“Many of the current scandals have their origins in a 2001 law meant to promote greater federalism and, theoretically, more local accountability. The measure, which handed out generous state financing without requiring that the regions raise much money on their own, backfired badly, fostering reckless spending throughout the country. With the creation of Italy’s provinces in 1970, and especially in the years after 2001, the cost of regional governments exploded. The salaries of Italy’s 1,113 regional lawmakers expanded as well, to $4,000 to $6,500 a month, and often double that with added benefits.”
