The local administrative units, abbreviated as LAUs, form a system for dividing up the economic territory of the European Union (EU) for the purpose of statistics at local level. They have been set up by Eurostat and they are compatible with NUTS. The LAU classification is equivalent to the classification of all Maltese local councils into six districts by Malta Geographic Codes (MGC). At local level, two levels of LAU have been defined: the upper level (LAU1, formerly NUTS level 4) which are the six districts and the lower level (LAU2, formerly NUTS level 5) which consist of the 68 local councils.