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In Portugal and Greece, the reduction of the number of municipalities is part of the deal with the troika. (Photo: Paolo Margari)

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Regions feel the pinch

Looking to save a buck in every corner of the budget, EU countries are now pointing their arrows at subnational governments, a new study has found.

The study, carried out by Dexia Credit Local and presented in September this year, shows that after two years of pumping money into regions, central governments are now tightening their belts.

In 2011, the amount of grants and subsidies to federated states, regions, provinces, and municipalities fell by 4.9 percent, according to the st...

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In Portugal and Greece, the reduction of the number of municipalities is part of the deal with the troika. (Photo: Paolo Margari)

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