Italy in Conflict with Brussels over Beach Concessions Rule: EU Court of Justice Ruling Makes Waves

A new chapter is added to the saga that sees Italy in conflict with Brussels over the failure to tender for beach concessions as required by European rules, the famous Bolkestein directive of 2006. Yesterday the EU Court of Justice in a ruling declared that «Italian beach occupation concessions cannot be renewed automatically but must be the subject of an impartial and transparent selection procedure» and that «national judges and administrative authorities are required to apply the relevant provisions of law of the Union, by disapplying the provisions of national law that do not comply with them”.

The government’s reaction was immediate. Economy Minister Giancarlo Giorgetti explained that the sentence was expected and was not a “surprise”: “Mapping will be done – he announced – and the things that must be done, however some regions are further on, others further back. But with balance and common sense».

The Court ruled on the appeal of the Competition Authority against the Municipality of Ginosa, which in 2020 had extended its concessions to occupy the maritime state property despite Agcom having found that the resolution violated the principles of competition and freedom of establishment. Agcom turned to the Regional Administrative Court of Puglia which in turn submitted the problem to the EU Court. The sentence of the Court of Justice strengthens the position of the EU Commission, which already in December 2020 had opened an infringement procedure against of Italy by sending a letter of formal notice, without however obtaining results. On the contrary, the Meloni government extended the beach concessions to 31 December 2024 in the “Milleproroghe” decree, a decision which however was already rejected in March by the Council of State.

Thursday 20 April a spokeswoman for the EU Commission, during the usual midday briefing, he assured that the executive will carry out “direct and very rigorous monitoring of the situation”. He also said during the meeting on 13 April in Rome between the EU Commissioner for the Internal Market Thierry Breton and Prime Minister Giorgia Meloni «the prime minister has reassured and guaranteed that the Italian authorities will very quickly ensure the application of EU law, also in the light of the judgment of the Court of Justice». Her sentence then denied a few hours later with the clarification by the spokeswoman that the meeting between Commissioner Breton and Prime Minister Meloni “did not concern this issue (the seaside resorts and the sentence, ndr) and that neither side has committed to the next steps».

As expected, however, the seaside theme was not at the center of the Council of Ministers yesterday which instead approved the annual bill for the Market and Competition which, explains the Made in Italy ministry in a note, “fits fully within the framework of the measures and implementation interventions of the Pnrr”, with a series of rules linked to the achievement of certain objectives set in the Plan. Among the novelties comes the regulation of concessions for itinerant trade and a package of energy measures with the promotion, for example, of smart meters to encourage energy saving. The bill also includes rules on the powers of the Antitrust “for the strengthening and rationalization of the powers of assessment and sanctions”. The Arera, the regulatory authority for energy, networks and the environment, will instead set the prices for district heating.