Several towns in central Norway are on the emergency list

Ending up on Robek’s list means the town is placed under some form of “state administration“.

– When cities are on Robek, the state requires them to deliver a binding financial plan to get off the list. There must be specific recommendations on what is needed to create a balance between income and expenditure, for example the introduction of a property tax or the closing of schools, says senior consultant Håvard Moe at KS-Konsulent to Trading journal.

We have to go all the way back to December 2017 to find more municipalities on the list, when the number was 28 municipalities. No less than 14 of the 23 municipalities are in northern Norway.

Ending on Robek’s list means that the city will have to get permission from the Ministry of Local Government and Renewal to be able to take out loans or enter into long-term lease agreements. In addition, the state administrator must check the validity of their budget decisions.

Moe points out three main reasons why the number of towns on the list has increased significantly in the past year.

– The municipal sector has fallen into the luxury trap and borrowed a lot of money to build big beautiful buildings. Now the interest has increased, and it is necessary to pay interest and installments​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​legates works in the private economy, he says. Less tax revenue and a wave of elderly people are the other two reasons.

The 23 municipalities listed in October are Nesbyen, Flesberg, Moss, Åsnes, Kragerø, Vegårshei, Hareid, Tingvoll, Røros, Røyrvik, Nesna, Meløy, Fauske, Lødingen, Våldskend, Kødingen, Vågan, Andesøy, Tingvoll . Hammerfest, Vadsø, Kautokeino and Gamvik.