. CALM pointed out that Law No. 270/2018 on the unitary salary system in the budgetary sector restricts local authorities in municipalities with fewer than 5,000 inhabitants from having a deputy mayor position, as this position cannot be remunerated.

Accordingly, the rapporteurs consider that the requirements of Article 6, paragraph 1 are generally complied with in the Republic of Moldova.

Article 6.2
Appropriate administrative structures and resources for the tasks of local authorities - Article ratified

The conditions of service of local government employees shall be such as to permit the recruitment of high-quality staff on the basis of merit and competence; to this end adequate training opportunities, remuneration and career prospects shall be provided.

Article 6, paragraph 2, of the Charter refers to the conditions of service of local government employees: they shall be such as to permit the recruitment of high-quality staff on the basis of merit and competence. The power to hire their own staff and set employee remuneration is a relevant factor highlighting the organisational and institutional autonomy of local governments (Contemporary Commentary, §104).

In the Republic of Moldova, the lack of adequate staff at local authorities’ level is an important point of concern, already pointed out by Recommendation 436 (2019), which expressed concern that “local authorities are not autonomous in the management of their human resources; they cannot recruit high-quality staff or offer adequate training opportunities, salaries or career prospects”. The Recommendation invited Moldovan authorities to “increase the managerial capacity of local authorities by giving them more freedom and flexibility in the management of their human resources, so that they can offer training opportunities and adapt and upgrade the remuneration of their own staff members, as well as their career prospects”.

The lack of adequate human resources remains a key problem for Moldovan local government. This situation is the product of several intertwined factors, such as the demographic decline and the massive emigration of skilled population from the country. In addition, the conditions of service of local government employees do not permit the recruitment high-quality staff. In many local entities, especially in the smallest ones, the number of staff members is very low. Many local authorities do not have lawyers, architects or auditors, as would be required by some of the responsibilities put on the shoulders of local authorities by the law. Also, the “adequate training opportunities” are reduced. The delegation was informed that the number of places for local officials in the School of Administration is limited.

Recently, some reforms have been approved, aimed at improving salary autonomy. In December 2022, the Parliament adopted amendments to Law No. 436/2006 on Local Public Administration. These amendments granted first-level local public authorities the autonomy to increase salaries for local public administration employees by up to 40%, contingent upon their fiscal capacity. This measure aimed to enhance local financial autonomy and improve the attractiveness of public service positions. The award of this allowance is dependent on each local authority's financial resources, allowing them to adjust remuneration based on their specific fiscal situations. In December 2023, the Parliament adopted amendments to Law No. 270/2018 on the unitary salary system. Secretaries of local councils (together with elected officials: mayors and deputy mayors: see infra, under Article 7.2) were granted a 50% increase in their basic salaries. In May 2024, the Parliament adopted new amendments to Law No. 270/2018 on the unitary salary system, establishing that first-level local authorities can grant their executive public servants a monthly increase of up to 50% of their base salary. These allowances will be funded from the local authority’s own revenues, based on an internal regulation approved by the local council’s decision. These salary supplements apply only to executive public servants who do not already receive the monthly allowance provided under Law No. 436/2006 on Local Public Administration. These provisions aimed to eliminate inequalities created by previous legal provisions, which increased salaries for mayors, deputy mayors, and local council secretaries but not for executive public servants within municipalities.

During the consultation procedure, CALM pointed out that there is a restriction on the number of employees each local authorities may recruit, established by State Chancellery. Even if the local authority has financial means, it cannot employ more people with the status of “public employee”, only on the simple private employment contract basis, with less favourable social conditions and lower status. In addition, CALM suggested that the salary raise formula could be improved, by linking it to the administrative capacity of local authorities. Furthermore, the extremely high inflation in the country (particularly in energy and communal services costs) has significantly offset the benefits of this increase. According to CALM, the increase in salaries have helped to some extent to fill in positions in larger urban areas, however many positions especially in small towns and rural areas remain vacant due to the continued shortage of human resources. It suggested considering introducing motivational packages for local government employees so that local authorities can attract personnel from outside the community.

The rapporteurs appreciate the progresses in the remuneration system, even more appreciable in a difficult economic situation for the entire country. However, they consider that there is still room for improving the conditions of office of local government employees, in terms of career and training opportunities, to attract high quality staff. In addition, they point out that the financial situation prevents many local authorities to apply the provisions on the increase of salaries.

Therefore, it appears to the rapporteurs that Article 6, paragraph 2, is partially complied with in the Republic of Moldova.

Article 7.1
Conditions under which responsibilities at local level are exercised - Article ratified

The conditions of office of local elected representatives shall provide for free exercise of their functions.

Article 7, paragraph 1, seeks to ensure that citizens are free to serve as elected representatives and are not prevented from holding political office owing to financial or material considerations. Nobody should be deterred from standing for election at local level; once elected, local councillors should not be prevented from discharging their duties effectively (Contemporary Commentary, §107).

The practice of initiating criminal cases against mayors was an important point of concern at the time of the previous monitoring visit. Recommendation 436 (2019) invited the Republic of Moldova to “find a more appropriate balance between the fight against corruption and the requirements of local democracy, so that the bringing of criminal charges against local elected representatives does not disrupt local political life, and refrain from exercising any type of pressure against local elected representatives”.

During the monitoring visit, the delegation was informed that the practice continues, although the number of such cases has decreased compared to previous years. However, there are still instances where mayors are investigated for routine administrative decisions, discouraging local initiatives and affecting the smooth functioning of public administration. Soon after the visit, the rapporteurs were informed of the case of the Mayor of Balti Municipality, the second largest city in the country, whose suspension was requested by the Northern Directorate of the National Inspectorate for Technical Supervision, but it was later rejected by the Court.

