Consideretions for the debate on the financial situation of local governments

Abstract

The most important thing to be emphasised is, I believe, that it was not overnight that the financial situation of local governments deteriorated significantly; their loss of position and the discrepancy between duties and funds have been standard phenomena in the past one and a half decades. From this it follows that what is needed is not merely crisis management but a reconsideration of the basis of the system. There is no question at the same time that it is impossible to establish a model operable in the long run without consolidating the current situation, which can be considered a situation of crisis. The latter produces only a pseudo solution, however, unless the measures point towards the solution of the de facto problems. The reform is impossible to implement in one step since comprehensive measures are required and, in my opinion, we are not deeply enough familiar with either the causes or the effects.