From an OECD comparative perspective, Portugal is a unitary and much centralised State, clearly influenced by the model of public administration. Portugal has basically only two layers of government, with the exception of the two autonomous regions of Madeira and Azores, of which the 308 municipalities form the core of the local government. The creation of administrative regions in the Continental territory of Portugal, which is contemplated in the Portuguese Constitution of 1976, has never materialised. A referendum on regionalisation failed in 1998. Two decades later, the Portuguese government continues to face recurrent challenges of economic development and territorial cohesion. Recently, decentralisation reforms emerged again on top of the policy agenda with two main objectives: by assigning more tasks to municipalities and by strengthening regional level governance.