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New Regulations for Beach Concessions: Key Deadlines and Provisions

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New Regulations for Beach Concessions: Key Deadlines and Provisions

04 ott 2024

The Italian government has reached a compromise with the European Commission regarding the reform of beach concessions.
Municipalities are required to initiate tenders by June 2027, with extensions possible until September 2027.
However, municipalities can choose to start the process earlier.
The reform includes compensation for outgoing concessionaires but excludes preferential rights.
The new concessions will last between 5 to 20 years, with specific criteria to protect local businesses and micro-enterprises.

New Regulations for Beach Concessions: Key Deadlines and Provisions

Overview of the New Beach Concession Regulations

The Italian government has formulated a new framework for beach concessions, following extensive negotiations with the European Commission. This reform mandates that municipalities must initiate tenders for beach concessions by June 2027. However, the validity of current concessions is extended until September 30, 2027, with a possible extension to March 31, 2028, under specific circumstances.

Flexibility for Municipalities

Municipalities have the option to commence the tender process before the June 2027 deadline, provided they offer adequate justification. This flexibility is designed to accommodate local interests and ensure compliance with EU regulations, which have historically opposed automatic and generalized extensions.

Compensation and Exclusion of Preferential Rights

The reform includes provisions for compensating outgoing concessionaires, calculated based on the value of non-amortized assets and fair remuneration for investments over the past five years. However, there are no preferential rights for current concession holders, a point on which the European Commission remained firm.

Duration and Criteria for New Concessions

New concessions will range from 5 to 20 years. The reform outlines criteria to protect local businesses, including the requirement for municipalities to disclose any lack of division into lots and the maximum number of lots a single bidder can win. Additional criteria include the alignment of facilities with local traditions, the offer of services enhancing local specificities, and the number of employees retained from outgoing concessionaires.

Further Insights

  • The reform is part of a broader effort to address EU infringement procedures and align with decisions from various judicial bodies.

    Potential Opportunities

  • Encouragement of local business growth and protection of micro-enterprises.
  • Increased transparency and fairness in the tender process.

    Critical Aspects and Potential Issues

  • The exclusion of preferential rights may lead to disputes from current concessionaires.
  • The requirement for municipalities to justify early tenders could result in legal challenges.

    Suggestions and Useful Tips

  • Municipalities should prepare detailed justifications if opting for early tenders.
  • Concessionaires should document investments meticulously to ensure fair compensation.
  • Stakeholders should stay informed about the evolving regulatory landscape to adapt strategies accordingly.