Discussion Papers 2001.
Role of the Regions in the Enlarging European Union 101-112. p.
Role of the Regions in the Enlarging European Union
Edited by Zoltcin Gill, Pecs, Centre for Regional Studies, 2001
LOCAL GOVERNMENT IN SLOVENIA
(WITH SPECIAL REGARD TO
REGIONALISATION)
Miha Brejc — Stane Vlaj
Legal background
The Constitution of the Republic of Slovenia guarantees autonomy for local
government in Slovenia.
In Article 5 on local-government, the Constitution stipulates that the Slo-
vene people shall exercise local government powers and functions through mu-
nicipalities and other local government organisations. A municipality may
comprise a single community or a number of communities whose inhabitants
are bound together by common needs and interests. A municipality may be
established by statute following a vote in favour of its establishment at a refer-
endum conducted to ascertain the will of the people in the area affected.
The range of duties and functions to be performed by a municipality include
local matters, which the municipality may independently determine. The State
may, by statute, transfer additional duties and functions into the jurisdiction of
municipalities and other local authorities, subject to their prior consent, and
should provide the necessary means for the fulfilment of such duties and func-
tions.
The Constitution provides that the municipality shall raise its own revenue.
Those municipalities that due to poor economic development are unable to
meet all expenditures required to perform their duties, are be eligible to receive
additional financial assistance from the State.
The Slovenian local government reform comprises three basic elements:
functional, territorial and organisational features. None of them have fully been
accomplished.

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The scope and structure of local authorities
In Slovenia municipalities are based on local communities. The Constitution
entitles municipalities with the right to establish regions. The formation of re-
gions is based on the provisions of the Local Government Act and on a special
Act on Regions, which is under preparation. The Constitution of the Republic
of Slovenia stipulates that Slovene citizens shall exercise local government
powers through municipalities and other local government organisations. The
term "other local government organisations" covers wider local government
bodies — regions. Municipalities may integrate into communities or form alli-
ances of two or more municipalities to represent and manage local matters of
wider interest. The manner of integration and the status of these communities
are determined by the statutes of the municipalities being integrated into a
community or forming an alliance of municipalities (Article 86 of the Law on
Local Self-government).
Municipalities may take the decision to establish regions for the implemen-
tation of duties of common interest. A region is a larger spatial unit that may
freely be formed, changed or terminated by law on the basis of the decisions of
municipalities. The region has its statute and bodies. After their establishment
by law, regions become an obligatory, multi-purpose form of co-operation, i.e.,
local communities have their own jurisdictions on regional level. In accordance
with the Constitution and the Local Government Act, the region should perform
duties of wider interest including community services, economic, cultural and
social development on its territory, the fulfilment of common needs of the in-
habitants and the economy of the area, the strengthening of local governance in
the municipalities of the region and the facilitation of their development. Mu-
nicipalities define, by statute, the local duties of wider interest, which the re-
gion performs in its jurisdiction. The region may perform duties that are trans-
ferred to the region by the state. The Act on the Transfer of Duties from State
Jurisdiction to the Region determines also the method for the provision of funds
for the implementation of these duties.
The regions govern and perform local matters of wider interest, which ex-
ceed the capabilities of the municipalities.
The enclosed Local Government Act clearly defines the duties municipali-
ties should independently. The duties the municipalities perform for the benefit
of their local residents have only partially been listed. Municipalities may either
determine these duties by statute or law may regulate them. In addition to com-
pulsory duties to be performed by all municipalities, urban municipalities per-
form additional duties and functions related to the regional and urban develop-
ment.

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A sub-urban municipality is a compact settlement or group of settlements
linked in a uniform spatial organism, with the surroundings of the city linked by
the daily commuting of population. A city may acquire the status of an urban
municipality in case it has at least 20,000 inhabitants and at least 15,000 jobs,
of which at least half are in tertiary and quaternary activities, and it is the geo-
graphic, economic, and cultural centre of its gravitation zone.
According to the provisions of the Local Government Act, local authorities
(municipalities) cooperate among themselves on the principle of free will and
solidarity. For this purpose, they may collect funds and designate common
bodies, organisations and services for the performance of common duties.
Such communities, alliances associations and common bodies, and services
have equal status to that of the municipal administration, municipal govern-
ments and services.
There are special provisions concerning the right of local/regional authori-
ties to cooperate, on an individual basis, with counterparts in other states and
conditions relating to membership of international associations of local/regional
authorities
Local communities may, within the framework of their competence, freely
cooperate with the local communities of other countries and with local commu-
nity international organisations in the field of the development of local self-
government and in matters concerning the implementation of local community
duties in accordance with the basic principles of establishing connections on
equal level. The Act on the Procedure of the Establishment of Municipalities
and Marking their Territory with Local Government Act stipulate that on areas
where changes in the territorial structure are proposed municipal councils and
councils of local or village communities or citizen's assembly, are eligible to
participate on the preliminary procedure of the establishment of new munici-
palities.
According to the Act on Referendum and People's Initiative, referendums of
a consultative nature, should be conducted on proposals for territorial changes.
On the basis of preliminary procedures and the referendum, the National As-
sembly should approve the establishment of municipalities and should mark
their territory.
Administrative units
In Slovenia, the special units of state administration are the administrative units
and there are 58 of them. The administrative units are territorial bodies of state
administration with their own field of operation, competence, functions, and
leadership and they cover the territory of one or more municipalities.

