Local Self-Government in Ukraine and the Eu: Economic Co-Operation

This article provides a comprehensive economic analysis of the co-operation between the local governments of Ukraine and the Member States of the European Union between 2014 and 2023. The study aims to identify the institutional, financial and regulatory mechanisms of interaction at regional level (i.e., within Ukrainian regions) and to assess their impact on the financial autonomy of territorial communities. The theoretical basis lies in the concepts of fiscal decentralisation, the principle of subsidiarity, and institutional economics. The methodology combines an institutional approach with econometric modelling and comparative legal analysis. The empirical base includes data on local budget revenues, the volume of EU international technical assistance and the participation of regions in cross-border co-operation programmes, as well as macroeconomic indicators for the period 2014–2023. A separate comparative analysis was carried out using Poland as a case study, as it has undergone a similar stage of local government reform. The modelling results confirm the statistically significant positive impact of participation in EU programmes and financial support instruments on the growth of Ukrainian regions' own revenues. It has been proven that economic and legal co-operation contributes to institutional convergence with European standards, as well as strengthening the financial independence of local governments. The proposal is for an integrated model of economic interaction between Ukrainian and EU regions.