The current public administration system in Finland is based on the Local Government Act adopted in 1995 and last amended in 2006. The system for the delivery of public services in Finland is one of the most decentralized in the EU. In fact, the state welfare system is mainly based on municipally produced services, giving municipalities one of the widest scopes of responsibilities in EU. These extensive responsibilities are sometimes difficult to carry out considering the small demographic size and low density of population in many municipalities. In 2005, the Finnish government launched a project to restructure local government and the services it provides, in order to ensure high quality municipal services for all residents in the future despite geographic diversity and changing circumstances such as an ageing population. This project is temporary and will run until the end of 2012. In Slovakia there has been wide public discussion about the need for municipal mergers to increase the efficacy of Slovak local government. The current project of restructuring local government in Finland and its results can be very useful for Slovakia when deciding how to approach this challenge.