Finance-Savvy Rome Mayor Has €13 Billion to Revamp Eternal City

Rome’s mayor is betting an unprecedented investment surge will help the Eternal City present a more modern face to the world.

(Bloomberg) —

Rome’s mayor is betting an unprecedented investment surge will help the Eternal City present a more modern face to the world.

Roberto Gualtieri, a former finance minister, has secured €13 billion ($13.8 billion) in national and European funding over four years to spruce up the Italian capital, after it lost ground to Milan and other European centers in terms of appeal to businesses and tourists. A further €6 billion could arrive if Rome can elbow out Riyadh and win its bid to host the World Expo in 2030.

“We are undertaking the greatest investment program of the last decade to modernize the city,” the mayor said in an interview with Bloomberg TV on March 10. 

The goal, according to Gualtieri, is “to make the city not only efficient, in terms of ordinary services, that were a bit lagging behind in the last years, but also to put it at the forefront of the challenges of digitalization, technological innovation, sustainability.”

In recent years Rome has suffered from lack of investment with spending falling to as low as €100 million per year. That failure to revamp infrastructure compounded long-standing problems such as traffic snarl-ups, trash piling up in the streets, a lack of cycling lanes and deficient public transport.  

By comparison, Milan, Italy’s fast-growing financial capital, has attracted investment by restoring abandoned areas of the city and is now a top destination for bankers, fund managers and private equity fleeing London in the wake of Brexit. A key turning point for Milan was hosting the World Expo in 2015, which attracted about €1 billion for urban regeneration and spurred housing demand from students and young workers.

Stars Aligned

Gualtieri says he’s convinced Rome now benefits from a unique “alignment of stars” to guide efforts to regenerate the city. 

As well as funding and special planning powers bestowed by the national government, the capital can also tap money from the European Union’s post-pandemic fund and resources for organizing a Catholic Jubilee year in 2025. Winning the contest to stage the 2030 Expo would unlock further cash.

A chunk of almost €5 billion of the funding will go to modernizing Rome’s public transport, including the completion of third subway line. Gualtieri said he’ll also build a waste-treatment plant, potentially putting an end to the unsightly spectacle of streets piled up with trash, and invest in a major overhaul of its water supply.

Gualtieri will also spend €100 million to install modern 5G infrastructure across the city. Other plans include redeveloping parks and historic gardens, and offering tourists new ways to explore Rome’s peerless historical heritage.

A key question is whether the city with its creaking bureaucracy will be able to handle such an influx of investment. Italy has a track record of being unable to fully spend its EU funds, while corruption remains an issue. 

Still, investors looking at luxury bargains have already set their sights on Rome. The city’s real estate market began to thrive in 2021 and has been growing faster the Milan’s.

Read More: Rome’s Luxury Homes Tempt Bargain Hunters Betting on Revival

“We are already seeing signs of a great attention from investors toward this new more vibrant environment in Rome,” according to Gualtieri.

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