In France, the policy of decentralisation was initiated by acts of the French Parliament known as Gaston Defferre laws in 1982.
Until the 1982 laws the departmental councils had very limited powers and were effectively under the stewardship of the departments’ prefects.
These laws followed the first failed attempt at decentralisation (referendum to reform the senate and regionalisation) in 1969 by General De Gaulle.
The grants and transfers fall into 3 categories: The local authorities are free to spend these resources as they decide, however due to ever increasing costs of these grants a Stability Pact was put in place in 1996 and later replaced by a Growth and Solidarity pact in 1999.
The remainder of local Government resources (11%) come from rents, duties and European structural funds.