Abstract
During the last few years, the local government sector in European countries has undergone a number of important changes. Among the various reform initiatives has been the externalization of public services, such as corporatization, contracting-out, public–private partnerships and privatization. The key goal of this article is to describe and explain the evolution of local public services provision in the two selected countries, with a particular focus on ‘corporatization’. The article seeks to draw a picture of the actual municipal landscape with the administrative core and its various corporations. Furthermore, it will discuss the reasons for corporatization trends and their impact on the corporate governance structures of municipalities in Germany and Italy.
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