It is essential to avoid excessive central government controls over local government finances in the coming period. This is the main message of outgoing secretary general Jeremy Smith, at a
public hearing at the European Parliament, on 28 January 2010.
Over the last 20 years or more, there has been a general move towards democratic decentralisation across Europe. But as national governments themselves feel the pressure to restrain public expenditure, there is a real risk that they seek to reverse this process and take more centralised control over local authorities, in terms of finances, but also in terms of more control over what services are delivered by municipalities and regions, and how.
In his speach, Jeremy Smith also called on members of the European Parliament to encourage the European Union and national governments to ensure that local and regional authorithies are not disproportionately affected by reductions in public expenditure.
Citizens believe that concrete solutions to the crisis are more likely to come from the local level than from national or international actors. Nonetheless, local and regional authorities may face a drastic budget cuts and increases in the demand for more social services, as suggested by the CEMR's survey on the impact of the economic and financial crisis on local and regional authorities. 
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