Italy-Brussels Tensions Rise Over Delayed Tourism Deregulation, EU COVID Funds’ Revised Targets

By Silvia Marchetti

ROME (MaceNews) – Tensions between Rome’s rightist government and Brussels are rising over the investments of revised European post-COVID funds and a delay in deregulating key tourist services, warned opposition forces.

Democrat officials are concerned that were Italy to fail in “being credible and efficient” in investing the updated post-pandemic aid, and in boosting competition in beach concessions, the European Commission could retaliate in green lighting the revised COVID targets.

“Italy has lately revisited the European post-Covid funds plan, and Brussels has given an initial ‘OK’ to these but in order to fully approve the updated plan, premier Giorgia Meloni must be credible and demonstrate that she is able to quickly and efficiently use these EU funds”, said a Democrat official.

The source noted that Brussels’ patience was waning over a prolonged delay to open up the internal Italian tourist sector to more beach facilities operators, including foreign ones who should have access.

The EU’s Bolkestein directive, aimed at regulating services within the internal market, would push over 30,000 seaside businesses currently operating in Italy to compete with new operators, including non-domestic ones.

But beach concessions are currently renewed by the government, via local authorities, regularly to the same private Italian operators.

“Concessions are passed down across generations, it’s a mafia. Brussels has been asking Italy to rectify this anomaly for years, Meloni should hurry up and do so. There’s too much at stake to make Brussels mad and retaliate by not approving our new post-COVID roadmap”, says a 5 Stars Movement official, also at the opposition.

To increase the share of available beaches to privates, “the government has so far just fooled around trying to buy time”, said the 5 Stars member, by reclassifying and repurposing areas not traditionally considered for beach concessions such as rocks, ports, and industrial zones.

The European Court of Justice ruled in favour of the EU’s position on the matter in 2016. Yet the government extended the validity of beach licenses set to expire in 2015 to the end of 2033.

Meloni should now put an end to such licenses by this summer, urged the Democrat official, so to soothe Brussels’ concerns and make the European commission more lenient with regard to the use of updated pandemic funds.

“Rome needs to be very cooperative at such a delicate moment; we can’t push our luck too far”. 

Last week the Commission gave an initial positive assessment of Italy’s modified post-COVID recovery and resilience plan, worth EUR 194.4 billion (EUR 122.6 billion in loans and EUR 71.8 billion in grants), covering 66 reforms, seven more than in the original plan, and 150 investments in key strategic investments.

“But this does not mean we get a blank cheque”, warned opposition sources, saying Brussels will be closely watching over.

A government source ruled out Meloni was in any way concerned about the “beach battle” and expressed optimism in delivering the new pandemic investment plan.

“Meloni fought hard to achieve a revision of the post-pandemic plan so to take into account the impact of the Russian-Ukrainian war on Italy’s economy, and we did get it.”

The updated objectives include measures to make Europe independent of Russian fossil fuels well before 2030. Such new measures focus on strengthening electricity distribution transmission and distribution networks, energy security, and speeding up renewable energy production.

“The revised goals also entail key reforms in sectors such as justice, competitiveness and the green and digital transition including renewable energy, green supply chains and railways”, said the ruling coalition source.

Opposition sources however warned that the European commission will authorise further disbursements based on the fulfilment of the milestones and targets outlined in Italy’s revised plan, reflecting progress in the implementation of the investments and reforms.  

“Italy has so far received some EUR 90 out of total EUR 194.4 billion of the post-COVID recovery aid package. We hope to be paid our fourth installment of EUR 25 by year-end, but this money should never be taken for granted by the government”, said the Democrat source.

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