Press Review #SoseXpress 22-28 May 2021

 All Member States have given green light to finance the Next Generation EU plan. 

The last formal confirmations that approval was completed are due in the next days. The EU Commission is ready to go to the markets to raise money to make EU greener, more digital & resilient. 

Ursula von der Leyen, President of the European Commission, on Twitter. 

The debate of ideas 

 

Investing in digital skills: the role of the NRRP 

"Il Corriere delle Comunicazioni" interviewed Andrea Rangone, Scientific Director of the Digital Innovation Observatories of the Polimi School of Management, in view of the PA Forum scheduled on 21-25 June in digital version. According to Rangone, in a country like Italy with inadequate digital culture, investing the resources provided by the Plan for digital investments in a reasonable time will allow obtaining the maximum return from those resources. Here to learn more. 

 

Studies, research and numbers 

 

Confimprese-EY: In April, consumption down by 63% compared to 2019 

The permanent Confimprese-EY Observatory on consumption trends in the catering, clothing, and non-food sectors compared April 2021 data to April 2019 in the pre-Covid year and recorded a drop of 62.8%. Catering continues to be the most seriously affected sector, with a decline of 74.4% followed by clothing and accessories with a 63.3% decrease. The geographical areas showed quite similar trends in April 2021 compared to April 2019. The South with Campania, Calabria, Sicily, Abruzzo, Molise, Puglia, Basilicata shows the worst decrease with -65.7%, penalized by the lack of tourist flows to art places and seaside resorts. The North-East (Emilia-Romagna, Triveneto) also recorded a significant drop,-63.9%,  followed by the Central area (Tuscany, Umbria, Marche, Lazio, Sardinia) -62.6% and the North-West (Lombardy, Piedmont, Liguria, Valle d'Aosta) -60.8%. Here to learn more. 

 

Eurostat: Business Registrations and bankruptcies on the rise in the EU  

Eurostat estimates indicate that in the first quarter of 2021, registrations of new businesses increased slightly compared to the previous quarter (by 0.3%). For declared bankruptcies, there was an increase of 5.8% in the first quarter of 2021, compared to the fourth quarter of 2020. Year-on-year comparisons show that the number of new business registrations is increased by 11.8% in the first quarter of 2021 compared to a year earlier, while the number of registered bankruptcies increased by 7.3%. Here a detailed article. 

 

Istat: Agricultural production down by 3.2% in 2020 

In 2020, agricultural production decreased in volume by 3.2% and value-added by 6%. Employment also dropped significantly (-2.3%). The production of olive oil suffered the worst decrease (-14.5%) while the production of fruit (+ 3.7%), cereals (+ 3%), milk (+ 2.7%) and vegetables (+ 0.2%) increased. These data emerge in the latest Istat report on agricultural economy last year. In the EU27, production (-0.8%) and agricultural income (-1.5%) are falling. Italy remains the first European country for value-added and the third for production value. Here the note by Istat.

 

Eurostat: FIGARO, a new statistical product of integrated global accounts for economic modeling

Eurostat is about to launch a new tool: FIGARO stands for 'Full International and Global Accounts for Research in input-Output analysis' and is the result of a cooperation project between Eurostat and the Joint Research Centre of the European Commission. The project is also known as EU inter-country Supply, Use, and Input-Output tables. This new unique tool will enable economic modelers, policymakers, and other stakeholders across the EU to analyse the socio-economic and environmental effects of globalization. Here for a detailed article. 

  

Istat: Italians are satisfied with their personal life, but for 1 out of 3 families, the economic situation has worsened 

According to the Istat report "Citizens' satisfaction with living conditions," relative to 2020, for one out of three families, the economic situation has worsened (29.1%) compared to 2019. The judgment on the personal financial situation remained positive for most people, but it got worse among the self-employed. Even at the outset of the pandemic, a significant share of citizens (44.3%) continued to express a positive opinion on their personal life. Furthermore, in the previous 12 months, substantial population shares have positively assessed health, family and friend relationships, or leisure time. Here the note by Istat. 

 

The Corte dei Conti on the Public finance: increase the rate of development and gradually reduce the debt

The United Chambers for audit have published the 2021 Public Finance Coordination Report. The document addresses the main issues of public finance, with particular attention to the sectors most affected by the emergency crisis and the measures adopted by the Government to cope with it, and analyses trends and prospects of the economy and public finance. Particular attention is paid to the debt dynamics, the fiscal policy, the debate on the IRPEF reform, spending, and social policies. Here the press release by the Corte dei Conti. 

 

Istat: business and consumer confidence is growing sharply 

In May, the consumer confidence climate index rose from 102.3 to 110.6 and the business confidence climate index from 97.9 to 106.7. According to Istat, the business confidence "has improved significantly compared to the positive trend underway since December 2020, reaching the highest level since February 2018". All components of the consumer confidence index are growing. The economic climate surged from 91.6 to 116.2 and the future one from 109.6 to 122.5. As regards business confidence, Istat estimates a widespread improvement in all sectors. Here the note by Istat.

