The cumulative effects of these crises on municipalities are disproportionate to their capacity and competences to respond to such global challenges. The pandemic required municipalities to address the spread of the virus at their local institutions: crisis procedures were developed, medical supplies, such as masks, thermometers, Covid tests, disinfectants were procured and distributed, often IT investments were needed to support the digitalisation of local administration or to facilitate distance learning in schools. Local governments were the first in line to understand and respond to the needs of the socially deprived or elderly and adapted their social services and municipal catering to reduce the risks of infection. The principle of subsidiarity could be observed in action as local measures were often more targeted, were introduced faster than national ones and also included community-led solutions. Overall, municipalities in the examined countries demonstrated significant resilience and flexibility in responding to the health crisis as well as tangible responsibility for their citizens’ well-being. 

Crisis management activities required additional funding at the local level, while at the same time revenues shrank due to decreasing economic activity and the subsequent reduction of tax incomes. Especially Polish and Czech municipalities, more exposed to the volatility of tax base, were expected to see a significant contraction of their income. This meant that the operational challenges facing local governments were exacerbated by a financial situation that required them to either adjust their budgets (e.g. by postponing investments) or lobby for additional resources.