A compensation measure for companies experiencing problems caused by the unsustainable increase in the price of materials

The Italian Parliament recently approved the so-called "Sostegni bis” law-decree designed to help businesses cope with the unprecedented increases in the prices of some of the main building materials, as requested by Ance. The measure allowed us to breathe a sigh of relief for the first time after months of concern and non-stop pressure on the lawmakers. The Government and Parliament heeded our appeals and introduced a compensation measure for companies experiencing troubles caused by the unsustainable rise in material costs. These disproportionate increases primarily concerned iron-steel for rebars, which leapt up by 230% from November 2020 to June 2021, in addition to polyethylene, copper, wood and bitumen. The law-decree requires the Italian Ministry of Infrastructure and Sustainable Mobility to record any percentage changes of prices above 8%, either upwards or downwards, to avoid any unexpected new surges from putting operative continuity in peril. The threat is serious and very real. As Ance, we were the first to draw attention to the issue calling for immediate and energetic actions to be taken to acknowledge the increases and set up a fund to support companies that cannot – and must not – bear the full brunt of the increases. The lawmakers followed our cue on this matter as well.

The measure establishes a specific fund for price adjustments earmarking a budget of € 100 million. These vital compensation mechanisms put Italy on the same level as European competitors that are already benefiting from compensation measures in their respective legislations. However, the battle is not over yet. We must continue to monitor the progress of the measure closely until it is operational and able to provide due compensation to companies. We will insist that the compensation measures be extended to all other private-owned construction companies, including those involved in rebuilding earthquake-stricken areas, which are a prime driving force for economic recovery and urban area requalification.

The Parliament has already put the discussion of these matters on the agenda. This is encouraging but the words must be turned into a real instrument.
The country cannot risk grinding to a halt on the Recovery and Resilience Plan roadmap. Businesses and institutions must team up to make sure that the goal of restarting the economy is not missed.

by Gabriele Buia, President of Ance
Build UP! n. 33 - September 2021, magazine di BigMat Italia: A leading group of Outlets in Italy and Europe for the distribution of construction, refurbishment and renovation materials.