Italian municipalities face financial strain from tax evasion and service costs

Italian municipalities are facing severe financial constraints due to ineffective tax evasion recovery and a lack of resources for ordinary operating expenses. In the province of Rimini, the trade union Uil reported that only 27,000 euros were recovered from tax evasion in 2024, representing approximately 0.02% of the potentially recoverable amount. Michele Bertaccini of Uil Rimini noted that bureaucracy and a shortage of qualified personnel hinder local administrations from effectively combating evasion.

Simultaneously, small municipalities across Italy are struggling to maintain essential services. Alessandro Santoni, coordinator of the network of small municipalities and mayor of San Benedetto Val di Sambro, highlighted that while investment funds like the PNRR are available for public works, there is a critical shortage of funds for current expenditures. This lack of operational funding affects the management of services such as school transport and disability assistance. Small towns also face challenges in accessing grants due to a lack of specialized staff to manage complex project designs.