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Beach concessions, extension to 2027 and compensation for outgoing managers: government and EU approve new rules

The Council of Ministers has established, with a decree law, new rules after years of extensions and reprimands from the EU: tenders by June 2027 and compensation to be paid by those who take over, calculated only on the investments of the last five years

Beach concessions, extension to 2027 and compensation for outgoing managers: government and EU approve new rules

The government has decided to extend le Beach concessions until 30 September 2027, just in time to close the legislature with the umbrellas still in place. A strategic move that protects the current managers, with full support of Europe, which does not seem to have wanted to force the hand too much, as long as the new tenders are called by 2027. In short, a little more time to enjoy the sea view.

The issue has been included in the "infringement decree" approved by the Council of Ministers which, as explained in a note from Palazzo Chigi, will facilitate the 16 infringement cases closed: ranging from the reduction of justice times for the payment of commercial debts and interception services in criminal investigations to the rules on the highway code, from the protection of minors investigated in criminal proceedings to copyright. In this way the government manages to close, for now, a chapter that for years has seen continuous postponements and extensions, finally responding to the EU's requests to respect the Bolkestein directive of 2006, which requires the opening of the beach concessions market to competition.

Beach concessions: here's what's new

I main points of reform of beach concessions include the extension of current concessions until September 2027, with the obligation to start the tenders by June 30th of the same year. A further one is planned postponed until March 31, 2028 in case of “objective reasons”. Who decides on the extension? Mayors and local officials. Thus, if complaints arrive for a rule considered illegal by the Council of State and the European Court of Justice, the government will be able to declare that it is not responsible. The new concessions will have a duration between 5 and 20 years, to allow managers to amortize investments. Palazzo Chigi confirmed these provisions in an official note.

The new managers will also be required to hire workers already employed, if their main source of income was from that activity. As for the old dealers, they will receive a indemnification from the new manager, calculated on the value of assets not yet depreciated and on investments made in the last five years. A mini “right of first refusal”, which is however a much softer version than what was requested by trade associations and compared to the Draghi government's competition law, which considered the entire company value. This option was excluded at the request of Brussels, which feared it could represent an unfair advantage for current concessionaires. Among the criteria for winning the tender, having managed a beach concession as the main source of income in the last five years will be considered a plus.

Finally, the bill introduces the possibility for local authorities to order the demolition of existing structures at the expense of the outgoing dealer, and increases state fees, allocating part of these funds to the defense of coastal areas.

The comment from Brussels

Also the Ue expressed a positive opinion. “The Commission welcomes today’s decision by Italy on the beach concessions case. This follows constructive exchanges through which the Commission and the Italian authorities reached a common understanding on the legislative framework for the reform of Italian beach concessions in the light of EU law, with a comprehensive, open and non-discriminatory solution covering all concessions to be implemented within the next three years,” a Commission spokeswoman said. She added that at this stage, the Commission has not taken any formal decision in the infringement procedure, but will assess the decree in the light of the agreement reached. Brussels will closely monitor the tender process and the renewal of the concessions within the agreed timeframe.

In the meantime, however, in Puglia the Court of Auditors is taking a look at the beach fees, which do not seem to have always been collected regularly. But this, as they say, is another story.

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