Balance in local finance: autonomy and rules (Available in italian only: Gli equilibri delle finanze locali fra autonomie e regole)

This research report prepared by REF for Intesa Sanpaolo was presented at the convention, “Sustainable development, local autonomy and rules. A framework of certainties to support growth”, held in Rome on 24th October 2007. The report analyses the new structure of public finance, highlighting the existing tensions between the growing autonomy of local administrations and the inevitable need to establish rules and mechanisms for co-ordination between different levels of government. The relationship between autonomy and co-ordination is assessed not only in relation to regulations, but also with regard to administrative practices and operational aspects. The report therefore examines the issue of how control rules are implemented in practice and it underlines the pressures on the functioning of administrations when long periods are generated when local authorities have no liquidity, which are compounded by extraordinary procedures to temporary freeze administrative action.