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Grants to Local Governments under National Fiscal Discipline : The Case of France

Author

Listed:
  • Alain Guengant

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

  • Jean-Michel Josselin

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

Abstract

The article explores the consequences of the renewed budget constraint for member-states of the European Union, focussing on internal fiscal adjustments between the central government and the local public sector. The model is applied to the recent and current reforms of the French system of public finance. The requirements of the monetary union seem to reinforce the economic and political role of the central government. Either in times of recession or in periods of growth, there may be a tendency towards re-centralisation of fiscal prerogatives and of the power to tax.

Suggested Citation

  • Alain Guengant & Jean-Michel Josselin, 2005. "Grants to Local Governments under National Fiscal Discipline : The Case of France," Post-Print halshs-00005019, HAL.
  • Handle: RePEc:hal:journl:halshs-00005019
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    Cited by:

    1. Jean-Michel Josselin & Fabio Padovano & Yvon Rocaboy, 2013. "Grant legislation vs. political factors as determinants of soft budget spending behaviors. Comparison between Italian and French regions," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 10(3), pages 317-354, December.

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