This session focused on the crucial role played by infrastructure in any given country’s economic development. It was observed that an adequate endowment of tangible infrastructure is a necessary prerequisite for competing in the global market, and that boosting infrastructure levels is an undeniable priority both for Italy and for Europe. The question of trans-European infrastructure is especially gaining increasing importance. This is particularly so at a time when, as a result also of the accession to the EU of new member states, the way has been paved for the creation of a “second generation” of infrastructure networks related chiefly – though not exclusively – to transport, which needs to be up to the challenge of supporting the development of a European internal market that will soon number more than 500 million citizens.
In light of these considerations, the European Union has set itself the goal of developing a “core network” of infrastructure in pursuit of at least four main priority objectives, namely: improving competitiveness, to be understood as the development of an infrastructure network capable, in a global market, of attracting investment and resources that adequately underpin the economic development of the area; maintaining and strengthening both social and economic cohesion; ensuring ecological and environmental sustainability; and promoting and safeguarding the free flow of people, goods and services as well as safety and security. Within the framework of these four objectives, the role of European institutions will need to change to one of actively coordinating efforts with a focus on creating and managing a limited number of strategic “infrastructure corridors”. This would enable decision-making processes to be streamlined, the measures that need to be adopted by the various states involved to be synchronized, and projects to be directly financed through a mix of national and European resources.
With regards to the financing of infrastructure, the participants highlighted that in the wake of the financial crisis and given the slow economic recovery, both Italy and other European countries have a reduced ability to draw on budgetary resources for these purposes. It is thus essential to come up with new ways of encouraging – as well as facilitating a greater involvement of – private investment. Moreover, it was stressed that there is an abundance of liquidity available at present on international financial markets, and no shortage of institutional vehicles and investors searching for investment options that have risk-return profiles and medium-to-long-term investment horizons consistent with the financing needs of tangible infrastructure. There is consequently a need to identify optimal combinations of various forms of financing, but also to create conditions that make investment in infrastructure attractive to private investors. Such conditions include, in particular, the existence of clear rules and reliable partners, the adjustment of fares and other charges within socially sustainable levels but which ensure adequate returns to investors, and a consistent and clear allocation of risks as between the public and private sectors.
It was stressed, however, that the crucial element remains that of sound governance of decision-making processes and the existence of accountability mechanisms for the planning and construction of infrastructure. Indeed, the execution of infrastructure works is, by its very nature, made complex by the diverse range of actors involved in and the fragmentation of decision-making. This often leads to a lack of certainty in terms of timeframes and cost control, with the corollary effect of compromising industrial strategies and deterring the involvement of private investors. The participants thus pointed to a need to rationalize and streamline decision-making processes relating to infrastructure choices, not by centralizing decisions, but rather by ensuring that decisions are taken at the most appropriate level for projects, depending on whether they have a European, national, or regional strategic significance. In conclusion, the participants emphasized that making decisions also entails taking responsibility for planned works, and should necessitate efforts being made to build public support for infrastructure projects. In this regard, there is a need to devise new models of local community participation to guarantee that infrastructure works are completed on schedule, but also to foster better communication and greater awareness regarding the shared costs and benefits associated with infrastructure projects.