In 2019, each resident of Veneto, Emilia Romagna and Lombardy – namely the Regions that had already signed an agreement with the Executive to achieve differentiated autonomy – “filled” the public coffers and the rest of the country with 2,680 euros, 2,811 euros and 5,090 euros. euro. This is the Cgia Research Office’s analysis based on the elaboration of a recent study of the Bank of Italy (“The economy of the Italian regions. Recent dynamics and structural aspects”). This negativity is one of the reasons underlying the demand for differentiated autonomy of the three regional governments. However, although in different aspects, in principle everyone is aware that state centralization increases inequalities between regions.
The “tax residue” of the regions
On the “remaining tax” issue, the Southern regions give positive results; Because they are in greater economic difficulty than the rest of the country, the financial flows they receive are greater than the economic resources they “pay” to the central government. For example, Campania recorded “balances” of +1,380 euros per capita in 2019, Puglia +2,440 euros, Sicily +2,989 euros and Calabria +3,085 euros.
According to the CGIA Research Office, the existence of an extremely negative financial residue2 is one of the reasons underlying the differentiated autonomy demand of the three regional administrations mentioned above. However, although in different ways, in principle they are all aware that state centralization increases inequalities between regions. If we go back to the data on the “tax residual”, the Southern regions show positive results; Because they are in greater economic difficulty than the rest of the country, the financial flows they receive are greater than the economic resources they “pay” to the central government. For example, Campania recorded “balances” of +1,380 euros per capita in 2019, Puglia +2,440 euros, Sicily +2,989 euros and Calabria +3,085 euros.
Differentiated autonomy: why yes
The political conflict over autonomy has been very heated and will continue to be so in the months ahead. Let me be clear: this reform should combine efficiency, solidarity and responsibility. You don’t have to buy anything from anyone, God forbid. But it should allow those who request it, to manage a service that the central government already provides at a lower cost for the society, to bring shopping centers closer to the citizens, in accordance with the principle of “I see, I pay, I vote”. After the approval of the bill last Thursday, the reform is now in its final phase. It will be necessary to define the central role of Parliament and the State-Territory-Local Government Conference in defining the “Levels of Basic Performance” (Lep), the establishment of a balancing fund to support the most difficult areas, and the aforementioned issues. will need to be strengthened. Also, as Minister Calderoli has underlined in recent weeks, some of the 23 issues will be “unpackaged”. In any case, the central state will retain legislative power over energy, extensive infrastructure networks, and international relations. However, in accordance with the provisions of the Italian Constitution, regions wishing to manage new duties and responsibilities autonomously must be ensured to do so. Otherwise, it is against the Constitutional Condition.
Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
