Border refurbishment: 89-108 million, mayors rejoice (cross-border guide)

Context

In a nutshell

• The fund for refreshments at border municipalities increases from 89 to 108 million euros
• Proceeds from the extra income of the new border workers go to the border regions
• The decision is the result of the Memorandum of Understanding signed in December 2020
• Satisfaction on the part of the association of border municipalities and mayors

Key facts

• Refreshments provision amount: from 89 to 108 million euros
• Beneficiaries: border municipalities and border regions
• Source of the measure: provision of the Italian government
• Legal basis: Memorandum of Understanding signed in December 2020
• Speakers mentioned: Minister Giorgetti, Councillor Sertori

The Italian government has increased from 89 million to 108 million euros the fund for refurbishments in favour of border municipalities. The announcement is welcomed by the association of border municipalities, which defines the measure as a response to a specific request made by the mayors. The measure collects a formal request from border municipalities, which for months have been calling for an increase in the fund to ensure the continuity of services to local communities.

The reasons for the request

The municipalities explained through various institutional discussions the need to increase this fund in relation to the Ristorni actually paid by the cantons in favour of the municipalities themselves. These refurbishments are necessary to provide services and infrastructure to border workers, their families and border communities.

Operational details

The increase of the fund from 89 to 108 million euros represents a concrete step in the management of cross-border relations, but also raises questions about the specific use of these additional resources. The refreshment mechanism, already in place, requires the Swiss cantons to pay sums to the Italian border municipalities to offset the social costs generated by the presence of border residents working in Switzerland. With the increase, municipalities will be able to count on about 19 million euros more than the previous allocation, a figure that is not negligible for municipalities often under financial pressure.

The impact on local services

The source specifies that these funds are needed to provide services and infrastructure to border workers, their families and border communities. In practice, this could translate into improved road maintenance, local public transport and social services such as crèches or social care centres that border workers and their family members use on a daily basis. The allocation of extra income to border regions adds an additional layer of financing, directly linked to the taxes paid in Italy by new border workers. This link between taxation and local investment creates a virtuous circle where the increase in cross-border work is reflected in more resources for the territory that hosts workers.

For the individual

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

For cross-border workers and residents in border municipalities, understanding how these additional funds will be distributed is crucial for planning their needs. Although the article does not specify the exact distribution methods, it is useful to monitor official communications from the municipalities of residence. The mayors, through their association, have achieved concrete results, but transparency on the use of the 108 million will be crucial. Citizens can consult municipal budgets or participate in public assemblies to request information on expenses related to infrastructure and social services financed with the funds.

Tools to monitor the situation

For those who work in Switzerland and reside in Italy, it is important to keep their tax situation up to date. Taxes paid in Italy by new cross-border workers contribute to the additional revenue allocated to the regions, but the withholding tax at source occurs in Switzerland. To verify the net salary and social security contributions such as AVS and LPP, it is advisable to use reliable simulation tools. This allows for a clear view of disposable income and planning of possible investments or savings.

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