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

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

Cecilia Dalman Eek, President of the Chamber of Regions of the Congress of Local and Regional Authorities of the Council of Europe, also joined the meeting.

Serhii Marchenko thanked the Congress of Local and Regional Authorities of the Council of Europe for its unwavering support for Ukraine since the outbreak of russia’s full-scale invasion, as well as for its assistance in strengthening democratic governance, developing local democracy, and planning post-war recovery.

The parties discussed the impact of the full-scale war on local finances and tools to support communities. Serhii Marchenko emphasised that even under martial law, the local finance system in Ukraine is demonstrating resilience and adaptability.

Specifically, in 2026, local budget revenues increased by 55% compared to the pre-war period. The volume of inter-budgetary transfers in the state budget has increased by 12.6% over the last four years. Since 2025, medium-term budget planning has been restored at the local level and a new model for managing public investment has been introduced.

‘Effective and financially capable communities are the foundation of the resilience of the state, the successful recovery of Ukraine, and its future integration into the European Union. Despite the unprecedented challenges of the war, local budgets are showing growth, and the state continues to support the regions through inter-budgetary transfers, new financing instruments, and public investment management reform,’ said Serhii Marchenko.

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

The parties discussed initiatives to enhance the institutional capacity of local governments and the importance of attracting international funding for the recovery of communities and the development of municipal infrastructure.

Mathieu Mori confirmed the willingness 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, and the post-war recovery process.

Separately, the Secretary General of the Congress invited Serhii Marchenko to participate in the 51st session of the Congress of Local and Regional Authorities of the Council of Europe, scheduled for 27-29 October 2026, and to join the plenary discussion on financing the recovery and reconstruction of Ukraine.