The Slovak government is facing criticism for increasing the Prime Minister's salary while local governments and citizens bear the brunt of the crisis. Political scientist Radoslav Štefančík argues that politicians should manage public affairs and lead by example, rather than governing like monarchs, especially when asking citizens for sacrifices.
ILOILO CITY — A town in Iloilo has begun offering free daily rides to residents as local governments grapple with the ripple effects of rising global oil prices linked to ongoing tensions in the…
The legal fight for recognition of same-sex marriage has expanded into South Korea's southeastern regions, with couples in Daegu, Busan, and Ulsan filing lawsuits against local governments for refusing to process their marriage registrations.
An opinion piece questions why public institutions with ample researchers don't collect data on local governments, when social organizations with fewer resources manage to do so, raising concerns about the rule of law versus narrative-driven governance.
Hon. Abdul-Ganiyu Vinod Obasa, Chairman of Agege Local Government, stated that the financial autonomy granted to local governments under President Bola Ahmed Tinubu’s administration has significantly increased council allocations.
Most local government units (LGUs) in the country are not spending enough to deliver basic but comprehensive primary healthcare (PHC) to their constituents, despite having sufficient fiscal resources…
Local governments in Bulacan province, Philippines, are racing to meet a Friday deadline to submit lists of qualified tricycle drivers eligible for P5,000 in cash relief assistance from the national government.
The Civil Aviation Authority of the Philippines (CAAP) has reduced airport terminal fees and approved a fuel surcharge increase, while the Philippine National Police (PNP) reported 415 gas station closures nationwide due to the ongoing oil supply crisis. Additionally, the Iloilo provincial government has rolled out enhanced energy and fuel conservation measures across multiple sectors.
The Election Roll Commission, including a member who toured local governments, has reported significant irregularities and manipulation of the voter list in Serbia, describing it as a tool for political abuse rather than a reliable citizen registry.
In Indonesia, local communities are organizing to repair potholes themselves, stepping in where local governments have failed to maintain infrastructure.
MANILA, Philippines — One of the petitioners seeking a full ban on the implementation of No Contact Apprehension Policy (NCAP) in Metro Manila has opposed the joint motion by five local governments…
Local governments emphasize building social resilience and educating residents to be self-sufficient during the first hours of a crisis. This is seen as a crucial task for civil defense.
President Tinubu has called on the media to extend its scrutiny to state and local governments, emphasizing their new financial autonomy and shared responsibility in governance.
Italian local government bodies have approved a new contract for 2025/27, allocating one billion euros for salary increases of 135 euros, alongside a push for greater working flexibility and corporate welfare.
Polish local governments are expanding their fleets with electric buses from China, with Białystok notably committing to making Yutong brand buses nearly one-third of its urban public transport.
Local governments in Poland have long encouraged residents to file their taxes locally, and financial ministry data shows these campaigns are effective, as the number of taxpayers in large cities is growing.
Some local governments in China have rushed to support the adoption of OpenClaw, the artificial intelligence agent sweeping the country, even as warnings about privacy and security risks linger in…
Local governments around Litovel Moravia are investing in new drone technology capable of carrying dozens of liters of spray to combat mosquito infestations over large areas.
County and city teams in Poland responsible for disability assessments are experiencing difficulties issuing parking cards due to an insufficient supply of blank forms.
AIRA LABS, an AI firm endorsed by Leni Robredo, has launched its AI 'Command Center' in Naga, Philippines, aiming to enable local governments to operate on real-time data.
Local governments in Poland are quickly establishing energy communities, with a significant increase in applications for cooperative registration, indicating a boom in the sector.
TACLOBAN CITY — Alarmed by a renewed spike in cases of adolescent pregnancies, the regional office of the Commission on Population and Development (CPD-8) is calling for urgent and sustained action from families, schools, and local governments, warning that teenage pregnancies and birth in Eastern Visayas are not just a health concern but a looming
Fourteen members of the Association of Local Governments of Nigeria (ALGON) have resigned from the Peoples Democratic Party (PDP) and joined the All Progressives Congress (APC).
