Press Review #SoseXpress 19-25 June 2021

Italy is aiming for a significant, lasting recovery, but one that has social inclusion and sustainability at its center. 

The President of the Council, Mario Draghi, said on the occasion of the visit to Rome of the President of the European Commission, Ursula Von der Layen. 

The debate of ideas 

 

Data interoperability, data analytics and digital skills: the key words of the debate organized by SOSE within the 2021 ForumPa 

The data-driven economy is a strategic axis for the recovery after the severe Covid-19 economic impact. The debate organized by SOSE within the 2021 ForumPA allowed discussing the experiences of the public and private sectors and taking stock of the challenge we are facing. The discussion highlighted the need for innovation, the dissemination of data culture, and the centrality of user experience in public services: simplifying the use of digital services to capture users’ attention and create a relationship of trust. Here to learn more.

 

Studies, research and numbers

 

Istat: industrial turnover up by 3,3% in April, above the pre-Covid level 

Istat estimated that in April 2021, the seasonally adjusted industrial turnover index increased by 3,3% compared to March, more in the domestic market (+4%) than in the non-domestic market (+1,7%). In comparison to the same month of the previous year, the calendar-adjusted industrial turnover index increased by 105.1%, exceeding the pre-crisis level in April. Here the note by Istat. 

 

Eurostat: consumer price levels in 2020 

According to Eurostat, in 2020, price levels for consumer goods and services differed widely across the EU Member State. Denmark had the highest level with 141% of the EU average, and Romania the lowest with 55%. Overall, price levels for consumer goods and services in the EU varied by almost one to three between the cheapest and the most expensive Member states. The widest gaps, Eurostat explains, concern restaurants, hotels, alcohol, and tobacco. Here to learn more. 

 

Istat: trade balance with non-EU countries registered a surplus of 4,77bln.  

According to Istat estimates, in May, foreign trade with non-Eu27 countries recorded, in seasonally adjusted terms, a decrease more significant in exports (-4,1%) than in imports (-1,5%). The drop affected all industrial sectors excluding energy (+15,5%). and originates above all from the decreased sales of capital goods (-7,7). However, in May 2021, export increased by 43,9% on an annual basis. In the same period, seasonally adjusted data rose by 13,9% in ingoing flows due to increased imports of energy (+37,6%) and intermediate goods (+15,8%) Here the note by Istat. 

 

Eurostat: In Italy, the share of people outside the labour force rose in 2020. 

In 2020, Italy recorded the largest percentage (35,9%) of people outside the labour force in relation to the total working age population. The data published by Eurostat concern persons being neither employed nor unemployed, not available or searching for work for a variety of reasons, for example, because they are enrolled in education, caring for a family member, retired or because of illness or disability. In the EU, the share of people outside the labour force as a percentage of the total working age population (age group15-64) had been on a downward trend: falling from 32.3% in 2002 to 26.6% in 2019. In 2020, however, this share increased by 0.5 percentage points (pp) to 27.1%. Here Eurostat press releases. 

 

ECB, the recovery is strengthening, but attention to the variants! 

The euro area economy is gradually recovering, and a "marked improvement is expected in the second half of 2021, following the easing of containment measures thanks to vaccination campaigns. ."However, the spread of the variants of the virus makes the recovery still uncertain, the ECB underlines in the economic bulletin. In the first quarter of the year, the Eurozone GDP fell by 0.3%, 5.1% below the level registered in the fourth quarter of 2019, before the pandemic. According to the ECB, favourable financing conditions are needed to reduce uncertainty and strengthen confidence. Here the Note by the Bank of Italy. 

