Costs of Italian democracy

From Today's Repubblica (Vladimiro Polchi, "I costi dello stato", p. 9):

"How much does a parliamentarian earn? The calculation is not easy given the number of different headings to add. Senators and deputie take home euro 14,000 per month net of taxes. To the exemption of 5,486 euros (reduced by 10% with the 2006 budget) one adds: 4,003 euros "for the reimbursement of costs incurred staying in Rome", and 4,190 euros (4,687 for senators) for "reimbursement of costs incurred in the relationship between elected and electors". But that's not all. The MP need not worry about his travels, enjoying a "ticket for free movement on tollways, trains, naval, and air travel within the country". If s/he needs to go abroad, there are annuals expenses of up to 3,100 euros. The telephone bill is not a prolem: for his chatting, the deputy enjoys an annual sum of 3,098 euros; 4,150 for senators. Other reimbursements are made for taxis (3,233 every three months)."

State funding of Italian parties

Recently, I've been looking at the system of state funding of Italian political parties. I'm interested in the subject because of the incentives it may create to form new parliamentary groups (since they qualify for funding), and the way funding systems interact with the new electoral system.

The history of state funding is pretty shabby. In 1993, an abrogative referendum repealed parts of the law on party funding, banning direct subventions, but allowing compensation for electoral expenses. These electoral expenses gradually grew; new laws were passed in 1999 and 2002, lowering the qualification threshold from 4% of vote-share to 1% of vote share (or electing at least one candidate), with funds divided according to the parties' vote-shares.