Address by Antonio Bassolino, President of the Campania Region

The productive exchanges here over the past two days prompt me to share a few summary reflections with you − whom, by the way, I would like to thank - the EC, the Minister and all our guests - for being here in Naples.

A few thoughts arising out of the very productive discussion on the territorial employment pacts (TEPs). Mr Versace highlighted the divergent experience with Italy’s pacts, which are regulated by a national law, and the European Community’s. And indeed, in a country like Italy, especially here in the south, we have had, and have, experience of a multitude of different pacts. But one thing has already been achieved: through the TEPs, and the other instruments for planned negotiation instruments at local level, a new relationship has bee n forged with that local level. The key players in this relationship have been the mayors, a new generation of local administrators and the social partners (unions and employers). And this experience with the TEPs is pointing the way, I believe, to the kind of federalism that needs to be developed in Italy, especially in the south.

Federalism is a hot topic in Italy right now. My own view is that in a country like ours, and especially in the south, federalism has to be regional − and communal. For the communes are the embodiment of the country’s long history; they are the most firmly established level of administration, and that closest to the public; and they are the first, most local manifestation of statehood. A just federalism in Italy has to be based on a balance between regions and communes: regions that are capable of planning and enacting quality legislation - acting as the “directors”, as it were, of planning and development - and communes with primary, key responsibility for administering at local level. My idea is, basically, for a kind of self-government in the South − a federalism capable of making the most out of the experience of communes and local entities and founded on a new empowerment of our regions.

This means major changes - particularly, I believe, in the regions’ perception of the communes and local bodies. The TEP experience has been a significant one, but undoubtedly in recent years both the “regional state” and central government have always regarded the activities of the communes and local ruling classes with a sort of mistrust. This, I believe, has to be overcome, and we have to make a serious, major investment in the local classes, first and foremost the ruling classes of the communes because that is where the battle will be won. We need the courage to go all the way with devolution − or “decentramento” as we call it in Italy. The concept needs to be properly understood. It cannot be a matter between State and regions - indeed we should be very wary of the risk of a new regional centralism, particularly given the realities here in the South where regional centralism has been a very strong force since 1970. True “decentramento” means going all the way toward the first local manifestation of government, i.e. the commune administrations. What we need is not mistrust, but courage in making decisions and courage to go all the way.

Against this background, we need now, I believe, to take further steps forward with the TEPs in Italy − the past two days’ discussions of the Campania and the Mezzogiorno pacts showing, it is fair to say, that a first step forwards has already been made. For in fixing criteria for the new invitation to tender under Law No. 488 (on industrial incentive), for the first time we make it a clear priority to reward those areas with territorial pacts, local contracts, industrial zones. We make a clear choice, in other words, to reward planned negotiating instruments at local level, i.e. the communes and social partners that are organised on the ground. This I see as the first step of a new phase.

A further step forward needed, in my view, is to successfully transform the two Community pacts in Campania (Agro Nocerino Sarnese and north-eastern Naples) into true local development agencies. This process has begun: we need to consolidate it, institutionalise it, for it can help us in attracting that investment that is vital in a to regions and communes. I believe we must also gradually transform the other territorial pacts (those falling under Italian national law) into real, investment-attracting local development agencies.

A third step forward that we can and must make is administering the regional operational programme (ROP) and the programme complements. We in the regional government have in the past few days approved the updated version of the ROP, taking account of the European Commission’s observations. Now our ROP is being examined: I hope it can be approved in the next days. Meantime we are working - even before formal approval of the ROP - on the programme complements. Our ROP proposes to assign 40% of the Community resources to the integrated territorial programmes (ITPs). I think this is the right choice. We need to make it practicable by transforming the various planned negotiating instruments at local level into ITPs, precisely in order to make best use of all resources “on the ground” and to consolidate an operating practice which, in my view, should be along the following lines: the locality proposes; the region co-ordinates, plans, selects and offers an overall reference framework; the locality that proposed then administers - via the pacts, i.e. via the planned negotiating instruments.

This also means the clear assumption of responsibilities. Again, not mistrust but full assumption at every level of the Italian State of the principle of responsibility. It is the locality that administers and must administer all the way. The region has the further job of verifying and monitoring. And - additionally - of applying a mechanism for rewarding and penalising − just as the EC does at present, and must continue to do, with us: rewarding and penalising.

Regarding such a mechanism, I agree with the speakers of Workshop No. 4 that it is right that equal opportunities and equality of opportunity be rewarded. This to help make, in Italy and especially in the Mezzogiorno, those steps forward in the area of employment and equal opportunity that are vital in order to be at the heart of Europe’s employment strategy.

Lastly, I would remind myself and all of us that in this TEP strategy, the right qualitative and quantitative use of Community funds is going to be a real challenge in the next years. This process begins at a time when the Italian and European economies are - finally, one might say - enjoying more sustained growth, and can realistically aim at a 3% growth rate. It should be the aim of all Italy’s ruling class, I believe, to make that rate stable and sustained for a number of consecutive years, for only such a rate, combined with fair and judicious use of European funds and the necessary steps forward in the territorial pact strategy, will let us really turn things round in the area of employment. 2 The two great weaknesses of recent years - I mean both of the south and of the country as a whole - have been, first and foremost, the difficulty - in the past, even impossibility - of using the European funds and, secondly, that extremely low growth rate. This has stood at about 1% in Italy for nine years now, which makes it extraordinary, as we all appreciate, that even a minimal 1% employment rate could be achieved in the past year (with the number in jobs even growing in the south). We are all, nevertheless, aware that it is only with a growth rate of at least 3% per annum, and for a number of consecutive years, only with that sort of quantitative and qualitative growth allied with local negotiating and the use of the Structural Funds, that we will see that quality leap in employment on the ground that can change the future of southern and national society.

It is toward these goals that we intend, and need, to move all together.

Thanking you all again for your presence in Naples over the past two days.

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