Public Finances in Tuscany. 2012-2013 Report (Part 2)
The way the supply of public services and social insurance – thus, the traditional Italian welfare system – are organized is today strongly debated. The pressure for fiscal consolidation, coming from the international community – first from finance, then from politics – and the need of trustworthiness arising in the Italian political system are among the factors that sped up the start of a reorganization in the public sector, which many political programs have suggested for a long time. New principles are emerging pointing to a different, less diffuse and more selective welfare model, a more regulatory rather than economic role of the State, a more widespread standard in the restitution of the services rendered and for fiscal responsibility at local level. In the meantime, citizens and firms, which are already burdened by the crisis, are faced with the imposition of tax overpressure and the reduction of social guarantees from public administration. This work analyses the impacts of government action on public expenditure in Tuscany and the reactions of local authorities, aimed at preserving the customary supply capacity of public services provided to citizens. It also examines the onset of the process of municipal federalism through the introduction of the Unique Municipal Tax and other instruments for local fiscal autonomy. Finally, it deals extensively with public investments, in particular with the effects on payments of the Stability Pact, the real opportunities of public-private partnerships financing, and the want for more efficiency by means of a better functioning in the awarding procedure.
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