In the recent 50 years, most of the European countries reduced the number of local public administrations by amalgamating the local settlements in larger municipal units. The main purpose of these amalgamations was to increase cost-efficiency in provision of the public services. At the same time, the administrative units at the upper tiers of the local public administration (regions) grew in dimensions in many countries, with the purpose of generating bigger economies of scale and also to become more competitive nationally and internationally.