The post 14 out of 21…
New road construction, street renovations, or sidewalk projects frequently involve interaction with green spaces, sometimes necessitating tree removal, which local governments typically compensate with new plantings.
Katsina State’s commissioner confirms local governments have 100% autonomy, citing increased federal allocations from recent reforms for improved finances.
Read More: https://punchng.com/katsina-lgs-operate-100-autonomy-says-commissioner/
A Polish report estimates that excessive alcohol consumption could cost over 100 billion PLN by 2026, prompting more local governments to implement measures to combat the problem, with varying success across cities.
Significant changes are expected for one of the EU's largest investment policies, cohesion policy, after 2027, with concerns among local governments about centralization and its integration with the common agricultural policy.
The 11th European Congress of Local Governments in Mikołajki, Poland, is underway, featuring over 250 events and discussions on topics such as digital competencies and the role of universities in the age of artificial intelligence.
The program for the XI European Congress of Local Governments in Mikołajki, Poland, has been announced, featuring over 250 events including plenary sessions, discussion panels, and workshops. A key topic is whether renewable energy presents an opportunity or a source of social tension for municipalities.
Polish local governments are investing hundreds of millions, even billions, of zlotys into urban revitalization projects, focusing on entire city quarters rather than individual buildings.
Local governments in South Korea are experiencing a depletion of electric vehicle subsidies as demand for EVs surges, driven by recent price cuts and rising oil costs.
Local governments in Poland are investing in charging infrastructure for electric buses, primarily in depots and communication loops, with funding from EU funds.
Poland's Ministry of Justice proposes to eliminate the option of inexpensive wills drafted by officials, citing numerous errors. However, local governments are challenging this move, demanding proof of the alleged mistakes.
The Association of Local Governments of Nigeria (ALGON) has committed to fully implementing President Bola Ahmed Tinubu’s Renewed Hope Agenda across all 774 local government areas in the country, ahead of the 2027 general elections.
New data confirms a 'red financial alarm' in Polish district hospitals, which are struggling to pay suppliers on time as their operating costs continue to exceed revenues, prompting local governments to seek solutions for debt reduction.
Nearly 300 schools and kindergartens across Poland are facing potential liquidation by the end of the school year, with local governments citing two main reasons for the closures.
In Indonesia, communities are banding together to repair potholes when local governments fail to address infrastructure issues, highlighting citizen-led initiatives.
Green waste, including grass, leaves, branches, and Christmas trees, is increasingly seen by local governments as a valuable resource for producing compost, biogas, or electricity, but significant investments are required to process it effectively.
Effective collaboration between experts, financial institutions, and local governments, along with efficient procedures and targeted financial support, are highlighted as crucial elements to accelerate green energy transformation at the local level.
Abdul-Ganiyu Obasa, the Chairman of Agege Local Government, has been elected as the President of the YELO West Africa region under the United Cities and Local Governments of Africa.
By Omeiza Ajayi ABUJA: Councillors from Nigeria’s 774 Local Governments at the weekend teamed up with the “City Boys Movement” with a view to ensuring a seamless re-election of President Bola Tinubu…
Nina Drakić, President of the Chamber of Economy of Montenegro (PKCG), stated that local self-governments are prepared to work on modernization to support economic development and European integration, emphasizing the direct impact of efficient local administration on investment realization.
China has passed a law on 'ethnic unity' that mandates all governmental bodies and private companies, including local governments and state-affiliated organizations, to promote ethnic assimilation.
Local governments in Poland plan to replace outdated trams and invest in infrastructure development, utilizing financial support from the European Union for a significant quality and technological upgrade.
Non-indigenes across Ondo State’s 18 local governments have pledged to deliver over one million votes to support President Bola Tinubu’s 2027 re-election.
