The dissolution of municipalities / The Socialist Party reveals the report on Territorial Reform: 4 scenarios on the table for the new administrative map

The final report of the Socialist Party on territorial reform outlines four scenarios for how the map of municipalities could be configured after the next local elections, but it does not propose a final number of local government units.

The 357-page document does not include any new administrative map or a specific number of municipalities proposed by the Socialist Party.

In the introduction, the co-chair of the commission, Arbër Mazniku, explains why the map approved 12 years ago should be reviewed. “Today’s Albania no longer has the same population distribution and economic activity patterns it had when the current administrative division was established. Some areas have grown, while others have lost a significant part of their population.

A number of municipalities face difficulties in securing sustainable finances, qualified staff, and sufficient administrative capacity. For this reason, the existing map must be assessed in relation to the country’s new demographic, economic, and functional reality,” Mazniku states.

According to the report, the four scenarios analyzed are: asymmetric decentralization, while maintaining the current number of municipalities; large-scale mergers of municipalities that would exercise all functions; medium-scale mergers with the reallocation of complementary functions; and a model with municipalities focused only on basic functions.

Regardless of which scenario is chosen, the analysis identifies three common priorities of the reform:

(i) Clarifying the allocation of some functions that are formally assigned to municipalities but are partially or de facto exercised by other levels of government;

(ii) Clarifying the division of responsibilities in functions where central government plays an important role; and

(iii) Strengthening and redesigning the fiscal equalization system, as differences in fiscal capacity continue to affect the implementation of functions, with some of them remaining underfunded,” the report states.

Another important point of the document concerns the relationship between municipal mergers and fiscal autonomy.

“It is not enough to simply merge municipalities, nor is it enough to only increase financial resources. The reform must simultaneously address the issue of size, the issue of resources, and the issue of the real cost of services.

If two or more municipalities with low revenues, weak economies, and high dependence on transfers are merged, the result will be a larger municipality in terms of territory, but not necessarily a financially stronger one. Therefore, a merger may reduce some administrative costs, but it does not automatically create a new tax base,” the report emphasizes.

Regarding dependence on government funds, Tirana is the least dependent municipality, with 22%, followed by Vlora and Saranda with 25%, and Durrës with 39%. On the other hand, the municipalities most dependent on government transfers are Has (105.3%), Pustec (109.9%), and Këlcyra (125.5%).

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