Local Government Act and European Charter of Local Self-Government : an analysis of financial autonomy

Abstract

Along the years, numerous attempts have been made to achieve greater financial autonomy within our Local Councils, through multiple reforms and white papers. This need for change was also reflected in Congress Reports in light of the European Charter of Local Self-government. Initially In this dissertation, reference will be made to the background of Local Councils in Malta, and their development throughout the years. Several authors will be specified, together with their view on financial autonomy within Local Councils in their country, and their proposals for greater financial independence will be highlighted. In the comparative point of view, indication will be made to other Congress Reports, comparing Malta’s latest Report with other Member States, identifying the suggestions and criticism made by these experts in the field for better compliance with the Charter, especially in light of financial autonomy. Several proposals will be identified in the substantive chapter in an attempt for Malta to comply better with Article 9 of the European Charter of Local Self-Government, in hopes of a stronger economic autonomy. Some of the suggestions put forward include a percentage of Value Added Tax revenues that are generated in the locality should go back to the Local Council, payments on all permits that are authorised by the Local Council are to remain within that Council, a percentage of tourism tax to go back to the Local Council, a tax or charge should be implemented for the management of bulky waste which should go back to the Local Council, and collaborating with Private Partnerships and inviting them to invest in the name of the Local Council, amongst others. A better evaluation of these proposals, and how they can be truly implemented is provided in this dissertation.