Antitrust in Government: still much to do on liberalisations

The process of market liberalization has shown rapid accelerations during the Monti government, but much still remains to be done. The Competition and Market Guarantor Authority writes it in a report, signed by the president Giovanni Pitruzzella, which photographs the state of the art of the individual markets: the reforms made, the rules still to be implemented, the further necessary changes.

In the report, requested by the Government to prepare the annual competition law in advance, the Antitrust reiterates that the opening of markets and the introduction of competition mechanisms are essential ingredients to stimulate growth and improve consumer welfare in the future . However, they must be accompanied by efficient and fast institutions, which give certainty of the times to those who want to invest in our country: rethinking of the current structure of federalism to get out of the game of crossed vetoes, public administration oriented towards the service of businesses and citizens, reform of justice in the wake of what has been effectively launched in recent months by the competent dicastery, must accompany the ongoing process.

While waiting for the institutional architecture of the country to be redesigned, the substitutive powers of the State and the Regions must be strengthened immediately to avoid the inertia of the local authorities. In case of lack of intervention by the Regions on the Municipalities, the State will have to take the necessary decisions. For the Authority, from transport to energy infrastructure, from postal services to insurance, from local public services to professional services and healthcare, there is still room for further market openings and pro-competitive measures.

Some principles are transversal. Where the services are carried out under concession, the duration of the concessions themselves must be reduced, commensurate with the payback times of the investment: once they have expired they must be reassigned with transparent and competitive tender procedures. Tariffs must be oriented towards the recovery of efficiency, rather than inflation, on the basis of price-cap mechanisms.

In transport, the sector Authority must be made operational without delay. It is necessary to combine the need for the economic equilibrium of the public service operator with the entry of other operators, establishing a royalty to be paid by the latter: thus the entry of competitors in the most profitable sectors would be guaranteed without negative repercussions on the operator's accounts public. This contribution should be paid to the entity which subsidizes the universal service activity.

The Antitrust reminds the Government and Parliament that these processes could lead, in the short term, to the closure of less efficient companies and reductions in employment: for this reason, policies capable of maintaining social cohesion and supporting the weakest subjects are needed.

Lastly, the Authority intends to give new impetus to the leniency program to combat secret cartels between companies and is asking for regulatory corrections to encourage subjects to report them: this is an important tool because practice indicates that agreements are mainly found in public tenders. Being able to defeat them can make a fundamental contribution to reducing public spending.