Illegality of fictitious debt-to-debt settlement mechanisms: The sterilization of «liquidity advances» as a constitutionally necessary mechanism
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Abstract
The comment to judgment n. 4/2020 analyzes the declaration of unconstitutionality of an interpretative provision that would have allowed to fictitiously improve the result of administration. By circumventing the constitutional prohibition for local authorities to carry out debt for current expenses, it was in fact foreseen that advances of liquidity could be used to conceal existing public debt, and therefore proceed to operate new deficit expenses.
Keywords
- golden rule
- public debt
- public accounting
- current and investment spending
- regional and local government budget
