The CSPF network unites major European cities to exchange strategic approaches for sustainable municipal finances and strong local institutions. At the 11th meeting, participants highlighted the importance of administrative capacity, responsible use of AI, sustainable budgeting and robust integrity systems to strengthen democratic resilience.

Levies are an important source of income for municipalities, as they provide financial leeway and strengthen local autonomy. A European comparison shows that while municipalities in Scandinavia have extensive tax powers, these are severely restricted in other countries.

As part of the fiscal equalisation system, tax revenue is distributed between the federal government, the federal states and the municipalities. The majority of taxes are collected centrally by the federal government and partly passed on to the federal states and municipalities. Comparatively few own levies are collected, whereas the increasingly comprehensive transfers are of growing importance. An overview.

How can municipalities translate global sustainability goals into concrete local action? The City of Trondheim, Norway’s third-largest municipality which is home to approximately 213,000 residents, offers a compelling answer.

The 10th European Cities for Sustainable Public Finances (CSPF) meeting was held in London on May 19-20, 2025. Against the backdrop of the EU AI Act’s impact on local governments, the meeting dealt with how AI is being utilized by local government and what horizons are opening up in this area. 

Local authorities play a leading role in ecological planning. As major contributors to public investment they have core responsibilities that can significantly accelerate the transition, such as expanding public transport networks or retrofitting public buildings for energy efficiency. According to I4CE, in France, local authorities in France need to double their investments in decarbonization by 2030 -without even accounting for future adaptation costs. This significant effort will be on the shoulders of the next wave of local executives elected in 2026 and will be critical for achieving carbon neutrality.