The necessity to increase public and private investments of local municipalities is a challenge to local governments in Romania under the circumstantion to adhere to the European Union. The lower level of their funds and the impossibility to increase the local tax in the aim to major the budgetary revenues at the local level requires to find some alternative financial sources to sustained the local projects of investments.
Our paper proposes to examine the most important modalities to administrate with efficiency the financial local resources to realize the investments at the local units. Local governments can borrow in the form of loans or bond issues, in the currency and from the establishment of their choice.? A first source to finance investments projects is represented by internal or external financial underpayments, as well those from structural funds like PHARE and SAPARD received from European Union on the basis of negotiations between Romanian Govern and European Commission. Public-private parteneriate represents another modality to financing the local investments. Other source of revenue under the circumstances of decentralization, is local authorities’ access to local debt instruments:
- values titles (municipals debits);
- Borrowing from banks or multilateral organizations.
The legal framework is discussed.