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The Law on the Administration introduced administrative units as territorial
authorities of the state administration with their own area of work, jurisdictions,
functions, management and territory. Their area of work is the same as that of
the ministries whose duties are territorially performed through administrative
units. The basic responsibility of the administrative units is to decide on ad-
ministrative matters at the first instance. The competent ministry or body or
organisation within the framework of the ministry decides upon appeals. The
head and leaders of the internal organisational units have direct legal authorisa-
tion to make decisions on administrative matters in the administrative unit,
while other personnel may perform these duties on authorisation by the admini-
stration head. Administrative units also exercise supervision over the lawful-
ness of the work of the bodies of local communities in the performance of their
original competencies and also supervise the appropriateness and expertise of
their work in matters from state jurisdiction, which are vested in the local
community.
The administrative unit is organised for the area of one or more local com-
munities so as to achieve the rational and efficient performance of state admini-
stration duties as determined by law. There are 58 administrative units whose
territory covers the territory of former municipalities. The law may exception-
ally determine, for a particular area, a different territorial organisation of the
administration, relationships, jurisdictions and responsibilities of territorial
units and the authorisation for making decisions at the first instance on admin-
istrative matters (Article 33, Law on the Administration). For the purpose of
cooperation between the administrative unit and local communities a special
advisory board of the head of the administration is formed which acts as the
consultative body of the head of the administrative unit. The competent local
community bodies elect the members of the advisory board. The advisory board
deals with matters concerning the performance of the duties of the administra-
tive unit, and communicates its opinions and proposals to the head of the ad-
ministrative unit (Article 39).
The ministry, under whose competence fall the duties performed by the ad-
ministrative unit, supervises the administrative unit in the implementation of
duties from the ministry's area of work. The head of the administrative unit
must regularly report to the competent ministry on the implementation of duties
from its jurisdiction, performed by the administrative unit (Article 41).
In relation to municipalities, administrative units supervise the lawfulness of
the performance of local government bodies of their competent duties and
functions and supervise the appropriateness and expertise of their work in mat-
ters concerning state jurisdiction, which are vested in municipalities. For the
purpose of cooperation and co-ordination of work between municipal bodies
and the administrative unit, there is an advisory committee of the head of the

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administrative unit whose members are appointed and dismissed by municipal
councils.
In accordance with the Constitution of the Republic of Slovenia, state bodies
supervise the lawfulness of the work of municipal bodies. On the basis of con-
stitutional provisions competence to exercise control is determined by the Law
on the Administration and the Law on Local Self-government. The government
and ministries exercise state supervision of the work of local community bod-
ies. The ministries (administrative units — state bodies at the local level) exer-
cise supervision over the lawfulness of the work of local communities, each of
them in their own area of work (over the implementation of laws which regulate
the area of work of the ministry or fall under its competence by general and
individual municipal acts).
The system of local authorities
Municipal bodies are as follows:
— The municipal council,
— The mayor,
— The supervisory board,
— The electoral commission
The highest decision-making body on local level is the municipal council.
The municipal council, above all, approves general municipal decrees with the
budget and supervises the performance of the mayor and municipal administra-
tion with regard to the implementation of the municipal council' decisions.
The municipal council is composed council members (their number is be-
tween 7-45 depending on the number of local residents) who are elected by the
citizens on the basis of general and equal voting rights at free and direct elec-
tions by secret ballot.
Local elections are regular (they are held every four years), and called by
the speaker of the National Assembly for the whole national territory.
The executive body of the municipality is the mayor (individual authority),
who represents the municipality and heads the municipal administration. The
mayor represents the municipal committee, co-ordinates and chairs the sessions
of the municipal council, but does not have the right to vote. The mayor pro-
poses general acts and the budget for approval to the municipal council and is
responsible for the implementation the municipal council's decisions. On the
basis of the Act on the Organisation and Field of Operation of the Municipal
Administration, the mayor determines the job structure in the municipal ad-

