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Local Power to Tax and Devolution: An Empirical Assessment of the French Constitutional Reform

Alain Guenguant and Jean-Michel Josselin ()
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Alain Guenguant: CREM - CNRS

Economics Working Paper Archive (University of Rennes & University of Caen) from Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS

Abstract: The article explores the content and consequences of the French constitutional reform of March 2003. Among the objectives of that reform, one is to preserve the tax autonomy for the local public sector; another is to ensure that the coming wave of devolution of competencies to decentralised levels of government will be adequately financed. These constitutional safeguards are assessed and they prove to be somewhat counterproductive, as if the recourse to the higher level of juridical norms could not replace the legislative level when reforms of local public finance, however difficult, have to be conducted.

Keywords: Central government; Constitutional reform; France; Local public sector; Local taxation; National grants. (search for similar items in EconPapers)
JEL-codes: D70 H70 (search for similar items in EconPapers)
Date: 2006
New Economics Papers: this item is included in nep-pbe
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Persistent link: https://EconPapers.repec.org/RePEc:tut:cremwp:200612

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