Open Access Article SciPap-877
Local Governments in EU Countries: Competences and Financing of Public Services
by Renata Halásková 1,* iD icon and Martina Halásková 2 iD icon

1 , College of Logistics, Palackého 1381/25, Přerov 1 750 02, Czechia

2 Department of Public Economics, VŠB-Technical University of Ostrava, Faculty of Economics, Sokolská 33, Ostrava 702 00, Czechia

* Authors to whom correspondence should be addressed.

Abstract: Local governments in the EU play a major role in the development of local public policies. Local governments provide public services in the public interest, funding them for public resources. The paper deals with the role of the local public sector and the comparison of competences of sub-national governments (local, intermediate, regional) in EU countries and the financial dimension of local and regional governments for development of services. The areas assessed include spending capabilities of local governments in 28 EU countries, with a particular focus on total expenditures of local and regional governments, fiscal decentralisation of expenditures, and local government expenditures by selected function (social protection, health, education, culture and recreation), including the rate of their decentralisation of expenditures. The empirical research renders a comparison of spending capabilities of local and regional governments by selected function in EU countries, making use of cluster analysis and the evaluation of similarities and differences in the individual countries. The most marked differences in EU countries were observed in expenditures of the local public sector on health. Conversely, the least marked differences in all countries are seen in the expenditures of the local public sector on recreation and culture.

Keywords: EU Countries, Cluster Analysis, Local Governments, Local Public Services, Local Government Expenditure, Fiscal Decentralisation

JEL classification:   H75 - State and Local Government: Health • Education • Welfare • Public Pensions,   H76 - State and Local Government: Other Expenditure Categories,   H83 - Public Administration • Public Sector Accounting and Audits

SciPap 2017, 25(2), 877

Received: 1 September 2016 / Accepted: 20 March 2017 / Published: 2 June 2017