During the consultation procedure, CALM highlighted the involvement of other control bodies, that are perceived as having replaced the “dossar penale”, such as the National Integrity Authority. In its view, the disproportionate application of the sanction of mandate deprivation to several mayors for minor causes and without prejudice has become a concern. There is a growing perception – according to CALM - that the National Integrity Authority has become a form of pressure on local authorities. CALM also noted that while the number of cases involving pressure and intimidations against mayors has decreased, this improvement results not from systemic factors but rather from the current government goodwill and that few systemic measures have been implemented to prevent such occurrences under future governments.

While legislative inconsistencies and unclear legal interpretations remain major obstacles to the free and efficient exercise of local elected officials’ duties, it appears that the issue of opening indiscriminate dossar penale (prosecution files) against local elected representatives as a means to exert political pressure (or eventually the use of independent authorities for the same purpose) is not a problem of a defective or perverse legal framework. Rather, it is a matter of mere practice, one that can only be countered by ensuring the independence of the guarantor institutions — from public prosecutors to independent authorities, and ultimately to the courts — according to the principles highlighted by the Venice Commission Rule of Law Checklist and by the Congress in its report on the Rule of Law. At the moment, as pointed out by the government, “the justice system is undergoing reform, aimed at ensuring the integrity, effectiveness and independence of the system, avoiding political involvement in the initiation of investigations. The judicial reform began with the process of pre-vetting and vetting of judges and prosecutors, as well as with the reconstitution of governing forums (Supreme Court of Justice, Superior Council of Magistrates, Superior Council of Prosecutors), based on persons of integrity.

In the light of the above elements, the rapporteurs consider that Article 7, paragraph 1 is generally respected in the Republic of Moldova.

Article 7.2
Conditions under which responsibilities at local level are exercised - Article ratified

They shall allow for appropriate financial compensation for expenses incurred in the exercise of the office in question as well as, where appropriate, compensation for loss of earnings or remuneration for work done and corresponding social welfare protection.

Article 7, paragraph 2, refers to an appropriate financial compensation for elected representatives. The aim of the paragraph, in connection to paragraph 1, is to ensure that local elected representatives receive “appropriate financial compensation” and to avoid the conditions of office preventing, limiting, or even excluding potential local candidates from standing for office because of financial considerations.

Recommendation (436) 2019 considered that “the remuneration of mayors is far from adequate or sufficient, which deters young and qualified people from engaging in local politics” and invited Moldovan authorities to “increase the salaries of mayors and district council presidents in order to offer a salary scale commensurate with the importance of their responsibilities”.

In the context of the raising the wages of local representatives, Law No. 175/2019 was adopted to amend Law No. 270/2018 on the unitary salary system, in order to increase the salary class and salary coefficient for mayors and vice-mayors (depending on the number of employees). For the members of the council, there is a compensation to each session attended, regulated by the council itself.Article 24.3 of Law No.768/2000 on the status of local elected officials establishes some compensatory payments, in the form of allowances, for the participation of councillors in council meetings, the amount of which is established by each authority, autonomously, depending on the financial capacities of the respective administrative-territorial unit, including other criteria established by them. Overall, according to the information provided to the Congress, by 2022, the remuneration of mayors, vice-mayors and secretaries of the local councils had been increased by 20%. This adjustment however should be viewed in a broader context, as before the raise, the average monthly salary of a mayor in the Republic of Moldova remained among the lowest in Europe.

Local representatives, especially mayors, consider that although recent salary increases represent a step forward, the inequity between different levels of public administration remains a major issue. The mayor holds multiple competencies and direct responsibilities, managing local development, infrastructure, public services, the local budget, social assistance, and community issues. Their decisions have an immediate impact on citizens, and their work requires daily and continuous involvement in the administration of the locality. In contrast, the district president has significantly fewer responsibilities, as most of the competencies of district councils have gradually been reduced or transferred to ministries. However, there is no balance between the level of responsibility and the salary received, as district presidents paradoxically earn more than mayors, despite having fewer duties. According to the interlocutors, this discrepancy further highlights the need for structural reform, eliminating the district level and redirecting financial resources to municipalities, where critical decisions that directly impact citizens are made.

During the consultation procedure CALM pointed out that compensations for local councillors remain overall inadequate and poorly motivate councillors to think about community affairs rather than about personal or biased interests. It also highlighted that the difference in remuneration between mayors and ministers is substantial as even in comparison with bigger municipalities, ministers and State secretaries earn 2-4 times more.

In the light of the above, the rapporteurs consider that Article 7, paragraph 2, is partially complied with in the Republic of Moldova.

Article 7.3
Conditions under which responsibilities at local level are exercised - Article ratified

Any functions and activities which are deemed incompatible with the holding of local elective office shall be determined by statute or fundamental legal principles.

Article 7, paragraph 3, deals with compatibility between the holding of a representative position at local level and other activities, either public or private, establishing that the “functions” and “activities” that cannot be made compatible with holding a local position once the candidate has been elected shall be determined by statute or fundamental legal principles.

In the Republic of Moldova, the Law on Local Public Administration and the Law on the Conditions of Service of Local Representatives regulate what functions and activities are deemed to be incompatible with the holding of local elective office. The control over compliance with the legal regime of incompatibilities is in the hands of the National Integrity Authority. All the elected officials have to submit an asset declaration. All the declarations are collected and verified by the Authority. Local elected representatives, as any public officers, have to report to the National Integrity Authority if they have a conflict of interest. Most of the activity of the Authority deals with local representatives. People also turn to the Authority for advice. Other agencies may report, such as the Court of account, or financial inspector, members of the opposition, neighbours. Inspections may also be made ex officio.  In case of violation, the Authority makes a decision: it can terminate the mandate and ban for the future. The decision can be appealed in courts, in this case, the elected official remains in charge until the final decision by the judiciary.

A point of concern expressed by local authorities is the disproportionate application of the sanction of mandate deprivation by the National Integrity Authority to several mayors for minor causes and without prejudice. CALM pointed out that the use of the National Integrity Agency can be considered a more subtle suspected pressure against mayors than criminal prosecution. In this regard, the rapporteurs fully acknowledge the vital importance of ensuring transparency and anti-corruption efforts at all levels of government in the Republic of Moldova. They also note that these efforts should align with the principles of the rule of law and local self-government.

