MULTI-LEVEL GOVERNANCE AS AN INSTITUTIONAL FOUNDATION FOR FINANCIAL RESILIENCE AND LOCAL DEVELOPMENT: EUROPEAN EXPERIENCE IN THE CONTEXT OF UKRAINE’S POST-WAR RECOVERY

Abstract

In the context of Ukraine's post-war recovery and European integration, increasing attention is being paid to the study of European models of multi-level governance as an institutional foundation for ensuring the financial resilience of territories and sustainable local development. The purpose of the article is to substantiate the role of multi-level governance in ensuring the financial resilience of territories and local development through the analysis of best practices from European countries, to identify the main directions of interaction between different levels of government and local self-government, and to outline the possibilities for adapting these practices to Ukraine's system of public governance and local public finance in the context of European integration and post-war recovery. The study employs the methods of theoretical generalization, analysis and synthesis, comparative analysis, the institutional approach, systems analysis, as well as a comparative study of multi-level governance models and the financial support of local self-government in European countries. Artificial intelligence tools were also used to visualize the research findings and develop the author's conceptual framework. The essence of multi-level governance is revealed as a system for coordinating and aligning the activities of public authorities, local self-government bodies, and other participants in public governance. The institutional foundations of its influence on ensuring the financial resilience of territories are identified. Based on an analysis of the experience of Germany, Sweden, Poland, and France, it has been established that the financial resilience of local self-government is achieved through a combination of financial autonomy, an effective intergovernmental fiscal equalization system, strict budgetary discipline, a transparent distribution of powers, the development of inter-municipal cooperation, and the application of modern instruments for financing territorial development. The study substantiates the directions for adapting European practices to Ukraine's public finance system, taking into account the needs of post-war recovery.

It is proved that the financial resilience of territorial communities is the result of the functioning of an integrated multi-level governance system that ensures a balanced distribution of powers, resources, and responsibilities among different levels of government. For Ukraine, the priority areas should include improving intergovernmental fiscal equalization mechanisms, expanding the financial autonomy of local self-government bodies, developing institutional mechanisms to support local investment, strengthening inter-municipal cooperation, and implementing European principles of multi-level governance as an institutional foundation for post-war recovery and sustainable local development.