Abstract
De Widt investigates how local government financial sustainability is influenced by the regulatory framework in which local governments operate. Applying a comparative constitutional approach, the chapter analyzes the regulatory regimes on local finances in England, Germany, and the Netherlands. The regimes are investigated by concentrating on the impact of fiscal rules, and the monitoring structures in place to impose their implementation. Special attention is paid to the institutional arrangements that apply to non-compliant local authorities. The author demonstrates that growing local financial stress is partly met by regulators with a relaxation of fiscal rules, carrying considerable risks for the sustainability of local and intergovernmental finances. The chapter concludes with policy recommendations on how to improve the robustness of the regulatory regimes that govern local finances.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsReferences
AFM. 2014. Uitkomsten Onderzoek Kwaliteit Controles Big 4-Accountantsorganisaties. Amsterdam: Netherlands Authority for the Financial Markets (AFM).
Anckar, Carsten. 2008. On the Applicability of the Most Similar Systems Design and the Most Different Systems Design in Comparative Research. International Journal of Social Research Methodology 11 (5): 389–401.
Bekkers, Hans. 2014. Negen gemeenten financieel uit balans. Binnenlands Bestuur (BB), Jan 15.
Binnenlands Bestuur. 2015. Gemeenten blijven verliezen op grond. Feb 27.
BMC. 2010. Evaluatie Financiële Functie Gemeenten en Provincies. The Hague: BMC.
Buettner, Thiess, Fédéric Holm-Hadulla, Rüdiger Parsche, and Christiane Starbatty. 2008. Analyse und Weiterentwicklung des Kommunalen Finanzausgleichs in Nordrhein-Westfalen. Munich: Institut für Wirtschaftsforschung.
Busch, Manfred. 2005. Vorläufige Haushaltsführung und Haushaltssicherung. Über Widersprüche und Konsolidierungsfallen. Forum Kommunalpolitik 11 (4): 10–13.
BZK. 2016. Verslag over het Financieel Toezicht op Gemeenten. The Hague: Ministry of the Interior and Kingdom Relations (BZK).
Campbell-Smith, Duncan. 2008. Follow the Money: The Audit Commission, Public Money and the Management of Public Services, 1983–2008. London: Allen Lane.
CIPFA. 2011. Code of Practice on Local Authority Accounting in the United Kingdom 2010/11. London: Chartered Insitute of Public Finance & Accountancy (CIPFA).
Cohen, Sandra, Michael Doumpos, Evi Neofytou, and Constantin Zopounidis. 2012. Assessing Financial Distress Where Bankruptcy is Not an Option: An Alternative Approach for Local Municipalities. European Journal of Operational Research 218 (1): 270–279.
Dafflon, Bernard. 2002. Local Public Finance in Europe: Balancing the Budget and Controlling Debt. Cheltenham: Edward Elgar.
Department for Communities and Local Government. 2015. The Local Government Financial Statistics England No. 25 2015. London: Department for Communities and Local Government (DCLG).
De Widt, Dennis. 2016. Top-down and Bottom-up: Institutional Effects on Debt and Grants at the English and German Local Level. Public Administration 94 (3): 664–684.
Der Neue Kämmerer. 2013. Gläubiger im ‘rechtsunsicheren Raum’—Kommunale Finanzierungskonditionen driften auseinander—die Ergebnisse der DNK-Kämmererbefragung. Sept 10.
Ebinger, Falk, and Jörg Bogumil. 2012. Angeleitetes Lernen über Leistungsvergleiche? Zwischenbilanz nach acht Jahren Gemeindeprüfungsanstalt NRW. Die Verwaltung 45 (1): 123–140.
Farber, Gisela. 2002. Local Government Borrowing in Germany. In Local Public Finance in Europe: Balancing the Budget and Controlling Debt, ed. Bernard Dafflon, 135–164. Cheltenham: Edward Elgar.
Fry, Geoffrey K. 2008. The Politics of the Thatcher Revolution: An Interpretation of British Politics, 1979–90. Basingstoke: Palgrave Macmillan.
Glöckner, Andreas, and Holger Mühlenkamp. 2009. Die kommunale Finanzkontrolle. Zeitschrift für Planung & Unternehmenssteuerung 19 (4): 397–420.
Gröpl, Christoph, Friedrich Heinemann, and Alexander Kalb. 2010. Die Zweckentfremdung des kommunalen Kassenkredits—eine rechtlich-ökonomische Analyse. Perspektiven der Wirtschaftspolitik 11 (2): 178–203.
