This paper deals with the effects of the reform of Italian Regions’ financing system which is under realization in 1999. The reform is based on the substitution of central government grants with a tax sharing system and on the introduction of a new equalization grants mechanism. Equalization rants are aimed to correct fiscal imbalances across Regions and to uarantee the provision of health services at standard level in every Region. The paper highlights the critical points of the reform. On one hand, the new financing system does not guarantee to the Regions the resources needed to meet the growth of health services demand, due to population ageing. On the other hand, the reform does not provide any equalization mechanism for the tax revenues yielded by the autonomous fiscal effort performed by single Regions.

Giampaolo Arachi, Alberto Zanardi, in "ECONOMIA PUBBLICA " 1/2000, pp. , DOI: