Annex D. Regional initiatives to manage the COVID-19 pandemic and recovery

Table D.1. Examples of measures taken by state and regional governments to manage the COVID-19 crisis and recovery
Regional measures related to mitigating the health-impact of the pandemic
Specific restrictions	In Spain, autonomous communities could take their own decisions relative to the duration of curfew, perimeter closures, opening hours of bars and restaurants, among others.
	In the United States, the federated states were in charge of regulations regarding the mandatory use of masks, business opening hours, stay at home policy within their state jurisdiction.
Vaccination	In the United States and United Kingdom, states and devolved nations have some autonomy to decide how they allocate vaccination doses across places.
	In Argentina, the vaccine distribution criterion was established in consensus with the provinces, according to the target population defined in the provincial operational plans.
	In Australia, as per the COVID-19 Vaccination Policy, state and territory governments are responsible for developing their own COVID-19 vaccination jurisdictional implementation plans: this includes selecting the workforce and vaccination sites and enforcing safety, ethical and reporting regulations.
	In Germany, the Länder define the vaccination centres’ locations and number, and finance them jointly with the statutory health insurance funds.
	In Spain, the Interterritorial Council of the National Health System, which reunites the health councillors of the autonomous communities and cities and the Minister of Health, has prepared and is co-ordinating the national vaccination strategy.
Use of digital tools to track the pandemic	In Argentina, the province of Santa Cruz established a Telegram channel (“Saber para prevenir”) on which citizens can access official material and announcements. The government of Buenos Aires, for its part, offers on its information platforms the possibility of getting details about the “DetectAr” tracking system and the geolocation of its service points.
	In Brazil, the state government of Rio do Janeiro developed the “Painel Coronavirus COVID-19” in which citizens can follow the evolution of cases, check the map for risk areas, access open data files, and get information on regulations and service provision.
	In Italy, several regions developed different digital solutions for tracking and containing infection based on the analysis of movements and gatherings generated by anonymous data. For example, the Lazio Region created a portal for reporting gatherings called “Unique Alert System”, and launched “Lazio DrCovid”, an app that provides secure bidirectional text-audio communications via smartphone between the citizen and their doctor. Citizen health status is monitored in regions like Lombardy, which created the “LOM Alert” app. Piedmont designed the “COVID-19 Piedmont Region Platform” for the Regional Crisis Management Unit to track and monitor all activities concerning patients with COVID-19. Puglia and Tuscany also have regional web platforms that support assistance, care and monitoring of patients from a distance.
	In Mexico, the majority of the federal entities have activated contingent phone numbers to assist and inform on a continual basis about COVID-19.
	In Canada, the province of Ontario developed its own website where businesses can directly indicate their ability to furnish emergency products (e.g. ventilators, masks, etc.), submit innovative solutions to fight COVID-19 by supporting virtual mental health services, or submit a proposal for other products or services that could help the population.
Regional measures taken to set up regional recovery funds
	In France, regions have set up funds that can be either targeted to the tourist sector, cultural sector, or more broadly to small and medium-sized enterprises (SMEs). These regional funds are complementary to the national fund set up jointly by the French government and the regions. The Pays de la Loire Region created a Territorial Resilience Fund (Fonds Territorial Résilience). The Hauts-de-France Region created COVID Relance Funds targeted at SMEs. The Grand Est Region has set up a platform called “To Be Stronger Grand Est” (Plus Forts Grand Est) to help connect between around 50 innovative local companies with communities, associations and healthcare establishments to identify innovative products and services that could help overcome the crisis.
	In Greece, the Thessaly regional government provides a support package of EUR 160 million (through the Thessaly NSRF 2014-2020) to support local companies manage the impact of the COVID-19 crisis. This package includes EUR 80 million through the programme “Reinvest and Invest in Thessaly”, EUR 50 million for employees of companies that closed and EUR 30 million as a non-repayable subsidy to strengthen the working capital of small businesses affected by the COVID-19 pandemic.
	In the United Kingdom, Wales set up an Economic Resilience Fund whose third phase also includes a Lockdown Business Fund which will be delivered by local authorities to eligible small businesses impacted by the crisis. In Scotland, the Scottish government has involved local authorities in the recovery strategy through the creation of two funds totalling GBP 4 million: the City Centres Recovery Fund and the Regional Recovery Fund. Cities and regional bodies can apply to each of these funds by submitting proposals focused on recovery planning, local job creation, accelerating the delivery of City Region and Growth Deal investment, and developing regional recovery plans.
