Assoc. Prof. Dr. Desislava Kalcheva is among the authors of the report “Local Taxes and Economic Growth”. The report is published by the Joint Research Centre (JRC) - the European Commission’s science and knowledge service - and is devoted to the relationship between local taxes, the financial autonomy of municipalities, and local economic development.

The report examines the role of municipalities as key actors in creating a favourable environment for business, investment, and economic growth. Its main argument is that when part of the revenues generated by local economic activity remains in municipal budgets, local authorities have a stronger incentive to support business development, improve local infrastructure, and foster a better local business climate.

The study has a comparative European scope and analyses different models of local revenues and tax-sharing arrangements across EU Member States. Separate comparative sections examine countries such as Bulgaria, Romania, Germany, Denmark, Finland, Sweden, Poland, Croatia, Czechia, France, Italy, Spain, Portugal, Lithuania, Latvia, Estonia, Ireland, Greece, and Hungary. Special attention is also paid to the development of Bulgaria and Romania after the transition to a market economy.

Among the main contributions of the report are the development of indicators for comparing local tax revenues across countries, the analysis of the relationship between local revenues and municipal incentives for economic development, and the presentation of specific European case studies showing how the sharing of direct taxes with local authorities can promote growth, sustainable development, and improved tax collection.

The report emphasizes that local authorities are not merely providers of public services, but active participants in creating the conditions for business development, attracting investment, and strengthening the local revenue base.

The full text of the report is available here: https://publications.jrc.ec.europa.eu/repository/handle/JRC145286