The U-LEAD with Europe initiative, a Team Europe effort backed by the EU and its Member States (Germany, Denmark, France, Poland, and Slovenia) in collaboration with the Government of Ukraine, is officially launching Phase III of its implementation.
The latest phase will continue to focus on enhancing local self-government and fostering a resilient recovery at the local and regional levels, in line with Ukraine's European integration goals. The Phase III initiative is set to run until the end of 2027, with an initial budget of €62 million of which the EU contributed €40 million, Germany €18 million, and Denmark €4 million. This collaborative effort aims to support Ukraine's ongoing reforms by strengthening Ukrainian municipalities, improve the resilience of local communities and advance decentralisation as part of its broader European integration path.
Since 2016, U-LEAD with Europe has been a flagship initiative with a focus on supporting Ukraine’s decentralisation reform, which is one of the country’s most successful reforms. The reform has specifically empowered local self-government in alignment with the European Charter of Local Self-Government, strengthened municipalities, and contributed to the resilience of Ukrainian statehood during the ongoing war.
###### Katarína Mathernová, Ambassador of the EU to Ukraine, emphasized:
> “The EU and its Member States have stood by Ukraine from the very start of its decentralisation reform, empowering local communities to take charge of their future. Governments change, but well-established public services—such as quality schools, hospitals, and family support—remain constant. They shape the daily life of people in ways that truly matter.
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> Decentralisation leads to happier citizens, better services, lower corruption, and more developed regions with higher living standards. Now, in the face of Russia’s unprovoked aggression, Ukraine needs decentralisation more than ever. Strong and capable regions are the backbone of its resilience. The European Union wants a decentralised Ukraine with prosperous regions, as a vital part of our shared European future.”
Phase III of U-LEAD with Europe will focus on three key priorities. First, U-LEAD will continue strengthening local self-government and preparing municipalities for Ukraine’s EU accession by providing policy and legal advice. This includes support to move forward in implementing decentralisation reform, regional policy within the context of Ukraine’s preparation for EU accession and strengthening the financial and fiscal capacities of municipalities.
###### Oleksii Kuleba, Deputy Prime Minister for Restoration of Ukraine - Minister for Development of Communities and Territories of Ukraine, noted:
> "We highly appreciate the unwavering support of the EU and its Member States in advancing Ukraine’s decentralisation reform. This partnership has been instrumental in empowering municipalities, enhancing their resilience, and bringing governance closer to the people. As we move forward, this reform will continue to play a key role in Ukraine’s recovery and European integration, ensuring that our hromadas are stronger, more self-sufficient, and fully aligned with European standards."
Second, U-LEAD continues building municipalities’ capacities within its network of 24 regional offices to navigate wartime challenges and build back better by offering training courses, expert advisory services, and capacity-building activities. Particular emphasis will be placed on municipalities with populations under 50,000, addressing critical areas such as energy security, food security, and financial management to increase their resilience and leave no one behind.
###### Bastian Veigel, Director of U-LEAD with Europe, said:
> “In this new crucial phase, U-LEAD’s focus is on equipping municipalities with the tools, knowledge, and partnerships they need to be in the lead of Ukraine’s process of recovery, reconstruction and modernization from the bottom up. By strengthening local governance and preparing municipalities for EU integration, despite all the damage brought by the Russian invasion, we are shaping a resilient and prosperous future for Ukraine.”
Third, U-LEAD will actively support local reconstruction and development by assisting municipalities in planning, coordinating, and implementing vital projects and enhancing the absorption capacity for the future application of EU structural instruments. U-LEAD’s reconstruction activities also cover facilitation of cooperation between municipalities of EU and Ukraine.
Background
The Ukraine – Local Empowerment, Accountability and Development Programme (U-LEAD with Europe) was launched in 2016 to support the establishment of a multi-level governance that is transparent, accountable and responsive to the needs of the population of Ukraine.
Since 2020, U-LEAD with Europe has provided direct support to local self-government bodies across Ukraine. More than 1,439 municipalities have participated in over 30,000 capacity-building events, while 15 legislative acts strengthening local governance have been developed with the program’s support. Over 75% of participants of U-LEAD events report that the knowledge gained through U-LEAD has directly contributed to their work. Since the full-scale invasion in 2022, U-LEAD has delivered emergency support packages to 333 municipalities, including more than 2,400 generators, and has supplied 100 war-affected municipalities with over 160 vans and 100 toolkits.
For more information, please contact Yulianna Velbovets, U-LEAD Communications Team Lead, [yulianna.velbovets@giz.de](mailto:yulianna.velbovets@giz.de) or + 38 067 137-29-20