Italy aims to liberalise markets but shields beach services

The Italian government approved a bill on Thursday to increase competition in product and services markets, but it avoided a long-awaited liberalisation of the lucrative concessions to manage the country’s beaches

The bill, which is part of a plan to spend over 200 billion euros ($231 billion) from a European Union post-COVID recovery fund, must be approved by parliament by the end of next year under terms promised to the EU.

It contains new rules for telecom companies for installing high speed fibre optic infrastructure, another pillar of the Italian plan for a swift and robust recovery from the COVID-19 crisis.

To speed up the roll-out of ultra-fast networks, operators will have to share installation costs if working in the same area and coordinate permit requests to the authorities to avoid bureaucratic delays.

Prime Minister Mario Draghi pledged in Italy’s Recovery Plan to present the bill to parliament in July, but it has been held up by bickering in his fractious multi-party coalition, with the beach concessions being the main bone of contention.

The licences to serve food and drink and rent out sun loungers and beach umbrellas are traditionally family-owned and passed down from one generation to another – despite calls by the European Commission for them to be offered at open tenders.

The concession-owners say the all-in-the-family system keeps costs low for beachgoers. Local and foreign entrepreneurs dispute this and say they’re being shut out.

Centre-right parties in Draghi’s government are staunch defenders of the licence-holders, and they have again succeeded in protecting them.

In the bill the government says it will draw up a map of existing concessions to have a clearer picture of the situation but offers no concrete plans to reform the management of the 7,500 kilometres (4,700 miles) of coastline.

Draghi told ministers this “transparency operation” was also needed before making changes to the current concession rules in areas such as mineral water production and radio and TV frequencies, according to comments released by his office.

He said the government will draw up proposals in coming months to “reorder” municipal public services and the rules governing taxi licences, another traditionally thorny issue in Italy.

“Promoting competition doesn’t end with this bill, it will run through all the economic policy of this government,” Draghi added.

Photo – Deck chairs and parasols on the beach of Capocotta, near Rome, Italy. EPA-EFE/EMANUELE VALERI