On October 30, the European Commission published a comprehensive report on Ukraine's progress toward European integration. The document addresses a broad range of issues, including the functioning of democratic institutions, anti-corruption efforts, judicial reform, human rights protection, economic development, public finance, regional policy, and local governance.

The document examines the current state of reforms in Ukraine and outlines key priorities for the country to address in 2024–2025 as part of the European integration process. The report also includes recommendations for advancing regional and local self-governance. 

The document highlights both challenges and progress, sets priorities, and offers concrete recommendations. It supports Ukraine's European integration efforts while presenting to the whole world a clear, detailed overview that fosters collaboration with partners and enhances the accountability of the government and local authorities.

Transparent Cities has analyzed the key aspects of the program's competencies and is ready to share its findings.

European Commission Report and local self-government

Chapter 22 – Regional policy and coordination of structural instruments in the Commission's report emphasizes the need for administrative capacity, robust financial management and control systems, and alignment of Ukrainian legislation with the EU legal framework, including in the areas of environmental protection and public procurement. The principles of subsidiarity (exercising power at the lowest effective level of governance), accountability, efficiency, and the involvement of subnational bodies in decision-making remain fundamental to the development of local self-government.

Tasks for Ukraine in the regional context

Last year's EC report highlighted the weakening of budget transparency and citizens' ability to influence budget processes amid the war. It also pointed to underutilized opportunities for monitoring the work of local authorities (such as mayoral reports and meeting broadcasts), limited public involvement in consulting and advisory bodies, and the restricted availability of municipal statistics. 

The European Commission also noted a regression in the filling of vacant positions within local governments. During the period of martial law, vacant positions in local self-government bodies are filled through direct appointments without competition. According to the EC, this undermines the competitiveness and independence of personnel selection. 

This year, the European Commission highlights the need to implement the state strategy for regional development and strengthening the institutional capacity of the Ministry of Regional Development, Construction, and Utilities of Ukraine. It also includes completing the formation of the State Agency for Restoration and Infrastructure Development of Ukraine and creating a coordination structure to facilitate the participation of regional and local authorities in the development and monitoring of policies. It also includes continuing to use framework programs that bring together regional and local authorities to share innovative and sustainable solutions in regional development, such as Interreg.

Transparent Cities paid special attention to the following tasks:

1. Further rolling out of the Digital Restoration Ecosystem for Accountable Management (DREAM) to improve the digital interaction of the authorities with citizens. 
2. Strengthening public oversight, particularly over public procurement, to ensure transparency in the costs of restoration, reconstruction, and modernization.
3. Enhancing dialogue with citizens to ensure the improvement of administrative decisions in the best interest of society. The document mentions the Law on Public Consultations, which will come into effect once martial law is lifted. 
4. Support for civil society. The EC emphasizes the need to develop civil society and involve it in cooperation, as it is a crucial component of Ukrainian democracy. The report also notes the existence of excessive bureaucratic requirements for the registration of civil society organizations, calling for the simplification of these procedures.

Recommendations for cities to facilitate their alignment with the EU

The implementation of recommendations that promote transparency, accountability, enhanced public oversight, and dialogue can offer local authorities a range of strategic advantages, particularly on the path to European integration. These include improving the quality of management decisions, enhancing citizens' quality of life, building trust in government decisions, increasing efficiency in budget spending, attracting partners and investments, and ensuring sustainability in times of uncertainty.

Based on the long-term experience of the program and the EC report, we recommend the following actions:

• implement the proper use of the Digital Restoration Ecosystem for Accountable Management (DREAM) and promote it among citizens to report on activities and involve residents in the process;
• approve a methodology for monitoring average market prices for construction materials in the implementation of construction projects; 
• make public the complete design and estimate documentation for construction procurements, and publish necessary information for estimate calculations in universal formats for estimate applications and in Excel format;
• introduce an internal financial audit and publish the results of these audits;
• improve approaches to citizen involvement in budget processes: announce and publicly hold budget hearings in advance, publish regular reports, draft documents, etc., and gradually reintroduce participatory budgeting;
• start implementing the provisions of the law on public consultations even before the end of martial law, properly organize discussions on key issues, and implement tools like petitions and online surveys; 
• strengthen the openness and accountability of decisions and activities by ensuring annual reporting by the mayor, regular announcements and broadcasts of meetings, and the publication of draft agendas, decisions, and minutes from meetings of local self-government bodies, executive committees, etc.;
• responsibly publish open data sets in accordance with regulatory legal acts, create useful services for businesses and citizens, and promote tools based on them;
• improve the quality of statistical data according to European standards (availability, completeness, accuracy, reliability, openness, etc.);
• involve an active segment of residents and NGOs in cooperation, ensuring appropriate representation in public commissions and advisory bodies, including IDP councils and commissions dealing with compensation for damaged or destroyed property;
• invite them to implement joint initiatives, such as the restoration and/or support and integration of veterans, displaced persons, etc.; 
• If possible, organize projects to support local NGOs and promote co-creation for a better life in your community;
• pay more attention to the personnel sector: return to competitive selection practices, or at least inform the public about vacancies and appointments; activate internship programs, establish a system of internal training, and develop modern HR policies to maintain a stable staff and hire new employees through the city council's brand as an employer and streamlined processes.

Reforms at the regional level are crucial to Ukraine's sustainability and recovery, largely due to the untapped potential of municipalities for various reasons. Progress in European integration also provides a valuable opportunity for local self-government bodies to assess their strengths and weaknesses, streamline their operations, and introduce innovations. 

The recommendations provided by the program are just a part of the plan for cities, which must inevitably prepare for active, dynamic, and at times challenging work in European integration. We believe that through clear steps and coordinated actions, Ukraine will steadily progress toward European standards, sustainability, and success, even in the face of difficult wartime conditions. The Transparent Cities program is open to cooperation.