Here in Spain it seems better. We don't have tons of alternatives for web services, so lots end up on the typical clouds, but email hosting it seems every region has at least one ajuntament that runs their very own email servers. Helps that the country politically and socially is a bit decentralized since the beginning of the republic, but I was (pleasantly) surprised how many local governments here actually manage their own emails.
There was a HN submission with a map of email servers for local governments around in Europe (the world?), might have been a Show HN but I'm unable to find it now. It was an interactive map with a ton of local governments around in Europe, might have been bigger in scope too but mostly remember the European map as I was mostly focusing on Spain. Maybe someone else have better luck and could link it here? Might have been a month or two ago maybe.