Regional measures taken to support place-based investment
Aligning regional investment with national recovery objectives	In Canada, the funds from the Regional Relief and Recovery Fund, a federal initiative, are channelled to the different localities through the national network of six regional development agencies. Regional development agencies can also work together with regional stakeholders to identify adequate investment projects for the COVID-19 recovery, and advocate for central government or external funding.
	In Australia, the AUD 1 billion COVID-19 Relief and Recovery Fund supports regions, communities and industry sectors that have been the hardest hit by the COVID-19 crisis. This initiative has already provided AUD 100 million to fund regional recovery partnerships, which will co-ordinate investments with other levels of government to support recovery and growth in ten regions.
	In Korea, most of the 17 regional governments have established their own New Deal plans and submitted project proposals, which align the national-level Korean New Deal, announced in July 2020. The New Deal is built around three main pillars: a Green New Deal, a Digital New Deal and a Regionally Balanced New Deal, whose aims are to strengthen the employment and social safety net, increase resilience towards economic uncertainties, and correct uneven development between urban and rural areas.
	In New Zealand, the Nelson Regional Development Agency has made economic recovery its top priority, adapting its three-year economic strategy adequately. The country’s regional development agencies are also members of the regional economic taskforces that have been created to collaborate and provide a voice for the region in talking to the central government. The Nelson Regional Development Agency has developed a strategy in “three-month sprints”, to be able to adapt and redeploy resources if the economic situation deteriorated further, and to integrate new projects.
Supporting local public investment	In France, some regions decided to provide municipalities and inter-municipal authorities with exceptional regional aid to finance local public investment: in the Pays de la Loire Region, the regional government has increased its support to local governments from EUR 182 million to EUR 232 million.
	In Belgium, the Flemish Minister for Mobility and Public Works announced EUR 2.2 billion in mobility investments for 924 different projects in 2020. The objective is to provide a social and economic boost to the road and hydraulic engineering sector, but also to the entire economy, as part of the COVID-19 recovery. The priorities are road safety, waterways and rail systems, public transport (hybrid buses, trams, e-bus charging systems), and climate and noise measures, including switching from lighting to LED, installing functional plants and noise barriers, tree control, etc.
	In Germany, several federal states (Bavaria, Baden-Wuerttemberg, Hesse, North-Rhine Westphalia, Saxony-Anhalt and Saxony) announced comprehensive packages that include measures to support infrastructure investment. In addition, many Länder provide additional support to municipal finances for investments, which are hit by lower tax revenues and higher countercyclical expenditure in connection with the COVID pandemic.
	In Italy, the Lombardy Region has introduced a three-year investment plan worth EUR 3 billion. EUR 400 million is earmarked for local authorities and EUR 2.6 billion targets support for the local economy (including EUR 400 million for strategic investments).
Regional measures taken to support the business and social environment
Support to SMEs and the business environment	In Austria, all nine states set up aid packages for SMEs that complement and expand the measures taken by the federal government. These include non-repayable grants (Burgenland to cover fixed costs and rental costs, Tyrol’s hardship fund, Vienna, Upper Austria), guarantees and bridge loans to support the liquidity of SMEs (Burgenland, Styria, Vorarlberg, Vienna, Upper Austria), deferrals of states taxes and waiving interest (Carinthia, Salzburg), coverage of consultancy costs for SMEs that need support to apply for federal support measures (Carinthia), coverage of infrastructure costs to switch to telework (Styria new “Telearbeit!Offensive” support programme), and digitisation of SMEs (Tyrol). In addition, Upper Austria and Lower Austria have developed start-up support packages consisting of a special consulting service by the regional start-up consulting and support council “tech2b Inkubator” (Upper Austria) and the Chamber of Commerce (Lower Austria).
	In Belgium, the Brussels Capital, Wallonia and Flanders regional governments adopted several measures for SMEs, such as non-repayable subsidies for companies that have to close during the lockdown, tax deferrals (Brussels, Flanders) and waiver of utility payments (e.g. energy bills) (Flanders, Wallonia), guarantees on bank loans and easier access to credit, and prohibition of evictions (Flanders).
	In Canada, provinces have developed their own support programmes for SMEs. For example, the provincial government of British Columbia launched income supports, tax relief and funding for people, businesses and services in response to the COVID-19 pandemic. As a next step, it has developed an Economic Recovery Plan, called “StrongerBC”, which focuses on supporting businesses, among other objectives.
