Court of Auditors Reform: Between the Liability Shield and Centralization of Prosecutors

1. The fact

   According to reports from outlets such as Il Sole 24 Ore, Il Fatto Quotidiano, and ANSA, on August 4, 2026, the Council of Ministers approved the draft legislative decree for the reorganization of the Court of Auditors. The text, based on enabling law 1/2026, is currently in the preliminary examination stage, awaiting opinions from parliamentary committees. The reform introduces a model of hierarchical centralization of regional prosecutors under the Prosecutor General in Rome and stabilizes the limitation of financial liability for gross negligence, which was originally introduced as an emergency measure during the pandemic. The Association of Magistrates of the Court of Auditors has expressed concern over the possible reduction of investigative independence, calling the move a structural intervention that changes the face of the accounting judiciary.

2. 

   The rules at play

   The framework of the reform rests on three main regulatory pillars:

   1. Financial Liability: Art. 1 of Law 20/1994, as modified by the shield introduced by D.L. 76/2020, limits liability for active conduct to intent alone, excluding gross negligence to favor the speed of public spending;
   2. Political Justification: the reform introduces a principle of automatic good faith for the political body that approves acts backed by favorable technical opinions, shifting any compensatory burden exclusively onto technical officers;
   3. Investigative Organization: the new provisions amend the Code of Accounting Justice, granting the Prosecutor General powers of avocation and coordination over territorial prosecutors, transforming the latter into branches of a central office.

3. What the case law says

   Constitutional jurisprudence has recently addressed the issue of the legitimacy of the liability shield, clarifying that such a limitation is permissible if aimed at protecting result-oriented administration. However, the Constitutional Court judges warned that such a regime cannot be timeless, urging the legislator to define the types of gross negligence rather than merely suspending it. In accounting courts, the orientation has been consolidated that a technical error does not constitute liability if the official acted following standardized procedures, while the prosecutability of omissions (i.e., failing to act) remains firm, as the shield does not apply to them, maintaining the gross negligence regime.

5. Analysis drafted and verified with edit.legal

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8. What it teaches professionals

   1. Distinguish action from omission: the defense must always aim to qualify the conduct as commissive to benefit from the limitation of liability to intent alone.
   2. Leverage technical opinions: for political leaders, obtaining formal technical opinions becomes the definitive legal shield against financial disputes.
   3. Monitor central coordination: lawyers must pay attention to the new protocols of the General Prosecutor's Office, as old regional prosecutor practices may be superseded by new hierarchical directives.
   4. Define the risk: it is essential to document that the error occurred in a context of pursuing a useful administrative result, in accordance with the new orientations of constitutional jurisprudence.

References: Legge 1/2026Legge 20/1994D.L. 76/2020D.Lgs. 174/2016

Editorial oversight: Avv. Federico Papa·ICAMUpdated 6 August 2026Content drafted with AI support and subject to editorial source checks. Despite these controls, inaccuracies may remain: reports and rectification requests are welcome. Report a correction