Press Review #SoseXpress 17-23 July 2021

(...) It is increasingly clear that the central challenge relates to the functioning of the financial system and the extent to which it aligns with the needs of sustainable development. Put simply, if the financial system can be aligned with these needs, the transition to sustainable development can be achieved. 

From the speech of the Ecological Transition Minister, Roberto Cingolani, at the G20 Climate, Environment and Energy in Naples. 

The debate of ideas 

 

Not only Green, five business models for a "sustainable" company 

A survey conducted by the Department of Management at the Ca 'Foscari University in Venice on 287 companies identified five common paths followed by the companies that consider sustainability a value and not just a social responsibility. These five business models concern the five areas in which the company's main stakeholders operate: personnel, suppliers, products, services, supply chain, and environmental sustainability. The study provides a broad idea of sustainability, accessible to any organization that decides to invest in its future as a company and community. Here to learn more. 

 

"Fit for 55", how Europe sees the energy transition 

The package of laws on energy sustainability presented by the European Commission outlines an important leadership idea for our continent with ambitious goals. Our continent aims to reduce greenhouse gas emissions by 55% (compared to 1990) by the end of this decade. The Commission has also proposed binding targets for increasing the share of renewable energy in heating and cooling in the member states. All these measures require a variety of innovative, effective, and inclusive strategies and policies. Here for more information. 

 

The weight of ten-year underinvestment 

In recent decades, especially the public sector has drastically reduced investments in Italy. According to estimates, this political choice has cost the country 8 GDP points, partially offset by exports and domestic consumption, which are now the most affected by the pandemic. In 2020, gross fixed capital investment in Italy amounted to 293 billion euro, lower than the previous three years, when it exceeded 300 billion. This dynamic highlights how the country's public policies could not support and address the consequences of the crisis. Here to learn more. 

 

Studies, research and numbers 

 

Production in construction up by 0.9% in euro area and by 0.7% in EU  

In May 2021 compared with April 2021, seasonally adjusted production in the construction sector increased by 0.9% in the euro area and by 0.7% in the EU, according to first estimates from Eurostat, the statistical office of the European Union. In the euro area in May 2021, compared with April 2021, building construction increased by 1.2% while civil engineering decreased by 0.3%. In the EU, building construction increased by 0.9% while civil engineering decreased by 0.1%. Here the press releases by Eurostat. 

 

Istat: In Italy, the non-financial wealth remained stable in 2019  

According to ISTAT estimates, in Italy, the decrease of non-financial wealth has slowed. At the end of 2019, it was equal to 10,377 bln. Euro, substantially stable compared to 2018 (the annual rate of change was -0.1%). Istat explains that the downwards trend of the last three years (the annual average was-0.1%) is significantly lower than in the preceding years (in the period 2011-2017, the annual average rate of change was -1.3%). However, the property value also decreased in 2019 (-0,2% for residential real estate property and -0,6% for commercial real estate property) following the decrease in real estate prices. Here the note by Istat. 

 

Istat: production in the construction sector down by 3.6% 

According to Istat estimates, construction output decreased by 3,6% in May 2021 compared to April after four months of growth. In the quarter March - May 2021, production in the construction sector increased by 7.8% compared to the previous quarter. The unadjusted index for construction output grew by 32.6% year on year, while the calendar-adjusted index (21 calendar working days versus 20 days in May 2020) rose by 37.3%. Here the note by Istat. 

 

Inps: in April 2021, hires up by 210% compared to April 2020 

In the first four months of 2021, the hires activated by private employers amounted to 1,715,000, with a slight increase compared to the same period of 2020 (+ 2%). In April 2021, the INPS observatory on precarious work estimated that the decline recorded in January and February 2021 and the increase of 18% in March and 210% in April 2021 compared to the same months of 2020 produced this result. According to INPS, this dynamic characterizes all types of contracts. In the last two months, term, seasonal and temporary employment has increased significantly. Here the press releases section of INPS. 