The Authority considers itself as an independent body: the president is selected by the National Integrity Council according to a public competition, for a 5-year mandate, and he/she cannot be reappointed. The President of the Republic has the power to approve or reject the nomination. The inspectors are civil servants and are working according to a legal methodology. The Authority reports to the Parliament. The Council is composed of 9 members, including: a representative designated by the Parliament; a representative designated by the President of the Republic of Moldova; a representative designated by the Government; a representative designated by the Superior Council of Magistracy, a representative designated by the Superior Council of Prosecutors, a representative designated by the CALM and three representatives of civil society who are selected by the Ministry of Justice through a competition, based on a regulation approved by the Government.

During the consultation process, CALM pointed out that enforcement of the legislation falls under the competence of integrity inspectors and sanctioning mechanisms are not adequate to the existing legal system.

While they are aware of the importance of fighting corruption in the Republic of Moldova, the rapporteurs also take note of the concerns of local representatives regarding the potential risk of abuse by anti-corruption authorities. For this reason, they wish to reiterate as previously noted under Article 7.1, that while the legal framework seems consistent with the Charter, its effective application requires independent institutions and an overall respect for the Rule of Law, notably in light of the relevant Venice Commission’s opinions.

In the light of the above elements, the rapporteurs consider that the requirements of Article 7, paragraph 3 are generally complied with in the Republic of Moldova.

Article 8.1
Administrative supervision of local authorities' activities - Article ratified

Any administrative supervision of local authorities may only be exercised according to such procedures and in such cases as are provided for by the constitution or by statute.

Article 8 of the Charter deals with the “administrative” supervision of the activities of local authorities. According to the Contemporary Commentary §123, “it does not apply to any form of supervision or control exercised by the Ombudsman, by criminal prosecutors or by the legislature. The Explanatory Report limits the subject matter of this provision to the supervision that is carried out ‘by other levels of government’, that is to say, by central authorities or bodies (line ministries, Ministry of the Interior, etc.) or regional authorities”.

According to Article 8, paragraph 1, any administrative supervision of the activities of local authorities must be exercised according to such procedures and in such cases as are provided for by the constitution or by statute. The Charter establishes an important principle here in the area of inter-governmental supervision of local authorities: any form of such supervision must be provided for by the constitution or by statute, i.e., the Charter introduces the legality principle into the supervision of a local authority (Contemporary Commentary, §128).

In the Republic of Moldova, in line with the requirements of the Charter, the procedures and the cases for the exercise of administrative supervision over local authorities are determined by the law, especially Law No. 436/2006 on local public administration, Law No. 435/2006 on administrative decentralisation and other normative acts (see above).

Therefore, the rapporteurs consider that Article 8, paragraph 1 of the Charter is respected in the Republic of Moldova.

Article 8.2
Administrative supervision of local authorities' activities - Article ratified

Any administrative supervision of the activities of the local authorities shall normally aim only at ensuring compliance with the law and with constitutional principles. Administrative supervision may however be exercised with regard to expediency by higher-level authorities in respect of tasks the execution of which is delegated to local authorities.

According to Article 8, paragraph 2, of the Charter, the supervision of local authorities can only aim at ensuring compliance with the law and constitutional principles. Suspension of the expediency of measures taken by local authorities can be used only in case of delegated tasks.

Recommendation 436 (2019) expressed concern with respect to the fact that “the State intervenes in local affairs through a supervision of local authorities which seems to be very invasive, frequent and much more discretional than the law would normally allow for”, and invited the Moldovan authorities to “ensure that supervision of the actions of local authorities is in proportion to the importance of the interests that it is intended to protect and is limited to ensuring legality while refraining from supervision over local authorities’ actions in their own areas of competence”.

In the Republic of Moldova, the State exercises significant administrative and financial oversight over local authorities, mainly through the State Chancellery and the Ministry of Finance. The government pointed out that a series of regulations were introduced to the activity of the territorial offices of the State Chancellery, so that all interested persons are able to view any local public administration act placed in the system at any stage of verification procedure.

The State Chancellery informed the delegation that in 2023 the Territorial Offices reviewed the legality of 251,217 acts. For 2024, the data is being systematised, but in the first semester of the year, 131,485 acts were subjected to such a review. In this context, in accordance with Article 68.1 of Law No.436/2006 on local public administration, if it considers that an act issued by the local public administration authority is illegal, the Office notifies the issuing local authority of the illegality of the controlled act, requesting its total or partial modification or repeal. In 2023, 2042 notifications were sent to local authorities, while in the first half of 2024, the Offices notified 1335 acts. Compared to the number of acts issued by local public administration authorities, this represents 0.81% of the total number for 2023 and 1.01% in the first half of 2024. Out of the total number of notifications, in 2023, in 1440 cases (70.51% of the number of notifications), local authorities complied with the Offices’ requirements. At the same time, in 2024, local authorities complied with the requirements submitted for 948 documents (71.01% of the number of notifications). The Offices notified the court, according to the provisions of Article 68.4 of Law no.436/2006 on local public administration in 512 cases in 2023 (0.20% of the total number of 251,217 documents), and, respectively, in 320 cases in 2024, which represents 0.24% of 131,485 documents).

All the interlocutors agreed on the fact that the situation has improved in recent years, and no claims of improper review of expediency were raised during the visit.

During the consultation procedure, CALM expressed concerns about expediency of measures, other than reviews of their legality, especially by the prosecutor’s office. Even though it might be the case that checks on expediency have somewhat diminished, they are still present in some cases.

The rapporteurs point out that Article 8 of the Charter refers to the supervision of administrative acts, and does not cover other aspects, such as “where the laws in a given country favour the “judicialisation” of local life, or where local elected representatives are de facto threatened with the prospect of being prosecuted even on trivial charges. In this connection, the fight against corruption should be balanced against the need to ensure that local politicians are not unduly threatened by the prospect of arbitrary prosecutions” (Contemporary Commentary, §112). Those issues are dealt with by Article 7 of the Charter (see above).

