Italy's Beach Concessions: EU Demands Reform as Government Faces 2025 Deadline
Italy’s Beach Concession Controversy Heats Up Amid EU Pressure
Italy’s lucrative beach concession system, a long-standing point of contention with the European Union, is facing renewed scrutiny as the country grapples with demands for increased competition and transparency. For nearly two decades, the European Commission has accused Italy of breaching competition rules and lacking transparency in its management of beach concessions.
Despite EU directives requiring competitive tendering, successive Italian governments have resisted change, often renewing existing concessions without open procedures. The current far-right government led by Giorgia Meloni recently extended concessions until the end of the year, but Italy must comply with EU rules from early 2025.
The beach concession system, deeply ingrained in Italian coastal culture, often sees these valuable assets passed down through generations. This practice has created a monopoly-like situation and significant resistance to economic reforms. Beach-goers face widely varying costs across different regions of Italy, highlighting the inconsistencies in the current system.
Beach operators argue they have invested heavily in their establishments and are seeking compensation or pre-emption rights in any future tenders. However, economists contend that concession owners have exploited their positions, returning minimal proceeds to the state. The Italian Court of Auditors reported that the state received only around 97 million euros annually from 2016 to 2020 from beach concessions.
Economist Pietro Paganini advocates for increased competition, emphasizing that beach concessions are public domain. However, Italian governments have historically protected beach concession owners due to their electoral significance.
In an attempt to justify non-compliance with the EU’s Bolkestein directive, the Meloni government submitted a mapping report to Brussels. The report claimed that only 33% of the coastline is under concession, but EU representatives noted the inclusion of non-eligible areas in the mapping, casting doubt on its accuracy.
Meanwhile, Mare Libero, an association advocating for free beach access, is calling for at least 50% of beaches to be free, highlighting the growing public demand for change in Italy’s beach management system.
As the 2025 deadline for EU compliance approaches, Italy faces the challenge of balancing its traditional beach concession system with the demands for increased competition and transparency, setting the stage for a continued legal and economic tug-of-war with the European Commission.
