The credit policy of the«Communal Bank» is based on objective criteria in order to respect local autonomy. The financial results of the consolidation are difficult to determine. Several factors could have influenced the present state of municipal finances: the consolidation being done in a period of economic difficulties, the crisis of the public finances, the reform of the Municipal Fund, and the transformation of the Centers for Public Assistance into Public Centers for Social Welf are. The consolidations did not generale any savings, but it al,so did not cause an alarming increase of expenses. With respect to budget balancing, the amalgamated municipalities should do better than the non-amalgamated municipalities. To keep the increase of expenses low in comparison with the revenues, the municipalities had to make cuts in several sectors. As to the current fniancial situation in the three regions, the municipalities of the Brussels regon are in a very painful situation; in Flanders, the number of municipalities with deficits is higher than in Wallonia, but the deficits in W allonia are bigger. To stop this negative evolution one must strive for balanced budgets and reshape them into reliable instruments.