Therefore, the rapporteurs consider that Article 8, paragraph 2, is generally complied with in the Republic of Moldova.

Article 8.3
Administrative supervision of local authorities' activities - Article ratified

Administrative supervision of local authorities shall be exercised in such a way as to ensure that the intervention of the controlling authority is kept in proportion to the importance of the interests which it is intended to protect.

Article 8, paragraph 3, deals with the way in which the supervision is exercised in practice, and requires compliance with the principle of proportionality. Under the principle of proportionality, the regional or State body should intervene only to the extent necessary, taking into account the relevance of the public interest at stake, or the seriousness of the legal violation allegedly committed by the local authority (Contemporary Commentary, §139).

As for the proportionality of supervision, the delegation was informed that the level of supervision is not uniform, as specialists in different Territorial Offices interpret the legislation differently, leading to varying reports and decisions across districts. In addition to the supervision of the State Chancellery, many other controls are exercised by prosecutors and the National Integrity Authority, making the burdening of the reporting unbearable for local authorities, especially considering their limited human resources and lack of legal experts.

During the consultation procedure, CALM reiterated the lack of consistency in the practice of administrative supervision, with different solutions being adopted in similar cases, as well as instances of interference in the activities of the local authorities. This would highlight the need to improve the mechanisms of administrative supervision.

Therefore, the rapporteurs consider that Article 8, paragraph 3, is partially complied with in the Republic of Moldova.

Article 9.1
Financial resources of local authorities - Article ratified

Local authorities shall be entitled, within national economic policy, to adequate financial resources of their own, of which they may dispose freely within the framework of their powers.

Article 9, paragraph 1, of the Charter establishes two basic principles in the area of finance. First, local authorities should have their own financial resources. Second, they should be free to decide how to spend those resources.

Recommendation 436 (2019) expressed concern as to the fact that “local authorities’ financial autonomy is very limited and their finances are extremely poor both in terms of the proportion of own revenues in local budgets and of the share of local spending in total public sector expenditure. Local authorities clearly depend on State transfers and subsidies”. The Congress invited the Moldovan authorities to “allocate sufficient financial resources to local authorities, in line with the principle that the resources should be commensurate with the responsibilities”.

The fiscal policies approved for 2022 and 2023 introduced several measures to enhance local financial autonomy, which are presented above in this report. Among them, the percentage of the income tax that is allocated to local authorities was increased, and the road tax (or “vehicles tax”) has been fully transferred to first-tier local budgets, doubling the resources available for road maintenance. These measures reflect a concerted effort to consolidate local financial and patrimonial autonomy, addressing long-standing advocacy by CALM.

Several programmes designed to enable local authorities of the first-level to implement development projects, such as “European Village” (edition 2022-2023 and edition 2023), “European Village Express” (edition 2023), “Expansion of Public crèches” (editions 2023 and 2024) have been introduced. According to the data of the government, by 31 December 2024, within the European Village, 2022-2023 edition, 484 projects have been completed and paid; within the European Village Express, 2023 edition, 380 projects have been completed; within the European Village 2 programme 639 projects initiated out of 695 approved.

In this delicate domain, favourable developments can be seen, at least concerning the volume of available fiscal and other revenues. Although there has been a real increase in the cashflow available to local authorities due to several measures and reforms, the actual impact of those increments has been assessed as insufficient by local representatives. From its part, the government is well aware of the necessity to keep working to provide local authorities with adequate resources. In addition, as most of the financial resources come from earmarked grants (see infra, under Article 9, paragraph 7), local authorities cannot dispose freely of them as they must be used for specific purposes.

The rapporteurs are aware of the difficult economic situation of the country, which is relevant in terms of Article 9, paragraph 1 of the Charter, according to which the right to “adequate” resources is not absolute but has to be exercised “within national economic policy” (Contemporary Commentary, §141). They encourage all the actors to keep implementing Article 9 of the Charter.

Therefore, the rapporteurs consider that Article 9, paragraph 1 is partially respected in the Republic of Moldova.

Article 9.2
Financial resources of local authorities - Article ratified

Local authorities' financial resources shall be commensurate with the responsibilities provided for by the constitution and the law.

Another basic principle, established in Article 9, paragraph 2, requires that local authorities should have financial resources commensurate with the responsibilities assigned to them by law. This paragraph enshrines the so-called “principle of commensurability” of local authorities’ financial resources. This means that the resources available to local authorities should be sufficient and commensurate with their functions and tasks. To this purpose, any transfer of powers and tasks should be based on careful calculation of the actual service delivery costs to be met by local authorities. The costs of mandatory and delegated tasks might include several factors (such as the socioeconomic structure of residents) in order to produce more precise calculations and avoid arbitrary political decisions (Contemporary Commentary, §150).

Recommendation 436 (2019) expressed concern with respect to the fact that “In many cases, the law attributes new competences to local authorities without at the same time providing for new and adequate financial resources”, and, as noted above under Article 9.1, invited the Moldovan authorities to “allocate sufficient financial resources to local authorities, in line with the principle that the resources should be commensurate with the responsibilities”.

CALM considers that the financial resources of local authorities are not proportional to their responsibilities, and the financial situation is not satisfactory at the local level, due to limited resources and high dependence on central transfers.

As the State Chancellery recognised in the written answers to the rapporteurs, in general local authorities still face difficulties in managing financial resources, and this, according to the State Chancellery, is due to several factors:

  • Limited financial resources: The financial resources of local authorities are usually insufficient to cover all responsibilities and needs of the community. Local budgets depend largely on transfers from the central level, and a large part of local revenues comes from taxes and fees collected, which are not always sufficient;
  • Inequalities between localities: There is a significant discrepancy between localities in the Republic of Moldova in terms of available financial resources. Large cities, especially Chisinau, have access to much larger resources compared to villages and smaller localities, which creates inequalities in the ability to implement local projects;
  • Dependence on transfers from the central budget: A large part of the financing of local authorities comes from transfers from the central level, which means that their financial autonomy is limited. This can lead to financial instability, especially in times of economic crisis or changes in fiscal policy at the national level;
  • Developing alternative solutions: Some local authorities have managed to attract external funds or enter into partnerships with international or private organizations, which has allowed them to implement infrastructure and local development projects. However, this is not the case for all localities, and access to such funds is not always equitable.

The State Chancellery recognises that the financial resources of local authorities are rather limited, highly depend on state transfers and should be more proportional to their responsibilities.

 As mentioned earlier, under Article 4.5, during the consultation procedure CALM highlighted the lack of sufficient and often complete absence of financial resources for delegated functions. It also stressed the unfair distribution of personal income tax and its profoundly negative impact on the capacity of some municipalities to pursue development and deliver public services. Currently, only 50% of the personal income tax remains in the local budget of the district-residence municipalities. This distribution formula does not accurately reflect the administrative and financial burdens borne by these local authorities. Under such conditions, it does not seem fair to impose increasingly greater responsibilities on them (including the implementation of national reforms), without providing proportional financial resources.

Therefore, the rapporteurs consider that Article 9, paragraph 2 is not respected in the Republic of Moldova.

Article 9.3
Financial resources of local authorities - Article ratified

Part at least of the financial resources of local authorities shall derive from local taxes and charges of which, within the limits of statute, they have the power to determine the rate.

Article 9, paragraph 3, requires that at least part of the financial resources of local authorities must derive from local taxes of which, within the limits of statute, they have the power to determine the rate. The Charter does not state that a local authority’s own resources must contain a uniform proportion of local taxes, but it does make it mandatory for “at least” part to derive from local taxes and charges. This part should be large enough to ensure the greatest possible financial independence of local authorities.

Recommendation 436 (2019) expressed concern regarding the fact that “the local fiscal system is very weak. The lack of appropriate delimitation of municipal land from private or State property makes it impossible to evaluate the land units for tax purposes and causes a loss of potential local revenues”, and invited Moldovan authorities to “increase the fiscal capacity of local authorities by enabling them to establish local taxes and to determine their rate, and by clarifying the delimitation of municipal lands to allow their re-evaluation for tax purposes”.

In the Republic of Moldova, the share of own-source taxes in total local revenues is relatively low. Own revenues, which include local taxes, charges, and fees, constitute about 10.1% of municipal revenues. First-tier local authorities have the right to impose local taxes and charges and determine their rates, but this is regulated by national laws, that also establish various facilities and exemptions, which result in losses or missed revenues for local authorities. In addition, the extremely difficult economic and financial situation in the country overall significantly diminished any local resources available. Districts do not have the power to raise taxes.

The removal of ceilings on real estate and land taxes allows first-tier local authorities greater flexibility in revenue generation, but, according to all the interlocutors, they are extremely reluctant to use this power. During the visit, the delegation was informed that in the city of Cimișlia, taxes had not been increased since 2017, as people faced a heavy burden, and the local elected representatives do not want to impact on households.

In addition, as underlined in previous Congress monitoring and post-monitoring reports, land properties are not delimited in many parts of the country. Some steps have been taken in this direction, as a nationwide project has started for the delimitation of real estate property and the setting up of a modern and comprehensive national land register. Although the project is now under way, CALM pointed out that progress is very small and the pace very slow. In fact, the process of land delimitation has only been concluded in a very limited number of municipalities, according to the figures provided by the interlocutors. The result of this situation is that most local authorities have no real capacity to collect a true “local land tax”. The two main problems reported in the post-monitoring activity are still in place: the land valuations are outdated, and many properties are not incorporated in a national land register; therefore, it is impossible to target those properties with a land tax.

During the consultation procedure, CALM reiterated the issues related to the delimitation, registration, and evaluation of lands, including the lack of progress in the delimitation of aquatic objects. The delays in this process have resulted in considerable income losses for local authorities, with no resolution currently in sight. Two years ago, CALM warned about these problems and proposed adjustments to the legal mechanism to promote and complete the delimitation process of public property.

The rapporteurs consider that Article 9, paragraph 3 is partially complied with in the Republic of Moldova.

Article 9.4
Financial resources of local authorities - Article ratified

The financial systems on which resources available to local authorities are based shall be of a sufficiently diversified and buoyant nature to enable them to keep pace as far as practically possible with the real evolution of the cost of carrying out their tasks.

Article 9, paragraph 4, refers to the need for the resources available to local authorities to be of a sufficiently diversified and buoyant nature to enable them to keep up as far as practically possible with the actual changes (increases) in the costs for carrying out their tasks.

In the Republic of Moldova, the revenues of local authorities come, in its vast majority, from special purpose-transfer, which represent about 50% of the budgets of first-tier local authorities and about 90% of the budgets of the second tier. Although the reasons of this situation are complex, and the failure of local authorities to undertake the necessary measures to increase revenues from local taxes and fees should be evaluated taking into account the country’s overall economic situation, the resources available to local authorities cannot be considered as sufficiently diversified to enable them to keep up with the actual increases in the costs for carrying out their tasks.

Therefore, the rapporteurs consider that Article 9, paragraph 4 is not fully respected in the Republic of Moldova.

Article 9.5
Financial resources of local authorities - Article ratified

The protection of financially weaker local authorities calls for the institution of financial equalisation procedures or equivalent measures which are designed to correct the effects of the unequal distribution of potential sources of finance and of the financial burden they must support. Such procedures or measures shall not diminish the discretion local authorities may exercise within their own sphere of responsibility.

Article 9, paragraph 5 addresses the question of the financial situation of municipalities that are financially disadvantaged due to their being located in economically or geographically weak areas (transition, mountain or island regions), or simply because they are too small to obtain the amount of resources needed to perform their tasks.