Read More: https://punchng.com/2027-ondo-non-indigenes-back-tinubu-pledge-one-million-votes/
TACLOBAN CITY — Several local governments in Eastern Visayas suspended classes on Monday, following warnings of moderate to heavy rainfall from a weather disturbance affecting the region. The class suspensions came after the Philippine Atmospheric, Geophysical and Astronomical Services Administration (Pagasa), under the Department of Science and Technology (DOST), issued a weather advisory early Monday,
A Washington Post article argues that Congress cannot solve the housing shortage alone, suggesting that local governments bear the primary responsibility.
The Journalists' Association of Serbia (UNS) reported that only ten local governments have announced competitions for co-financing media content projects in public information, after the legal deadline expired, leaving many without such opportunities.
The number of Hungarian municipalities restricting new residents has doubled in two months, with 228 local governments introducing bans and restrictions to protect local identity.
Piotr Krzystek, President of Szczecin, states that local government finances are unstable, as algorithms used by the finance minister are often adjusted to the state budget's capabilities, making local governments heavily reliant on state transfers rather than their own income.
Zoran Gavrilović of BIROD-ija states that local self-government units holding elections show a low degree of institutionalization in the fight against corruption, acting as corrupt feuds supporting the Serbian president.
Mayors of smaller Czech towns and municipalities are concerned about the state's plan to close hundreds of building authorities as part of a new building law amendment. The Association of Local Governments warns this could lead to a collapse of construction proceedings.
A Polish court has ruled that local governments can legally impose restrictions, including limits on operating hours for restaurant gardens, within cultural parks to mitigate noise and protect the cultural landscape.
Polish local governments face numerous challenges including security, funding, education, healthcare, demographic changes, and energy transition, prompting questions about reform.
Many schools and kindergartens across Poland are facing liquidation due to a decreasing number of students, with local governments expected to make final decisions by the end of February, despite protests from parents.
The XI European Congress of Local Governments in Mikołajki is the largest international conference in Poland dedicated to the problems of local government. The enormous interest in the event confirms the dynamics
Local governments across South Korea are scrambling to find new uses for shuttered schools amid a declining student population, while a parallel movement is unfolding on social media, where individuals are taking the initiative to renovate and reimagine closed campuses. According to the Ministry of Education, the cumulative number of shuttered schools surpassed 4,000 in 2025, with South Jeolla Province recording the highest number at 854. In contrast, only seven schools have closed in Seoul sinc
Local governments from three Polish provinces are lobbying for the S12 expressway to be extended westward to the German border, despite current government plans only reaching Piotrków Trybunalski.
Local governments in Poland are evaluating the government's housing strategy, suggesting that renovating vacant properties is a quick and effective way to increase the supply of affordable housing.
An opinion piece argues that the Supreme Court should intervene to prevent activist local governments from usurping federal authority over international emissions and energy market regulation.
SDP members in Croatia are highlighting that 70% of young people cannot afford to buy or rent an apartment and are proposing that local governments build affordable housing using tourism revenues.
Ukrainian National Police are investigating 1,216 anonymous bomb threats received on March 30, targeting state authorities, local governments, educational institutions, businesses, and banks. Over half of these reports have already been investigated.
Local governments in Poland can introduce landscape resolutions to completely ban billboards in natural zones and all advertising devices on undeveloped properties.
The debate over local government autonomy in Nigeria continues, raising questions about whether financial independence for local governments will truly lead to grassroots development.
Maryland's Supreme Court has struck down Baltimore's climate lawsuit against oil companies, a decision that poses a setback for other local governments pursuing similar legal actions to recover climate change costs.
The Journalists' Association of Serbia (UNS) announced that seven local self-governments have failed to issue tenders for co-financing media content projects by the legal deadline of March 1.
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FAAC shares N1.894 trillion from February 2026 revenue. Learn about the FAAC revenue sharing breakdown between federal, state, and local governments.
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A leading tax policy expert stated that the full implementation of China's new five-year plan's taxation reforms would significantly alleviate fiscal pressures on local governments, though it would not alter the central government's dominance.
