Western Balkan municipalities struggle to meet EU standards

A 2025 study by the Network of Local Authorities in South-Eastern Europe (NALAS) reveals that municipalities across the six Western Balkan nations lack the necessary funding, personnel, and technical capacity to implement European Union standards. While legal alignment has progressed, significant weaknesses remain in EU fund administration, public procurement, social services, anti-corruption measures, and environmental protection.

The report highlights a growing divide between major cities and rural areas. Large cities and capitals possess the administrative structures and specialists required for EU compliance, whereas small and rural municipalities struggle with technical project preparation, documentation, and procurement rules.

Furthermore, local fiscal autonomy has declined in the region. In 2006, self-generated revenues, shared taxes, and general grants accounted for 83% of local budgets; by 2021, this figure dropped to 70%. While Albania, Montenegro, North Macedonia, and Serbia are classified as moderately prepared, Bosnia and Herzegovina and Kosovo are still in the early stages of preparing for regional policies and structural instruments.