Tommaso Edoardo Frosini
The Gamble Of Fiscal Federalism In Italy
Since the Italian Constitution has undergone a profound reform with regard to the relations between central and local government. Although a widespread opinion argues that, Italy has taken its first steps towards a federal system, in fact it has strengthened its regionalism. Only in 2009, in particular, has Parliament implemented the new Article 119 of the Constitution, which deals with fiscal federalism. This article argues that the Act does not aim at achieving a system of competitive fiscal federalism, but, rather, a financial system in which healthy competition among areas is combined with cooperation, in order to effective protection of the entirety of citizens' rights. However, new principles and standards are laid down, which seek to enhance autonomy, transparency, accountability. In particular, the incremental variations based on historical spending will be replaced with standard spending, which implies a strong cultural change.