The study “Management of European Union Funds in the Local Budget” aims to structurally analyze the challenges faced by municipalities and provide recommendations for improving the regulatory and institutional frameworks for budgeting procedures, opening bank accounts for projects, and public procurement with EU funds. Drawing from regional best practices, NALAS presents models and recommendations for the necessary instruments to help municipalities effectively absorb and manage EU financial assistance, including funds for pre-financing, co-financing, and covering VAT costs. The “EU for Municipalities” initiative highlights that, beyond capacity issues, the primary challenge for municipalities in implementing donor-funded projects lies in the regulatory framework and the individual practices of municipalities in managing EU financial assistance post-grant contract signing. The incomplete regulatory framework and the lack of clear and unified practices have resulted in significant delays in project implementation.
