Summary

Local governments have commenced amendment of the by-laws of rural municipalities and cities in accordance with corresponding amended legislation and as a result of local government council elections held in autumn 1996. Matters to be regulated by by-laws of rural municipalities or cities are prescribed by law. A distinction should be made between issues which pursuant to law are within the competence of local governments and those within the competence of the Government of the Republic.
Further, the author addresses challenges in the transformation of existing municipal enterprises. By 1 September 1997, all enterprises which do not operate in the form prescribed by the Commercial Code must be transformed or dissolved. Municipal enterprises may be transformed into public limited companies, private limited companies or local government agencies. The latter exercise the administrative functions of local governments whereas the others carry on business.