engleski

FINANCIAL AND LEGAL ASPECTS OF THE ORGANIZATION OF LOCAL AND REGIONAL SELF-GOVERNMENT UNITS

Local self-government is an autonomous system of governing local communities in narrower parts of the state territory. The development of local self-government is also one of the conditions for democracy and the rule of law. Self-government of local and regional units is usually prescribed by the constitution and laws of each state. Fiscal decentralization over the years has emerged as one of several possible ways to cope with the turbulent economic situation in the world, which involves the vertical transfer of power from higher to lower levels of government in the country to provide more efficient public services and local and regional government. ultimately resulting in the progress of the country’s overall economy. The number of local and regional self- government units in the EU varies. There is no optimal number that could be applied to all EU members as each country is an organism that functions in a unique way. Great influence on the financial and legal position of local selfgovernment units consists of population, demographic structure of the population, territorial position of the state, internal structure, economic development, political climate. The aim of this paper is to present the financial and legal position of local and regional selfgovernment units both in the Republic of Croatia and in certain European countries. The existing system of fiscal policy in relation to local and regional self-government units is analyzed, primarily from the aspect of their financing with regard to the origin of sources of income. The paper also looks at the historical framework and attempts and even efforts to harmonize self-government units in Europe and provides insight into the similarities and differences between local governments by country, which are the basis for further study.

local self-government units, regional self-government units, sources of income, harmonization, fiscal decentralization

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