La reform of differentiated autonomy while helping to provide a neater frame consistent with the process, neglects some "relevant aspects". This was stated by the Bank of Italy, in a memorandum filed with Parliament, in which it indicates three key points of the provision which would need a different approach, otherwise "there would be the risk of triggering processes that are difficult to reverse and by uncertain outcomes”. First of all, via Nazionale says, there is a need for a precise examination, by single subject, of the costs and benefits of the transfer of functions, then a periodic assessment of the co-participation rates of the Regions is needed and finally there is a need for mandatory procedures for verifying the expenditure incurred and the services provided from all regions. The reform signed by the Minister for Regional Affairs Roberto Calderoli, being examined by the Constitutional Affairs Commission of the Senate, is for a path of decentralization of various competences (health, work, environment and education) today attributed to the concurrent power between the State and the territory.
A framework is needed, but there is a risk of irreversible processes and uncertain outcomes
On the one hand, says the Bank of Italy, it is true that in the absence of the cornice that the bill could construct, the process of differentiated autonomy "would remain entrusted to the bilateral negotiation between the state and each requesting region, without any guarantee that the outcome would be efficient and fair".
However, considering all the macro variables in place (far-reaching changes in the global economy, financial conditions that have become less favorable to countries with high public debt and - within the country - by large delays accumulated by some regions) it is necessary to move with great attention and "the necessary gradualness". Otherwise, “there would be the risk to trigger processes hardly reversible and by uncertain results".
For the transfer of functions, costs and benefits must be known
In the first place, observes via Nazionale, the implementation of differentiated autonomy must not jeopardize the efficiency of the productive system and its competitive ability. It is true that there could be advantages deriving from the stimulus to greater competition between the various areas of the country. However these “must be higher than the implicit costs of a marked regulatory differentiation”. And via Nazionale offers a suggestion: develop ainvestigation for single matter (and possibly for specific functions within the subject in question), which "documents the benefits and costs of the possible transfer of functions”.
Rules for the periodic review of the partnership
Given that it is necessary to preserve public finance balances and ensure that the whole country contributes to the consolidation of the accounts, via Nazionale says, it is necessary to "guarantee in the medium term thealignment between tax resources assigned to the Regions with differentiated autonomy (RAD) and theevolution of needs spending on transferred functions. How? Establishing some rules for periodic review of the sharing rates.
The example of the Regions with Special Statutes
For example, the Bank of Italy suggests evaluating the introduction of financial co-responsibility mechanisms similar to those currently applied to Regions with Special Statute (RSS). In fact, even the latter benefit from a system of partnerships ad fixed rates to state taxes, but the individual statutes (approved with constitutional law) expressly provide that the financial provisions can be modified with ordinary law. The RADs would still have the option to retain resources resulting from actual spending below recognized standard needs for LEP functions (essential levels of performance), and such resources could be used to raise the level of performance or to reduce local drawdown. Similarly, any expenditure exceeding the LEP needs should be self-financed, through a tightening of local taxes or by resorting to resources intended for the functioning of non-assisted functions.
The mandatory verification procedures
To ensure transparency and reporting, Bank of Italy points out, "the rules should be established mandatory verification procedures of the expenditure incurred and the services provided by all the Regions - in a similar way to what happens for healthcare - with the involvement of technical bodies. Instead, the Ddl provides that monitoring is optional, based on agreements between representatives of the central government and the Region concerned, which also define the operating methods. Furthermore, the impact on the country as a whole should also be rigorously assessed on a regular basis".
Fiscal reorganization: finding a connection between the entities
The differentiated autonomy, notes Via Nazionale, "should not hinder the coherence of the tax system and should preserve the incentives for the financial responsibility of the entities".
This would require to proceed in a systematic and orderly mannerby first implementing the symmetrical federalism. Later you can connect the financing system of RADs through partnerships ad fixed rate with the ordinary channels of financing the functions already under the responsibility of the Regions. The latter should leverage regional taxes with adequate room for maneuver on the part of the entities.
instead the implementation of tax delegation it does not seem to be going in this direction, as it envisages the gradual abolition of IRAP and the replacement of the regional surtax on Irpef with a tax surcharge. The implementation of symmetrical federalism would also imply the activation of the equalization fund, necessary to contain the risks of widening territorial gaps in the protection of civil and social rights.
