Grants to Local Governments under National Fiscal Discipline : The Case of France
Résumé
The article explores the consequences of the renewed budget constraint for member-states of the European Union, focussing on internal fiscal adjustments between the central government and the local public sector. The model is applied to the recent and current reforms of the French system of public finance. The requirements of the monetary union seem to reinforce the economic and political role of the central government. Either in times of recession or in periods of growth, there may be a tendency towards re-centralisation of fiscal prerogatives and of the power to tax.
Loading...