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Italian government reduces financing of local authorities; increases controls and sanctions

The decree law foresees that those provinces and communes – which are subdivisions of regions - which are excessively indebted must agree a plan to achieve a balance budget within a period of five years. Those public managers responsible of gross mismanagement will have to pay a fine of between 5 to 20 times their salary and will be ineligible for the same kind of functions during a period of 10 years.

This decree law if the first step of a drive to reign in political spending and improper use of taxpayers’ funds. It will be followed by a reassessment of the competences between and central and local levels to avoid duplication, promote a more efficient allocation of resources and respect of spending limits.

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