The equalisation system for local authorities operates by several mechanisms: by diversifying the shares from personal income tax by types of local budgets (villages, communes, cities, towns (municipalities) district residence, municipalities, districts), ranging from 50 to 100%; by general purpose (balancing) transfers, calculated according to a different formula for first and second-tier of local authorities. For the first-tier local authorities, the indicators include fiscal capacity per inhabitant, determined according to the income obtained from the PIT, the population and the area of the administrative-territorial unit. The allocation of transfers is focused on the poorest local authorities and is carried out inversely proportional to the fiscal capacity per inhabitant (with a share of 60% in distribution) and directly proportional to the population (weighting 30%) and the area (weighting 10%). For districts, the allocation of transfers shall be made in proportion to the population and area.

According to the Ministry of Finances, the financial system is focused on preserving the financial envelope, is based on the principles of administrative decentralisation, considering territorial cohesion (solidarity) and is aimed at matching resources with local competences. During the monitoring visit, no special complaints have been addressed by the interlocutors to the formula, that was already considered consistent with the Charter by the previous Congress Recommendation 436 (2019).

During the consultation procedure, CALM pointed out that the part of the equalisation fund derived from CIT (currently set at 10%) is not fixed in statutory documents/in law and remains at the discretion of any government, being included in Annual budget law and subject to the government’s goodwill to continue or discontinue this practice. CALM considers that this share should be stipulated in local finance law just like sharing of the PIT and all other taxes.

While acknowledging that the formula can always be further refined in consultation with local authorities’ association, the rapporteurs consider that Article 9, paragraph 5 of the Charter is respected in the Republic of Moldova.

Article 9.6
Financial resources of local authorities - Article ratified

Local authorities shall be consulted, in an appropriate manner, on the way in which redistributed resources are to be allocated to them.

Article 9, paragraph 6, of the Charter refers to a general principle of consultation, as enshrined at Article 4.6. In this case, consultation is required on the way in which redistributed resources are to be allocated to local authorities by other levels of government. Under Article 9.6, consultation is not merely a compulsory procedure that has to take place in a timely manner before a final decision is made. It must also cover the manner in which a decision is made and the criteria for doing so, not only the decision itself (Contemporary Commentary, §173).

Consulting local public authorities when adopting decisions that substantially affect them is a legal obligation enshrined in the legislation that governs the activity of local authorities, also on financial issues.

According to Recommendation 436 (2019), this article was not respected, as there were no fruitful and transparent consultation mechanisms on financial issues. Since then, the collaboration between the State and local authorities has improved, as pointed out supra, under Article 4.6. The Working Group on Finance is among the sectoral working groups within the Parity Commission attached to ministries (9 in total) that are functioning, together with those involving the Ministry of Regional Development and Infrastructure and the Ministry of Environment. However, according to CALM, the instability of the collaboration mechanism and the recent diminished political will to consult local authorities also impacted on the dialogue on financial issues.

During the consultation procedure, CALM pointed out that, as with other consultations, those in the financial field remain largely at the discretion of individual national level decision- makers – in this case the Minister of Finance, who tends to change more frequently than other ministers. According to CALM, addressing these issues would benefit from the adoption by the parliament of a general consultation law covering all local affairs and involving all central level institutions.

In this respect, the rapporteurs note that efficient consultation of local authorities by other levels of government rests on two pillars: a well-defined national regulatory framework and an appropriate institutional setting. They underline that the right of local authorities to be consulted should be enshrined in national legislation (Contemporary commentary, §175).

In the light of the above elements, the rapporteurs consider that Article 9, paragraph 6 of the Charter is partially respected in the Republic of Moldova.

Article 9.7
Financial resources of local authorities - Article ratified

As far as possible, grants to local authorities shall not be earmarked for the financing of specific projects. The provision of grants shall not remove the basic freedom of local authorities to exercise policy discretion within their own jurisdiction.

Article 9, paragraph 7, of the Charter establishes that “earmarked

In the Republic of Moldova, local authorities largely depend on State transfers and subsidies. The most important part of those transfers is earmarked for specific purposes, mainly for delegated tasks, and especially education.

Immagine che contiene testo, schermata, Carattere, numero Il contenuto generato dall'IA potrebbe non essere corretto.

 

Source: Ministry of Finance

During the monitoring visit, the delegation was informed that in small villages, such as the village of Troițcoe (997 residents in 2025) 65% of the budget comes from the earmarked State fund for kindergarten. As for the districts, during the meetings with the representatives of the district of Cimișlia, the delegation was informed that the greatest part of the budget comes from State transfer, with 80% of the budget marked for education. Another important part comes from a special earmarked fund for roads.

Therefore, the rapporteurs consider that Article 9, paragraph 7 is not fully respected in the Republic of Moldova.

Article 9.8
Financial resources of local authorities - Article ratified

For the purpose of borrowing for capital investment, local authorities shall have access to the national capital market within the limits of the law.

Article 9, paragraph 8, refers to the access to the national capital market for the purpose of borrowing for capital investment. Access to national capital markets is important for local authorities to finance investment projects necessary for the further development of the local area because in many cases the amount of their own “ordinary” resources is not sufficient to cover all the projects and plans decided on by local authorities to satisfy local needs. However, like other rights enshrined in the Charter, this is not absolute and must be reconciled with the general policy on public sector spending and debt. This is why the Charter says that the access must take place “within the limits of the law”. Moreover, as a result of the recent economic crisis, many countries have introduced austerity measures to deal effectively with public deficits, so access to the national capital market should be analysed in the context of national fiscal policy and the governance of public debt (Contemporary Commentary, §182-183).

