Samenvatting

Background
As the level of government closest to citizens and the real economy, local and regional authorities have an important role in tackling the severe impact of the current economic crisis. The double pressures of decreasing public revenue and increasing demand for services, however, call for more efficient solutions in the course of this response. Moreover, longer-term challenges alongside the crisis also make it a necessity to combine short-term measures providing immediate relief with investments in structural changes for a sustainable recovery.

Effects of the crisis
Local and regional governments themselves have been heavily affected in the recession as well, suffering losses on shares, investments, tax income, etc. and facing rises in unemployment and business closures in their economies. In an effort to ensure that their recovery strategy will have the desired impact in all fields under their responsibility, local and regional authorities have focused their attention on the areas of employment, service provision, business support and strategic public investment simultaneously.

Local and regional responses
Regarding labour market measures, local and regional authorities have
attempted to keep people close to employment, whether by earning, learning or looking, in order to retain and further improve their skills for the recovery. In the provision of services, they have aimed at making existing help more accessible and responsive to the needs of residents despite having fewer resources. Support for small- and medium-sized enterprises through facilitating their cash flow or offering advisory assistance during the crisis has been an essential part of the effort to maintain and enhance the competitiveness of the local and regional economy. Furthermore, sustained public investment targeted at green technologies and innovation has reaffirmed long-term objectives of local and regional economic development.

Conclusion
The drive for the efficient and effective implementation of the above
measures has led to the integration of several existing initiatives in
cooperation with local and regional partners from both the public and
private sector. This proactive role of many authorities to respond to the crisis with timely and targeted measures has earned them an important position in the public eye - so much so to grant their involvement in national responses in several countries. From many perspectives - economic, social, environmental as well as political - therefore, the current crisis may provide local and regional governments with opportunities to emerge stronger from the recession.