Over the past fifty years, local governments in Europe have been confronted with limited public finances, population migration and various market pressures. In various countries of South-Eastern Europe (SEE) central governments are gradually encouraging horizontal co-operation between local authorities by passing new legislation. Local councils are starting to work with private service providers, and have horizontal co-working relationships with their neighbouring municipalities to improve their performances and achieve economies of scale for providing certain public services, or to better access EU funds. However, in some countries, local councils compete rather than work collaboratively with each other.

Decentralisation has been a priority for the Council of Europe because of its potential role in diluting concentrations of power in central governments, improving accountability of local governments and increasing the quality of public services. Progress in decentralisation was reviewed at regional ministerial meetings in Zagreb and Skopje (2006), where the National Work Programmes for further reform were drawn up and developed. After the 2006 Skopje Conference, several countries introduced inter-municipal co-operation (IMC) as an area for reform in the National Work Programmes for Better Self-Government. The Council of Europe, the Open Society Institute/Local Government and Public Service Reform Initiative and UNDP Bratislava Regional Centre are co-organising a series of regional workshops and round tables to raise awareness of the issues at stake in SEE countries in 2008-2009.