Italy’s long-stalled fiscal federalism reform has hit a fresh roadblock, with the Unified Conference of Regions and Local Authorities rejecting the latest government proposal on Tuesday.
The rejection was driven by opposition from five major regions: Campania, Emilia-Romagna, Puglia, Tuscany, and Sardinia.
They argued that the changes were made without adequate consultation, leaving local authorities unable to properly assess the financial implications.
Their dissent underscores the persistent divide between the central government and territorial entities over how tax revenues are distributed across the country.
The regions criticized the legislative process, noting that the text was altered twice within a single week after a year of legislative deadlock.
They argued that the changes were made without adequate consultation, leaving local authorities unable to properly assess the financial implications.
The core of the dispute centers on the proposed shift in revenue sharing, specifically the move to replace existing mechanisms with a new model for the participation in personal income tax (IRPEF) proceeds.