The new Automotive Fund has been ready for months, but the final approval has not yet arrived. The decree that should plan resources for the Italian automotive supply chain until 2030 is stuck at the Ministry of Economy, awaiting approval from the State General Accounting Department. A slowdown that worries companies and industry associations, while the transition to electric continues to put pressure on the sector.
THE DPCM PRESENTED ON JANUARY 30
The draft decree (Dpcm) was presented on January 30 by technicians from the Ministry of Enterprises, led by Adolfo Urso. The measure defines the multi-year programming of the Automotive Fund until 2030, with a total allocation of 1.6 billion euros.
WHAT IS THE AUTOMOTIVE FUND
The Automotive Fund is the instrument created by the government to support the transformation of the Italian automotive industry. Born during Mario Draghi’s government and refinanced in subsequent years, the fund is used to finance industrial investments, research, production reconversion, and incentives linked to the sector’s technological transition.
In recent years, the resources have been mainly used for purchase bonuses for vehicles, but the new framework desired by the Ministry of Enterprises aims to shift the focus from demand to supply: the declared goal is in fact the strengthening of the production chain, particularly the components segment, which is the most exposed to reconversion towards electric (battery models generally contain fewer parts than those with internal combustion engines).
The new plan allocates about 75 percent of the resources to interventions for companies. The main chapter concerns innovation agreements, funded with 750 million for research and development projects. Added to these are development contracts to support productive investments and industrial reconversions, with particular attention to so-called mini-contracts aimed at small and medium-sized enterprises in the supply chain.
On the demand side, however, resources are more limited. A significant part is allocated to incentives for light commercial vehicles, considered strategic for urban logistics and for renewing company fleets.
WHAT IS HAPPENING AT THE MEF?
After consultation with supply chain associations and the favorable opinion of the Ministry of Infrastructure, the measure has however stalled at the Ministry of Economy, led by Giancarlo Giorgetti.
For the sector, the delay is becoming a serious problem. Companies have long been asking for a stable framework of incentives and industrial tools, especially at a time when other European Union member countries – such as France, Germany, and Spain – are accelerating aid for automotive reconversion and attracting investments related to batteries and electric technologies.
TENSIONS BETWEEN GIORGETTI AND URSO
The slowdown of the Automotive Fund fits into a tense relationship between the Ministries of Enterprises and Economy: in recent months, in fact, the differences between Urso and Giorgetti have emerged several times, especially on industrial dossiers.
The most significant clash was over Transition 5.0, the incentive program for digitalization and energy efficiency of Italian companies. The Ministry of Economy had drastically reduced the funds, cutting them to 537 million and triggering a strong reaction from Confindustria; the crisis was resolved with the intervention of the Ministry of Enterprises, which raised the resources to 1.5 billion (that is, 200 million more than originally planned).
– For further details: Peace made between government and Confindustria on Transition 5.0. But with what money?
More generally, in recent years Minister Urso has tried to build a close relationship with Confindustria and other business associations, insisting on the need for a more aggressive industrial policy to defend Italian production. Giorgetti, on the other hand, has maintained a more cautious line on public spending.
