e-ISSN 2518-1181
DOI 10.33146/2518-1181
Online Media ID R40-06293
← Back Published: 30.09.2026

Integration of EU Intermunicipal Cooperation Financial Instruments into Ukraine’s State Regional Policy

Authors

Ulіana Vatamanyuk-Zelinska Ivan Franko National University of Lviv, Lviv, Ukraine ORCID 0000-0003-4971-5763

DOI:

https://doi.org/10.33146/2518-1181-2026-3(113)-117-127

Abstract

In the European Union, best practices in inter-municipal cooperation ensure the comprehensive development of territories, increase the efficiency of the use of budgetary resources, and strengthen the financial capacity of communities. The article aims to determine the possibilities of applying the EU experience to the system of state regional policy of Ukraine, based on developing proposals to improve the mechanisms for financing joint investment projects of territorial communities, using the approaches of integrated territorial investments, differentiated state co-financing, and consolidation of financial resources within a single financial pool. The research methodology consists of systemic, comparative legal and institutional approaches, as well as analysis and synthesis, generalization and grouping, structural and functional analysis, and economic and mathematical methods. The results of the study showed that financial support for inter-municipal cooperation in the EU is implemented through a multi-level system of funds and instruments, among which the European Regional Development Fund, the European Social Fund Plus, the Cohesion Fund, the Just Transition Fund, the Interreg programs, as well as the instruments of Integrated Territorial Investments (ITI), Community-Led Local Development (CLLD) and European Groupings of Territorial Cooperation (EGTC) play an important role. The effectiveness of these mechanisms is ensured by the ability to combine different sources of funding, the application of the principles of partnership and multi-level governance, and an orientation towards implementing comprehensive territorial strategies. The article presents a methodical approach to the financial provision of inter-municipal cooperation, which is improved by adapting the principles of EU cohesion policy to the Ukrainian system of public investment. The author proposed directions for amending the budget legislation of Ukraine to create a single financial pool for implementing joint investment projects by territorial communities, and developed a method for determining the volumes of state co-financing of inter-municipal projects based on the level of communities’ tax capacity. The results of this study can be used to improve the norms of Ukraine’s budget legislation, enhance the mechanisms for the functioning of the State Fund for Regional Development, and integrate EU inter-municipal cooperation financial instruments into Ukraine’s state regional policy.

Keywords

inter-municipal cooperation, EU cohesion policy, integrated territorial investments, State Fund for Regional Development, territorial communities, financial support, regional development, European integration
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