 

S&P Global Ratings improves estimates for Italy, + 4.9% in 2021 and 2022 

S&P Global Ratings revised the forecasts for Italy's GDP upwards, estimating + 4.9% for both 2021 and 2022, + 1.8% in 2023, and +0.9 % in 2024. Previous forecasts stood at 4.7% this year and 4.2% in 2022. Likewise, S&P Global Ratings estimates for Eurozone GDP an increase of 4.4% this year and 4.5% % in 2022, following a broader implementation of the fiscal stimulus under the Next Generation EU plan and a weaker contraction in GDP in the first quarter. "The recovery is moving towards services, having started with industry, as most of the restrictions on economic activity are lifted and households scale back on savings," the rating agency said. Here for more information. 

 

Istat, consumer and business confidence rose in June. 

In June 2021, Istat estimated a marked increase in the consumer confidence index (from 110.6 to 115.1) and business confidence index (from 107.3 to 112, 8). According to Istat, all components of the consumer confidence index are growing, albeit with different intensities. The economic and current climates recorded the most decisive increases (from 116.2 to 126.9 and 102.6 to 108.1 respectively); the dynamics of the personal and future climates are more contained (from 108.7 to 111.1 and from 122.5 to 125.5 respectively). The business confidence climate improved in manufacturing and, above all, in services, while in construction, the confidence index decreased slightly. Here the Note by Istat. 

 

The voice of Stakeholders 

Coldiretti: Covid drives organic food consumption to a record 

In 2020, Italians' consumption of organic food grew and reached a record of 4.3 billion euros, with an increase in purchases of 7% compared to the previous year. Coldiretti released these data on the occasion of the 30th anniversary of the "Regulation on organic production of agricultural products." Thanks to Italians’ increasing awareness of environmental and health issues "facilitated" by the Covid emergency, domestic consumption of organic food has grown without interruption, and today organic food, Coldiretti underlines, is in the shopping cart of about seven out of ten Italian families (68%). Here the Note by Coldiretti. 

Confartigianato: in the service sector, the recovery lags, revenues up by 0.6% in the first quarter of 2021 

Confartigianato Research Department, based on Istat data, estimated a moderate increase (+ 0.6%) in the turnover of service companies in the first quarter of 2021 and a slight improvement (+ 1.6%) on an annual basis, the first after four consecutive drops. The economic activities most affected by the restrictions on mobility and linked to tourist demand, such as travel agencies, accommodation and restaurants, sea, and air transport, are still lagging compared to pre-Covid revenues. On the other hand, motor vehicle trade and delivery services registered a significant increase on an annual basis (+ 21.5%), thanks to the boom in e-commerce in the first quarter of 2021 (+ 38.2% compared to + 34% in 2020). Here to learn more. 

Brexit reduces exports of "Made in Italy" food products by 10.4% 

Exports of Italian food products to Great Britain decreased by 10.4% due to the restrictions imposed by Brexit. Coldiretti analysed the tug-of-war between the European Union and Great Britain on food products based on Istat data on foreign trade in the first four months of 2021 compared to the previous year and revealed this data. The main problems for export to the United Kingdom, Coldiretti points out, concern customs procedures and the increase in transport costs due to delays and more accurate controls. These difficulties jeopardize 3.4 billion euro of Italian agri-food products exported every year. Here to learn more. 

Innovation 

 

E-commerce up by 6%, but 30% of companies is still “no digital.” 

Italian e-commerce has doubled its sales through digital channels from + 2.5% in 2019 to + 6% in 2020. The pandemic has accelerated the adoption of e-commerce in B2B: 55% of Italian B2B companies, with a turnover equal to or exceeding 2 million euros, sell online through an e-commerce site or B2B marketplaces. However, 29% of Italian B2B companies are "no digital" sellers, a share grown by three percentage points last year. Here for more information. 

 

Digital home: the use of digital services increases but also fears of the violation of privacy 

The pandemic has significantly accelerated digitization, and Italians have experienced the benefits and challenges of connectivity.  However, the growth of online services has exacerbated their fears and concerns related to possible violations of privacy and the impact of technologies on psychophysical well-being. As things stand, 50% of Italians are more concerned than in the past about the consequences of using the internet. This result emerged from the research carried out by EY Digital Home Study, which explored, at an international level, the change in consumers' behaviours and attitudes towards technology, media, and telecommunications services. Here to learn more. 

