Abstract
Intergovernmental councils not only increase the effectiveness and efficiency of public policy-making, they can also contribute to federal stability. Regular meetings of members of governments shape the way federal systems deal with the increasingly interdependent relationship between the governments of a federation. When policy problems cut across jurisdictions, governments’ autonomy is at stake. Looking at examples of major reforms of fiscal policy in Australia, Canada, Germany, and Switzerland, this article identifies the conditions under which intergovernmental councils protect governments’ authority, discretion, and resources so as to avoid federal tensions. Federal governments, in particular, have been eager to get involved in many policy areas for which the constituent units are responsible. Hence, the extent to which intergovernmental councils contribute to the stability of today’s federations ultimately depends on their ability to make the federal government agree on joint solutions with the federated entities.