Defining informality in a Southern European City indicators of informality in the CEP neighborhood, Palermo

Urban informality in Southern Europe remains an underexplored yet significant phenomenon, challenging dominant frameworks that primarily address informality in the Global South. This study examines the Centro Espansione Periferica (CEP) neighborhood in Palermo, Italy, to develop a taxonomy of informal settlement indicators suited to Southern European cities' specific governance, socio-economic, and spatial characteristics. Using a qualitative methodology grounded in Grounded Theory, this research integrates semi-structured interviews, document analysis, and field observations to capture the complexities of informality in a regulated urban environment. Findings reveal that informality in CEP emerges from economic hardship and governance failures, ambiguous tenure arrangements, and spatial adaptations within public housing initiatives. The study highlights key informality indicators, including weak institutional oversight, socio-spatial transformations, and informal negotiations between residents and public authorities. This taxonomy challenges binary classifications of informality and calls for a more nuanced, context-sensitive approach to land-use policies in European urban contexts. This research provides valuable perspectives for urban management and sustainable development approaches in cities facing comparable issues by emphasizing staged formalization, inclusive planning, and tailored policy measures.