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Competition Law: the real gap is not on beaches or taxis, but on local public services

The Cpi Observatory points out that Parliament has not so far accepted the Antitrust recommendation on in-house credit lines, which are granted only under certain conditions

Competition Law: the real gap is not on beaches or taxis, but on local public services

La competition law 2021 it has been stuck in the Industry Commission in the Senate since last December and now the time for the green light is scarce. On the basis of the commitments with Europe envisaged by the Pnrr, within this year both the enabling law must be approved (the goal is the ok by May at Palazzo Madama and by the summer break at Montecitorio) and the delegated decrees, which is also entrusted with the solution of many of the most controversial points, first of all beach concessions.

Beach concessions and taxis: two minor issues

In the public debate we speak in the first place of the beaches and liberalization of taxis, which however – as he points out in a recent article the Italian Public Accounts Observatory - I am "clearly minor in terms of effects on the GDP and on the competitiveness of enterprises”. Rather, “the area from which one can expect the most significant improvements in terms of efficiency is probably that of local public services”, but even in this sector progress is lacking.

The problem of local public services

In this regard, last March the Antitrust had sent the government a series of reports regarding the law on competition and the text contained the following passage:

A crucial junction for the revival of the economy is given by review of the local public services sector and, more generally, of public companies. Efficient markets for local public services can not only improve the quality of the services provided, but can also have positive effects on the competitiveness and development of local economic systems and affect the level of aggregate productivity and the growth of per capita product. Yet, local public services are still provided on the basis of a "public capitalism" which generally does not appear suitable for ensuring adequate levels of efficiency and quality of services.

The Antitrust notations on in-house assignments

Not only. Last February 24, during a hearing before the Senate Industry Committee, the head of the Antitrust cabinet, Maria Tuccillo, had used even more explicit words:

The use of the in-house tool[should be allowed] only in the presence of effective reasons of economic convenience and quality of service, avoiding assignment to companies lacking the subjective and objective requisites envisaged by the legislation or which are in serious financial difficulties, effectively carrying out, and as often happens, the function of improper social safety nets. In this sense, the motivation should already be illustrated when the administration decides to opt for the self-production regime rather than the outsourcing regime. [Worth the risk that] the assessments submitted to the contracting station are reduced to a mere ex post formal fulfilment.

This recommendation, underlines the CPI Observatory again, was not accepted in the 2021 competition law.

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