Pippo Ranci

The paper provides a description and preliminary evaluation of the Italian Banking Association’s (ABI) 2009-2013 Pattichiari initiative, a notable experiment in banking industry self-regulation. An original governance system, based on a committee of non-bankers endowed with a significant degree of independence from the industry, was established...

The Italian constitution does not mention competition. A statement in favour of an economy based on free markets could be introduced, but the European Treaties provide a sufficient integration. The Italian constitution considers the public enterprise as the remedy to excessive market power and the instrument to achieve social goals. The reasons in favour of public enterprise are much weaker today than they were when the Constitution was written in 1947: global markets and antitrust policy provide competition, capital is available for investment, regulation helps in reconciling private enterprise with services of general interest. The main de facto arguments for public enterprise are (a) the need to provide appropriate shareholders to essential facilities, (b) inertia (since public enterprises exist, the burden of proof lies on the side of privatisation) and (c) the debated link between national ownership and the national interest.