Abstract
This chapter explores the role of local government in Austria’s federal system. It argues that municipalities play a rather junior role compared to federal and Länder government levels, and that the practice of ‘three-level federalism’ is essentially confined to financial relations, though even here local governments do not really enjoy equal standing. Unsurprisingly, the associations representing local government continue to call for a stronger voice in political and constitutional affairs. In addition, the chapter shows that while various crises (especially those besetting the smaller municipalities) exacerbate structural problems, they can also work as catalysts for much-needed reform. The global financial crisis of 2007–2008 played precisely such a role; whether the Covid-19 pandemic will do so too remains to be seen.