The role of local and regional authorities and decentralised cooperation in fragile settings: building on the experience of the Nicosia Initiative in Libya

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4 Mar 2026

Sustainable policies

Oskar Chmiel

Karolina Zubel

Agnieszka Maj

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Oskar Chmiel

Senior Social Sciences Researcher
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Karolina Zubel

Environment, Energy and Climate Change Director
Karolina Zubel is Environment, Energy and Climate Change Director at the CASE - Center for Social and Economic Research. In this role, she leads and contributes to research, pilot and implementation projects, as well as the preparation of policy recommendations, with a strong focus on climate adaptation, resilience and sustainable urban development. Her work at CASE is strongly grounded in local and regional perspectives, supporting cities and regions in addressing climate, environmental and socio-economic challenges through innovative governance approaches, financing mechanisms and applied solutions. She is currently involved in projects financed by European institutions, including the European Commission (notably Horizon programmes), the European Committee of the Regions, and the European Economic and Social Committee, and regularly contributes to policy-oriented publications.

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Agnieszka Maj

Economist
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Report: “The role of local and regional authorities and decentralised cooperation in fragile settings: building on the experience of the Nicosia Initiative in Libya” analyses how local public institutions and partnership-based cooperation can support stability, resilience and social dialogue in countries affected by conflict, political instability and protracted crises.

In the face of growing instability in the European Union’s neighbourhood and beyond – including armed conflicts, institutional fragmentation, environmental challenges and migration-related pressures – traditional state-level cooperation and aid channels are proving increasingly ineffective. The report responds to this reality by demonstrating that the role of local and regional authorities (LRAs) is crucial for preventing fragility and strengthening socio-economic resilience.

Based on an extensive review of academic and policy literature, expert interviews and case study analysis, the report shows that:

fragility is a territorially rooted phenomenon, often resulting from local inequalities, gaps in public service provision and weaknesses in subnational governance structures;
decentralisation and effective local governance constitute important stabilising factors, influencing citizen trust, institutional legitimacy and the efficiency of service delivery;
decentralised cooperation and city and regional diplomacy are valuable tools for maintaining dialogue and partnerships – particularly where relations with national governments are limited or strained.

The central example examined in the report is the Nicosia Initiative – a long-term partnership mechanism between local authorities in Libya and the EU, implemented by the European Committee of the Regions (CoR). Since 2016, the Initiative has enabled cooperation between municipalities in a politically divided country, improved local governance and sustained dialogue across conflict lines. Its experience provides strong evidence that inter-municipal partnerships can deliver tangible results even in highly challenging contexts.

The report also analyses other cases from different regions of the world and identifies universal elements that support effective subnational cooperation – including careful stakeholder mapping, local trust-building and linking partnership-based actions with access to funding and support mechanisms.

On this basis, the report presents a set of recommendations for European Union policies, EU institutions (European Commission, EEAS, CoR) and local and regional authorities, focusing in particular on:

integrating LRAs into analysis and programming processes in fragile contexts;
supporting decentralisation as a factor in preventing instability;
establishing stable financing frameworks for local partnerships;
developing networks and platforms for decentralised cooperation;
monitoring qualitative outcomes of local stabilisation efforts.

The report concludes that the strategic and sustained inclusion of local authorities in the EU’s external policy is both necessary and feasible – especially if fragility is addressed through a multi-level, flexible approach that takes local realities into account.

This report was prepared by CASE – Center for Social and Economic Research, in cooperation with IEMed, at the request of the European Committee of the Regions (CoR).

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The role of local and regional authorities and decentralised cooperation in fragile settings: building on the experience of the Nicosia Initiative in Libya

Oskar Chmiel

Articles from this author:

Karolina Zubel

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Agnieszka Maj

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The role of local and regional authorities and decentralised cooperation in fragile settings: building on the experience of the Nicosia Initiative in Libya

Oskar Chmiel

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Karolina Zubel

Articles from this author:

Agnieszka Maj

Articles from this author:

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