Drivers for the financial condition of Local Government: a comparative study between Italy and Spain


  • Isabel Brusca University of Zaragoza, Department of Accounting and Finance, Gran Ví, 50005 Zaragoza
  • Francesca Manes Rossi University of Salerno, Department of Management and Information Technology, Via Giovanni Paolo II, 84084 Fisciano SA
  • Natalia Aversano University of Salerno, Department of Management and Information Technology, Via Giovanni Paolo II, 84084 Fisciano SA



financial condition, financial sustainability, financial health, financial indicators, local government, Spain, Italy


This paper aims to analyse the influence of socio-economic, political and financial factors on the financial condition of Italian and Spanish local governments in a comparative approach. The research is also aimed at understanding to what extent a model for the analysis of the financial condition can be generalized to different contexts. We assume that the financial condition is a multidimensional concept, with the results highlighting that while in Spain there is a high correlation between the long term financial and short term economic situations and an indicator can combine both dimensions, in Italy both dimensions are differentiated. There are also differences in the drivers of financial sustainability in both countries.


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