Enabling Inter-Municipal Shared Service Provision in Lithuania : Proposed Legal and Institutional Framework and Piloting Approach in Tauragė+ Functional Zone

Lithuania is experiencing rapid demographic change, with the population ageing and significantly shrinking in recent decades. This trend has put pressure on the provision of public services, especially at the municipal level, and is expected to continue in the coming years. Ongoing efforts are made by Lithuania to improve the delivery of municipal services with the aim to mitigate territorial disparities and foster social inclusion. In this perspective, shared public service provision is viewed as a way to enhance the accessibility, affordability and quality of essential public services. This report provides recommendations and an action plan to address challenges inherent to the legal, fiscal and institutional frameworks for shared municipal service provision in Lithuania, while taking stock of these different challenges. The report also provides two roadmaps for piloting primary healthcare and long-term care services in Tauragė+ functional zone (Jurbarkas, Pagėgiai, Šilalė, Tauragė municipalities) through shared municipal service provision. The report draws lessons from peer country experiences, and in particular Finland, where inter-municipal cooperation has been used successfully for decades.