Level of development of local self-government, that is an indicator of mature democracy and civil society, is also the main political resource of their formation. We support the processes of decentralisation of state administration, rearrangement of authorities and financial flows between the centre and regions in favour of the latter, since it fully corresponds the tasks of democratic development of the political system of Ukraine and revival of Ukrainian economy.

Taking into account general European trends of development of local self-governing, SDPU(U) is consistent as to increasing role of regions in resolving their social and economic problems. In this connection, forms of regional self-governing should be chosen by their population, determined by their traditions and historical and cultural specific feature of each local community.

SDPU(U) thinks it is urgent to establish a modern legal basis of local self-governing, which will create legal conditions for involving citizens in planning, implementation and control over regional development, effective use of resources and regions' potential.

To perform the above mentioned functions effectively, it is necessary: firstly, to legally eliminate lack of balance between the authorities of self-governing bodies and those delegated by the executive power and stipulated by the current law of Ukraine "On Local Self-Governing in Ukraine". Secondly, ensure guaranteed norms of financial and material resources, required for performance of these powers. It is necessary to expand the opportunities of regions to use financial resources of federal budget. Division of regions into "depressive" and "self-sufficient" should be done at the legislative level, according to which a flexible system of paying taxes, duties, and other payments to the federal fund is established. This system will ensure unified budget burden upon regions, depending on the level of their production, natural resource and labour potential.

Definition of functions and co-ordination of interests of territorial communities, bodies of local self-governing, on one hand, and delimitation of competencies and authorities of the centre and regions - on the other, should become a core of administrative reform that is presently carried out in the country. SDPU(U) is consistent about increasing the role of regions in solving their social and economic problems, introduction of functioning mechanism to strengthen material and resource base of local self-governing bodies as the main prerequisite to ensure actual independence of territorial communities.

Taking into account general European trends of development of administrative and territorial formation of states, SDPU(U) recognises the value of federalism to enhance democratisation of state administration. Alongside with that, we understand that in the present-day political and economical situation in Ukraine, expanding local self-governing should totally exclude the hazard to state integrity.

Therefore, while opposing immediate political reorganisation and federalisation of Ukraine, and breakaway trends of certain regional leaders and elite, we support regional economic development. We also support making territories separate districts and unification of territories on the basis of integration of their economic complexes and already established relations of specialisation and co-operation of production. This presupposes providing local authorities with the right to take initiative in resolving their economic problems and development of economic ties, particularly with European countries that will speed up integration of Ukraine into European economic area.

Strengthening of local self-governing will increase civil activity and social responsibility of the population, help attract considerable part of people to participate in democratic processes and in activities of civil non-governmental organisations. We think it is of vital importance for local self-governing bodies to widely use various forms of "direct democracy" - referendums, opinion polls, voters' meetings that will give them an opportunity to familiarise with and take into account people's opinion in taking political decisions.