This paper examines the system of administrative supervision of local governments in the Western Balkans and assesses its alignment with European standards. It analyses the legislative and institutional frameworks governing supervision, including supervisory procedures, interventions, and sanctions applied in cases of irregularities, with specific regard to the principles of subsidiarity and proportionality. The study identifies key challenges affecting the effectiveness of current supervisory systems and highlights relevant European and OECD practices that may inform future reform efforts. Drawing on selected implementation examples, it identifies both effective approaches and persistent shortcomings across the region. The analysis is grounded in the principles of the European Charter of Local Self-Government and the SIGMA Principles of Public Administration, which emphasise accountable local governance and effective multi-level governance across levels of government
Administrative supervision of local governments in the Western Balkans
Abstract
Contents
Keeping local governments accountable
- Principles and guidelines for administrative supervision of local governments
- Design and key components of administrative supervision systems
- Instruments and procedures of legality supervision
- Graduated legality supervision
European practices of supervision
- The evolution of current practices in Europe
- Good practices of administrative supervision from the European Union
- Why EU experience matters for the Western Balkans
- Key takeaways from selected European examples
Western Balkans - from law to practice
- Decentralisation and local governance
- Territorial organisation of the subnational level in the Western Balkans
- Institutional design and the process of supervision in the Western Balkans
- Assessment of Western Balkan administrations based on the graduated legality supervision ladder
Ensuring the effectiveness of local self-government and the efficient management of public resources
The aim of supervision is ultimately to ensure the effectiveness of local self-government and the efficient management of public resources, including the management of finance and public property. This involves the protection of the rights of citizens.
The process of administrative supervision of local governments is governed by a coherent set of principles. Among these, the principles of legality and proportionality are particularly significant.
The supervision ladder
A well-functioning supervision system is not one that frequently uses the strongest measures, but one that solves problems early and efficiently.
SIGMA has developed a supervision ladder that may serve as guidance for understanding the process of administrative supervision of local governments, its core steps as well as the sequencing of steps taken by the control/supervisory authority. The ladder helps ensure that supervision remains focused on legality, respects local autonomy, and is predictable and transparent.
What can be learned from European practices?
Reviews of selected European models show that state supervision and local autonomy rely on clear legal boundaries, proportionate interventions, and robust judicial oversight. Pairing supervision with institutional capacity building helps stabilise local governance frameworks.
This balance is critical for Western Balkan partner administrations, where existing frameworks require more consistent, predictable execution.
Supervision should be rule-based and focused on legality. For municipalities’ own competences, oversight should be limited to legality, while broader review should be restricted to delegated state tasks.
Proportionality should be applied through clear, staged procedures. Supervision should begin with guidance, warnings and requests for correction, allowing municipalities the opportunity to comply voluntarily.
Supervision systems should reduce the risk of political influence. This can be supported by involving independent institutions in legality review, where appropriate, and by ensuring that decisions are ultimately subject to judicial control.
Supervision should respect local autonomy and avoid unnecessary administrative burden. Reporting obligations and transmission of acts should be limited to key areas and supported by simple and digital processes.
Publishing supervisory decisions, guidance and outcomes helps ensure accountability and allows municipalities to learn from practice. Supervision should function as a tool for capacity-building.
Local government supervision in the Western Balkans
Administrative supervision of local governments in the Western Balkans is a key component of multi-level governance, intended to safeguard legality, accountability, and efficiency while respecting the principle of local autonomy.
The way forward
Improving administrative supervision in the Western Balkan administrations
Establish or reinforce structured, graduated supervision frameworks, and a clear, proportional supervision approach. Limit the use of intrusive measures.
A clear allocation of roles and responsibilities across all supervisory actors, supported by formal co-ordination mechanisms and regular information exchange.
Supervision systems should rely on harmonised procedures, templates and methodological guidance to ensure predictability, legal certainty and equal treatment across municipalities.
Place greater emphasis on preventive and advisory functions, complementing corrective and enforcement mechanisms. Provide guidance and interpretative support, training and capacity-building, early consultation mechanisms, and disseminate good practice.
Systematic monitoring of the implementation of recommendations, clear deadlines for compliance, and availability of proportionate enforcement tools.
Systematically publish supervisory decisions, reports and statistics, and develop standardised, comparable data on municipal performance. Invest in digital platforms for case management, data collection and reporting. Improve tracking, analysis and evidence-based supervision.
