Comparative analysis of local financial autonomy in the European Union countries

Abstract

The comparative analysis of local financial autonomy in the European Union countries suggested there is no universal model of local government finance applicable to all European Union countries. Each of them has its own specific needs and solution to raise the local financial autonomy. At the same time, local government must be in accord with European Union legislation as European Charter of Local Self-Government and Maastricht Treaty.

For making the comparative analysis, it must be used universal indicators as follows: local financial rate, local public revenues and local public expenditures in gross domestic product (GDP), local public investments, the evolution of local public expenditures, local public expenditures covered by local own rev enues, the level of local borrowing, etc.