Technologybloombergwsjcnbc+7SCMPnikkei-asiaTimes of Indiaindian-expresschina-dailystar-malaysiazerohedge29d ago10 sources
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Some of the stops in rural areas on the Rail Baltica route, which was established several years ago, are a long way from larger settlements. Local governments must now begin working on ensuring connections to the stops and developing the surrounding areas.
The European Congress of Local Governments (EKS) is highlighted as a platform for dialogue independent of political realities, fostering discussion about the country's future at the local government level despite societal polarization.
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Local governments in Pakistan's Khyber Pakhtunkhwa province are set to continue functioning beyond their official expiry date, with a committee considering the stance of nominated members.
Ahead of China’s annual legislative meetings – typically a window into Beijing’s top-level policy agenda – this is the fifth entry in a series examining the complex economic recalibration driving China’s growth philosophy and its wide-ranging implications for local governments, financial investors and private enterprises.
Chinese government and industry officials are likely to discuss plans to control domestic electric-vehicle (EV) makers’ output, while encouraging them to prioritise...
The Ministry of Information and Telecommunications, the Provincial Secretariat in Vojvodina, and 120 local self-governments have announced 135 competitions for project co-financing of media content, according to the Unified Information System database.
The chairman of the Banská Bystrica Self-Governing Region argues for empowering local governments to restore public trust in the state, noting a probable increase in the shadow economy.
Bauska and Preiļi municipalities in Latvia are considering appealing to the Constitutional Court and organizing protests against a ministry's decision to partially suspend their territorial plans, which could impact other local governments and planned projects.
The costs associated with excessive alcohol consumption in Poland could reach over 100 billion PLN by 2026, according to 'Rzeczpospolita' estimates. More local governments are implementing measures to combat this issue, with varying results across cities.
The XI European Congress of Local Governments in Mikołajki features over 250 events, including discussions on cyber threats to critical local systems and securing municipal services.
Polish local governments are grappling with significant challenges including security, funding for investments, education, healthcare, demographic changes, and energy transformation, leading to increasing calls for reform regarding their size and structure.
China's Debt Model Creates Danger Of Stagnation
Authored by Daniel Lacalle,
The latest social financing figures from China show an economy that is increasingly relying on government debt while private demand for credit remains weak. The strength of the Chinese technology sector and its exporting companies gives enough room for leverage. However, behind the weak private sector credit demand lies an evident economic slowdown that the Chinese government acknowledges, challenging consumption patterns, a significant overcapacity problem, and the depth of the housing crisis.
The current economic model, focused on delivering 5% real economic growth, requires larger doses of debt to achieve smaller increments of growth, especially productive sector growth. The government has focused on reducing debt and overcapacity imbalances while reorienting its exports and financial system to lessen dependence on the US dollar; however, the main challenge for the Chinese economy remains boosting consumer demand, despite rate cuts and easing financial conditions.
To understand the intensity of debt of the Chinese model, we must go to the year 2000 and see the acceleration in the flow of debt, not just the current stock. At that time, real GDP growth was around 8–9%, so each percentage point of growth came with roughly 13–16 points of debt‑to‑GDP. Government debt was very low, at around 25% of GDP, and most leverage sat in the state-owned corporate sector with modest household debt. China was able to deliver near‑double‑digit growth with a total non‑financial debt ratio barely above 120% of GDP.
By 2023, non‑financial sector debt had risen to about 285% of GDP, more than doubling its level of 2000. Chinese think‑tanks and official commentators put the “macro leverage ratio” closer to 300% of GDP by 2025, according to the Chinese Academy of Social Sciences. The macro leverage ratio rose by 11.8 percentage points to 302.3 percent in 2025, exceeding the 10.1-point increase reported in 2024.
Over the same period, the trend of real GDP growth has slowed to roughly 4–5%, so each percentage point of growth now requires around 60–75 points of debt‑to‑GDP, more than three times the debt per point of growth required in 2000. Furthermore, it comes mostly from government debt.
