Decentralization boosts fiscal performance in EU countries, subnational rules less effective.
The study looked at how decentralization affects how well countries in the European Union manage their money. They found that when local governments have more control over spending, the countries tend to do better financially. This is especially true when local governments don't rely too much on money from the central government. However, having specific financial rules for local governments doesn't seem to make a big difference in how well a country manages its money.