ITALY: An Introduction to Public Law

State of Play in Italy 

Throughout 2023 and into 2024, as a result of upheavals in the global landscape, Italian public law was updated to address urgent requirements concerning energy supply, infrastructure, and urban development, placing particular emphasis on social and environmental issues.

New legal principles have been introduced in primary laws (i) to establish a more result-orientated exercise of public power that aims to efficiently pursue public interests, and (ii) to accentuate the importance of the mutual trust relationship between public authorities and citizens, which is built on the premise of the legitimate use of discretionary power.

These new indications are also intended to ease the procedures for the realization of the public works that are necessary for the post-pandemic reconstruction, as bolstered by the European Recovery Fund. In this regard, growing importance has been given to Public-Private Partnership (PPP) contracts and project financing procedures, which are considered the primary ways to promote strategic projects in clean energy, digitalisation and artificial intelligence, and mobility infrastructures.

The Legal Market Overview 

Urban law and construction 

With regard to urban law and construction, legal policies are increasingly focused on reusing space rather than consuming new land for construction. The concept of urban renovation is used to indicate policies that re-think the common spaces of towns in a more inclusive way, connecting the centre with the peripheries and providing services for the community.

Implementing this model involves considering entire areas of towns as ecosystems where the community can freely and easily meet their social needs.

The construction sector continues to benefit from the positive impacts of incentives for renovating existing buildings in an energy-efficient and socially sensitive manner.

Public procurement 

Recently, the public procurement system has undergone significant reform following the enactment of Legislative Decree 36/2023. This decree introduced notable changes, all corresponding to the objective of simplification and removal of goldplating. What prompted the change in the regulatory set-up was the experimentation of a regulation introduced first as a transitional one, in response Covid-19 pandemic, to allow for the fast conclusion of procedures, and then as an exception to the ordinary set-up.

In particular, it gives centrality to a number of general principles (including the widely recognised result principle, absent from the previous Code), establishes a more streamlined and user-friendly framework for both economic operators and administrations, and extends digitisation to the entire life cycle of procurement and public contracts.

Energy  

The sector of energy law in the European framework has been enhanced by the introduction of Renewable Energy Communities (RECs). This innovative tool aims to contribute to the achievement of the 2030 "de-carbonisation" goal established by European green policies.

In Italy, the regulatory framework for RECs was implemented by the Minister of the Environment and Energy Security's Decree on December 7, 2023, and operational guidelines detailed in the Directorial Decree published on February 23, 2024.

While RECs offer companies a means to reduce production costs, they also raise legal complexities regarding their establishment, stemming from the challenge of aligning Italian regulations with the non-profit nature of REC object.

Environment 

The increasing significance of environmental issues, particularly in terms of incorporating sustainable development into administrative actions and policies, is evidenced by the recent amendment of Articles 9 and 41 of the Italian Constitution. New policies and regulations are being implemented on a monthly basis regarding various ambits such as ecological restoration, air and water quality, soil pollution, impact assessments, and damage calculation.

Additionally, Italy is located in a critical region for climate change known as the "Mediterranean hot spot," and its territory has historically faced numerous natural hazards. Following international efforts to tackle this crisis and the increasingly frequent natural disasters experienced in recent years, the Ministry for the Environment and Energy Safety approved a National Plan for Climate Change Adaptation in 2023. This plan aims to provide national guidelines for implementing measures to minimize risks, improve the adjustment capabilities of economic and social systems and exploit possible opportunities related to the changing climate conditions. A governance system will be established to coordinate the different levels of administration and sectors involved in climate change adaptation efforts.

Waste management and soil remediation 

The latest update regarding environmental issues and waste management is the implementation of Law 18/2024, known as the “Decreto Milleproroghe”, which came into effect on February 29th. This law extends the deadline for compliance with the End of Waste criteria for inert waste by six months and includes measures for photovoltaic plants, fuel distribution plants, and waste produced by ships. Specifically, Article 12, paragraph 3 of this law extends the deadline for producers to comply with the End of Waste criteria for aggregates from construction and demolition from 6 to 12 months.

Additional updates are expected soon, as this regulation is closely tied to the upcoming publication of sector-specific guidelines. Within 180 days of its implementation, the Ministry of the Environment and Energy Security will need to evaluate whether a revision of the criteria for determining the cessation of waste status for inert waste is warranted, considering any relevant evidence that has emerged during the application phase.

Telecommunications  

A new and powerful telecommunications network model is gradually emerging to meet the growing needs for coverage, sustainability, speed, security, and processing capacity. This model is primarily based on the complementary use of the various access technologies of the fixed network, with fiber optics and PON (Passive Optical Networks) technologies, of the mobile and wireless network, with 5G and WIFI6 technologies, of the satellite network with LEO (Low Earth Orbit) technology constellations, and secondly on the capillary distribution of processing capacity both for the network functions themselves, and for the proximity processing of the multiple data collected by terminals and intelligent objects, and for the provision of innovative services to end customers. A distinctive feature of the new generation of networks is the prevalence of software and the increasing and pervasive use of artificial intelligence for the dynamic configuration and resilience of the networks themselves.

Health 

In the Italian health sector, there is a heated dispute between public administrations and companies that supply medical devices. Ministerial Decrees were adopted in 2022 requiring health companies to return to the Italian Regions as part of the consideration already obtained from agreements signed with public administrations for the supply of medical devices. These Ministerial Decrees have been challenged before the Italian Administrative Court by several health companies and a dispute is currently pending before the Constitutional Court, which will have to establish whether this regulation complies with Italian constitutional principles.

Sports 

The Italian sports sector is implementing recent regulatory reforms regarding sports employment and the modernisation and construction of sports facilities. The latter activity is key for the Italian scenario, with a growing trend expected in the coming years. Many sports clubs, particularly in the football sector have publicly announced plans to modernise and build new stadiums to ensure their sports facilities are on par with those in other European countries like England and Germany. This aspect is significant because Italian sports clubs must balance the need for cutting-edge facilities with the cultural value of existing stadiums, which often cannot be entirely rebuilt, allowing only certain upgrade works.

Mobility 

According to the European strategies for sustainable development, the goals of sustainable mobility are to ensure that transport systems correspond to social needs while reducing negative impacts on the environment.

New urban mobility methods are being implemented in Italy, which are modifying the way in which city communities experience their everyday life.

Electric scooters 

Post- COVID-19, electric scooters were introduced in the main Italian cities and the rules of their use were equated to those of bicycle ones.

The municipalities of the largest cities are currently activating increasingly sophisticated and extensive procedures to issue the mentioned permits.

Electric vertical take-off and landing (eVTOL) aircraft

Since 2020 Italy has developed a new air transport system that will allow the mobility of people and goods through electric vertical take-off and landing (“eVTOL”) aircraft.

These services will introduce a new idea of air mobility at urban, regional, and national levels and they will offer an alternative to land mobility, which is currently highly congested. They will also promote technological innovation and a transition towards more sustainable mobility systems in terms of time reduction travel, consumption, and pollutant emissions.

Studies have been initiated to conduct initial experiments related to major events such as the Jubilee 2025 in Rome and the 2026 Winter Olympics in Milan-Cortina. Concurrently, the Italian Civil Aviation Authority (ENAC) has commenced the process of adopting regulations concerning national requirements for aircraft with vertical take-off and landing capability (VCA), including their trajectories and infrastructure.

Conclusion 

Generally, the legal sector, especially the administrative field, is experiencing remarkable opportunities and market potential. There is an ever-increasing demand to equip the legal industry with the capability to align with current trends, enhancing its value through the introduction of new services, refining traditional ones, and innovating the professional-client relationship.