Italy fiscal federalism decree risks public transport funding

A new government decree on regional fiscal federalism has raised concerns regarding the future of local public transport in Italy. The measure, which must be converted into law by October 10, proposes to replace the current National Transport Fund with a regional share of Irpef tax revenue starting in 2027.

This shift removes existing constraints on how resources are allocated, allowing funds to flow into general regional budgets without guaranteed earmarking for mobility. Critics, including the Cgil trade union, warn that this lack of destination constraints could lead to resources being diverted to other spending areas, potentially degrading essential transport services, particularly in low-density regions like Abruzzo.