Who is Taking Care of Refugees in Italy: The Role of Cooperative Societies

The management of refugee care in Italy is undergoing scrutiny—particularly the involvement of cooperative societies, a unique form of non-profit company that provides tax benefits and unique organizational advantages. Understanding these structures is crucial to comprehending the current refugee support system in Italy.

The Framework of Cooperative Societies in Italy

Cooperative societies in Italy are a form of non-lucrative company recognized in the Italian Constitution following the aftermath of World War II. This constitution, in the wake of the defeat of the Nazis, Fascists, and Communists, grants these companies special tax benefits. These unique advantages make it a viable and preferred option for certain local governing bodies to manage and support refugees.

At the city, provincial, and regional levels, local councils engage in the organization of tenders to provide services for refugees. These tenders are typically won by cooperative societies due to the tax incentives they offer. For-profit companies do not have the means or desire to compete for these tenders, as they do not receive the same tax benefits and may face complaints.

Profit and Management Diversity

The system is designed to be adaptable, allowing the winning cooperative society to subcontract services to other organizations. Each refugee is allocated €35 per day, with a share of this amount directly going to the refugee. For a cooperative society managing 100 refugees, the revenue could reach €97,500 per month, excluding subcontracting contracts. This mobilizes the economic potential within the system, providing a clear incentive for the involvement of cooperative societies.

Profitability and Controversy

Examples illustrate the financial incentives involved in this model. One notable case is that of Mafia Capitale, a network that made significant profits from the management of refugee services. A founder of this network once stated, "With immigrants, we make more money than with drugs." This assertion underscores the substantial financial benefits associated with managing refugee services.

Despite these economic advantages, there have been legal challenges. The courts ruled that the operations of Mafia Capitale were more about corruption and exploitation than organized crime. Nevertheless, the financial lure and the flexibility in managing services make cooperative societies a preferred choice for those managing refugee care in Italy.

Impact on Italian Taxpayers

The Italian government's financial burden from refugee care is staggering. Italian taxpayers contribute approximately €5 billion annually to support refugees. This enormous cost underscores the importance of efficient and transparent management of these services, a challenge that the cooperative societies have been facing.

In conclusion, the use of cooperative societies in Italy for managing refugee care is a complex and multifaceted issue. While it provides a financial incentive and unique organizational benefits, it also faces intense scrutiny and legal challenges. Understanding and addressing these dynamics is crucial for ensuring effective and equitable support for refugees in Italy.