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All contributions examine the extent to which spatial aspects constitute a condition for successful governance in federal systems. Spatial developments influenced by the world wide trend of globalisation have far-reaching consequences for economic and fiscal policies. Several subjects are identified as the dominating future challenges for federal systems with regard to regional economic development and growth. Interpreting the experiences of several countries, the papers presented are dealing with the regional perspective of spatial externalities and public goods, challenges and problems of agglomerations, the regional incidence of public budgets, the concept of competitive federalism as well as the politics of urban change and metropolitan government. The final discussion deals with challenges of demographic change for the political and institutional structure of federal systems as well as the future demand and supply side of decentral public infrastructure.