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ministration appoints and employs municipal administration staff (decides on
employment), organises and heads the municipal administration.
The amendments of the Act did away with the unconnected operation be-
tween the municipal council and the mayor, and ensured greater co-ordination
during the operation of municipal bodies. In accordance with the amendments,
the work of the municipal council is to be headed by the mayor, who remains
directly elected. The proposal was based on the conclusion that in local com-
munities there is neither a need nor necessity for a strict separation between
"legislative power" and "executive power", that the exercising of local
authority must be based on the collective responsibility of all municipal bodies
for the implementation of public issues of local importance, and that co-
dependence between the two bodies will result in greater effectiveness of their
operation. According to the regulation, the municipal council remains the
highest decision-making body in the municipality, while the mayor has the
functions of the person responsible for the implementation of the decisions
adopted by the municipal council, representative of the municipality, and head
of the municipal administration.
The amendments also include a provision enabling the mayor with the ex-
clusive right to propose the municipal council the adoption of municipal budget
as the basis of annual budgetary programme and to appoint or dismiss the mu-
nicipal secretary, i.e. the municipal official responsible for the management of
municipal administration.
The fourth revision of the Local Government Act, coming into force in No-
vember 1997, set out in detail the position and role of municipal supervisory
boards as the highest body for supervision of the use of public funds in the mu-
nicipality. It also sets out the obligatory nature of the discussions of reports
compiled by supervisory boards and the obligation of complying with conclu-
sions and proposals during the adoption of the municipal council's and mayor's
decisions.
The amendments to the provisions governing the supervisory board, stress
on the role of the supervisory board as a third municipal party responsible for
the supervision of the utilisation of public funds in municipalities.
Citizens' direct participation in decision-making
The Local Government Act stipulates that the direct forms of citizens' partici-
pation in the municipality is to be exercised through, citizens' assembly, refer-
endum and people's initiative. The municipal council may call a referendum on
one of its acts or other decision on its own, but it should call for a referendum if

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M. Brejc - S. Vlaj
requested by at least ten percent of the voters in the municipality. A decision is
adopted at the referendum if the majority of voters are in its favour.
The amendments to the Local Government Act, which set out in detail the
possibilities of a municipality to carry out the devolution of municipal tasks by
establishing narrower municipal parts — local, village or quarter communities —
bring decision-making closer to citizens.
Finance
The types of taxes, which local communities levy at their own disposal, are
defined in the Local Government Finance Act. The following taxes may be
levied at the communities' disposal: gift and inheritance tax, gambling tax and
property tax.
The Ministry of Finance transfers current monthly instalments of the funds
allotted to local governments based on the amount of running guaranteed
spending. These current transfers intended for the finance of current expendi-
tures and investments.
Special funds may be raised by individual ministries for the finance of vari-
ous investments (demographically endangered regions, municipal services,
gasworks, heating plants, construction of waste water purification plants and
other attached services, i.e. the construction of waterworks, municipal waste
sites, etc.). Each year a deadline is set up in the obtaining these funds.
The purpose of amendments to the Local Government Finance Act is the
harmonisation of the finance of Slovenian local government system with the
European Charter of Local Governments. The main purpose is to achieve a
greater independence of municipalities in their finance. The most essential
amendments are as follows:
I) Local finances should be uniform: municipal revenues should are no
longer split into earmarked revenues and other incomes.
2) The term 'Earmarked Revenue' was renamed as 'Appropriate Volume of
Funds for the Finance of Local Affairs of Public Importance'. This in-
come will ensure the normal functioning of the municipalities.
3) Additional assistance to municipalities from the government in the form
of general grants. For this, uniform criteria are determined which apply
to all municipalities.
4) In areas having high importance for the government, municipalities re-
ceive special grants.
5) Mayors have greater jurisdiction power regarding btdgetary issues.
6) The amalgamation of municipalities is stimulated.

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7) With regard to the excessive debts of municipalities, credit may be
granted for municipalities only on the basis of the adopted budget and
with the approval of the minister responsible for finance.
8) Municipalities should in good time be provided with relevant data for the
preparation of their annual budget.
Legal basis for the introduction of regions in the Republic
of Slovenia
The regions, as the second level of local self-government have not yet been
formed.
The government of the Republic of Slovenia has submitted the proposal for
the introduction of regions in the Republic of Slovenia, with main concepts of
the their regulation to the National Assembly for preliminary reading. They are
in other words the main points for the Act on Regions
The government is well aware of the fact that proper regulation is only one
of the elements or conditions for resolving such demanding and complex issues.
For this reason it will be necessary during the preliminary reading to conduct
certain analyses or presentations of these fundamental elements which deci-
sively influence the successful operation of regions as new administrative
structures.
The concept of the draft proposal on regions
In the part relating to wider local communities, including regions, the Slovene
Constitution refers to voluntary association. In the organisation of regions two
approaches may be considered.
The first is based on the organisation of regions working without self-gov-
ernment licenses, administrative tasks and independent finance. Under this
concept regions would play only a consultative, co-ordinating role among mu-
nicipalities, and between municipalities and the central government.
The second approach regards regions as territorial, political, self-governing
units. Regions would be defined in the Act as a second tier of local government,
as territorial communities with the status of legal entities, their own assets, their
own finances, with original jurisdiction and directly elected administrative
bodies. The relationship with municipalities would be based on equality; mu-
nicipalities would not be in a subordinate position with respect to the region.
During the preparation of the draft on regions we took the latter approach.

