Economic outlook remains gloomy

The Council of European Municipalities and Regions (CEMR), is due to publish a study on the current financial and economic crisis.

Initial findings from the report, Economic and Financial Crisis - The impact on local and regional authorities, show authorities have been hit hard by the financial crisis.

According to Europe's local and regional authorities, the financial and economic situation has generally worsened over the last six months. That is what 13 out of 20 responding association members of the CEMR (65.0%), think, whereas 25% think the situation has not changed significantly and only 10% perceive a slight improvement (Spain and Portugal),

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%); only Portugal, Norway and Sweden (16.7%)  think that the worst of the crisis is behind them and that 2010 will see the first shoots of recover.

The impact on public services will has also been covered in the report. The initial findings state that 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 decline.

To view the initial findings visit http://www.ccre.org/docs/second_survey_ec_crisis_en.pdf. The full report will soon be available to view on the CEMR website www.ccre.org.

Last Updated: 12/10/2009 15:25:10 By Katherine Hitchcock