The SPDD-TL initiative aims to strengthen decentralisation by bringing governance and essential services closer to citizens, with a focus on equitable access for vulnerable communities. The budget support and capacity building provided by this initiative are key to promoting equitable access and helping local authorities better serve their communities.

Timor-Leste made significant progresses in decentralisation through SPDD-TL initiative, establishing key legal frameworks, enhancing institutions, and improving municipal governance. Achievements include implementing the Administrative Decentralisation Strategy and passing important laws like the Law on Municipal Finance and the Law on Administrative Division of the Territory.

The Policy Dialogue gathered stakeholders from the diplomatic corps, development partners, various ministries, and civil society to discuss the decentralisation process. This approach aimed to foster a shared understanding of the challenges and opportunities related to decentralisation, facilitate the exchange of ideas and best practices, and strengthen partnerships among key actors. By engaging a wide range of perspectives, the dialogue sought to enhance coordination and ensure that the decentralisation efforts effectively address the needs of all communities.

EU Ambassador H.E. Marc Fiedrich emphasised the importance of the ongoing political dialogue, stating that Policy dialogue is important for all parties involved. He noted that effective fiscal decentralisation requires transferring functions, powers, and resources from the state to local authorities, along with a clear strategy for managing responsibilities and budgetary resources as well as the upcoming local government elections present future challenges, including ensuring effective implementation and maintaining transparency throughout the process.

Secretary of State for Local Development, H.E. Mateus dos Santos Tallo added, “This is a chance for all stakeholders to collaborate and enhance our decentralisation efforts, which are crucial for improving governance and services in our communities.” As a developing country, Timor-Leste is committed to strengthening cooperation and values the EU's support, especially in the decentralisation process aimed at establishing local power through municipal elections.

The EU also reaffirmed its commitment to continue political dialogue beyond the SPDD in 2025, supporting fiscal decentralisation and the digitalisation of public services.