...Robust Institutional Framework: The robustness of the French subnationals' institutional framework is a key factor in their solvency. French local and regional governments (LRGs) cannot be legally declared bankrupt or be forcibly liquidated. Their solvency is also underpinned by the quality of their financial and administrative framework, which makes debt servicing one of their highest spending priorities. However, the central government does not guarantee LRGs' debt. French LRGs must also follow independent accounting processes and prudent budgetary principles, under strict supervision from the central government and from the national and regional audit courts. LRGs Undergoing Statutory Reforms: In 2014, a law (the MAPTAM Law) aimed at creating French metropolises and at opening up the possibility for other intermunicipal groupings to become metropolises (of over 400,000 inhabitants) was enacted. A broader law (the NOTRe law) was voted on 16 July 2015 to further specify the LRG's responsibilities;...
