A “historic milestone”. This is how Northern League leader Umberto Bossi labeled the Senate’s green light to a federal reform proposed by Silvio Berlusconi’s right wing government. The upper house has said “yes” to a draft bill which is to lay the foundations for the establishment of a federal fiscal system in Italy. The reform will grant regions and municipalities limited powers in fiscal issues, a measure that will replace the centralized system currently in force.

The proposal was put to the vote yesterday and was approved with 156 senators in favour, 108 abstentions (centre-left opposition) and 6 votes against it (Christian democrats). The bill envisages the transfer from Rome of several taxation powers, and also includes measures to stop an increase in tax burden (click here for a more detailed account in Italian). A new federal fiscal system in Italy is one of the Northern League’s capital goals, a party strongly opposed to Roman centralism advocating for greater regional autonomy and sometimes secessionism.

According to newspaper La Reppublica, Prime Minister Silvio Berlusconi declared yesterday that with the federal reform Italy will become “a modern and federal state, just as the UK, Germany and Belgium”. Berlusconi tried to appease critics by assuring that the management of some taxes by regions and municipalities will not bring about tax rise, but a drop in tax burden.

The draft bill will soon be discussed in the Chamber of Deputies, where Berlusconi and Bossi’s coalition retain majority.

Further information:

• Il Corriere della Sera: Federalismo, via libera dal Senato
• La Repubblica: Dal Senato sì al federalismo fiscale. Ora il provvedimento va alla Camera