The era of the Internal Stability Pact is probably over, since local authorities will commit to budgetary balance as a contribution to government finance. In particular, each authority must achieve a non-negative final balance, as difference between final income and expenditure. One of the most significant consequences in the application of the Stability Pact is the ever greater reduction of investments. As is well know, in fact, in Italy capital outlays have undergone a 45% decrease in the last five years, and today only represents a 16% of total payments (180 Euros per capita).
Author: Claudia Ferretti, Patrizia Lattarulo
Publication details: Published in EyesReg - Giornale di Scienze Regionali vol. 6, n. 3, Maggio 2016