In 2009, LGI implemented the project "The Impact of the Economic Downturn on Local Government and What Can We Do About It". In the framework of the project, LGI hired twenty country monitors from the Council of Europe Member States, as well as five members of the Editorial Group and, based on their inputs, prepared a Report. The Report evaluated the impact of the global economic downturn in the selected Council of Europe Member States and formulated policy recommendations. These were presented to the Conference of European Ministers responsible for local self-government in Utrecht in November 2009. The Conference welcomed the Report and called for continued monitoring of the impact of the global downturn on municipal budgets. It also incorporated the policy recommendations presented in the study to the Utrecht Declaration.
In order to monitor further developments on the issue of the impact of the global economic downturn on municipal budgets and monitor the implementation of the policy recommendations listed in the Utrecht Declaration by the Council of Europe Member States, LGI initiated the project "The Impact of the Economic Downturn on Local Government – Monitoring and Follow Up". The broad objective of the project was to improve the policy-making environment in the field of municipal finance by promoting independent, impartial monitoring and analytical assessment of governmental policies in the Council of Europe Member States.