The Bolkestein Directive and Beach Concessions’ Holders: An Endless Italian Summer Saga

At the same time, the national government is struggling in vain to reach an agreement with the European Commission and prevent the full application of EU laws, in particular the Services Directive. It emphasises the need for open competition in the services market, including in the beach sector.

Against this backdrop, the Commission has already initiated two infringement proceedings against Italy since 2009. Nevertheless, several Italian governments have repeatedly tried to circumvent competition-friendly reforms and have even increased the number of concessions. To date, a total of 12,166 beach concessions have been awarded in Italy, each with an average annual turnover of €260,000.

According to a study by the Centres for European Policy Network (cep), mafia organisations even run this business in some parts of the country and use the revenue to launder money. "Their interest is based on the extremely lucrative profits that can be made thanks to the low cost of state licences and the opportunity to launder black money," explains cep economist Eleonora Poli, who worked on the study with Costanza Galletto.

"The current unclear legal framework could lead to a revolution on the Italian coasts," says Eleonora Poli. As EU laws have to be applied, beach concessions in Italy have been declared expired by judgements of Italian courts. Despite this, the licence holders are continuing their business as usual. However, in light of the court rulings, more and more civil society organisations, politicians and even ordinary citizens are starting to gain access to these beaches and are refusing to pay fees.