Municipal Amalgamation and the Role of the Joint Municipal Boards in Finland

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Finland is a country where the system of the joint municipal boards has a long history asIn Finland local authorities can produce services themselves, but they can also purchase them from other service providers, both public private, or privatize their operation, for example by setting up companies. They can also provide services jointly with other local authorities. Municipalities are free to form joint municipal boards, in addition to three municipal boards to which municipalities are required to belong by law ; regional councils, boards that operates hospital cares, and boards that take care of the mentally retarded.The system of joint municipal boards has long been regarded as the most effective way to secure services to the residents. Finnish people in general are not in fabour of municipal amalgamation, in spite of the fact that nearly half of the municipalities are very small-sized. However, due to demographic reasons and the global environment, Finnish government set a project to restructure municipalities and services in May 2005. The objective of the project is to establish sound financial basis for the services for future. Three models are now under discussion ; the model of basic municipalities, the district mode and the regional model. Cabinet decision will be made by autumn 2006.