Fiscal Federalism in the European Union

by Fossati,Amedeo; Fossati,Amedeo

• ISBN13: 9780415202626
• ISBN10: 0415202620
• Edition: 1st
• Format: Hardcover
• Copyright: 1999-06-21
• Publisher: Routledge

Summary

To what extent should local and regional governments in the European Union be allowed to determine their own fiscal policies? This book explores the core issues of fiscal federalism in the European context. It combines theoretical and empirical analysis in addressing such questions as: what sort of fiscal federalism is appropriate in the European Community, what are the dangers of more centralization, and what are the costs of greater decentralization.

Author Biography

Bernard Dafflon, Institute for Economic and Social Sciences, University of Fribourg. Michael Engelschalk, OECD, Paris. Amedeo Fossati, Institute of Public Finance, University of Genova. Guy Gilbert, GRALE-CNRS - University of Paris. David King, Department of Economics, University of Stirling. Jorgen R. Lotz, Ministry of Finance, Denmark. Alberto Majocchi, Department of Public Economics, University of Pavia. Javier Suarez-Pandiello, Department of Economics, University of Oviedo. Giancarlo Pola, Department of Economics, University of Ferrara. Erich Thoni, Institute of Public Finance, Leopold Franzens University, Innsbruck. Horst Zimmermann, Institute of Public Finance, Philipps University, Marburg.

Table of Contents

List of figures	ix
List of tables	xi
List of contributors	xiv
Preface	xv
Introduction	1	(12)
Amedeo Fossati
Giorgio Panella
PART I Europe and Fiscal Federalism	13	(88)
A Comparative view of local finances in EU member countries: are there any lessons to be drawn?	15	(48)
Giancarlo Pola
Introduction: Origin and scope of the chapter	15	(1)
The patterns of organization and decentralisation of expenditure at the end of the period: similarities and differences	16	(13)
The revenue side fiscal decentralisation	29	(17)
The compared evolution of local finance, 1980--93; the role of reforms thereupon	46	(2)
Current Developments and debates: what lessons (if any) can be drawn?	48	(9)
Appendix A: institutional and organizational changes, 1980--93, by country	57	(3)
Appendix B: non-tax revenue in EU countries: the system of grants	60	(3)
Developing fiscal federalism in Eastern Europe	63	(17)
Michael Engelschalk
Background	63	(3)
Principles of financing of subnational governments in transition countries: the theory	66	(2)
Financing subnational governments in transition countries: current status of reform	68	(8)
Reforming fiscal federalism in central and eastern European countries: lessons and outlook	76	(4)
Stabilization policy in the European Monetary Union and fiscal federalism	80	(21)
Alberto Majocchi
The Maastricht constraints and fiscal policy	80	(2)
The need for quantitative constraints on the deficit	82	(2)
The stabilisation policy in the European economy	84	(4)
The inadequacy of the solutions called for in the maastricht treaty	88	(3)
The regional stabilization policy	91	(2)
The size of the Community budget and the growth of own resources	93	(4)
Conclusions	97	(4)
PART II The state of fiscal federalism in Europe	101	(194)
Fiscal federalism in Austria: facts and new developments	103	(19)
Erich Thoni
Introduction	103	(1)
Some remarks on Austrian fiscal terms, regional and local government expenditure functions and finance systems	103	(13)
Pros and cons of the development: a politico-economic appraisal	116	(2)
The new consultation mechanism between central, regional and local governments	118	(1)
Final remarks	119	(3)
Local government in Denmark	122	(9)
Jorgen R. Lotz
The Nordic model of local government	122	(3)
The Role of local personal income tax	125	(1)
Local government equalisation	126	(3)
Central control of local expenditure	129	(2)
Local taxation and intergovernmental fiscal relations in France	131	(31)
Guy Gilbert
Introduction	131	(1)
The distribution of taxing powers among tiers of governments	132	(8)
Intergovernmental fiscal relations: equalisation and cmpensation vs macroeconomic constraints	140	(13)
The reform of local taxation: a prerequisite for fiscal equalization?	153	(5)
Concluding remarks	158	(4)
Experiences with German fiscal federalism: how to preserve the decentral content?	162	(15)
Horst Zimmermann
Introduction	162	(1)
The basis: two principles of fiscal federalism	162	(2)
Paths to centralisation in Germany	164	(6)
How to retain the decentral content?	170	(7)
Local governments in Great Britain	177	(24)
David King
Introduction	177	(1)
Great Britain	177	(1)
The structure of local government	178	(5)
Current Expenditures and revenues of local authorities	183	(1)
Local taxation	184	(4)
Grants	188	(4)
Working out individual authorities' needs to spend on individual services	192	(5)
Problems	197	(4)
Towards fiscal federalism in Italy	201	(21)
Amedeo Fossati
Introduction	201	(1)
Current popularity of fiscal federalism in Italy	201	(4)
The blocks to achieving fiscal federalism	205	(4)
The problems of Italy	209	(7)
Conclusions	216	(6)
Fiscal federalism in Spain. Decentralisation: an unfinished task	222	(33)
Javier Suarez-Pandiello
Introduction	222	(1)
The decentralisation process: theory and policy	223	(9)
The autonomous financing models	232	(9)
The financing system of local governments	241	(9)
Final comments	250	(5)
Fiscal federalism in Switzerland: a survey of constitutional issues, budget responsibility and equalisation	255	(40)
Bernard Dafflon
Introduction	255	(1)
Institutional issues	256	(3)
The public sector: some facts and figures	259	(17)
Budget responsibility	276	(1)
Tax coordination and harmonisation	277	(7)
Equalisation	284	(4)
Conclusions	288	(7)
Index	295