Crisis-driven reforms and local discretion: An assessment of Italy and Spain

Abstract

The recent and still enduring global economic and financial crisis deeply impacted the institutional framework in Italy and Spain by prompting a series of reforms, which ultimately re-shaped the local government features. Based on a qualitative comparative analysis of recent reforms, the author shows that (directly and indirectly) crisis-driven provisions have significantly impacted the local levels and changed the central/local relations in both countries. During the years of crisis, a decrease in local discretion in its three main facets (fiscal, administrative, and political/functional) has taken place. This outcome could both allow for a better understanding of how central and local governments have interacted during the crisis and to contribute to the formulation of more general considerations on local discretion and central/local relations in Italy and Spain.