 

Istat: Industrial turnover down by 1% in May 

 According to the data released by Istat, in May, the seasonally adjusted index of industrial turnover recorded a decline of 1% in the month-on-month series, interrupting the positive dynamics underway since the end of last year (-1.9% on the domestic market and + 0.7% on the non-domestic market). On an annual basis, the calendar-adjusted industrial turnover index grew by 40.2%. However, the figure is affected by the comparison with 2020, the year of the pandemic. Here the note by ISTAT. 

 

Eurostat: government debt exceeded 100% GDP. In Italy, it reached 160% 

At the end of the first quarter of 2021, still heavily influenced by the political measures to mitigate the economic and social impact of the pandemic and by the recovery measures, the government debt GDP ratio exceeded 100% for the first time in the euro area. It rose to 100.5% compared to 97.8% at the end of the fourth quarter of 2020. Eurostat revealed these data, highlighting that the government debt GDP ratio has reached 160% in Italy. Here the Eurostat press release section. 

 

IHS Markit: Eurozone flash PMI hits 21 year high as economy reopens

In July, business activity in the eurozone grew at the fastest rate in 21 years as the markets continued to reopen from the Covid-19 restrictions. According to the IHS Markit flash survey, the PMI Index rose to 60.6 points from 59.5 in June and marked the highest value in 252 months. The Services PMI Activity Index rose to 60.4 points, from 58.3 in June, while the manufacturing PMI decreased to 62.6 compared to 63.4 in June. The strongest rise in service sector activity in 15 years, Ihs Markit explains, was, however, tempered by a slowing in manufacturing output growth linked in many cases to worsening supply lines. Here to learn more. 

 

The voice of Stakeholders 

 

Confindustria: the "Italian beauty" is worth 135 billion in exports

According to the report "Esportare la Dolce Vita" produced by the Confindustria Study Center, in collaboration with Unicredit, Sace, Netcomm, and the "Manlio Masi" Foundation, the so-called "bello e ben fatto" (beautiful and well-done) products are worth 135 billion euro and represents a substantial part of total exports of Italy.  These products are spread across all the main sectors of Made in Italy, although predominantly in the so-called three Fs sectors– Fashion, Food, and Furniture. According to the study, exports could increase to 82 billion, as the Italian products of excellence go mainly to developed markets, which overall take up about 114 billion euros. On the other hand, the value of export to emerging countries, in which the rapid growth rate offers a greater scope for expansion, despite higher risks, amounts to over € 20bn. Here the note by Confindustria. 

 

Confcommercio: the unexpected return of inflation 

The Confcommercio Research Department sounds the alarm on inflation. According to the study, there are real risks of a very short-term inflationary upsurge. Alarm signals would come from OECD countries, where inflation reached 3.8% last May, up from 3.3% in the previous month. In the same month, the consumer price index increased by 2.9%, accelerating by half a point compared to April. According to Confcommercio, two factors have caused the inflationary acceleration: the pressure on business costs and operators' expectations regarding inflation in the near or more distant future. Here the note by the Confcommercio Study Centre. 

 

Confartigianato: Territories and MSMEs' strength behind the success of "Made in Italy." 

The small enterprises spread throughout the territory are the basis of the "Made in Italy" success in the world. Over the past six years, Italy's exports have risen more than Germany's, driven by the best performance of Tuscany, Emilia-Romagna, and Veneto. Moreover, Italy is a leader in the European Union for direct export of micro and small manufacturing enterprises, generating a surplus in the foreign trade balance that covers more than three-quarters of the energy costs. Despite these positive developments, the idea that the high presence of small businesses is an obstacle to the growth of the Italian economy has strengthened in recent years. However, the case of manufacturing tells us a different story about the causes of stagnation. In the article “L’Italia cresce poco? / I falsi miti sulle Pmi smontate dai numeri del Made in Italy (Is Italy growing little? / The false myths about SMEs debunked by the numbers of Made in Italy)" the Confartigianato Research Department analyses the strengths of small businesses and territories behind the success of Made in Italy.  Here and here the analyses by the Confartigianato Study Centre and Sussidiario.net

 

Anima Confindustria: two out of three companies in the Italian mechanical engineering industry are recovering in 2021 

According to the latest survey released by Anima Confindustria in the first half of July to member companies, the Italian mechanical engineering industry is recovering faster than we could hope for at the beginning of the year. 66.7% of companies (two out of three companies) from almost all Anima's sectors declared they expect to recover all the losses incurred in 2020 by the end of 2021. In addition, a possible employment decline seems to have been overcome. Around 93% of Anima member companies do not forecast layoffs in the next months, although some of them continue to suffer from the backlash of last year. Here the press release by Anima.

