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GOVERNMENT REFORM IN ITALY

GOVERNMENT REFORM IN ITALY. Franco BASSANINI Ministro della Funzione Pubblica della Repubblica Italiana. The calls for Reform in the early nineties. No government-wide reforms since 1860 Islands of excellence in a sea of general inefficiency

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GOVERNMENT REFORM IN ITALY

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  1. GOVERNMENT REFORMIN ITALY Franco BASSANINI Ministro della Funzione Pubblica della Repubblica Italiana F. Bassanini Government Reform in Italy

  2. The calls for Reformin the early nineties • No government-wide reforms since 1860 • Islands of excellence in a sea of general inefficiency • Crucial need to balance the budget and reduce public debt F. Bassanini Government Reform in Italy

  3. The calls for ReformPublic debt (% of GDP) F. Bassanini Government Reform in Italy Source: Italy - Ministry of the Treasury

  4. Consensus on Reform • Public • Businesses • Labor • Parliament F. Bassanini Government Reform in Italy

  5. The Tools of Reform • The main “legge delega” n. 59 of 1997: Parliament gives Government the power to legislate in defined areas, pursuant to the principles set by the law • The “delegificazione” mechanism: substituting primary laws with Government decrees in two main sectors: administrative procedures and organization of public offices F. Bassanini Government Reform in Italy

  6. Regulatory Reform Devolution to Local Authorities Reorganization of Central Government Civil Service Reform Performance-oriented public sector management The new Public Budgeting A more transparent and comprehensible Government e-Government The Areas of Reform F. Bassanini Government Reform in Italy

  7. Regulatory Reform1 - the problems • Regulatory inflation: over 35,000 primary laws • Regulatory costs: unnecessary burdens on the public, on businesses and even on the public administrations • Regulatory pollution: ambiguity, contradictions, overlap, layers of rules F. Bassanini Government Reform in Italy

  8. Regulatory Reform2 - the Simplification strategy • Reducing red tape: a broad strategy of “delegificazione”, deregulation and simplification - more than 180 procedures to be abolished or streamlined, downgrading the level of regulation - annual “simplification laws” • Simplification tools (examples): - notification - self-declarations - reduction of the number of public Authorities involved in a procedure - fixed terms to end a procedure - use of “silent consent” mechanism - “conferenza di servizi” (combined services conference) F. Bassanini Government Reform in Italy

  9. Regulatory Reform3 - other Better Regulation tools • Codification • Regulatory Impact Analysis • Consultation: the new “Osservatorio per la semplificazione” (Advisory Body on Simplification) F. Bassanini Government Reform in Italy

  10. Regulatory Reform4 - the structures • The Legislative Department in the Prime Minister’s Office: a stronger coordination of each Ministry’s regulatory activity • The new “Regulatory Simplification Unit”: a Central Government specialized Office, exclusively monitoring “regulatory quality” F. Bassanini Government Reform in Italy

  11. Regulatory Reform5 - the example of the “One Stop Shop for Business” • Since 1999 a single procedure to start up a new business, replacing 43 authorizations previously needed • Before: 2-5 years to get a final answer Now: normally no more than 3 months, max 11 months • The “conferenza di servizi”: a system to bring together in a single forum all the public Authorities involved in a procedure • The leading role of the Municipality. A new relationship “Municipalities-SME” • An e-structure F. Bassanini Government Reform in Italy

  12. Regulatory Reform6 - the international context • Need for coordination at EU level • OECD Regulatory Reform Reviews F. Bassanini Government Reform in Italy

  13. Devolution1 – Reconsidering Government’s tasks • Rethinking Government’s tasks: focus on core-business • The so-called “administrative federalism” F. Bassanini Government Reform in Italy

  14. Devolution2 - “horizontal subsidiarity” • Closing unnecessary activities • Outsourcing and/or privatization of activities that can be more efficiently undertaken by the private sector (business and non-profits) • Liberalization of public utilities F. Bassanini Government Reform in Italy

  15. Devolution3 - “vertical subsidiarity” • Mandatory list of State tasks • Transferring all other tasks to Authorities nearest to citizens and businesses. Local Authorities play an active role in civil and economic growth • Years 1997-1998: identification of tasks to be transferred from central to local Government (Regions, Provinces, Municipalities) • Years 1999-2000: devolution of tasks together with related human and financial resources F. Bassanini Government Reform in Italy

  16. Reorganization ofCentral Government1 - the general strategy • The first government-wide Reform since 1860: a system up to now grown by “adding layers” • Merging bodies with similar missions; eliminating duplication and segmentation • Reducing the Ministries from 22 (in 1995) to 18 (now) to 12 (in April 2001) • Functions assigned by law; internal organization established by secondary regulation F. Bassanini Government Reform in Italy

  17. Reorganization ofCentral Government2 - reform of the Office of the Prime Minister • Transferring executive tasks to “sector” administrations • Making the roles of stimulating, guiding and coordinating more effective • Additional specific responsibilities: reforms, regulation, P.A., dialogue with supra- and intra- national Authorities (EU, Regions, Municipalities) • A slimmer but stronger (and more flexible) structure F. Bassanini Government Reform in Italy

  18. Reorganization ofCentral Government3 - from 18 to 12 Ministries F. Bassanini Government Reform in Italy

  19. Reorganization ofCentral Government4 - from 18 to 12 Ministries F. Bassanini Government Reform in Italy

  20. Reorganization ofCentral Government5 - from 18 to 12 Ministries F. Bassanini Government Reform in Italy

  21. Reorganization ofCentral Government6 - from 18 to 12 Ministries F. Bassanini Government Reform in Italy

  22. Reorganization ofCentral Government7 - Other Reform parts • “Junior” Ministers (e.g.: Foreign Trade, Health) • “Agenzie”: non-ministerial bodies with technical and executive tasks • “Central Government Local Offices”: the “aircraft carrier” model • A more flexible, “delegislated”, internal organization: from the traditional “pyramid model” to Departments F. Bassanini Government Reform in Italy

