DEMOS III will complement the government programme in advancing policies and legal framework for local government. Activities will focus on policies that are currently in the programme such as the Law on Local Government Finance and anticipated grant for capital investments. It also complements the actions set in the first objective of the Strategy on Local Self‐Government (2016-2026) that foresees drafting policies and changing legal basis for financing of municipalities for the purpose of developing sustainable financial system.

Technical Assistance will be provided to the Government and the Assembly of Kosovo to conduct detailed analyses, develop policy options, provide advice and coordination with relevant stakeholders to develop better policies and improved governance.