EU and economic development are pillars of government plans

On the one hand, the Association Agreement with the EU is the background for many regulatory interventions, it is necessary to “maximize the opportunities” offered by the new integration into the single market, on the other hand, internal reforms and solutions to problems that have been recognized over time (not related to Europe) that “best express the potential of our country and our citizens”. This is the idea that accompanies the government program presented in recent days, which will be formalized and voted on by the members of the new State Parliament on July 22, but above all, the efforts of all the parties of this new, unprecedented majority must converge not from the polls, but from the agreement reached after the first round of the two coalitions (composed in turn of the two lists). Thus, just as the development of the common program has four “areas” of action, there are four “souls”: institutional, economic, social and environmental. Some signs are easily traceable to those who want them, while others are transversal, two in particular: economic development and housing policy. Transversal to the parties and other interventions: economic development, for example, is not only about businesses and workers, but also about the maintenance of the welfare state and the ability to reduce the burden of public debt contracted on the market in recent years. years. On the other hand, the theme of “home” is not just about planning the construction of new solutions for the people of San Marino (especially young people who cannot accept the excessive price increases compared to their income), because it directly affects specific drivers such as construction (which has been exceptionally stagnant for many years, first affected by external and internal crises, see the resulting problem of non-performing loans, then the lack of modern urban planning tools), and because it also indirectly affects the entire economy, since even entrepreneurs and managers need a roof over their heads. It is in this sense that “the majority agreed to give priority to the overall reform of housing, which will allow us to think concretely to address and provide solutions to the housing problem. The review of the mechanism for granting economic and professional residence permits, taking into account associations, without affecting cases of a purely social nature (reunification, parental permits, humanitarian permits, etc.), is particularly important and needs to be reflected upon. The agreement aims to focus on attractiveness for investors and the professionalism required by the Republic, without creating distortionary effects on the real estate market and the public service system in general”.

Another objective specified several times is that of reputation, which must characterize every intervention: “It will be essential to continue to increase credibility and recognition at the international level, to continue to avoid opaque practices, to increase transparency in our management and conditions of legitimacy. The transition from the closure of 2008-2010 to openness and international accreditation, completed today through the agreement with the DE, was made possible precisely by moving away from the policies that led to the isolation of our country, both at the international level and with neighboring Italy”.

Economy: From the EU to combined heat and power

With the ratification of the agreement, San Marino will be fully integrated into the European single market, which in itself is a new set of rules that businesses have been waiting for some time, based on the principles that the government has finally decided to share: “Free competition, consumer protection and the right framework for state aid will be the beacons that guide the necessary reforms”, the plan reads. But more specifically, the new government also aims to overcome the “political/discretionary mechanisms” of the PA in favor of “administrative procedures that facilitate the creation of new businesses or the development of existing ones”. A small revolution, one might say. The same goes for the introduction of VAT: “It is necessary to introduce a system of Value Added Tax (VAT) that takes into account the particularities of the San Marino economic system. Therefore, in this context, special attention must be paid to preserving the competitiveness of small and medium-sized enterprises. In this regard, it is of utmost importance to implement a system that, in dialogue with the European system, can facilitate online trade and regulate the taxation of certain products. In addition, a strict system of price and tariff controls must be introduced to prevent the occurrence of foreseeable speculation and price increases”.

Once again, the decision on VAT is different from the other interventions. But it is an inevitable process, easily understood even if not mentioned, and part of overcoming T2 (which, as we all know, does not happen after signing the agreement, but requires other steps), another important topic that affects all San Marino companies.

As many are interested in industrial CHP, the plan explicitly states: “We will work on the efficient application of CHP systems and determine for companies appropriate forms of entry into the free market in order to increase the possibilities of cost minimization based on a changing reference context”.

Energy policy and new infrastructure

The issue of combined heat and power is part of the country’s energy problem and the new government seems to be very clear about this: “We believe that infrastructure investments in the field of alternative energies must be made in order to reduce dependence on market dynamics and obtain competitive profits at the price of energy products. Using photovoltaic power to its full potential and combining this source of supply with production plants based on the most modern technologies and with zero environmental impact, under the logic of a total energy community, will be able to guarantee important benefits for businesses and the budgets of families”. Much of this commitment will also be invested in water resources: “One of the challenges that can no longer be postponed will be the progressive rationalization of water resources and the commitment to infrastructure investments that can guarantee greater autonomy in water supply, while also valuing the ancient springs for agricultural, wildlife, environmental, tourist and historical purposes”. They admit that “waste management and the system of separate collection have not yet been fully resolved” and that “it will still require the adaptation of the legislature to the needs of our country. Even if the obstacles arising from San Marino’s third-party position, which currently have a negative impact on us in the waste sector, are overcome, it will help to simplify its recovery and treatment procedures, thus obtaining economic advantages in terms of reduced management costs”.

But the issue of infrastructure (energy production, water collection, waste storage and treatment) is also a territorial planning issue, and the new government team assures that “land management requires balance and pragmatism, overcoming ideological conflicts”. Here the reference is to construction, but the concept applies to all interventions. This is even more true in the construction sector, where, however, it is not certain whether the new PRG will be reached as in previous projects: “The majority will assess whether to propose new territorial planning instruments, or rather, sectoral interventions, but still with a clear master plan to be implemented over the next decade”.

They warned that “in any case, urban planning must take into account the integral and sustainable development of the territory, including the human, environmental, social and economic dimensions. In the general framework of the issues that this territorial planning must address, the conservation and valorization of historic centres, which constitute a valuable and irreplaceable heritage of our Republic, and the implementation of a policy of restoration and urban transformation of built buildings. Areas that are unused and present in strategic areas of the country deserve special attention. In addition, in this legislature, a strategic infrastructure investment plan will be updated and implemented, including hospitals, with a focus on sustainable development and financed by diversified public and private sources, to help strengthen San Marino’s long-term competitiveness. In addition to this, it is necessary to upgrade the existing infrastructure, ensuring modern standards in terms of efficiency, safety and sustainability. From this perspective, it is important to develop projects that are in line with the Sustainable Development Goals proposed in the 2030 Agenda, taking as a useful basis the National Sustainable Development Strategy plan of the Republic of San Marino, and in particular the interventions adopted by the Grand Council to combat and adapt to climate change. Still within the scope of the commitments of the 2030 Agenda and the provisions of the EU Joint Agreement on Climate Change, and taking into account the serious fragility shown by our system for dealing with the energy crisis, the question of reducing dependence on external sources of water and energy is raised. It is immediately necessary to develop a strategic plan for electricity and water supply, both through investments in renewable energy sources within and outside the Republic and verifying the real possibility of building infrastructure for the capture and accumulation of water resources “.

But what are the other “strategic works”? One small section mentions: “The main cultural, social, tourist, economic and commercial development project will be the creation of the new museum complex. The aim of this project is to transform the current Cassa di Risparmio di San Marino (which will therefore be purchased by the State?) into a new museum space that will serve as a “hub” connecting the National Museum, the National Museum of Art, the Modern and Contemporary Gallery and the two decommissioned water tanks under Piazza Liberty”.

Another commitment was that “the airport must be completed with runway lengthening and asphalt paving, opening a window for tourism and aircraft business, taking into account the letter of intent that has been given attention by the government”.

In addition to this, “the majority intends to quickly proceed with the design and start-up of a railway line from Borgo to Cita, to facilitate routes to and from the historic centre”.

“Finally, without further delay”, the majority of political forces announced, “all efforts must be focused on the design, financing and construction of the new public state hospital, which requires a structure adequate to the new design regulations to prevent – for such a strategic structure of the state – seismic conditions and maximum safety”.