	In Mexico, 26 of the country’s 32 federative entities designed fiscal measures to help companies and vulnerable populations face the economic impact of COVID-19 mitigation measures. Mexico City launched the “Integral Program of Contingent Support and Economic Reactivation to Address the COVID-19 Pandemic in Mexico City”.
	In France, joint action was taken between national and regional governments to manage the crisis as part of the new Economic Council États-Régions established in December 2019. This included regional task forces that incorporate development banks (BPI) to accelerate support measures for businesses. In addition, regional governments unlocked EUR 250 million (in addition to EUR 750 million allocated by the state) to participate in the National Solidarity Fund for artisans, retailers and small businesses.
	In Italy, many regions have adopted specific measures to support their SMEs, which are divided into six policy macro-areas: 1) facilitating access to bank credit and reducing related costs; 2) public financing; 3) simplified procedures; 4) labour and welfare; 5) tax relief; and 6) planning and budgeting.
	In Japan, prefectures set up a loan system for SMEs that have fallen into financial difficulty.
Social measures to the vulnerable population	In Canada, provinces have been establishing emergency funding through family and community support services.
	In Australia, state and territory governments announced fiscal stimulus packages amounting to AUD 11.5 billion (0.6% of GDP), which include cash payments to vulnerable households.
	In Korea, the central and regional governments plan to consider access to medical service a critical element in the National Minimum Standards for Living Infrastructure, so that medical services will not be neglected in lagging regions.
Regional measures taken to support local governments
Direct support to subnational finance	In Belgium, regional governments announced support measures for local finance. The Walloon Region provided EUR 21 million in financial aid to the municipalities and provinces under its jurisdiction in 2021. This aims to compensate for the decrease of several local taxes and fees in 2020, particularly those affecting the restaurant, entertainment and tourism sectors. In Flanders, the Flemish government adopted several measures in 2020 to support municipalities, including: a EUR 15 million grant for poverty reduction as a result of the COVID-19 pandemic; an EUR 87 million emergency fund to support local authorities in the culture, youth and sport sectors; a fund to stimulate sustainable mobility (e.g. local improvements for walking and cycling); and various subsidies for infrastructure and the operation of a vaccination centre.
	In Germany, the federal and state governments have agreed upon an aid package to support cities and municipalities during the COVID-19 crisis and maintain municipalities’ investment capacity in the coming years. According to this aid package, the federal government covers half of the municipalities’ local business tax losses for 2020 and the Länder cover the other half. This federal support comes on top of support provided by the Länder to the local governments.
	In Norway, in the framework of financial support from the central government to local governments, the Minister of Local Government and Modernization has asked the county governors to map the situation in the municipalities in their county to identify which municipalities have had particularly high costs as a result of the pandemic to determine which municipalities will receive the funds.
	In Spain, autonomous communities have developed support schemes for the municipalities within their jurisdictions. The Catalan government developed a funding stream to cover local administrations’ expenditures related to COVID-19. Andalusia unveiled an Exceptional Financial Collaboration Programme, dedicated to local entities with a population equal to or less than 1 500 inhabitants, with the aim to reinforce and guarantee the provision of public services during the crisis.
	In the United Kingdom, in England, the UK government delivered financial support to local councils of up to GBP 10 billion. Measures also include the extension of the Sales, Fees and Charges income support scheme. This scheme aimed to compensate local councils for losses generated by service delivery, up to 75% of the claimed loss, including a 5% deductible rate. In Wales, support measures consisted mainly in increasing current transfers from the Welsh government to local authorities by 3.8% in 2021-22. The Scottish government, for its part, set up a GBP 30 million Discretionary Fund, which is distributed as a one-off grant to each local authority to help them provide additional support for businesses in their area. This fund seeks to empower local authorities to direct additional financial support to the business community, where they consider this to be specifically necessary, based on the distinct characteristics of their local economies.
Adapting fiscal rules	In Belgium, Wallonia’s municipalities were allowed to increase their budget deficit in 2020 and to use their reserves or to borrow to boost local economic recovery.
	In Germany, the Länder have decided to loosen the fiscal rules applied to municipalities by suspending the balanced budget rule and the duty for cutback measures as well as spending freezes. In addition, regulation for short-term credit has been eased.
Source: OECD (2021[23]).

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