3.5.1.3. Contents

3.5.1.4. Financial resources

Expenditure of ITL 13,800 billion (ITL 2,125 billion for 1992, ITL 2,350 billion for 1993 and ITL 3,075 billion for 1994) has been approved to finance support for productive activities (Art. 1, § 1, Law 488/92).

The realisation of infrastructure projects at national or supra-regional level in economically dis-advantaged areas of Italy is performed by the authorities responsible on the basis of program-mes that require the approval of the Interministerial Economic Planning Committee (Comitato Inter-ministeriale per la Programmazione Economica - CIPE), whereby the regular financing of the sector in question is to be taken into account (Art. 7, § 1, Decree-Law 96/93) as set out in fiscal legislation (Art. 3c, § 1, Law 488/92).

Within the budgetary framework available to the CIPE, funds may be borrowed in order to implement "strategic investment projects in seriously underdeveloped areas"; the servicing of these debts (principal and interest repayments) will be assumed by the central government budget. The loan agreements are to be reached with financial institutions named by the Treasury in agreement with the Ministry of Finance and Economic Planning. An overall financial volume of ITL 10,000 billion is planned, distributed as follows: ITL 3,000 billion each for the years 1992, 1993 and 1994, and ITL 1,000 billion for 1995 (Law 488/92, Art. 1, § 8). The infrastructure and "strategic" projects mentioned above may be financed by the European Structural Fund (Decree-Law 96/93, Art. 7, § 3).

3.5.1.5. Institutional support

On 15.4.1993 the special assistance to the Mezzogiorno expired (Art. 1 of Decree-Law 96/93); the department providing special aid to the Mezzogiorno and the Development Promotion Office in the Mezzogiorno (cf. Institutional support in BIR 1992) were wound up in 1992 (Art. 2, Law 488/92). The responsibilities of these bodies were transferred to the Ministry of Finance and Economic Planning and to the Ministry of Industry, Trade and Crafts. The latter Ministry, in particular, is responsible for technical and administrative implementation and for supervising the granting of assistance for productive activities. The Ministry of Industry takes a decision, in line with the criteria elaborated jointly with the CIPE, on the application made by a company seeking support.

The Ministry of Finance is responsible for supporting productive activities that are the subject of so-called "programme contracts" or "programme agreements".

3.5.1.6. Duration

Because the conversion of special support for the Mezzogiorno to generalised support for all regions of Italy suffering from economic depression is still in progress, this policy area has so far (February 1995) been regulated on a provisional basis by decree

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