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Italy promises more transparency for beach concessions

For decades, these concessions have been transmitted in the greatest opacity, which has irritated the European Commission.

The Italian government said on Wednesday evening that it had closed a dispute with Brussels over the opening of seaside concessions to competition, with the adoption of a bill reforming the sector, after years of inertia.

In Italy, concessions are passed down in the greatest secrecy from generation to generation, by automatic renewal, and according to some estimates the State receives 115 million euros per year from this sector which generates 15 billion euros.

Exasperated by the inertia of the various Italian governments, the Brussels Commission has opened infringement proceedings against Rome.

“The collaboration between Rome and Brussels has made it possible to find a balance between the need to open the concessions market and the possibility of protecting the legitimate expectations of current concessionaires,” assures a press release from the Italian government.

A market worth 115 million euros per year

The reform of seaside concessions now provides that these will be valid until September 2027 with the obligation to launch calls for tender for new concessions no later than June of the same year.

The new concessions will have a duration of 5 to 20 years to allow the new concessionaire to amortize its investments.

It will eventually be up to the new dealer to reimburse the outgoing dealer for the portion of the investments made that has not been amortized.

The current concessions expired on December 31, 2023, by decision of the Council of State, Italy’s highest administrative court.

Supporters of the status quo argued that opening up to competition would roll out the red carpet to foreign multinationals, leading to higher prices and a dilution of the “Italianness” of the sector.

Others raised the risk of mafia infiltration.

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