Hendriks, Frank. 2001. The Netherlands: Reinventing Tradition in Local and Regional Democracy. In Subnational Democracy in the European Union: Challenges and Opportunities, ed. John Loughlin, 143–172. Oxford: Oxford University Press.
Hildreth, W. Bartley, and Gerald J. Miller. 2002. Debt and the Local Economy: Problems in Benchmarking Local Government Debt Affordability. Public Budgeting & Finance 22 (4): 99–113.
Jacob, Benoy, and Rebecca Hendrick. 2013. Fiscal Health and Sustainability Concept and Measures. In Handbook of Local Government Fiscal Health, ed. Helisse Levine, Jonathan B. Justice, and Eric A. Scorsone, 8–42. Burlington, MA: Jones & Bartlett.
Justice, Jonathan B., and Eric A. Scorsone. 2013. Measuring and Predicting Local Government Fiscal Stress: Theory and Practice. In Handbook of Local Government Fiscal Health, ed. Helisse Levine, Jonathan B. Justice, and Eric A. Scorsone, 43–76. Burlington, MA: Jones & Bartlett.
King, Gary, Robert O. Keohane, and Sidney Verba. 1994. Designing Social Inquiry: Scientific Inference in Qualitative Research. Princeton: Princeton University Press.
Kloha, Philip, Carol S. Weissert, and Robert Kleine. 2005. Developing and Testing a Composite Model to Predict Local Fiscal Distress. Public Administration Review 65 (3): 313–323.
Koelewijn, Jannetje, and Tom Meeus. 1999. “Leningen? Van de provincie? Ceteco?” NRC Handelsblad, July 15.
Kriz, Kenneth A., and Qiushi Wang. 2013. Measuring and Monitoring Debt Capacity and Affordability. Market- and Nonmarket-based Models. In Handbook of Local Government Fiscal Health, ed. Helisse Levine, Jonathan B. Justice, and Eric A. Scorsone, 453–474. Burlington, MA: Jones & Bartlett.
Landman, Todd. 2008. Issues and Methods in Comparative Politics: An Introduction. Abingdon: Routledge.
Local Government Chronicle. 2001. Hackney LBC responds to Audit Commission, July 11.
Mill, John Stuart. 1843/1872. The System of Logic. London: Longmans, Green.
Moody’s, 2010. Moody’s: English Local Authorities Face Risks from Budget Cuts and Governance Changes. London: Moody’s Investor Service.
Musgrave, Richard Abel, and Peggy B. Musgrave. 1980. Public Finance in Theory and Practice. London: McGraw-Hill Kogakusha.
Ostrom, Elinor. 1990. Governing the Commons: The Evolution of Institutions for Collective Action. Cambridge: Cambridge University Press.
Rekenkamer Oost Nederland. 2013. Gelders Financieel Toezicht: Meerwaarde in Goede en Slechte Tijden. Deventer: Court of Audit East Netherlands.
Rfv. 1996. Vijf & Dertig Jaar Raad voor de Gemeentefinanciën. The Hague: Financial Relations Council (Rfv).
Städtetag. 2015. Schlaglichter aus dem Gemeindefinanzbericht 2015 des Deutschen Städtetages. Berlin: vierC.
Stiglitz, Joseph E. 1986. Economics of the Public Sector. New York: W.W. Norton & Company.
Ten Have, Frank. 2010. Financieel belang en financiële risico’s gemeentelijk grondbeleid steeds groter. B&G Oktober: 28–30.
Ter-Minassian, Teresa. 2007. Fiscal Rules for Subnational Governments: Can They Promote Fiscal Discipline? OECD Journal on Budgeting 6 (3): 108–120.
Thain, Colin, and Maurice Wright. 1995. The Treasury and Whitehall: The Planning and Control of Public Expenditure, 1976–1993. Oxford: Clarendon Press.
Zanten-Lagendaal, Marieke, and Marc Wijnands. 2001. Renterisico in de Wet FIDO. Meten is niet altijd weten. B&G April: 22–24.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2017 The Author(s)
About this chapter
Cite this chapter
de Widt, D. (2017). The Sustainability of Local Government Finances in England, Germany, and the Netherlands: The Impact of Intergovernmental Regulatory Regimes. In: Rodríguez Bolívar, M. (eds) Financial Sustainability in Public Administration. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-57962-7_8
Download citation
DOI: https://doi.org/10.1007/978-3-319-57962-7_8
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-319-57961-0
Online ISBN: 978-3-319-57962-7
eBook Packages: Economics and FinanceEconomics and Finance (R0)