Moldovan local authorities have the possibility to borrow long-term loans to finance investment projects. Law No. 397/2003 on Local Public Finance allows local authorities to borrow for capital purposes both domestically and abroad, as well as to grant guarantees on loans to municipal companies. The decision to assume long-term debt is subject to prior coordination with the Ministry of Finance in accordance with Law no. 419/2006 on public sector debt, central government guarantees and on-lending and Government Decision No. 1136/2007 regarding certain measures of enforcement of Law No. 419/2006. The Ministry’s approval is mandatory and is issued based on criteria designed to ensure:  the capacity to meet debt repayment obligations; the alignment of financial terms with the local debt management strategy; the compliance of projects planned to be financed from borrowed funds with the annual and multiannual development programmes; compliance with the borrowing limits established under Law No. 397/2003 on Local Public Finances.

According to provisions of Law No. 419, the Ministry of Finance monitors the situation of public-sector debt. All public-sector entities (including local authorities) must therefore send the information necessary to monitor the contracting, disbursement and repayment of public-sector debt to the Ministry of Finance, on a quarterly basis. The Ministry of Finance then presents the government and parliament with a quarterly and an annual report on the situation of public-sector debt. Reports are published on the website of the Ministry of Finance.

At the same time, the legislation sets limits on local indebtedness. According to Article 15 of Law No. 397/2003 on Local Public Finances, annual debt service payments - including principal, interest, and related costs - must not exceed 20% of total annual revenues for local budgets, excluding special-purpose transfers. For the municipal budgets of Balti and Chisinau, this limit is set at 30%.

During the monitoring visit, no special issues have been raised about the borrowing. The Ministry of Finance pointed out that the indebtedness of local administrative units remains at a manageable level and does not represent a risk to the local public finances. It considers that the Ministry of Finance's borrowing approval process ensures a closer monitoring of the debt sustainability of local administrative units, by preventing the accumulation of excessive debt that might lead to pressure on municipal budgets.

During the consultation procedure, CALM pointed out that a key challenge lies in the low participation of local authorities in borrowing, whether overall or within lending market, due to various factors. To date, there have been no confirmed cases of issuing lending instruments (such as bonds) and only a limited number of municipalities (at best around 10%) have engaged in borrowing. Mostly long-term borrowing is predominant. CALM considers these indicators concerning in the context of multiple crises and significant financial difficulties.

While acknowledging these challenges, the rapporteurs consider that Article 9, paragraph 8 of the Charter is respected in the Republic of Moldova.

Article 10.1
Local authorities' right to associate - Article ratified

Local authorities shall be entitled, in exercising their powers, to co-operate and, within the framework of the law, to form consortia with other local authorities in order to carry out tasks of common interest.

Article 10 of the Charter covers the possibility of co-operation between local authorities and their right to associate, at both national and international level.

Article 10, paragraph 1, refers to types of cooperation aimed at carrying out tasks of common interest. Under Article 10.1, local authorities firstly have a general right to co-operate with one another in order to deliver local services or discharge their responsibilities. Inter-municipal cooperation (or cooperation at other levels of local government) is a fundamental tool for local authorities in terms of delivering services, in view of the fact that many of them are too small or too weak (financially speaking) to deliver all the services they are supposed to or to carry out any meaningful local strategy or policy. This general entitlement to cooperate with other local entities is supplemented by a more specific right, namely the right to “form consortia”, i.e. to create separate organisations. Although the Charter only mentions “consortia”, the specific right to create joint institutional structures, separate from the participating local authorities, may take various forms (Contemporary Commentary, §187-194).

In the Republic of Moldova, the right of local authorities to associate among themselves and to form common platforms and structures for the joint provision of local services is fully recognised in the domestic legal system. The legal basis for intermunicipal co-operation is Law No. 436/2006 on Local Public Administration. Article 14 regulates the powers of local councils and stipulates that local authorities can, within the conditions set by law, “form an association with other local public authorities, including from abroad, to conduct works, and to provide services of public interest, to promote the interest of local public authorities, as well as to co-operate with businesses and NGOs from the country and abroad to implement action and works of common interest”.  Article 5 of Law No. 435/2006, on administrative decentralisation, also provides that local authorities can co-operate in the implementation of their competences, by setting up joint services and works. In this sense, the towns/cities usually establish joint municipal enterprises or joint stock companies, where all participating municipalities are founders.

Intermunicipal (intercommunity) cooperation is an objective assumed and regulated both at the level of the PAR Strategy, approved by Government Decision No. 126/2023, and regulated by Law No. 17/2023 on intercommunity development associations and Government Decision No. 609/2023 for the implementation of the provisions of Law No. 17/2023 on intercommunity development associations. The activity of intercommunity development associations is directed towards the joint implementation of development projects of local or regional interest or in order to jointly provide/provide public services in various fields: water and sewage, municipal management, development of infrastructure related to the service provided.

The delegation was informed by the government that 4 intercommunity development associations are registered and operating, such as the intercommunity Development Association “Narnova Basin” which includes the administrative-territorial units in the Narnova River Basin. Other examples are from the Hincesti district (communes: Miresti, Cateleni, Bujor, Nemteni, Obileni, Ivanovca, Onesti, Cotul-Morii, Leuseni;) from the Nisporeni district (city of Nisporeni and communes: Balanesti, Ciutesti, Calimanesti, Seliste, Varzaresti, Vinatori, Siscani, Marinici;) and the intercommunity development associations from the Ialoveni, Cahul and Ungheni districts that include the corresponding first-level administrative-territorial units.

Therefore, the rapporteurs consider that Article 10, paragraph 1 of the Charter is respected in the Republic of Moldova.

Article 10.2
Local authorities' right to associate - Article ratified

The entitlement of local authorities to belong to an association for the protection and promotion of their common interests and to belong to an international association of local authorities shall be recognised in each State.

In this paragraph the Charter clearly recognises and sets out another right of local authorities: that to belong to (a) a national association for the protection and promotion of their common interests; and (b) an international association of local authorities.

