Inter-municipal cooperation (IMC) is a generic term for all joint provision of public services between municipalities, who are normally but not necessarily neighbours. Municipalities are elements of administration and have a history of several hundred years in Europe. One speaks of IMC when two or more municipalities work together to provide a public service, where cooperation ranges from coordinated behaviour to joint ventures. As territorial consolidation often fails because of political resistance, inter-municipal cooperation is a way to keep public services efficient and effective without territorial consolidation. However, IMC can have high failure rates when coordination problems between municipalities in steering and monitoring cannot be resolved. Unfortunately, coordination can be hard to achieve due to the multiple principal problem that exists in inter-municipal cooperation. In addition, its cost-efficiency can be limited. History Cooperation of municipalities is a contemporary phenomenon. A historic example of inter-municipal cooperation is the Hanseatic League, created by municipalities in Northern Europe and lasted from the 13th to the 17th century. Following the Industrial Revolution, as cities grew rapidly and the requirements concerning public services increased, inter-municipal cooperation became increasingly popular. While cooperation was initially without obligation, with the beginning of the 20th century IMC was increasingly legally codified. Benefits and Barriers Benefits IMC is used to increase efficiency and effectiveness in providing public services. The joint financing and operating of these services can cut costs and achieve economies of scale and scope, which becomes increasingly important in smaller and more rural municipalities. IMC can also allow capital investment that would be unaffordable otherwise, and eliminates duplicate efforts. A major advantage in Europe is that the European Union is providing incentives for municipal partnerships. Barriers The most important barrier for inter-municipal cooperation is lack of trust or coordination between the partners, and if these cannot be overcome, failure rates of IMC can be high. Unfortunately, coordination is hard to achieve. Inter-municipal cooperation, especially in an institutional form where municipalities together govern an organization for service delivery, invokes a multiple principal problem that makes steering and monitoring the organization difficult and reduces the efficiency and accountability of that party. Politicians and citizens may (rightfully) fear a loss of control over the service. Besides the lack of trust, the often complicated legal structure of IMC can be a barrier. Citizens may also worry that cooperation is a step towards consolidation or amalgamation. Types of Inter-municipal Cooperation Coordinated Behaviour Coordinated