UC Santa Cruz

Following the 2008 economic crisis, the European Central Bank communicated to the Italian Prime Minister the 'need for a strong commitment to abolish or consolidate some intermediary administrative layers' (Trichet and Draghi, 2011). The pressure to 'restore the confidence of investors' in Italian bonds and the rising influence of anti-establishment rhetoric fueled by the growing populist Five-Star Movement pushed the government to design and pass the Delrio territorial reform (law 56/2014). This law failed to go past the necessary constitutional referendum, allowing each region freedom to reform its territorial institutions.Asking what explains territorial differentiation among regions, this study examines the mechanisms behind the legislation on territorial governance between 2014 and 2021 across four Italian regions. Through the analysis of 104 expert interviews, 300+ newspaper articles, and eight regional laws, I argue that determining the scale for institutional borders and functions is socially and politically constructed and subject to contestation. It is inherently historical and political and dependent on the desired goals. Regions perpetuate socio-political regulatory modes rooted in institutional legacies dating back to Italian unification. To a lesser degree, territorial policies are also affected by the organization of the party governing the region. My theoretical contribution expects regions with legacies of strong representation of local interest to implement fragmented systems of governance with multiple places of power. Regions with legacies of concertation organize their governance, consolidating functions and fostering the association of interests. This study has broad implications beyond the Italian case. Understanding governance systems is crucial to shed light on the mechanisms of distribution of resources and power within societies. It provides valuable insights into the role of institutional legacies and party structures in shaping territorial policies, which can be applied to other contexts and countries facing similar challenges.