In the history of any country, there are phases where it is necessary to build and phases where wealth produced needs to be distributed. Italy, hit by the international crisis, finds itself in the former condition and aims to bolster its economy by building new infrastructure and, in the process, create jobs and facilitate the movement of people and goods.
In the last 20 years, international finance has prospered on American demand, in the belief that investments in the United States offered a greater return. Now that the “bubble” has burst, not only is reform of the financial system necessary, but so too is a change in the real economy.
Once these difficult months are over, the world will reflect a different distribution of purchasing power, with end-products targeted increasingly at the new major international economies once termed “emerging”. Efficient infrastructure capable of speeding up transport throughout the world will thus become an indispensable factor.
One of the European Union’s key goals is the construction of TEN, a network of superhighways, railways, seaports and airports, aimed at encouraging the freedom of movement of its inhabitants and products. EU funding, provided by the Commission and the EIB, has become a catalyst for investment by individual States and private operators (who were always wary given the financial returns lay too far in the future). This strategy for reviving the economy would seem to be reflected in the policies of the new American administration, which has announced the establishment of a National Infrastructure Reinvestment Bank, ready to finance public works to the tune of 60 billion dollars.
When, 50 years ago, Italy was equipped with a modern infrastructure network, those supporting the economic and planning drive were principally State-controlled companies and several banking institutions with high levels of technical expertise, such as the IMI (the Italian Institute for Financing Personal and Real Property). Today, the country has fewer organizations capable of managing a complete project-financing program, which covers financing as well as design, construction and management of works. The public administration seems to lack the necessary technical know-how to converse on equal terms with those involved in building infrastructure, whilst private operators are not large enough to deal with them.
Problems in the division of powers between the State and the Regions, excessive legislative restrictions and continuous appeals to TARs (Regional Administrative Courts) by communities from areas affected all contribute to slowing down – if not bringing to a standstill – the building of infrastructure. As a result, private operators shy away from backing such projects, for fear they will lose any capital invested.
Action is needed in the short term to ensure that the building of infrastructure acts as a countercyclical factor, with the aim of supporting industry and providing jobs. For this reason, it has been decided in Italy to finance strategic works that are at an advanced stage of planning. New Government Commissioner positions have been instituted with responsibility for overseeing works until their completion and, in order to raise the necessary capital, the direct involvement of the Cassa Depositi e Prestiti (a specialized lender to the Italian public sector) is envisaged.