Intermunicipal Competition – Discussion

2023, Paper: "The paper “Inter-municipal cooperation in France and related tax issues” by Marie-Laure Breuill´e and Pascale Duran-Vigneron delves into the world of inter-municipal cooperation—an approach that towns and cities adopt to deal with tax competition. Inter-city cooperation takes several forms and involves nearby municipalities joining forces to provide public services and share funds raised from taxes. This practice has garnered significant attention in Europe, where it has evolved into a prevalent approach, and beyond, influencing OECD countries and even making inroads into developed and developing nations such as Brazil, Ecuador, El Salvador, and South Africa. From soft collaborations like shared-service agreements to more integrated forms like the creation of supra-municipal authorities, inter-municipal cooperation comes in various shapes. The focus of Breuill´e and Duran-Vigneron (2023) (hereafter, BD) is on exploring this cooperation in France, a unique setting with different forms of collaboration and tax raising powers by local entities. "