Budgetary constraints among Europea Union and Italian Legal System: the possible effects on Welfare

The paper analyzes the central provision of the recently enacted Fiscal Compact, which directs member states of the European Union (EU) to incorporate into their Constitutions a “golden rule”, i.e. a requirement that yearly budgets be balanced. The purpose of the paper is to examine – by surveying the introduction of the pervasive budgetary constraints in Italy – the institutional implications that the “golden rule” has on the role of the political and judicial branches. In particular, the paper argues the possible implications that the budgetary constraints could have on welfare.