Italian Government to save CIN with its ‘Recovery’ Decree-Law
The draft of the decree-law includes the extension of the agreement with the Ministry of Infrastructure and Transports by at least 12 months (and the consequent waiver of the collection of CIN’s 180 million payable to the Italian Government)
The recent draft of the ‘Recovery’ Decree-Law includes all the measures suggested by the Italian Ministry of Infrastructure and Transports, though being more cautious as concerns figures not covered for. However, the last article provides for the extension, “for a period not exceeding twelve months after the end of the state of emergency”, of the agreement between the Ministry of Infrastructure and Transports and CIN – Compagnia Italiana di Navigazione.
The decision is ascribed to coronavirus and to its effects, as they would distort the market analysis which the Ministry of Infrastructure and Transports should have started no later than 20 March 2019, when the Transport Authority formalized the necessary procedure to complete the new tender for maritime services ensuring territorial continuity. “Consequently, it is deemed appropriate to extend the current agreement until the conditions related to the supply and demand of services get back to normal, after the emergency and the normalisation of traffic flows”.
As a matter of fact, with such an absurd measure, the Italian government acknowledged that in the past 8 years it did not manage to rethink territorial continuity, and now that passenger traffics are suspended it decided to keep on spending 72 million euro provided by tax payers because it was not able to organize an emergency service. On top of that, CIN is a defaulting debtor of the Italian Government, which has been owing it 55 million euro for 4 years and 65 additional million since last year.
Finally, the extension will probably cause the Government (through the bad company Tirrenia and the Ministry of Economic Development which controls it) not to levy execution (through the compulsory disposal of its fleet) on CIN (to whose debt 60 additional million euro will be added in April 2021). Consequently, in 9 years the company will earn 650 million euro with ships that costed it 200 million.