commission on fiscal imbalance 合集

1 256 these are bodies formed the first by the

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Unformatted text preview: overnment to be answerable to the E.U. Such asymmetry can create free-riding among local governments, as has been highlighted by many European researchers. Internal stability pacts are an initial answer to this and other issues raised by the European pact but, as in the Italian case now, they rely for effectiveness mainly on the cooperative attitude of local and regional governments and do not provide incentives or conditionalities to assure its attainment, or tools to react to cyclical effects by which local entities are now significantly influenced. What is important to highlight here is the difficulty of reconciling full achievement of the advantages of fiscal decentralisation (both allocative and political) with full exploitation of the advantages offered by complying with E.U. commitments. 6. AN EXPERIMENT OF NEW CENTER-LOCAL RELATIONSHIP : STRATEGY AND RULES OF THE 20002006 OBJECTIVE 1 DEVELOPMENT PROGRAM The 2000-2006 objective 1 planning process governing the use of European structural funds to less developed areas gave the Italian government a chance to shift towards a more adequate policy approach, designed to increase the territorial competitiveness of the Mezzogiorno; this came after a period of regional policies which were designed to compensate competitive disadvantages of lagging-behind regions with a sectorial, top-down approach, based mainly on incentives to the private sector. The significant amount of resources (around 50 billion Euro of European and national public resources) for investments, the possibility of designing a new set of rules conditioning their use, and the constraints in terms of accountability and credibility of results requested by the European co-financier, made it possible to put into action some lessons learnt in the last decade, when profound changes occurred in the economy and society of Italian regions, despite the significant decrease of public investment since 1992. In the Nineties, a very lively entrepreneurial climate in some areas of Mezzogiorno led to an increase in the turnover rate of non agriculture firms and in local firm agglomerations, in exports and inward flows of foreign tourists. Local partnerships between private and public actors based on the definition of common projects, financed by the central government (territorial pacts), proved to be an effective instrument to foster private investment and local relations. The reform of the municipal electoral system, which increased responsibility and accountability of mayors by empowering them through a direct election, made possible the resurgence of some urban areas. The experience of the Nineties showed that significant changes can take place in the Mezzogiorno if a proper institutional design is devised and if responsibility is increased at a local level. The plan therefore aimed at enhancing the positive signs registered in the Nineties, through the definition of a strategy and of a set of rules which focused on the lasting objective of increasing territorial competitiveness of the Mezzogiorno and attracting increasingly mobile capital, turning the challenge of Monetary Union into a major asset. 1 256 These are bodies formed the first by the...
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This note was uploaded on 03/06/2013 for the course ECON 220 taught by Professor Paulo during the Spring '13 term at University of Liverpool.

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