The government approved a plan to set up competitive tenders for the lucrative licenses from 2024, which allow bathhouses and resorts to be built on public land in exchange for minimal rents. Italy is in breach of European Union rules that call for open competition in the sector that date back to 2008.

The changes have been resisted by beach operators who say that shortening the duration of the licenses and allowing public tenders would drive them out of business and put jobs at risk. Center-right parties, including Matteo Salvini’s League which backs Draghi, support the status quo.

According to industry groups, the liberalization would affect about 30,000 businesses. Italy made less than 100 million euros ($114 million) from beach licenses in 2019.