Sergii Marchenko and Secretary General of the Congress of Local and Regional Authorities of the Council of Europe Mathieu Mori discussed the financial resilience of Ukrainian municipalities and support for post-war recovery reforms

Ukraine’s Minister of Finance Sergii Marchenko held a meeting with Secretary General of the Congress of Local and Regional Authorities of the Council of Europe Mathieu Mori.

The parties discussed the economic development and financial resilience of Ukrainian municipalities in the context of the war and post-war recovery, the public investment management reform, as well as cooperation with the Council of Europe in strengthening local self-government and public finances.

The meeting was also attended by President of the Chamber of Regions of the Congress of Local and Regional Authorities of the Council of Europe Cecilia Dalman Eek.

Sergii Marchenko thanked the Congress of Local and Regional Authorities of the Council of Europe for its consistent support for Ukraine since the beginning of russia’s full-scale invasion, as well as for promoting democratic governance, local democracy and post-war recovery planning.

The parties discussed the impact of the full-scale war on local finances and instruments to support municipalities. Sergii Marchenko stressed that even under martial law, Ukraine’s local finance system demonstrates resilience and adaptability.

In 2026, local budget revenues increased by 55% compared to the pre-war period. The volume of intergovernmental transfers in the State Budget has increased by 12.6% over the past four years. Since 2025, medium-term budget planning has been restored at the local level and a new public investment management model has been introduced.

“Effective and financially capable communities are the cornerstone of the state’s resilience, successful recovery, and Ukraine’s future integration into the European Union. Despite the unprecedented challenges of war, local budgets continue to grow, while the state supports regions through intergovernmental transfers, new financing instruments, and the public investment management reform,” said Sergii Marchenko.

The Minister of Finance also informed about the implementation of the public investment management reform, which envisages a transition from financing individual projects to financing strategic recovery and development priorities. Within the framework of medium-term planning for 2026–2028, 51 priorities across 12 sectors have already been identified, with a total budget exceeding USD 20 billion.

The parties also discussed initiatives aimed at strengthening the institutional capacity of local self-government authorities, as well as the importance of attracting international financing for the recovery of communities and the development of municipal infrastructure.

Mathieu Mori confirmed the readiness of the Congress of Local and Regional Authorities of the Council of Europe to continue supporting Ukraine in strengthening local self-government, implementing reforms in public and local finance management, and advancing the post-war recovery process.

Separately, the Secretary General invited Sergii Marchenko to participate in the 51st Session of the Congress of Local and Regional Authorities of the Council of Europe, which will take place on 27–29 October 2026, and to join the plenary debate on financing Ukraine’s recovery and reconstruction.