The development of local public transport in Italy has suffered growing pressure since the outburst of the financial crisis. This country report describes the debate for reform in the country and the current situation. It concludes that urgent intervention is needed. The vast majority of companies operating in the sector receive funds from both regional and state authorities. However, pressure to reduce budget deficits has imposed significant cuts to these transfers. This has resulted in increased prices, postponement of renovation of the fleet, reduction in the services offered and – to a more limited extent – cuts in the personnel.