  23. Civil Service Reform1 - distinguishing Politics from Administration • “Politicians are responsible for Policies”: no more direct involvement in administration • Tasks of political Authority: defining policies and strategies; assessing results; appointing directors general • “Managers are responsible for Administration”: managers are given broader powers, higher salaries but also greater responsibilities (see next) F. Bassanini Government Reform in Italy

  24. Civil Service Reform2 - the “privatization” of Civil Service • Civil law for civil servants • Labor Contracts: since 1992-1993 collective bargaining (at national and local level) has progressively replaced law in determining employment conditions of civil servants. The “negoziazione integrativa”. • The ARAN: An Agency to represent the State in labor negotiations • Reform of labor representation • Jurisdiction for civil service disputes: since 1998 has moved from the Administrative to the Civil Courts F. Bassanini Government Reform in Italy

  25. Performance-orientedpublic sector management1 - the new approach • Before: a formal/juridical approach to government: compliance with laws and procedures without regard to quality and results • Now: a consumer-oriented approach - service quality and customer satisfaction - new performance control to complement traditional legal control - managers salaries vary depending on position and performance F. Bassanini Government Reform in Italy

  26. Performance-orientedpublic sector management2 - no more “jobs for life” • All managers will be appointed for a fixed term (2 to 7 years) • Managers may be removed for poor performance • 5% of all State managers may be chosen from outside the Civil Service F. Bassanini Government Reform in Italy

  27. Performance-orientedpublic sector management3- the new performance evaluation system • An annual definition of objectives • An Internal Audit Unit in every Ministry or Agency • Strategy and Performance Evaluation • A Central Unit for assessing policy and programme effectiveness • Database with Ministers’ directives and performance indicators • Public Service Charters • Towards quality standards and performance evaluation at European level F. Bassanini Government Reform in Italy

  28. The new Public Budgeting1 – from financial to economic budget • Before: a segmented spending model • Now: financial allocations matching each Ministry’s targets and responsibilities • Definition in terms of “economic function of expenditure”: clearer justification for spending F. Bassanini Government Reform in Italy

  29. The new Public Budgeting2 - new expenditure units • The “unità previsionali di base” - new basic budget units • Only one administrative office responsible for each basic unit • New economic budget showing the link between use of resources and achievements F. Bassanini Government Reform in Italy

  30. The new Public Budgeting3 - spending procedures • Drawing up the budget: no more traditional criteria of incremental spending • An effective cost analysis to back the annual finance law and the spending legislation • More effective constraints on Government expenditure bills and parliamentary amendments • New spending procedures F. Bassanini Government Reform in Italy

  31. A comprehensible Government • The “Manuale di stile” (Style Manual): a practical tool for employees involved in written communication • Simplifying administrative jargon: proposals for the standardization and simplification of the most common official forms • The Bill on “Institutional Communication” F. Bassanini Government Reform in Italy

  32. A transparentGovernment Since 1990 Administrative Procedure Law n. 241: access to administrative acts is the rule, secrecy is the exception F. Bassanini Government Reform in Italy

  33. e-Government • IT: the best resource for a step change in quality • Electronic signature • Electronic management of administrative documents, procedures and archives • Electronic ID card • An Single Administrative Network • The “Portale Unico”: a single gateway for public administrations • Towards electronic public procurements F. Bassanini Government Reform in Italy

  34. First Achievements • Reduction of deficit and public debt • Downsizing of the Government • Increased efficiency and effectiveness • Launch of innovation and simplification strategies • Reduction of certificates and bureaucratic formalities • Representation and transparency in labour negotiations F. Bassanini Government Reform in Italy

  35. First Achievements1- personnel cost (% of GDP) F. Bassanini Government Reform in Italy Source: OECD and Italy DPEF 2000-2003

  36. First Achievements2 - Public Administration deficit (% of GDP) F. Bassanini Government Reform in Italy Source: Italy - DPEF 2000-2003

  37. First Achievements3 - Public debt (% of GDP) F. Bassanini Government Reform in Italy Source: Italy - DPEF 2000-2003

  38. First Achievements4 - Public Administration revenues and primary expenditures (% of GDP) CURRENT REVENUES TOTAL PRIMARY EXPEND. F. Bassanini Government Reform in Italy Source: ISTAT and EU Commission

  39. First Achievements5 - Certificate decrease per year F. Bassanini Government Reform in Italy Source: Department of Public Function

  40. First Achievements6 - Certificate decrease in 17 cities : Jan/1996-Jan/2000 F. Bassanini Government Reform in Italy Source: Department of Public Function

  41. First Achievements7 - Certified signature decrease per year F. Bassanini Government Reform in Italy Source: Department of Public Function

  42. First Achievements8 – Reform knowledge Do you know Bassanini’s reform? F. Bassanini Government Reform in Italy Source: Department of Public Function

  43. First Achievements9 – Reform evaluation Has the Bassanini’s reform improved the functionality of the local government? F. Bassanini Government Reform in Italy Source: Unicab - Sole 24 Ore 6.3.2000

  44. The Future of the Reform • The crucial phase of implementation • Communication information sharing and involvement to maintain a general consensus on the Reform • Training to improve awareness among the main interpreters of the Reform: Regional and Local Government, public managers and employees • The “EURO example” Italy is a country capable of finding hidden human resources to face the most difficult tasks. The “Maastricht approach” F. Bassanini Government Reform in Italy

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