Inter-municipal Cooperation and Austerity Policies: Obstacles or Opportunities?

Abstract

The profound challenges experienced by European countries as a consequence of the fiscal crisis, combined with the increase in the scope, size, and diversity of inter-municipal cooperation (IMC), justify a closer look at whether and how austerity policies have shaped the developments of IMC across different countries. Has IMC become more prevalent in countries affected by the fiscal crisis? Have austerity policies presented obstacles or opportunities for IMC initiatives? We conducted a survey of experts in 11 selected countries, including both countries that were hit hard by the fiscal crisis and implemented extensive austerity policies and countries where IMC is known to be or becoming prevalent. The results of this exploratory analysis indicate that in five of the countries included in our sample (Italy, Portugal, Iceland, the Netherlands, and the UK), IMC has emerged as a solution to deal better with fiscal stress.