Bulgaria Unitary state

Reforms

Several reforms have modified the organization and the competences of local authorities in Bulgaria, often implemented in order to reduce costs.

Recently adopted laws have slightly changed the way local authorities operate; additional competences were attributed to local authorities, particularly in the areas concerning control on construction and the encouragement of economic investment actors. Discussions, initiated by the National association of municipalities, are also underway regarding a draft law which should ensure that local self-government is guaranteed by protecting own competences from state intervention, by preventing from legal assignment of unfunded new responsibilities, and by assigning greater importance to citizens’ involvement.

The government has imposed stricter rules for budget management and increased the dependence of the municipal budgetary process on the financial ministry’s by-laws. In addition to stricter budget controls, a law on public finance has reducedthe level of indebtedness that the municipalities can attain to 15% of revenue (compared to 25% previously). The government also requested a 15% reduction in the number of local civil servants in each municipality. The financial transfers from the central level have been frozen since 2009 (except the general equalising subsidy and the transfers for education) and generally have not been reviewed to take inflation into account.

Lastly, a change in electoral laws in 2011 brought new conditions: local mayors should be elected for settlements of more than 350 inhabitants (previously more than 150); borough mayors in the three bigger municipalities (capital Sofia, Plovdiv and Burgas) should be elected not by a direct vote but by the municipal councils. A 50% decrease in the remuneration of municipal councillors was imposed by legal changes.

Local self-government in Bulgaria:

Among the reforms adopted in reaction to the economic and financial crisis, the central government has reduced the share of public expenses at the municipal level. As a result of greatly reduced municipal revenues and practically frozen financial transfers to local authorities, the financial autonomy of local authorities in Bulgaria faces strong difficulties. Nonetheless, a change in legislation concerning the protection of municipal powers could guarantee a certain level of political autonomy for Bulgarian municipalities.

KEY REFORMS

• 17 September 1991: local self-government and local administration act, which introduced the same model for all central, regional and local government entities in Bulgaria
• 1995: local division act
• 2004: local elections act
• 1998: local budget act
• 1999 and 2004: regional development act
• 2013: partnership agreement between central government and municipalities (covering 2013-2017), introducing meaningful, consistent local governance reforms
• Ongoing discussions around plans to protect local authorities’ political autonomy
• Debt capped at 15% of own resources
• Ban on debt nine months before local elections
• Increased municipal powers on building regulations
• Quasi-freeze on transfers from central government
• Municipal staff cut by 15%
• Tighter municipal budget controls
• Changes to electoral rules
• Municipal councillors’ pay cut by 50%