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Italy’s migrant centres in crisis amid money worries

A steady flow of migrants arriving in the south has combined with the de facto closure of borders to the north to leave Italy's migrant reception centres bursting at the seams.

Italy's migrant centres in crisis amid money worries
A man and his daughter in a Sardinian centre for refugees. Photo: Giuseppe Cacace/AFP

Adding to the sense of an impending crisis, many have not received a cent in state funding for months.

Some 132,000 mostly African migrants have landed on Italy's southern shores since the start of 2016; a rate of arrivals that has been steady for the best part of three years now. Thousands more have reached the country overland.

But while in previous years the vast majority would continue their journeys to northern Europe, the introduction of EU-backed “hotspot” processing centres to ensure migrants are identified at their first European entry point and tighter border controls installed by France, Switzerland and Austria are now creating roadblocks along this well-worn route.

Italy-bound migrants on a crowded boat. Photo: Gabriel Buoys/AFP

The result is that Italy's centres are getting ever more packed: they were housing 22,000 people at the end of 2013, 66,000 at the end of 2014, 103,000 at the end of 2015 and this week the total exceeded 160,000. In addition Italy is looking after 15,000 minors who arrived in the country unaccompanied.

Sharing migrant burden

Interior Minister Angelino Alfano will next week present a new plan for distributing the migrants across the country with the goal of ensuring fair burden-sharing on the basis of 2.5 asylum seekers per 1,000 residents.

He has made clear he intends to press ahead with the proposal whether local authorities like it or not.

The vast majority of existing centres are run by cooperatives or NGOs who were promised 25-35 euros per day for each person they provide with lodging, clothes and other services including legal aid or psychological support.

But the state has stopped paying them.

According to umbrella organization Confcooperative, whose members are looking after some 35,000 people, payment backlogs are averaging ten 10 months in Sicily, between four to six months in the region around Rome and four months in Lombardy, the region that includes Milan.


Migrants at a Red Cross centre in Ventimiglia. Photo: AFP

The Italian Red Cross, which has about 70 centres, says “there have been delays in payments for months and months now.

“We are talking about millions of euros in total, the situation is very difficult,” its president Francesco Rocca told AFP.

“If it was an administrative issue, we would understand. But it is actually a political problem, a very serious lack of care.”

No payments since March

The budget for migrant reception, which exceeded a billion euros in 2015, was only partially renewed for 2016.

According to press reports there is a funding shortfall of 600 million euros to clear existing debts and another 400 million needed to get to the end of the year.

“The problem is very real: we will having to dip into our reserves to pay creditors … when the finance ministry gives us the money, we will pay,” Alfano said this week, without confirming the scale of the financial gap.

Angelino Alfano. Photo: Olivier Morin/AFP

The apparent cutbacks have come despite Prime Minister Matteo Renzi saying Italy's spending on the migrant crisis should not be counted by the EU in its assessment of the country's deficit level, a demand he reiterated on Wednesday as he slashed the country's growth forecasts.

Neither Renzi's office nor the finance ministry responded to an invitation to comment.

Situation critical

Meanwhile, the situation is becoming critical for some of the smaller organizations running centres. That is the case at the Oasi Don Bosco, a hotel inland from the Sicilian city of Catania that was converted in 2015 into a reception centre for 112 people.

At the request of local authorities, the centre's director Francesco Magnano increased its capacity by putting extra beds in the rooms and then transformed the facility into a centre for unaccompanied minors, who make up an ever-increasing percentage of the new arrivals.

Now he is feeding and lodging 160 boys aged between 15-17 and has to pay 27 salaries to teachers, educational assistants, a nurse and his cooks. He has not had a penny from the state since March.

“In a few months we will not be able to go on,” he told AFP.

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MONEY

The verdict: What are the best banks for foreigners in Italy?

Picking the right banking option in Italy can be hard, but The Local's readers have shared their experiences and advice to give you a head start.

The verdict: What are the best banks for foreigners in Italy?

If you’re planning on moving to Italy, opening a bank account will be one of the very first things you’ll have to do in the country.

Overseas accounts (especially those from outside the eurozone) are unlikely to cut it for everyday tasks like paying bills and taxes, receiving an Italian salary and taking out insurance as many Italian authorities require an account with an Italian IBAN number for these purposes.

