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. 
 

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:

 

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