All over Europe, the years around 1989 saw a backlash against planning. Municipal, regional and national planning institutions were dismantled and restructured. Planning powers were cut back, welfare state provisions reduced, and long-term planning strategies dismissed. This went along with a declining belief in planning for even development, equal wealth and social justice, and a rising trust in entrepreneurialism and merit-based social distinction. The measures taken varied significantly from country to country, and were often based on makeshift arrangements rather than comprehensive visions. This chapter will take a closer look at this turning point in European planning history, focusing on municipal planning and the agency of local government. While planning as such did not end, goals and strategies shifted significantly. Municipal institutions were restructured and retreated from core competencies such as housing or service provision.