In January 2026, aggregate social financing jumped by 7.22 trillion yuan, significantly higher than in the same month of 2025 and above market expectations, consistent with 5% annual GDP growth and a larger composition of the public sector in the mix. Outstanding social financing reached 449.11 trillion yuan at the end of January, rising 8.2% year‑on‑year, while money supply (M2) rose by 9%.
New yuan bank loans were 4.7 trillion yuan, about 420 billion less than a year earlier and significantly below consensus, showing the weak private‑sector credit demand and the prudent approach of Chinese customers and businesses to debt addition. RMB loans outstanding stood at 276.62 trillion yuan, up only 6.1% year‑on‑year, clearly below the pace of overall financing and money growth.
The driver of credit growth in China is no longer households and private firms but the government and state-owned companies.
The real estate problem has impacted Chinese families in numerous ways. Not only did most of them see the value of their homes decline, but many families invested in the attractive yields of real estate developers’ commercial paper, which led to large losses and even the wipe-out of savings for many. Additionally, despite the excess in supply of houses, prices have not fallen enough to warrant enough appetite for new mortgages, as affordability remains an issue and the traditional prudence of Chinese citizens when it comes to consuming and borrowing adds to the challenge.
Beijing plans to issue 4.4 trillion yuan in local government special‑purpose bonds in 2025, 500 billion more than in 2024, looking to boost government investment and a “proactive fiscal policy,” knowing that raising taxes would be exceedingly negative for growth and consumption.
Local governments are expected to issue more than 10 trillion yuan in bonds in 2025, including refinancing, general bonds, and new special bonds.
The Chinese government knows that it can manage more debt but also sees the weak investment and household spending and acknowledges that large tax increases would be counterproductive. However, to prevent future debt-driven stagnation, a focus on productivity is necessary.
The official budget sets a deficit of 4% for 2025. However, once all budget items are consolidated, including government funds, special bonds, and off‑budget vehicles, this true fiscal deficit in 2025 is closer to 9%, up from 7.7% in 2024, according to Rhodium Group and JP Morgan. China increasingly relies on hidden or almost fiscal borrowing to support growth.
With outstanding social financing now around 449 trillion yuan and real growth around 4–5%, each incremental point of GDP is increasingly linked with a much larger stock of debt than a decade ago. This rising credit intensity of growth may prevent a significant slowdown but may create a significant fiscal challenge in the future. The Chinese model demands high growth and low taxes; any change to the fiscal system will be negative.
For years, local governments relied on the sale of land for property development to collect tax receipts. Thus, the drag from real estate is evident in the economy and in fiscal sustainability. Real estate development investment fell 13.9% year‑on‑year in the first three quarters of 2025, with residential investment down 12.9%, the steepest drop since 2021, according to official figures. Property investment and sales both posted double‑digit declines in 2024, and forecasters expect real estate investment to fall another 11% and sales to drop 7.5% in 2025, according to Reuters, with further declines in 2026 before stabilizing only in 2027… if it happens as fast as consensus estimates.
The property sector, once a key engine for economic growth and tax receipts, absorbs new credit to stabilize its accounts without boosting growth or creating a multiplier effect.
Additionally, China’s industrial capacity utilization remained at 74.9% at the end of 2025, well below the 78.4% peak reached in 2021. Overcapacity is clear in steel, autos, legacy chips, and parts of sectors like green tech, where expansion has surpassed domestic and external demand. Thus, the purchasing managers’ indices show weak new orders and foreign demand, while bankruptcies and insolvencies have risen, although not to levels that would indicate a financial crisis.
The Chinese economy needs to reopen, improve investor and legal security and allow the housing slump to materialize fully to see the type of productive economic growth it needs to avoid much larger increases in debt. Otherwise, the risk of stagnation will likely be elevated as population growth stalls, overcapacity remains, and the stock of unsold property becomes a larger liability.
Tyler Durden
Mon, 02/16/2026 - 22:25