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South, investing in utilities is worth 3 times the citizenship income

Svimez presents her report on public utility services which shows that the multiplier on the development of the Citizenship Income in the South of Italy is equal to one third of what an investment of the same size in public services would have - Still too low in the South expenditure per inhabitant for waste, water, energy

South, investing in utilities is worth 3 times the citizenship income

The basic income has a multiplier on the development of the South equal to one third of what an investment in the public utilities sectors would have. Svimez has again analyzed the state of public utility services in the southern regions, concluding that there is a North-South gap and that the government measures on basic income will have different effects.

The Report of the historic analysis structure, presented in Bari at the meeting "Water and environmental services in the South: development proposals" focuses on public utility services. He drafted it together with Utilitalia and it offers us an interesting cross-section to understand the level of innovation in essential services on a large scale. The North-South divide undoubtedly affects the quality of services provided to citizens and the two Italys, which continue to coexist, are now a problem for everyone. In particular, as regards waste collection, water networks, energy production, we need to make qualitative leaps. The situation, which is by no means optimal, affects the development of southern enterprises present in these services.

The research dates back to 2016. It clarifies that the production of services carried out by 245 companies owned by local authorities, based in the southern regions, is small compared to those in the centre-north. We are facing – explains Svimez – the fact that southern companies in the sector are too few and often economically undersized. An almost consolidated figure, despite the policies of tax relief and public incentives. The numbers? The production per inhabitant of the necessary services in the South is around 201 euros. Less than a quarter of that of the rest of the country, where it is 972 euros per inhabitant.

The trend is also confirmed by investments, where there is a need to increase them. As? With what tools? Svimez ascertained just over 22 euros per inhabitant, against over 124 in the regions of Central and Northern Italy. But there are also territorial differences between the Regions. Puglia and Campania are compared by certifying investments of over 44,6 euros per inhabitant in the Adriatic region, compared to Campania which stands at just over 13 euros. A pitiless analysis with researchers sending signs of optimism. In fact, they explained that investments need to be relaunched. That the subsidiaries can regain possession of a strategic role and play their part in the growth of a neglected South.

A scenario, we understand, that is optimistic only if you have the will, strategies and means. Money in hand, the multiplier effect would be assured. With one billion additional investments (double what was achieved in 2016) in garbage collection, water cycle management and the energy sector, there would be an increase in production of almost 900 million euros. The additional southern GDP would be just over half a billion and the labor market would benefit with 11 more jobs. A medium-term perspective which certainly also involves the local authorities participating in the assets of the public utilities, but which can place the latter in front of important choices on the continuity or otherwise of managing fundamental services.

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