After the adoption of the Constitution and the new organization of state authority, the units of local self-government found themselves in a peculiar situation. The municipal councils and the city of Skopje have continued to function, but the administrative bodies have become subordinate units of the appropriate ministries and other bodies of state administration. In conditions of unchanged statutory regulations, the municipal councils have both too many few competencies.
The unregulated situation has created a number of practical problems. Hence the adoption of the Local Self-Government Act is seen as an issue of common interest. In adoption to the European Charter on Local Self-Government, during the preparation of the draft act the experience and solutions for the functioning of local self-government of many European and non-European countries have been used.
The draft act defining the status, organization and functioning of the bodies of local self-government incorporates the most recent world standards. In order to prevent infringement by the state upon the functions of local self-government, the draft makes it possible to submit a request for a protection of constitutionality and legality before the Constitutional Court with regard to state regulations. This puts the units of local self-government in an equal position with that of the state, because before the Constitutional Court the appear as equals. In accordance with the European Charter on Local Self-Government and the conclusions of the First Conference in Barcelona as regards the putting of this of this Charter into effect, the draft envisages the possibility of the macedonian assembly, before the adopting acts concerning local self-government, asking an opinion from the units of local self-government.
The draft defines both the place and role of local self-government. In Macedonia it has deep historical roots. The basic aims of all forms of local self-government would be to organize the administration of certain matters of immediate concern to the everyday life of citizens. Hence the draft proposes the retention of the current local self-government division (local community, village community, town quarter community) as it has so far shown more positive than negative effects. Municipalities smaller than the current ones may be expected in future; hence a simpler organization has been proposed where citizens would be able to resolve everyday issues of common interest in a more direct way, in their own micro-communities. This practice is already a reality in many European countries.