ABSTRACT
This chapter discusses the impact of the Covid-19 pandemic on the economic situation of municipalities and their socio-economic life. Based on qualitative analysis the chapter is divided into three parts dedicated to illustrate such a relation. As a result it allows to present key findings. Firstly, the economic losses and costs were carried mainly by the state, not by municipalities. Secondly, although the Covid-19 pandemic and the anti-pandemic measures had a negative impact on the socio-economic life of municipalities, the economic losses of municipalities and the changes in municipal socio-economic life were a result of the combination of anti-pandemic measures with the system of municipal income generation, the structure of municipal economy and labor market and the new knowledge, experience and habits people gained during the Covid-19 pandemic. Thirdly, the municipalities most affected were the ones with a poorly diversified economy and the socio-economic life, income and employment dominated by automotive or tourism. Fourthly, the experience of the pandemic brought many lessons to municipalities and opened the door for municipal modernization.
