Public Sector Financial Reform in Italy

The chapter provides a state-of-the-art review of New Public Financial Management (NPFM) reforms in Italian central and local government by focusing on the vast renewal process, which, in the past decade, saw the Italian public administration seeking to change the functioning principles typical of a formal legal administration. The chapter outlines the contemporary state of the Italian public sector, the most significant changes in administrative laws, and the contemporary features of Italian public financial management systems. The complexity of the whole reform process and its slow implementation make it hard to provide a macro-evaluation. That said, the chapter concludes that there are still many cultural and technical impediments to be overcome in order to implement effectively the reforms formally approved by the Parliament. On reflection, it would appear that slow adaptation is probably better than attempts to convert quickly to the new management model.