Keywords: Communal Control; Subsidiary Companies; Economies of Scale.
This study concerns businesses under communal control that are linked to each of the 133 communes that make up the Province of Milan, with the exception of the administrative centre. The communes of the Province of Milan operate a system of subsidiary companies, whose growth is contained, with the creation of businesses that lie outside the sectors traditionally under the jurisdiction of local public firms. A long tradition of sharing basic services between communes encouraged the process of integration between local companies in the supply of local public services. There are numerous cases where the largest communes play a leading role, whilst the smaller ones join forces to take advantage of economies of scale. The majority of the companies controlled by multiple communes understand the presence of single communes in the Province, strengthening territorial roots with a strong emphasis on proximity. There are fewer cases in which the member communes work closely together.