Premium Assistance with Italy Banner

Final Negotiations on Beach Concession Extensions Until September 2027

See the entire Newsletter

04 ott 2024

The Italian government is in the final stages of negotiations with the European Commission to resolve the ongoing dispute over beach concessions.
The proposed plan, initially suggesting extensions until 2029, has been revised to end on September 30, 2027, following feedback from Brussels.
The plan includes mandatory tenders by June 30, 2027, and completion by March 31, 2028.
The proposal excludes preferential rights for current concessionaires but allows for compensation based on recent investments.
Social criteria will favor small businesses in the tender process, and there will be no increase in annual fees.

Final Negotiations on Beach Concession Extensions Until September 2027

Current Negotiations

The Italian government is actively working to finalize discussions with the European Commission regarding the longstanding issue of beach concessions. The initial proposal, which suggested extending concessions until December 31, 2029, was not accepted by Brussels. Consequently, a revised plan is under consideration, aiming to extend current concessions until September 30, 2027. This plan requires that tenders be announced by June 30, 2027, and completed by March 31, 2028, if justified by objective reasons.

Exclusion of Preferential Rights

The revised proposal does not include preferential rights for existing concessionaires, a point of contention for the Italian Minister of Infrastructure and Transport. The European Commission has opposed this aspect but has shown some openness to discussing compensation for outgoing concessionaires.

Compensation Guidelines

Compensation will be provided to concessionaires who lose their titles, with specific conditions. The incoming concessionaire will bear the cost, determined by an expert assessment, focusing on non-depreciated assets and a fair return on investments made in the last five years.

Social Criteria in Tenders

The new tender rules will incorporate social criteria to support small operators. This includes awarding additional points to micro, small, and youth enterprises, as well as considering technical and professional experience. The number of employees retained from the outgoing concessionaire will also be a factor.

Concession Duration and Fees

The proposed concession durations range from five to 20 years. Unlike earlier drafts, there will be no increase in the annual fees for concessionaires, which was initially suggested to be a 10% rise.

Further Insights

  • The negotiations highlight the complexity of aligning national interests with EU regulations.
  • The focus on social criteria reflects a broader trend towards supporting small and medium-sized enterprises.

    Potential Opportunities

  • Encouraging fair competition through transparent tender processes.
  • Supporting local economies by prioritizing small and youth enterprises.
  • Ensuring compliance with EU directives to avoid future legal disputes.