Council of European Municipalities and Regions (CEMR)
European section of United Cities and Local Governments

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Local and regional governments as service providers

Financial and economic crisis - 01.10.2009

The crisis from the ground up: CEMR releases first results
Financial crisis, economic crisis, credit crisis: how does the crisis impact Europe's local and regional authorities? The Council of European Municipalities and Regions (CEMR) discloses first results of its study conducted among its member associations.
According to Europe's local and regional authorities, the financial and economic situation has generally worsened over the last 6 months. That is what 13 out of 20 responding associations members of CEMR (65.0 %) think. The forecasts for 2010 are not much more optimistic either. The crisis will continue to influence local and regional governments, say 11 associations (61.1 %). They particularly suffer from a sustained budget squeeze between decreasing budget income and increased demand for expenditure.
In the light of these ongoing developments, local and regional authorities in many countries (47.8 %) plan reduced 2010 budgets; The Baltic countries and South-East Europe are particularly pessimistic.
How does the crisis impact public services? It was expected in the first part of 2009 that the demand for specific services, especially in the social sphere, would increase with the growing economic unease. Indeed, 50 % of the countries have reported a significant increase in demand for these services and none indicate a decrease.
The full study will soon be available on CEMR's website. It is the second study released by CEMR on the impact of the economic and financial crisis on Europe's local and regional authorities.
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