What did the economic crisis mean for Danish municipalities’ financial management?

Resumé

The article examines changes in the financial management of Danish municipalities in a period with increasing fiscal stress based on case studies in five municipalities. The analytical focus is on the interplay between the finance unit’s advice service and the actual actions taken by the professionally oriented managers. First, the article finds that the economic crisis has increased the municipalities’ focus on spending controls. The mechanism seems to be a strengthening of the organization’s spending guardians vis-à-vis the spending advocates, in particular a strengthening of the municipal finance unit. Second, the article finds that the municipalities’ objective to increase cost considerations in the professionally oriented managers’ daily actions has not been achieved. As a reason for this the article points to challenges in the working relationship between the strengthened finance unit and the professionally oriented managers.