The “associations” referred to in paragraph 2 are different from those mentioned in paragraph 1. Those mentioned in Article 10.1 are set up for the delivery of local services, plans or projects and are instruments for discharging duties and responsibilities. Conversely, those referred to in Article 10.2 are instruments for the promotion of common interests. These associations play a fundamental role in representing and defending the rights, powers and interests of local authorities and they carry out many activities on behalf of them all (not only in favour of their members) (Contemporary Commentary, §198).

In the Republic of Moldova, local authorities are entitled to set up associations for the protection and promotion of their common interest, and to join or withdraw from existing associations. Moldovan local authorities are also free to join international associations of local authorities. In the country there is one comprehensive association of local authorities, the Congresul autoritatilor locale si regionale din Moldova (CALM).

Based on the principle of voluntary membership, the CALM was founded in 2010 and its members currently include about 700 local authorities of first and second-tier, out of the current 898 entities. The CALM is far and above the most important national association that defends and represents the interests of local authorities. It is supposed to act as a local intermediary in dialogue with the government and lobbies in favour of local interests. Apart from its purely representative tasks, the CALM carries out different activities of common interest and provides assistance and help to local governments, such as legal and fiscal advice, technical support and capacity building.

Districts also have a separate association, but during the meeting with the representatives of the district of Cimișlia, the delegation was told that this association is not active.

Therefore, the rapporteurs consider that Article 10, paragraph 2 of the Charter is respected in the Republic of Moldova.

Article 10.3
Local authorities' right to associate - Article ratified

Local authorities shall be entitled, under such conditions as may be provided for by the law, to co-operate with their counterparts in other States.

Article 10, paragraph 3, addresses the cooperation of local authorities with their counterparts in other States. The right to engage in cross-border cooperation is also protected.

In the Republic of Moldova, the possibility for local authorities to co-operate with their counterparts in other States is recognised by Article 14.1 of Law No. 436/2006 on Local Public Administration, which enables co-operation with municipalities abroad: local councils can establish co-operation projects, including cross-border ones and town twinnings with other towns abroad. In practice, there are many projects and activities involving cross-border co-operation, especially in the framework of cross-border co-operation programmes supported by the EU (Moldova, Ukraine, Romania).

The delegation was informed of interregional and cross-border cooperation referring to the Interreg NEXT Romania-Republic of Moldova Programme 2021-2027, the Interreg NEXT Black Sea Basin Programme 2021-2027, the Interreg Danube Region Programme 2021-2027, as well as various twinnings with local authorities from Romania and, to a lesser extent, from Ukraine. During the meetings with the representatives of the district of Cimișlia, the delegation was informed that they have a partnership with six municipalities from Romania, which are founding some projects according to the needs of the district.

During the consultation process, CALM noted that Moldovan municipalities receive relatively modest funding, primarily for soft interventions, with only a few of them benefiting from Interreg programmes. According to CALM, participation remains challenging for local authorities from partner countries due to various factors, including the requirements for pre-financing and co-financing, stringent application and management procedures, and the need for multiple partner countries to be involved.

In the light of the above-elements, the rapporteurs consider that Article 10, paragraph 3 of the Charter is respected in the Republic of Moldova.

Article 11
Legal protection of local selfgovernment - Article ratified

Local authorities shall have the right of recourse to a judicial remedy in order to secure free exercise of their powers and respect for such principles of local self-government as are enshrined in the constitution or domestic legislation.

Article 11 of the Charter refers to an effective judicial remedy to ensure respect for local self-government. It stresses the requirement that local authorities should have the right to invoke and to defend in the courts the principles of local self-government, especially in the context of lawsuits in which their rights and powers are challenged or curtailed, or when those rights are endangered by the higher (central or regional) levels of government. “Recourse to a judicial remedy” means access by a local authority to either a properly constituted court of law or an equivalent, independent, statutory body (Contemporary Commentary, §20).

The analysis of the legal protection of local self-government in the Republic of Moldova should consider two different aspects: regular access to ordinary courts and access to the Constitutional Court to defend the principle of local self-government.

Concerning the first aspect, Moldovan local authorities do enjoy locus standi to go to courts in order to defend their rights, property or interests, just as any other legal person may. Therefore, towns, villages, municipalities and districtscan have access to the regular courts, where they can defend their interests and rights. In this matter, the delegation did not hear any complaints from local leaders and representatives.

The Constitutional Court is regulated by Article 134-140 of the Constitution, which describes the Constitutional Court as the “sole authority of constitutional jurisdiction in the Republic of Moldova”. Among other functions, it exercises the review of constitutionality of laws and decisions of the parliament, presidential decrees and decisions and ordinances of the government.

Since 2016, Moldovan local authorities are authorised to appeal to the Constitutional Court, according to Article 25 of the Law on the Constitutional Court of the Republic of Moldova. The councils of the first and second level administrative-territorial units, the People’s Assembly of Găgăuzia (Gagauz-Yeri) may do so in cases of exercising the constitutional review of laws, regulations and decisions of the Parliament, decrees of the President of the Republic of Moldova, decisions, ordinances and provisions of the Government, as well as the international treaties that the Republic of Moldova is a party to, which do not comply with Article 109 and, respectively, Article 111 of the Constitution of the Republic of Moldova.

Thus, the Constitutional Court can check whether the laws and regulations governing local authorities contravene the principle of local autonomy enshrined in the Constitution. Although the appeals by administrative territorial units are rare, the Court developed a rich case law on the principle of local self-government, also referring to the Charter in interpreting Articles 109 and 111 of the Constitution (see above).

Therefore, the rapporteurs consider that Article 11 is respected in the Republic of Moldova.

ACCESSION

to the Council of Europe 13 July 1995

RATIFICATION

of the European Charter of Local Self-Government 2 October 1997

CONSTITUTION | NATIONAL LEGISLATION

In the Republic of Moldova, the principle of local self-government is explicitly recognised and established in the constitution and in regular legislation.



30Ratified provision(s)
0Provision(s) with reservation(s)
0 Unratified Provision(s)
17Compliant Provision(s)
8Partially Compliant Articles
5Non-compliant Provision(s)