Local cultural policy is of the exclusive competence of the municipalities that exert their authority through the communal council, the board of the mayor and aldermen (communal board). Depending on the size of each municipality, administrative services and structures are more or less important, defining the existence or not of a cultural department and the intensity of cultural activities and investments.
In general, the municipalities mainly finance local cultural services and facilities, intended for the use of their inhabitants and those from the geographically surrounding area, such as conservatories (in 3 cities) and music schools, libraries or theatres. There is a high level on spending on culture by municipalities (5.9% of global spending in general in 2016), but disparities are important with only 14 of the 105 municipalities in the country incurring 75% of all spending on culture.
Some municipalities display a distinctive cultural positioning and inspire similar approaches in the cultural sector. For example, the City of Differdange initiated the first creative industries center in Luxembourg, the 1535°, whereas the City of Esch-sur-Alzette is the first city in the country to adopt a cultural strategy and become a pilot city for Agenda 21 for culture.

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