61 Rethinking local government: Essays on municipal reform - VATT

Tuukka Saarimaa – Janne Tukiainenall and in the 2000’s all of the mergers have been voluntary. Besidesthe two merger waves, municipality structure has been quite stablethrough time. In this paper, we analyze mergers that took place betweenthe 2004 and 2008 municipal elections. Between these two elections,there were 47 municipal mergers involving 130 municipalities. Thenumber of municipalities in a given merger ranged from 2 to up to 10municipalities.Figure 1 Number of municipalities in Finland, 1917–2010Number of municipalities350 400 450 500 550 6001920 1940 1960 1980 2000 2020YearMergers between municipalities are voluntary and the municipalitycouncils are allowed to decide which potential mergers they consider.A typical merger process is as follows: After an initial feasibility study,the municipal boards make a proposal of the merger to the municipalcouncils. This proposal is voted on by the councils. In about half thecases, the potential merger includes more than two municipalities. Ifthe proposed merger gains a majority in all the participating councils,139