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Local finances
Introduction
Subnational public investment is only 1.3% of GDP around the world, significant catching up is still needed, in particular in Europe, for which the level of subnational investment is particularly low: 1.2% of GDP in 2016. Municipalities and regions were seriously affected by a scissor effect due to COVID-19 crisis: more expenses and less revenues. Although this was partly compensated by the national governments in most countries, local and regional governments now fear the mid to long term impact on their investment capacities. Especially in the context of post-pandemic recovery and in order to achieve the objectives of the Green Deal and the digital transitions, massive investments will be needed, from both private and public sectors, but including for a significant part investments by local and regional governments. The EU rules that govern and limit public spending and debts have a clear impact on the subnational level as well.
Subnational public investment is only 1.3% of GDP around the world, significant catching up is still needed, in particular in Europe, for which the level of subnational investment is particularly low: 1.2% of GDP in 2016. Municipalities and regions were seriously affected by a scissor effect due to COVID-19 crisis: more expenses and less revenues. Although this was partly compensated by the national governments in most countries, local and regional governments now fear the mid to long term impact on their investment capacities. Especially in the context of post-pandemic recovery and in order to achieve the objectives of the Green Deal and the digital transitions, massive investments will be needed, from both private and public sectors, but including for a significant part investments by local and regional governments. The EU rules that govern and limit public spending and debts have a clear impact on the subnational level as well.
Expert group on territorial cohesion
30 national associations of local and regional governments from all the European Union are members of this expert group. In this expert group, we address different crucial goals for local and regional governments:
Our goals:
• Organising regular meetings with the European institutions: European Commission, European Parliament, Committee of the Regions, Presidency of the EU ;
• Support CEMR members in their advocacy at national level for fiscal decentralisation through exchanges of ideas and practices on local finance and national legislation or reforms ;
• Analysing the main trends and evolution of subnational governments finance and investments in Europe ;
• Advocating for more enabling legal environment at European and national level, fostering local and regional investments.
• Organising regular meetings with the European institutions: European Commission, European Parliament, Committee of the Regions, Presidency of the EU ;
• Support CEMR members in their advocacy at national level for fiscal decentralisation through exchanges of ideas and practices on local finance and national legislation or reforms ;
• Analysing the main trends and evolution of subnational governments finance and investments in Europe ;
• Advocating for more enabling legal environment at European and national level, fostering local and regional investments.
These goals are materialised by the implementation of a range of activities that include developing political positions, studies, and ongoing dialogue between the members and other key partners.
Coordinators of the expert group:
• Cemal Başas, Head of Project & Financing Department - Union of Municipalities of Turkey;
• Florian Schilling, Head of department for municipal finance and international affairs, German Association of Towns and Municipalities (DStGB).
CEMR spokespersons for local fiances
• Councillor of Cheltenham (United Kingdom), Flo Clucas
Contact

Marine Gaudron
Advisor - Economic, Social and Territorial Cohesion, Local Finances
Email :
Tel : +32 2 213 86 93
Skype : marine.gaudron