The European Charter of Local Self-Government is, so far, the first and most important international political tool which guarantees the development of decentralization of public power and local autonomy. It represents the commitment of the Council of Europe's member country to promote in the internal organization of their states, a new distribution of functions and powers in order to support the development of subnational levels. In carrying out the delimitation process of responsibilities between levels of public power’s achievement we should start from the provisions of The European Charter of Local Self-Government which is based on institutional practices and structures, tested for decades in dozen of European countries. That means rationing, giving up improper structures, which would result the removing of the vertical power and as consequence the demolition of foundations on which inefficiency and corruption are based on. The necessity of transferring the resources and powers to the local level is dictated by a vital imperative – the strengthening of local public authorities’ capacities and potential in order to locally provide a maximum volume of qualitative public services. This requires creating a clear and simple demarcation algorithm of responsibilities between the levels of exercise of public power.