The Economy Report, May 2009

The Economy Report. On Swedish Municipal and County Council Finances is a series published twice yearly by the Swedish Association of Local Authorities and Regions (salar). In it we deal with the present economic situ­ation and developments in municipalities and county councils. The calculations in this issue extend to 2012.

The financial situation of municipalities and county councils appears increasingly troubling. The exceptional­ly weak state of the economy and lower employment will result in a substantial reduction in the growth of the local government sector’s income this year and next year. Municipalities and county councils will have to choose bet­ween improving efficiency, making reductions in services and increasing taxes. Many face a difficult budget process ahead of 2010.