The 2017 Budget Law provides for the establishment of a fund to support collective bargaining agreements in public administration (in line with the Government-Trade unions agreement of 30 November 2016)[1], new recruitments in State administration and the allocation of personnel resources to the Police forces, the National Fire Department, and the Armed Forces. The fund amounts to a sum of 1.48 milliard for 2017, plus 1.93 milliard with effect from 2018, for an overall total of 3.71 milliard Euros for the two-year period. In addition, local authorities should also participate with their own resources, most likely for another 1.59 milliard from Regions, and local and health authorities. Not much is known about the actual allocation of the assets, but a few alternative assumptions can be inferred from the two priority goals outlined in the law, i.e.: all the resources will be used to hire new personnel or to increase salaries, the salary improvements will be distributed among all employees or only to fulfil the targeted (and much talked about) increase of 85 Euros. In general, it may be said that the amount involved in the measure points to a radical change. Clearly, should the fund be used to create new jobs, the number of public servants would return to the level of four or five years ago, whereas in case the target of 85 Euros had to be maintained, it would not be sufficient for all employees. Ultimately, the practical implementation of the manoeuvre opens many questions, for example about the possibility of using financial resources from local authorities.
[1] The latest renewal of public administration contracts dates back to 2009. The 30 November agreement followed from a sentence of the Constitutional Court (24 June 2015) that ruled unconstitutional and illegitimate the blocking of public service contracts established by Decree-Law 37/2010.
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