ITALY: An Introduction to Public Law
State of Play in Italy
Following the wave of European policies in the energy and environmental sectors and driven by the need to modernise the legal framework to adapt to the challenges posed by the Recovery Fund, in 2024 the Italian public sector underwent several substantial normative changes.
After implementing a new Code of Public Local Services in 2022, the new Public Procurement Code was issued and subsequently modified by the government by an Act dated 31 December 2024. A new Consolidated Act on Renewable Energy Sources was also issued, accelerating the process towards a green transition.
Other areas of public law, including healthcare, also saw notable reforms, reflecting a broader effort to modernise the entire public sector.
The developments also concern instruments and methods available to public authorities. The Recovery Fund is contributing to the development of a Digital Government, enhancing the use of technology and digital solutions for both public offices and citizens. Digital citizenship, the development of a National Data Platform, the implementation of a Single Digital Gateway, the increase in access to services, also through the extension of the fibre network, and the institution of bodies entrusted with cybersecurity, are just a few examples of the continuing evolution towards an interoperable, connected and smart bureaucracy.
Key Sectors
Energy
The Italian Energy Law sector has undergone a much-anticipated reform with the introduction of the Consolidated Act on Renewable Energy Sources (RES) (Legislative Decree No 190/2024). This Act aims to advance the European goal of maximising the deployment of power generation plants by streamlining Italy’s regulatory framework and elevating the public utility of RES power generation plants, granting these initiatives enhanced significance when weighed against competing interests.
At its core, the Act provides a detailed and cohesive structure for permitting procedures. The well-established permitting procedures (ie, “free activity regime”, “simplified administrative procedure” and “single authorisation”) for building new plants and associated infrastructure, upgrading existing ones, or carrying out ancillary works, have been comprehensively detailed in three different annexes, ensuring alignment with the regulations on environmental assessments.
On the one hand, the RES Act did not establish specific and binding criteria for the administration to assess the interests at stake, granting the public administration considerable discretion in permitting procedures. On the other hand, economic operators and investors in the renewable energy sector now benefit from a clearer and more accessible set of applicable rules, ensuring greater adherence to the principle of legal certainty.
From a practical perspective, the Act addresses the so-called simplified administrative procedure, reducing the time available for public authorities to revoke authorisation titles. This change ensures greater reliability for economic operators, fostering a more secure investment environment. However, the growing number of projects has led to frequent delays in meeting mandatory authorisation deadlines, increasing disputes over “failure by silence”.
Public procurement
The Italian public procurement system has undergone yet another change after the recent approval of the new Public Procurement Code in 2023. Legislative Decree No 209/2024 was issued on 31 December 2024, introducing significant modifications.
The proposed amendments follow three guidelines: (i) correction of material errors, typos and textual misalignments; (ii) clarifications to the legal text, supplementing certain institutions or filling regulatory gaps highlighted by associations and operators; and (iii) changes to some significant institutions, as a result of critical issues highlighted in the first implementation phase of the Code.
The main areas of intervention regarded: fair remuneration of workers employed by the contractors; digitalisation and BIM (Building Information Modelling) implementation; specialisation of contracting authorities; price revisions; and SMEs’ protection and promotion.
Notably, the execution phase of contracts has received particular attention, with collaborative contracts being acknowledged as a best practice, aligning Italy’s approach with international standards. Additionally, the rules on project financing have been amended to enhance efficiency and clarity in concession contracts.
Environment
The Italian Environmental Code has recently been modified. Among the most interesting changes is the priority, in terms of the environmental screening procedure, given to projects relating to hydrogen-based plants, renovation of solar and wind-powered systems and those identified by the competent ministries by decree.
Moreover, measures to simplify and accelerate the asbestos decontamination procedures have been approved, especially for cases without a recognised guilty party, which are more frequently at risk of delays.
Recognising the widespread threat of hydrological instability across Italy, a national register has been created to monitor the situation nationwide. New deadlines and funding have also been allocated for the most critical areas.
Lastly, it is important to mention the significant impact that some European legislation will have on the sector, including Directive (EU) 2024/1203 recasting the EU system on the protection of the environment through criminal law; Regulation (EU) 2024/1157 on the shipment of waste; Directive (EU) 2024/1785 amending the directive on industrial emissions; Directive (EU) 2024/1275 on the energy performance of buildings; and Regulation (EU) 2024/1991 on ecological restoration procedures.
Real estate
Legislative Decree N. 69/2024, widely referred to as the “Salvacasa [house saver] Decree” has been converted into binding law (No 105/2024). This legislation aims to ease regulatory constraints on housing construction, addressing the pressing need for residential space, particularly in major cities.
For example, it is now easier to convert attic spaces, provided they comply with existing construction permits. Bureaucracy has been reduced for minor works such as the installation of sun awnings and the elimination of architectural barriers, which can now be implemented without a construction permit. Furthermore, when regularising unauthorised construction, it is now sufficient for the work to comply with current regulations at the time of the amnesty request, rather than also having to comply with the rules in force at the time of construction, as was previously the case.
While these legislative changes have been introduced, it is important to note that the construction sector, having previously benefitted from state incentives, is currently experiencing regulatory uncertainty due to several investigations launched by public prosecutors regarding the interpretation of procedural rules. This has led to a downturn in key markets, including Milan’s real estate sector, which is the most economically important in Italy. Parliament is currently considering specific legislation to address these interpretative ambiguities.
Health
It is worth mentioning that the ongoing dispute between public administrations and Italian companies regarding the payback of a portion of revenues from public contracts for the supply of medical devices has entered a new phase.
In 2015, the Italian government enacted Law No 125/2015, introducing the possibility for regions to claim a payback from private companies if the maximum spending budget set by the government for medical devices was exceeded. However, these provisions remained unenforced for years until the COVID-19 pandemic caused a significant surge in public health spending in Italy. To manage the resulting strain on public finances, the government implemented these measures through various ministerial decrees, compelling private companies to reimburse a share of their revenue, effectively contributing on a pro-rata basis to covering the overspend.
Recently, the Italian Constitutional Court, through Judgment No 140/2024, upheld the legitimacy of the ministerial decrees, much to the disappointment of economic operators, which are now required to return a portion of their past revenues as a “solidarity surcharge” intended to support the national healthcare system.
Conclusion
The Italian public law sector is living in an unprecedented era of reform, guided by the principles of sustainability, energy transition, digitalisation, and regulatory simplification. The new norms have been well received by the market, which has welcomed the effort to streamline procedures and eliminate longstanding bureaucratic bottlenecks.
As a result, the legal profession faces a significant challenge to stay informed and adapt to the new procedures and tools. This, in turn, offers the potential for substantial improvements in the organisation and quality of legal services, leading to a transformation in the dynamics of the professional-client relationship.