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The structuring conditions of local government financialisation in Europe: A comparative perspective

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  • Hannah Hasenberger

    (Department of Geography, University of Cambridge, Cambridge, UK)

Abstract

Local governments across Europe are increasingly engaging in ‘local government financialisation’, involving the use of bonds, derivatives and financial assets in their governance. However, the extent to which local governments use financial instruments varies across countries. Moreover, local governments engage in financialisation in the context of ‘structuring conditions’ that are largely beyond their control. This paper systematically investigates these political-economic conditions and provides a high-level comparative analysis of their relevance for financialisation in local governments. The study examines data from 22 European countries between 2000 and 2019, finding that economic, financial and institutional conditions, along with financial subordination, are critical in shaping local government financialisation. Specifically, greater decentralisation, a more developed financial sector, and, to some extent, more intense austerity are associated with higher levels of financialisation. In contrast, financialisation tends to be lower in the Southern and Eastern European peripheries. Through its country-comparative approach, the paper contributes a new perspective to recent debates on the role of the local state in financialisation.

Suggested Citation

  • Hannah Hasenberger, 2024. "The structuring conditions of local government financialisation in Europe: A comparative perspective," Environment and Planning A, , vol. 56(7), pages 1952-1967, October.
    • Handle: RePEc:sae:envira:v:56:y:2024:i:7:p:1952-1967
    DOI: 10.1177/0308518X241256546
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    References listed on IDEAS

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