Models of Regulation for Transport Services in the European Liberalized Market: Local Public Transporti in Italy

Public transport is a fundamental factor in the service market, characterized by a structural imbalance due to misalignment between satisfying requirements of supply (accessibility and pricing) and cost of activities. They are services mainly directed to satisfy the mobility needs of citizens and (general) objectives of territorial cohesion; thus, they must be provided also when supply conditions generate significant diseconomies. For this reason, historically, in all European countries, there has been a pervasive intervention of public authorities in this economic sector, culminating in a public monopolistic management of the services or in endemic financial support of business activities subject to public service obligations. The European liberalization of transport services, which since the end of the last century has involved all transportation modes of goods and passengers, led to general changes in public intervention models that is evident in the area of national network services (railways), and in regional and local transport; in these areas, however, the application of competitive policies without first “creating” market dynamics, ensuring fair access to (and use of) infrastructure and basic amenities to production is not possible. In Italy, a comprehensive reform of local public services took place with Legislative Decree. NO. 422, 19 November 1997, implementing law 1997, n. 59, as amended several times. The paper deals with the new legislative asset of the local transport services market in Italy, with special reference to application issues, as have emerged in the twenty years of its adoption; above all, in the implementation of the fundamental principles of the reform: the gradual opening of the sector to competition, through divestment of direct management and the start of tender procedures for the award of services; the separation between the exercise of administrative functions, to the task of the public sector, and the operating service which is entrusted to market operators. Particular attention is paid to the role played in the process of liberalization and regulation by those called to exercise independent administrative functions (such as the newly instituted National Authority of Regulation of Transport - ART), and the analysis of efficiency results, considering new regulations regarding the legal relationship between administration and managers (public service contract), also in the light of elements of conflict between the public sector, the operator and the users, which have emerged in numerous court rulings.