The "economic development" matters subject of fiscal federalism

The reform of the so-called "administrative federalism" and, subsequently, of Title V of the Italian Constitution has resulted in many functions and responsibilities concerning "economic development" being decentralized to the regions. The available data on the newly enacted legislative instruments (laws and regulations) and on public expenditure shows that, in the years following the reform, the Italian regions have played a key role, particularly in the fields of agriculture and rural development and tourism. Law no. 42 of 2009 on "fiscal federalism" has set out the principles, rules and regulations regarding the mechanisms of tax equalization, distinguishing between functions guaranteed by the so-called LEPs (livelli essenziali di prestazione, i.e. essential service levels) and "other" functions not protected by the LEPs, which include "economic development" functions. Hence, some questions arise concerning the conditions that can permit the regions to continue guaranteeing and strengthen their political and financial commitment to "economic development", and more generally, the consistency between the reform of "fiscal federalism" and the concept of federalism as contemplated in the Italian Constitution, as progressively implemented, and as increasingly recognized by the Italian constitutional case law on cooperation and, specifically, on "fair cooperation between State and regions".

Keywords: Regions, economic development, final federalism

Aida Giulia Arabia, Carlo Desideri, Le materie dello "sviluppo economico" alla prova del federalismo fiscale in "AGRICOLTURA ISTITUZIONI MERCATI " 1,2/2009, pp 115-131, DOI: 10.3280/AIM2009-001009