 

NRRP: 50 billion for digital and ultra-broadband, green light from the EU 

The EU gave the green light to the Italian RRP, which will bring 191.5 billion euros to the state treasury. 25% of the funds, equal to 47.5 billion, are for the digitalization of businesses, tax incentives for the 4.0 transition, broadband, and support for research and innovation. The funds will be divided as follows: 5,3 billion for ultra-broadband and 5G; over 6 billion for digital PA, promoting cloud computing; 18.5 billion to renew Healthcare through digital services; 6.6 billion for the digital relaunch of Culture and Tourism; finally, 1.4 billion for STEM and female entrepreneurship. Here for more information. 

 

Gender equity 

Gender quotas improve public services. 

The "Golfo-Mosca" and "Severino" laws have achieved their objectives regarding female representation and improved state-controlled companies' performance. The two reforms, which impacted the corporate governance of State-controlled companies increasing the share of women and decreased the percentage of politicians, also improved the performance.  A recent study analysed the effects of these reforms by comparing (through the "differences in differences" method) State-controlled companies with those in which the state has minority ownership and the causal effect of these reforms on corporate performance and quality of services. Here for more information. 

Local Authorities 

 

Forum PA: in 2021 more digitization in Italian cities 

In 2021, digitally mature Municipalities are 49, 14 more than in 2020. The figure emerges from the survey carried out by FPA for Dedagroup Public Services and presented at FORUM PA 2021. The study analyses the degree of digital maturity of 110 Italian municipalities based on three factors: Digital public services, the availability level of 20 online services for citizens and businesses; Digital PA, the integration of municipalities with the platforms identified by the three-year plan for public IT (SPID, CIE, PagoPA, ANPR); Digital Openness, the number and interoperability of open data and communication with citizens through social channels. Big cities in the Northern regions show the highest degree of digital maturity. Here to learn more. 

 

Municipalities: the Corte Dei Conti approved the 2019-2020 financial management despite the effects of the crisis 

"The analysis of municipalities' financial management revealed that in 2020, the health crisis did not produce the expected tensions." In the "Report on Municipalities', Provinces', and Metropolitan Districts' financial management for the period 2019-2020," the Corte dei Conti analyses the finances of more than 7,200 local administrations. The overall results of the financial statements stored in the State General Accounting Office database are in line with the expectations concerning the examined local authorities (7,135 Municipalities; 75 Provinces; 14 Metropolitan Cities) for the period 2018 2019. Here the Press Release by the Corte dei Conti. 

 

The world of MEF 

 

Mef - Revenue Agency: in the "Sostegni bis decree" further financial support for 1.8 million self-employed. 5.2 billion euros allocated through bank transfers and tax credits. 

The Sostegni bis Decree introduced non-repayable grants for about 1.77 million self-employed, affected by the Covid-19 emergency, who have already benefited from the first Sostegni decree (Legislative Decree no. 41/2021). In a joint note, Mef and the Revenue Agency announced the automatic payment of these grants. In addition, the decree includes about 38 thousand tax credits, for about 166 million euros, automatically granted to the operators who had chosen this method of support. In total, The beneficiaries of the new automatic contribution amount to more than 1.8 million for a total of 5.2 billion euros. Here the Press Release by Mef. 

MEF: Tax litigations decrease. 

Tax litigations have decreased in the first quarter of 2021, new appeals decreased by 49% and litigations by about 9%, according to the data released by MEF. Resolutions are growing (+ 39%), and telematic hearings are 20% of the total. On March 31, 2021, pending tax litigations, amounting to 313,943, decreased by 8.73% compared to March 31, 2020, and 9.15% compared to December 31, 2020. New disputes amounting to 25,044 in the first quarter of 2021decreased by 48.76% compared to 2020. The disputes settled, equal to 56,652, recorded an increase of 39,15%. Here the Press Release by Mef.