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In formulating the Act on Regions we must not rush headlong but neither
that things are in constant change not only in Slovenia but in surrounding
countries as well — the situation is always changing. We need a realistic time
frame and basic strategic conceptions for the preparation of the Act.
During the preparation of the draft the basic provisions of the European
Charter of Local Governments were also taken into account.
Annexes
The draft of the Act on Regions
General provisions
A region shall be a self-governing local community dealing with local mat-
ters of wider importance and with matters within the jurisdiction of the central
government, which by law transfers to it as its original jurisdiction or for the
execution of tasks within the jurisdiction of the central government.
A region shall link together municipalities in an integrated area within
which there are durable relations between municipalities and their inhabitants
in order to meet the common needs and interests of municipalities and their
inhabitants and for the preservation of the identity of the area.
A region shall be a public administration unit to be authorized by legal en-
tity status.
The powers of a region
A region shall regulate local matters and carry out tasks of wider importance
in the following areas:
The construction, maintenance and operation of municipal, energy, trans-
port and other infrastructure facilities;
— The construction and maintenance of facilities in the areas of education,
sport, culture, health care, social security and other social activities that
are important for the development of the region and its municipalities but
are excluded from the compulsory tasks of the central government in
these areas;
The construction and maintenance of municipal, energy, transport and
other infrastructure facilities which exceed the requirements of the mu-
nicipality; municipal and other waste and sewage treatment, and other
forms of environmental protection with appliances of regional capacity;
The development of the economy, particularly agriculture, small business
and tourism in the region;

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— Health services, social security, education and vocational training;
—Activities and services providing help to municipalities in the perform-
ance of their tasks and the strengthening of local government in the mu-
nicipalities;
—Other local matters of wider importance.
A region shall regulate matters and carry out tasks within the jurisdiction of
central government that are transferred to its original jurisdiction by law, espe-
cially in the following areas:
—Conservation of natural and cultural heritages;
—Noise reduction the protection of natural and living environment;
—Physical planning and environmental protection;
—Regulation of transport and communications (roads, rail, transport, tele-
communications, and others);
—Health services, social security, education and vocational training;
—Agriculture, public services, tourism and catering.
The manner and the conditions under which the tasks listed in the preceding
paragraph are regulated and carried out by law.
A region, which incorporates municipalities, inhabited either by Italian or
Hungarian ethnic communities shall also be regulated, in accordance with the
Constitution and the law, and shall exercise the special rights of the respective
ethnic community.
A region shall perform the administrative tasks of government in its territory
except for administrative tasks that are carried out under the law directly by
ministries and administrative tasks transferred by law into the jurisdiction of
municipalities.
A region shall carry out the tasks transferred to it by municipalities in ac-
cordance with the statute of the region.
The administrative bodies of a region
The administrative bodies of a region shall be the regional council, the re-
gional committee and the President of the region.
The financing of regions
The funds for the financing of regions shall be collected from taxes, contri-
butions and fees that may be levied by a region under conditions set out in the
Act.
During the preparation of the budget for the current budgetary year the min-
ister of finance shall hold consultations with the representatives of the regions
on the amount of funding allocated to the financing of regions and on the ways

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in which these funds shall be secured. Upon submission of the budget, the gov-
ernment shall put forward an agreement on securing funds for the finance of
regions.
Regions shall have access to the capital market in accordance with the law.
The system of financial equalisation regulated by law may not restrict the
financial autonomy of the regions.
Regional administration
The bodies of regional administration shall carry out the administrative tasks
of a region.
The bodies of regional administration shall operate in accordance with law
and other regulations and in accordance with the guidelines of the regional
committee.
The regional council shall establish the bodies of the regional administration
with a decree issued as proposed by the regional committee.
The procedure for the establishment of regions and for changing their
boundaries, name or seat
The National Assembly shall initiate the procedure for the establishment of
regions with a proposal for the formation of regions, their boundaries, names
and seats of the regions.
A proposal for the formation of regions shall be prepared and submitted to
the National Assembly by the government following harmonisation with the
municipal councils and municipal associations.
Supervision by state bodies
In carrying out supervision over the lawfulness of the activity of regional
bodies, the ministries, each in its own area of work, shall supervise the lawful-
ness of general and specific decrees issued by the regional bodies within their
jurisdiction.