The aim of this study is to inform debate by representatives of European local and regional authorities on whether and how LRAs are involved in the drafting of the Country Reports, bearing in mind that Services of General Economic Interest (SGEI) are mainly provided and financed by LRAs. It also looks into how (based on what criteria) public authorities define SGEI meeting social or healthcare needs as economic activities. It is therefore imperative to approach this topic not only from the Member States perspective but above all from the point of view of LRA while underlining the difficulties and the implementations for regions and cities. The study includes the following elements: 1) An overview of the drafting process of the Country Reports across Member States and the degree of involvement of local and regional authorities. 2) An analysis of the problems local and regional authorities face when trying to assess the economic nature of social services (including housing) and their compliance with State aid rules. 3) A number of case examples/experiences from individual regions/LRA should be included. 4) Policy conclusions and recommendations in view of needs and opportunities from the point of view of regions and cities.