FINANCIAL ASPECTS OF DECENTRALISATION

The objective of the decentralization process is better targeting of the financial resources, which translates into a lower tax price to financial cover the decentralized public services. In the current period, also in the European Union and in relations with other developed countries, there is an increasing mobility of people and economic activities. Wealthy individuals and firms are inclined to place their wealth or relocate their activities to lower taxation centers, while lower income people tend to move into communities benefiting more generous social transfers.