This paper presents an analysis of the effects of the decree law 6 December 2011 n. 201 "Urgent provisions for the growth, fairness and the consolidation of public accounts" (converted into Law 214/2011), in terms of local finance and local development prospects. This corrective maneuver taken by the Monti government ended up exerting a strong influence on the relationship between central government and the local administration system, through the reorganization of the financing system of local authorities through the use of two methods of intervention: an increase in tax burdens and a reduction in public spending, which combined together risk producing recessive effects on the country's economy, with consequences that are perhaps even worse than the initial situation they aimed to resolve. In fact, on the one hand, they mainly affect the lower-middle social groups with an increase in taxes and the reduction of public services, on the other hand they reduce the capacity for action of local authorities with respect to the provision of services and investments, preventing them from exercise its fundamental functions and above all to act in support of the local development of the territories - in response to the ongoing global crisis - without however being able to secure the public finances from the attack of speculation.