Italy has a large number of banks to choose from, ranging from traditional Italian institutions to international banks to a host of online-only operators that have grown in popularity in recent years.

But Italian-only online information, confusing paperwork and a swarm of different offers can make it hard to find the right option, which is why we asked readers of The Local to share some of their best insider tips in a recent survey.

Traditional v online banking

If you’re looking to open an account in Italy, one of the very first decisions you’ll be faced with will be whether to opt for a traditional institution or a digital banking platform. 

Overall, around four in ten respondents indicated an online banking platform as the best option for foreigners in the country, with many pointing to low account fees, advantageous currency exchange rates and a far greater degree of flexibility compared to traditional institutions. 

READ ALSO: Which documents do I need to open an Italian bank account?

The majority of respondents however selected a traditional Italian bank as the best option, citing greater levels of trust in traditional institutions, the advantage of dealing with people face to face and, in some cases, the availability of specific services and information for foreign nationals. 

Traditional banks

Italy’s biggest private bank, Intesa Sanpaolo, was recommended by multiple readers as the best option for foreign nationals in the country.

Intesa San Carlo, Italy

People walk past the headquarters of Italy’s Intesa Sanpaolo in Turin’s Piazza San Carlo in January 2017. Photo by Marco BERTORELLO / AFP

Iain Gosling, a UK national living in Pisa, Tuscany, highlighted the quality of their online services, saying: “The app is easy to use and it translates into English automatically. Online banking is easy. We maintain bank accounts in the UK and send funds to ISP, no problem.”

Another British national living in Pisa focused on the advantages of dealing with Italy’s largest bank, saying that “a lot of operations are done through ISP so the transaction fee is low” and the large number of branches across Italy makes it easy to “open an account quickly in person.”

Laura, a US-Italian citizen living in Ascoli Piceno, Marche, praised Intesa Sanpaolo for their customer service, saying staff were “patient and understanding” following a bad experience with another bank.

READ ALSO: What you need to know about opening a bank account in Italy

Besides Intesa Sanpaolo, UniCredit was also mentioned on multiple occasions within the survey, though opinions on Italy’s second-largest bank were mixed.

Stewart, an Australian national living in Umbria, said they “never had any problem paying bills or making transfers” even when out of the country, and the bank has “a pretty good website, including an English-language (sort of) option”.

But other readers had rather different experiences. Laura, from Ascoli Piceno, said her experience with UniCredit was “a nightmare” as “they couldn’t open the account correctly” and trying to solve the issue was “humiliating and impossible”. 

Cindy in Orte, Lazio, mentioned that UniCredit “arbitrarily raised checking account rates for foreigners who are not residents from 20€ annual to 120€ annual”, whilst another reader reported that “it took someone I know three months to open an account”.

Finally, two readers recommended BancoPosta – a branch of Italy’s Post Office offering basic financial services – based on low fees, presence in all major Italian towns, and easy sign-up procedures.

Online banking and transfer platforms

Wise (formerly TransferWise) was by far the most highly recommended digital platform within our survey.

A British reader in Tuscany hailed it for its “speedy transfers, good exchange rates, and prompt problem resolution”, highlighting the contrast with “slow, expensive and paper intensive” traditional banks.

Revolut

A close-up detail of a card from digital bank Revolut. Photo by JUSTIN TALLIS / AFP

Jenny Lantschner, a British-Italian national in Lucca, also pointed out Wise services’ speed, saying that it’s “very easy to use on a smartphone and will send funds within minutes”.

Besides Wise, several readers recommended Italian online bank Fineco, which they praised for easy account-opening procedures, efficient online operations and low fees. 

Lithuania-based Revolut was also recommended by some readers on the basis of “low cost, convenience, and near spot-market rates for currency exchange”, though others mentioned having problems with money transfers. 

For instance, Bob, an American national in Siracusa, Sicily said that “English, American, and Italian banks all refused to fund” his account.

Finally, Steve in Lombardy advised against opening accounts with Germany-based N26 as they “have been closing accounts in Italy and not giving back the money to customers”.

Though N26 is an active digital bank in Italy, it has been operating in a limited capacity for nearly two years following on-site inspections in late 2021 that revealed shortcomings in terms of security legislation and weaknesses in anti-laundering measures. 

Readers of The Local have recently reported having their accounts shut and being locked out of their funds for no apparent reason.

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