Wealth Inequality Among French Territorial Collectivities and State Intervention
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Territorial collectivities, wealth inequality, decentralization laws, financial autonomy, state financial contribution, local authorities, land use policies, economic development policies, public services equality, France
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Abstract
Territorial collectivities in France exhibit significant disparities in wealth, resulting in unequal access to public services across municipalities. Despite these differences, the State plays a crucial role in mitigating these inequalities through corrective actions and targeted policies. The decentralization laws have transferred powers to local authorities, but the State remains strategic, intervening through programs such as Action Heart of the City and urban renewal initiatives to revitalize territories and reduce poverty. With financial autonomy granted by the Constitution, territorial collectivities have resources to manage freely, but the State's contribution to their budget helps rebalance inequalities. By implementing policies for land use and economic development, the State aims to stimulate growth and promote equal access to public services, addressing the wealth disparities between municipalities.
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[...] Equalization is the indispensable counterpart of the increase in local competences and the autonomy granted to territorial collectivities, particularly in terms of taxation.8. It is also about a vertical equalization device between municipalities. This allows the least wealthy municipalities to benefit from additional funds to reduce these differences in wealth. B. Targeted policies for land use and economics Although the laws of decentralization have allowed for the transfer of more powers to local authorities in terms of land use and economics, the State remains strategic and has a global vision of the territory. [...]
[...] The State formalized its intervention in the neighborhoods in the urban policy in its Law No. 2014-173 of February on programming for the city and urban cohesion, known as the Lamy Law10. This action manifests itself in all fields of social development of people: education, health, employment policies, and the economic development of businesses. Conclusion In summary, it appears that although municipalities may show differences in wealth due to their historical, geographical, economic characteristics. The 1982 decentralization law allowed them to acquire a sustained legal and financial autonomy supported by state allocations. [...]
[...] To what extent are territorial collectivities very unequal in wealth in France, and how does the State intervene (or not) to limit this inequality? Subject : Territorial collectivities are very unequal in wealth (example: compare Saint-Denis in the 93 and Neuilly-sur Seine in the 92). Highlight these differences, their causes and effects, and then the way the State intervenes or not to limit this inequality (which allows to concretize the principle of equality before public services) Introduction Since the first act of decentralization, called 'Deferre Laws'1, the law has abolished the tutelage exercised by the State (by the Prefect) on territorial collectivitiesWhat is the Act I of Decentralization? [...]
[...] The main resources of local authorities remain those granted by the various taxes they collect. These local taxes are diverse and it is the General Code of Local Authorities that deals with them in Chapter I There are what is called the 'direct taxes (habitation tax, land taxes) or indirect taxes (mutation rights DMTO, household waste removal tax, etc.) and economic taxation (territorial economic contribution, etc.)' (Numerik-Ea, 2024). The taxes collected taxes therefore depend to a large extent on the structure of the immovable property, the activity of the purchases and sales of immovable goods for the mutation rights or even the presence of companies on a given territory. [...]
[...] https://www.ecologie.gouv.fr/budget-et-dotations-des-collectivites-locales Horizontal Equalization collectivites-locales.gouv.fr. (s. d.). https://www.collectivites-locales.gouv.fr/finances-locales/perequation-horizontale What is the Act I of decentralization? ( October). Vie-publique.fr. Retrieved 26 March 2024, from [...]
