Investment in infrastructure is closely correlated with economic productivity, stimulates the economy, improves economic efficiency, makes the country more competitive, facilitates trade and regional economic integration, and helps reduce carbon emissions. But the resilience of critical infrastructure is essential to ensure the continuity of services.
‘Greater investment in preventive measures, such as reinforcing infrastructure against extreme events and adopting advanced security technologies, will be increasingly necessary to reduce the risk of failure and limit potential economic damage,’ says Francesco Baldi.
The report ‘Critical infrastructure: transport and telecommunications in Italy and the main European countries’ by Rome Business School, explores the country’s strategic assets such as roads, railways, airports, ports and the fixed and mobile internet connection network, together with security threats due to cyber-attacks, comparing Italy to the other three main European powers, such as Germany, France and Spain. The analysis is by Francesco Baldi, Lecturer of the International Master in Finance at Rome Business School; Massimiliano Parco, Economist, Centro Europa Ricerche and Valerio Mancini, Director of the Rome Business School’s Disclosure Research Centre.
Investments in transport infrastructure improve productivity and economic growth, reducing logistics costs and improving access to markets. However, Italy’s particularly complex morphology and lower investment compared to other European powers have slowed its expansion over the years, slowing mobility and competitiveness. A virtuous case in Europe is Spain, with an unprecedented expansion of its motorway network: starting from a base of 4,693 kilometres in 1990, it has almost tripled its length in a decade, already exceeding 12,000 kilometres in the early 2000s and touching 16,000 kilometres in 2022. Italy lags behind Germany, France and Spain, with a motorway network of around 6,000 kilometres in 1990, the expansion of which has been limited, exceeding just 7,500 kilometres in 2022, +25%.
‘The rapid growth of Spain’s motorway network is a clear indicator of an economic strategy aimed at compensating for the infrastructural backwardness compared to other European nations and promoting economic development through greater accessibility and mobility,’ says Massimiliano Parco.
Umbria, Molise and Basilicata have the lowest number of motorways, with the exception of Sardinia, the only Italian region still without a motorway network. The same case is repeated with railways. In 2022, Spain has the most extensive high-speed rail network in Europe with 3,142 km. France follows with 2,771 km, offering good connections between large cities but with less penetration in less developed areas; in third place is Germany with 1,104 km but concentrating on efficiency and integration rather than rapid expansion, and in last place is Italy with just 734 km, which limits access to infrastructure and reduces the economic return on investment.
Between 2003 and 2023, the number of passengers at major European airports increased significantly. Paris Charles de Gaulle recorded 67.5 million passengers in 2023 (+40.6% compared to 48 million in 2003), Madrid Barajas grew from 35.6 million to 60.1 million (+68.8%) and Frankfurt from 48.6 million to 59.3 million (+22.1%). The airport, among those of the countries analysed, that has grown the most in recent years is Barcelona El Prat, rising from 22.6 to 49.9 million (+120.8%) also thanks to having become a hub for low-cost airlines.
In Italy, Milan Malpensa has seen a 48% increase, from 17.7 to 26.2 million, but it is Rome Fiumicino that has grown the most: from 25.4 to 40.7 million (+60.2%).
‘This increase in air traffic in Italy is closely linked to the expansion of tourism in our country and the related strengthening of airport infrastructures, which have made Malpensa and Fiumicino increasingly competitive airports at international level,’ says Francesco Baldi.
As far as seaports are concerned, between 2013 and 2022, freight volumes handled in the main European ports showed contrasting dynamics. The port of Hamburg, while remaining the main maritime hub in Europe, saw a decrease of 14.3%. On the contrary, the ports of Genoa (+17.1%), and the Spanish ports of Algeciras (+20.1%) and Valencia (+20.2%) recorded increases in freight volumes. The largest increase was in the port of Trieste, with +39.7%, reaching 64 million tonnes, the same level of handling as Valencia.
Connectivity measures the spread of fixed (broadband) infrastructure, connection speed and accessibility to digital services for the population.
‘In Italy, as in other countries,’ Baldi comments, ’the Connectivity dimension not only provides a measure of access to digital services, but also an indication of a country’s level of preparedness to face the challenges of digital transition. Robust connectivity is the basis for the adoption of emerging technologies such as artificial intelligence and the Internet of Things, and for promoting sustainable and inclusive economic growth’.
According to the European Commission’s DESI (Digital Economy and Society Index) surveys, aimed at assessing a country’s digital progress by looking at the functionality of its infrastructure, in 2023 Spain has the highest percentage of households connected to the Internet from home (96.5%), followed by France (93.3%), Italy (91.9%) and Germany (91.7%). For connection speed (at least 100 Mbps), Spain grew rapidly from 17.6% to 87.5% between 2017 and 2022. Italy and France reached 59.6% and 51.4% respectively, while Germany is at 38.5%. Regarding fibre coverage in 2023, Italy leads with 95.2%, followed by France (81.4%), Spain (59.3%) and Germany (29.8%). Looking at 5G coverage, Italy (99.5%) and Germany (98.1%) have almost covered the whole territory, while France has risen from 74.4% to 93.2% and Spain from 58.9% to 93% between 2021 and 2023.
In 2023, Italy recorded a significant increase in cyber attacks, with a 29% increase in the number of attacks and a 140% increase in incidents. CSIRT Italy monitored 3,302 affected individuals, compared to 1,150 in 2022, marking a 300% increase. According to the CLUSIT 2024 Report, cyber incidents increased by 65% and Italy suffered 11% of global attacks, up from 3.4% in 2021 and 7.6% in 2022, making it the third most affected country in the Union. Cybercrime attacks accounted for 64% of the total, an increase of 13%, while hacktivism rose from 7% to 36%, with the most affected sectors being the government sector, which suffered 19% of attacks, followed by manufacturing (13%) and the transport sector, which saw an increase of 620%.
The impact of the attacks prompted increased investment in cybersecurity. This rose to EUR 1.8 billion (+12.4% vs. 2022), with forecasts of growth to around EUR 2 billion in 2024. Banks invested EUR 388 million in 2023 (+11.8%), while industry spent EUR 372.7 million (+12.1%). The public administration recorded an expenditure of EUR 297.2 million (+16%), supported by investments related to the National Cybersecurity Strategy 2022-2026 and PNRR funding. In this sector, spending is also expected to increase to EUR 343 million in 2024.
Investments in Threat Intelligence have reached EUR 162.5 million in 2023, with an expected increase to EUR 185 million in 2024. In addition, the National Cybersecurity Strategy aims to implement 82 actions by 2026, with an annual fund of EUR 420 million to reinforce the defence of public information systems and ensure technological independence, complemented by a management fund of EUR 70 million by 2026. It will also be important to incorporate Artificial Intelligence solutions. In fact, according to a Marketsand Markets report, the global market for AI solutions for cybersecurity will grow from $22.4 billion in 2023 to $60.6 billion in 2028, marking a 274% increase, almost tripling.
‘Critical infrastructure protection is not just a security issue; it is a strategic imperative to ensure the business continuity of our society. Only through targeted investments and an integrated vision can we tackle cyber and physical threats, preserving the economic, social and health stability of our country,’ comments Valerio Mancini.