In recent years, Italy has been more virtuous than the other large European countries in controlling public spending which, net of interest, grew by 2009% in the period 2016-3,8 compared to the 12,8% of the Union average. And now, in absolute per capita value net of interest (12.587 euros), it ranks at a lower level not only than the Nordic countries but also, for example, Germany (16.297 euros), France (18.227 euros) and the United Kingdom United Kingdom (14.307 euros).
This is underlined by the report on "The new governance of public spending" prepared by Assonime and the result of a working group coordinated by Innocenzo Cipolletta, who is about to become the new president of the association of joint-stock companies.
The reaction to the emergency induced by the economic crisis – the report says – “has been to cut public spending wherever possible. The result was a significant containment of the total amount of expenditure net of interest (so-called primary expenditure)”. The most significant reduction concerned investments but, starting from 2010, there was also "a significant reduction" in personnel expenditure which, in real terms, through the halt in bargaining and that of turnover, returned to levels of 2000. Furthermore, in terms of efficiency and effectiveness of expenditure, various analyzes show that, with the same resources employed, there is ample room for improvement in Italy.
In the governance of public expenditure, in Assonime's opinion, it is evident that today we must abandon the logic of linear cuts and set ourselves the objective of improving the quality of the disbursements and services offered to citizens and businesses. In this regard, the report indicates 11 lines of action to "strengthen the governance of public spending on goods, services and infrastructures" and with respect to which "much remains to be done".
In the first place, it is necessary "to define priorities at a political level in a context of scarce resources, also rethinking the perimeter of the public administration". The effects of the spending measures must then be monitored systematically so as to make the necessary adjustments to the choices made. The expenditure evaluation process must be integrated with the more general economic-financial planning process (performance budgeting).
Above all, in Assonime's opinion, a profound cultural change needs to be achieved centered on the idea of a public administration oriented towards the service of citizens and businesses. As a result, resources have to be shifted from the back office to the front office.
Aiming for higher standards of governance, an essential role belongs to public managers who "must be recognized spaces of choice that allow efficient management of public resources, in a framework of transparency on decision-making processes".
A separate chapter concerns the policy of public procurement for which it is necessary to be able to supervise the phases preceding and following the awarding of the contract. The new system of qualification of the contracting stations introduced by the Code of public contracts - underlines the report - "constitutes an important novelty". In order not to unjustifiably restrict competition, an appropriate use of division into lots is essential. As for public investments in infrastructure, it is necessary to definitively overcome the logic of 'sprinkled' interventions by concentrating efforts on well-defined projects aimed at pursuing clearly identified objectives of common interest. And, in any case, "it is necessary to intervene only when there is a market failure and after verifying that public support is the most appropriate instrument".
Assonime positively judges the overcoming of the 'Objective Law' with the launch of a new phase of ordinary and long-term planning of the works, strengthening the technical and economic quality of the initiatives. It is now time to implement the provisions. If the decision-making process is well set up, the authorization phase "could be greatly simplified and made more linear, with faster times for the usability of the works and lower costs". Lastly, a fundamental ingredient of good governance of the PA is the control system which needs to be modernized and made more organic.
“The phase of public expenditure containment – underlines Innocenzo Cipolletta – appears largely concluded with the reductions achieved in recent years. A phase must now begin of marked improvement in the quality of expenditure, through a selection and marked improvement of the services rendered to citizens and businesses."
Attachments: Assonime: "The new governance of public spending"
