Fiscal consolidation in Greek and German local governments differs for many reasons. While some German local governments experienced a long period of austerity, driven by economic decline and federal and state measures, the global financial crisis and "troika" programme caused the need for harsh...

In response to the budgetary problems of local government in Germany, some federal states (<italic>Länder</italic>) have established bailout funds for their highly indebted local authorities. These schemes commit local governments, on a contractual basis, to strengthen their own consolidation efforts in return...