This project, conducted under the auspices of the Stability Pact for South Eastern Europe and the Council of Europe, analyzed and evaluated progress made in implementing local government reform programs in South-East Europe. A senior CRPM Researcher critically assessed the commitments made by national authorities in the areas of fiscal decentralization and local government reform and developed a background study on Macedonian local politics and the state of affairs in the decentralization process. The research results were presented to the Stability Pact and the Council of Europe at a conference of the region’s ministers responsible for local government, held in Skopje, November 3-7, 2006. Ministers from South Eastern Europe committed themselves to further reforms towards better local government and identified key priorities, with a view to encouraging targeted, demand-driven support by the international community.