Free Administration of Territorial Collectivities in France

Extract

[...] Originally absent from article 72 which lists the main categories of territorial collectivities, the region is now added to the article. It is now inscribed in the constitutional text the decentralized character of the Republic and articles 72 (general principles), 72-1 (right to petition and local referendums) and 72-2 (financial autonomy) give a constitutional basis much more important than in the past to territorial collectivities. We find principles such as the regulatory power of collectivities, (article 72) the right to experimentation (articles 72 and 37-1) and the right to petition (article 72-1) as well as the principle of equalization (article 72-2). [...]

[...] A free administration carried out « in the conditions provided by the law Although benefiting from a significant constitutional consecration, it is still provided that the free administration of territorial collectivities is carried out « in the conditions provided by the law. The legislator therefore benefits from a significant margin of maneuver in the definition of the conditions of this free administration. It sets the different competences to be transferred to the communities, the framework and budgetary or fiscal rules (unlike the State, they are subject to the obligation to vote a balanced budget; in addition, the communities normally have access to borrowing only to finance investment expenses). [...]

[...] They can even freely set the rate, subject to the conditions determined by law, Article 34 of the Constitution reserving the original exclusive competence to the legislator, subject to delegations. The constitutional revision of 23 March 2008 also consecrates a regulatory power of territorial collectivities. Although it remains subject to the framework set by the legislator, it allows collectivities certain margins of maneuver in their management. Despite the textual basis that has been consolidated, territorial collectivities are not fully autonomous, due to the essentially unitary nature of the State. [...]

[...] The prefect, through the prefectural summons, therefore retains an important margin of maneuver, certainly less than in the past, but the maintenance of the previous situation would not have made sense with the will to set up a true decentralization. In addition, certain decisions remain subject to prior authorizations from the State, such as the creation of certain local public establishments. The communities are also still heavily dependent on financial transfers from the State, through the global operating grant (DGF) or taxation. For a long time, it was the first financial contribution of the State to the communities. [...]

[...] However, since the NOTRE law of 7 August 2015, this clause has been abolished for departments and regions, and maintained solely for the benefit of municipalities. For the implementation of their competences, the principle of free administration of communities has as a corollary that of their financial autonomy, consecrated by article 72-2 of the Constitution. This one provides (al. 1he) that « territorial collectivities benefit from resources that they can dispose of freely in the conditions laid down by law. They have their own resources (al. and benefit from financial compensation within the framework of transfers, creations and extensions of competences (al. 4). [...]