ABSTRACT
In 1982–83, a series of laws – the so-called ‘decentralisation laws’ – considerably altered the distribution of powers and competences between central and local governments in France. Whereas the idea was to give more autonomy and more functions to local governments, partly in order to increase efficiency in the provision of a number of public goods and services and to enhance local democracy, French legislators have shied away from any major change in the administrative structure of local governments or indeed in the local tax system. Except for the transfer of a few minor, indirect taxes from the central to local governments, the only substantial modification in the financing of local expenditure has been a marked increase in centrally provided funding, through various channels, as well as the consolidation of the previously existing myriad central government specific-purpose grants into a small number of block grants – with, however, extraordinarily complex formulae.