 

Innovation 

 

Mise-Infocamere Report: innovative startups on the rise, 13,500 in Italy 

The quarterly Report by Mise and Infocamere, with the collaboration of Unioncamere, reveals an 8.1% increase in innovative Italian startups, which amounted to 13,582 in 2021. According to the Report, 75% of startups produce business services: software production and IT consulting (37.4%), R&D (14.7%), information services (8.7%), manufacturing (16.6%), and trade 83%). Lombardy is at the top and hosts 26.7% of new companies, followed by Lazio with 1,586 new startups. Regarding turnover, the innovative startups are mainly micro-enterprises, with an average production value of about € 171.7 thousand. Here to learn more. 

 

Companies and digital maturity: in Italy, Finance & Insurance are at the top. Construction is lagging 

According to a study entitled "The digital maturity of companies in Italy," published by Bytek of the Datrix group, in collaboration with the University of Tuscia, the "Paolo Savi" Economic Technical Institute of Viterbo, the most digitally mature sector is finance and insurance, followed by artistic activities and education. The investigation, conducted on over 6,000 websites of Italian companies with a 2019 turnover exceeding 5 million euros, aims to detect and analyse the ability of companies to make the best use of digital tools. The sectors that, on the other hand, show the worst performance are construction and real estate. Regarding the geographical distribution, the three provinces that achieved the best results in terms of the digital score are Trento, Bolzano, and Milan. Here a detailed article. 

 

Green lights for the Working Group on the National Strategy for Artificial Intelligence 

The Ministry of University and Research, the Ministry of Economic Development, and the Minister for Technological Innovation and Digital Transition have jointly set up a working group that will update the national strategy on Artificial Intelligence, making it consistent with the National Recovery and Resilience Plan. The Working Group, made up of nine experts, five women and four men, will have an advisory function submitting the strategy to the three competent Ministers. Here an in-depth analysis on the Innovazione.gov website.

 

National Institute for the Analysis of Public Policies (Italian acronym Inapp): the PA halved the expenditure on training, "Investing in e-skills or NRRP at risk." 

According to INAPP (Institute for Public Policies), expenditure on training in the public administration decreased from 262 million euros in 2008 to 154 million in 2018, equal to 48 euros per employee. Meanwhile, the average age of employees has grown, and the over 50s now represent about 58% of employees. This category needs targeted training to face the new challenges of digitization according to the guidelines of the NRP. A webinar organized by INAPP focused on these issues, including many considerations published in the Annual Report. The Institute highlights that less than a third of the administrations have carried out a survey on employees' training needs, and most only partially. Here the note from INAPP. 

 

Local Authorities 

 

The "Next Generation Eu - EuroPA Comune" portal for local authorities is online

The new portal, "Next Generation Eu - EuroPA Comune," (www.nextgeneration-EU.it) is available online. This digital space collects information, initiatives, and insights on the "National Recovery and Resilience Plan" (NRRP) to provide a free service to Local Authorities, which will deal with the numerous opportunities offered by the Plan over the next few years. The Project was conceived, designed, and managed by Centro Studi Enti Locali S.p.a. and the University of Pisa. At present, it has about 1000 registered public bodies, mainly small and medium-sized municipalities. Here to learn more. 

The world of MEF 

 

MEF: Green lights for the FinTech Committee and the regulatory sandbox for digitizing Italian financial services  

The Mef announced the entry into force of the Fintech Sandbox Decree regulating the functions and powers of the FinTech Committee, which will monitor the application of technology to financial activities (FinTech) in Italy. FinTech operators will test innovative solutions, observe the dynamics of technological development, and identify the most appropriate and effective regulatory interventions to promote the development of Financial Technologies. At the same time, they will prevent the spread of potential risks under the constant control of the supervisory authorities of the Bank of Italy, Consob, and IVASS. Here the press release by MEF.