Almost two decades after Kosovo adopted its Law on Local Self-Government, the balance of power between the central government and municipalities is once again becoming a major political and institutional issue. Municipalities are raising concerns over financial pressure, public property and what they describe as central-level interference in local autonomy. At the same time, the Ministry of Local Government Administration is preparing a new Local Self-Government Strategy for 2027–2031.
The core legal framework, however, has not changed.
The Law No. 03/L-040 on Local Self-Government, adopted in 2008, remains in force.
The last serious attempt to amend it was launched by Albin Kurti’s government in late 2021 through Draft Law No. 08/L-104. The proposal reached the Assembly but never became law.
For Kosovo Serbs, one element of that failed attempt is particularly important: the draft did not propose changes to the enhanced competencies granted to certain Serb-majority municipalities in secondary healthcare, higher education and culture, nor to the special arrangements concerning local police commanders.
The question today is whether that would remain the case if a new attempt to amend the law is launched.
Municipalities challenge the central level
Several disputes have emerged between municipalities and Kosovo’s central institutions during 2026.
One concerns the recruitment of municipal civil servants.
The Association of Kosovo Municipalities challenged Regulation No. 07/2025 before the Constitutional Court, arguing that parts of the new recruitment system interfere with constitutionally protected local autonomy and centralise powers that should remain with municipalities.
The Prime Minister’s Office disputes that interpretation, maintaining that municipalities continue to conduct their own recruitment procedures.
Another dispute concerns money.
The Association has described 2026 as an exceptionally difficult financial year for municipalities and estimated that local governments could face more than €150 million in financial consequences from court and enforcement decisions, seniority-related obligations, changes to education grants and other budgetary pressures.
Municipalities have also demanded a special emergency fund to compensate for damage caused by floods and severe weather.
The new dispute: Who owns municipal property?
The most recent controversy concerns public property.
Radio Free Europe reported on August 17 that an initial draft of amendments to the Law on Public Property envisages Kosovo becoming the sole holder of ownership rights over public property.
Under that version of the draft, municipalities, central institutions, the capital and public enterprises would no longer be owners, but would instead have rights to use, manage and administer such property.
This would mark a significant change from the current Law on Public Property, which allows both central institutions and local governments to hold ownership rights.
The Association of Kosovo Municipalities has strongly opposed such a possibility.
Municipal leaders argue that losing ownership of municipal buildings, land and other property could directly reduce their ability to generate revenue and independently pursue local development projects.
The Justice Ministry has confirmed that a working group is drafting amendments, but the document has not yet been formally published and remains subject to further procedures and consultations.
It is important to distinguish this process from an amendment to the Law on Local Self-Government itself. They are separate laws, even though both directly affect the practical scope of municipal autonomy.
Protest announced for September 1
These disputes have now been brought together politically.
The Association of Kosovo Municipalities has announced a protest outside the Kosovo Government building in Pristina on September 1.
Municipal leaders say they will demand protection of municipal budgets, property and competencies, fairer financing, compensation for flood damage and an end to what they describe as central-level interference in local autonomy.
The protest does not have unanimous support.
South Mitrovica Mayor Faton Peci, supported by Vetëvendosje together with his GUXO political movement, has distanced himself from the action and said he will not participate.
Why the 2008 law matters particularly to Serb-majority municipalities
The current law distinguishes between municipalities’ own, delegated and enhanced competencies.
For Serb-majority municipalities, the enhanced competencies are particularly significant.
North Mitrovica has enhanced powers in higher education, including responsibilities connected with the university.
North Mitrovica, Gračanica/Graçanicë and Štrpce/Shtërpcë have enhanced competencies in secondary healthcare.
Serb-majority municipalities also have enhanced responsibilities in culture, including the protection and promotion of Serbian religious and cultural heritage within their territories.
The law also provides a special arrangement for local police commanders in Serb-majority municipalities. The local police station commander is to come from the Serb community, with the municipal assembly proposing at least two qualified candidates and the Interior Ministry appointing one of them.
This is why any future amendment to the local self-government law would be politically important well beyond technical questions of municipal administration.
The failed 2021/22 attempt
Kurti’s government prepared Draft Law No. 08/L-104 at the end of 2021.
Then-Minister of Local Government Administration Elbert Krasniqi told the relevant Assembly committee that changes were needed to address both technical and substantive issues that had emerged during implementation of the 2008 law.
The proposed amendments dealt primarily with the functioning of municipal bodies, mandates, replacements of local officials, municipal procedures and certain aspects of central-local relations.
Crucially, the draft did not amend Articles 18–23 covering delegated and enhanced competencies.
It therefore left untouched the enhanced powers of Serb-majority municipalities in healthcare, higher education and culture, as well as the special system for appointing local police commanders.
The proposal reached the Assembly in February 2022 but was never successfully voted through.
Documents reviewed by KoSSev show that the draft repeatedly remained an unfinished agenda item because voting was not completed.
There is therefore no documentary basis for claiming that the draft was formally rejected in a vote by the Serb List. What can be established is that it passed the relevant committee, reached the plenary agenda several times and ultimately never became law.
A double-majority safeguard
Another important element is Article 81 of the Kosovo Constitution.
Legislation concerning municipal boundaries, the establishment or abolition of municipalities, the scope of municipal powers and participation in inter-municipal or cross-border relations is classified as legislation of vital interest.
Such legislation requires a double majority: a majority of Assembly members present and voting, as well as a majority of those present and voting who hold seats guaranteed for non-majority communities.
Certain changes to the local self-government framework therefore cannot be adopted solely through the votes of the governing parliamentary majority.
No new draft has yet been published
Meanwhile, the Ministry of Local Government Administration is preparing the Local Self-Government Strategy 2027–2031.
Among its objectives is the continued improvement of the legal framework governing local self-government.
That, however, does not in itself mean that a new draft law amending Law No. 03/L-040 has been formally launched.
According to the publicly available official sources reviewed by KoSSev, no new formal draft has yet been published.
If and when one appears, the crucial question for Serb-majority municipalities will be whether it affects Articles 19–23 and the enhanced competencies that have formed part of Kosovo’s decentralisation framework since 2008.
But the position of municipalities is no longer determined only by what is written in the Law on Local Self-Government.
The balance between the central and local levels is currently being tested simultaneously through municipal finances, recruitment, administrative oversight and ownership of public property.
That is why any future debate on amendments will ultimately be about more than which competencies municipalities retain on paper. It will also concern how much practical autonomy they have to exercise them.
This article was produced within the project ‘Moving from ‘Serb Integration’ to(wards) a New Social Contract for a Truly Multiethnic Kosovo – Year II,’ supported by the Embassy of the Kingdom of the Netherlands and implemented by Center for Affirmative Social Action (CASA) and Space/s for Societal Change (Space/s).
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