Italy Prepares Infrastructure Decree to Reform Project Finance and Liquidity
New government decree aims to abolish project pre-emption rights and support construction firm liquidity.
1Upcoming Infrastructure Decree
The Italian government is set to discuss a long-awaited infrastructure decree on Monday, November 9. Minister Matteo Salvini confirmed the move following a Lega federal council meeting. This legislative package aims to address critical bottlenecks in the construction sector, specifically focusing on project financing regulations and immediate liquidity support for companies.
2Abolishing Pre-emption Rights
The decree will introduce significant changes to public-private partnerships, following a European Court of Justice ruling from February. A central pillar of this reform is the permanent prohibition of pre-emption rights for project promoters. This shift aims to align Italian procurement practices with European standards, ensuring greater transparency and competition in public tenders.
3Addressing Material Costs
Construction firms continue to struggle with the rising prices of steel and bitumen, a burden estimated at 1.4 billion euros for 2025. Industry leaders, including Ance president Antonio Ciucci, emphasize that these unpaid costs represent state debt toward private enterprises. The government is now seeking rapid solutions to mitigate these financial pressures.
4Liquidity Support Expansion
The government plans to extend liquidity measures originally introduced in July to include PNRR-funded projects. This mechanism allows contractors to suspend the recovery of advance payments, effectively keeping cash within the companies. By extending this provision beyond the current year, the state aims to provide essential breathing room for ongoing construction sites.
5Optimizing Public Spending
The Ministry of Infrastructure is actively reviewing the programming of various public works to recover spending margins. While the specific list of affected projects and the total volume of liberated resources remain undefined, the goal is to streamline operations. This fiscal recalibration is essential to balance the broader national budget requirements.
6Broader Political Agenda
Beyond infrastructure, the Lega party is pushing for pension reforms, specifically targeting a voluntary retirement age of 64 instead of 67. The party also advocates for a flat tax and increased military presence under the 'Safe Streets' program. These discussions occurred alongside debates on the upcoming national budget and fiscal priorities.
7Regulatory Oversight Concerns
Minister Salvini addressed questions regarding the potential incompatibility of Trifone Altieri’s role within the National Anti-Corruption Authority (ANAC). Concerns were raised about the intersection of his political affiliation with the Carroccio party and his leadership position at the independent authority. Salvini expressed confidence that all regulatory requirements are being met.
8Strategic Economic Impact
This decree represents a critical attempt to stabilize the Italian construction market against inflationary shocks and legal uncertainty. By removing outdated privileges and improving cash flow, the government hopes to prevent project stalls. The success of these measures will depend on the swift conversion of the decree into binding parliamentary law.