The 2001 reform made profound changes to the Italian Constitution, which led to a broad transfer of legislative powers from the State to the regions.
The paper analyses the division of legislative powers introduced in 2001 from two points of view: i) consistency with the indications of economic literature; and ii) the effect on the functioning of the institutional system. In some cases the changes enacted in 2001 do not seem to meet efficiency criteria. Regarding the effects on the institutional system, the reform does not appear to have had an impact on the amount of laws approved at the regional level. However, there was a substantial increase in litigation between the State and the regions before the Constitutional Court.
Moreover, the decisions of the Constitutional Court have tended to circumscribe the exercise of regional legislative powers in order to ensure uniform rules and a homogeneous level of protection throughout the country.
