EconLabGalicia launches a project with the OECD to assess fiscal risks in subnational governments

EconLabGalicia has launched a project in collaboration with the Organisation for Economic Co-operation and Development (OECD) to analyze fiscal risks and the tools subnational governments use to face these challenges. The objective is to increase the understanding of events and unforeseen circumstances that can cause significant deviations in revenues or expenditures from budgeted amounts, affecting local financial stability.

These risks include unexpected macroeconomic shocks, such as financial crises or market fluctuations, as well as structural changes in the economy—especially digitalization and climate change—that increase the complexity and intensity of the risks.

For this reason, subnational governments must continuously adapt by adopting international best practices to ensure efficient and resilient financial management.

The project, which will take place throughout 2025, aims to provide rigorous analysis and practical recommendations based on data, international experiences, and case studies. Results are expected in the first half of 2026 and will help strengthen financial stability and responsiveness of local administrations.

Through this initiative, EconLabGalicia reaffirms its commitment to applied research and international cooperation to drive innovative solutions that promote sustainable development and more resilient public finances.