 

Universities: in 8 years, brain drain from Italy up by 41.8%  

In Italy, the share of young adults with a degree has steadily increased over the last decade but remains lower than in other OECD countries. This phenomenon is linked to the persistent difficulties in entering the labour market. Consequently, the limited employment prospects and inadequate remuneration push more and more graduates to leave the country (+ 41.8% compared to 2013). This data emerges from the 2021 report on the university system by the Corte dei Conti, which analyses the financing, composition, teaching methods, training offer, and ranking of Italian universities. Here the press release by the Corte dei Conti. 

 

Istat: record growth in April exports 

In April, the increasing trend of exports to non-EU countries remained largely positive due to the increase in sales of capital goods., The record growth in exports on an annual basis derives from the comparison with the very low level of April 2020, when the global crisis due to the health emergency caused a drastic contraction in exports. Istat estimates an increase in foreign trade to non-EU27 countries, larger for exports (+ 7.3%) than imports (+ 4.9%). Here the Note by Istat.

 

Istat: in Italy industrial production prices up by 1.1% on a monthly basis and  6.5% on an annual basis 

According to Istat, in April, industry producer prices recorded a new rise on a monthly basis (+ 1.1%) and a marked acceleration on an annual basis (+ 6.5%, from +2.7 % of March). On the domestic market, industry producer prices increased by 1.2% compared to March and by 7.9% on an annual basis. Excluding the energy sector, prices increased by 0.9% and recorded an upward trend of 2.9%. Construction producer prices of “Residential and non-residential buildings” grew by 0.7% on a monthly basis and by 2.3% on an annual basis. On the foreign market, prices increased by 0.9% on a monthly basis (+ 0.9% in the euro area, + 0.8% in the non-euro area) and recorded an annual increase of 3.1%, (+2.9 % euro area, + 3.3% non-euro area). Here the Note by Istat. 

 

 The voice of Stakeholders 

 

Confesercenti: the pandemic makes Italians' consumption collapse, in 2020 down by 5 thousand euros per family 

Due to the pandemic and restrictions, Italian spending fell by 123 billion in 2020, a drop of about 5 thousand euro per family: the worst crisis in Italian history. Confesercenti analysed the collapse in consumption, caused by the decreased labour income (-90bn), mainly for hotels and restaurants, which registered a drop of around 43bn euros. The restrictions affected all sectors linked to social relations and movement: transport -33bn, recreation and culture -16.3bn, and fashion -13.2bn. Consumption also fell in health care, -2.3bn, and in education, -1bn. Expenditure related to staying at home increased, starting with foodstuffs which increased by 2.8 billion, and smart working with an increased spending on communication (+ 625 million) and bills (+ 1.4 billion). Here for further information.

 

Innovation 

 

Cybersecurity: 90% of energy companies and utilities are successful, but that is not enough 

According to a report on Digital Maturity in Cybersecurity, produced by Minsait, the energy sector excels in cybersecurity, with 89% of European companies having "well-defined strategic plans for initiatives, metrics, and indicators" and moving towards a Protected Digital Organization model. However, there is still a need to strengthen measures in relevant areas such as data protection and hardware and software assets management. Indeed, 56% of companies recognize they have room for improvement in implementing encryption, classification, and labelling technologies, and 44% still manage their inventories using manual processes. Here for more information. 

 

Italians and Digital Sustainability: what they know, what they think 

Thanks to Next Generation EU, Italy will invest 191 billion euro in the National Recovery and Resilience Plan over the next few years. The NRRP is essentially based on two axes: digitization and sustainability (environmental and social). But, how aware are Italians of these issues, and what do they think about digitization as a tool for sustainable development? The study " Italiani e Sostenibilità Digitale: cosa ne sanno, cosa ne pensano (Italians and Digital Sustainability: what they know, what they think)" realized by the Digital Transformation Institute - Research Foundation for Digital Sustainability in collaboration with IPSOS, answers these questions. The data seem to leave little doubt: 80% of the sample have adequate or perfectly accurate knowledge of the concept of sustainability. However, only 37% of the surveyed people can correlate their idea of sustainability with consistent economic and social choices. For 92% of them, digital is an opportunity. However, 65% of the interviewees argue that it is a source of inequality, job loss, and social injustice. Here the article on Tech Economy. 

 

Digital PA: the new challenge of "citizen experience" 

The awareness of how fundamental digital transformation and the public sector are, is one of the main lessons learned during the emergency experienced in 2020 and the first part of 2021. According to the report drawn up by FPA for Adobe, internet users have increased by 70% last year. The greater use of web channels corresponds to increased user expectations in terms of user-friendliness. The Cloud is the key to improve quality. Here the article published by “Il Corriere delle comunicazioni.” 

 

The Italian strategy for the ultra-broadband has been approved 

The Italian Strategy for ultra-broadband - "Towards the Gigabit Society," approved on May 25, 2021, by the Interministerial Committee for the Digital Transition (Italian acronym CITD), defines the actions to achieve the goals indicated by the European Commission in 2016 and 2021. The European digital transformation includes four essential points: (1) digital skills; (2) the digitization of public services; (3) the digital transformation of businesses; (4) the creation of secure and sustainable digital infrastructures. As indicated in the NRRP, the Strategy aims to bring connectivity to 1 Gbit / s throughout the national territory by 2026, before 2030, as set by the European Commission. The Strategy includes seven interventions, two of which are already underway and planned by the 2015 Strategy (White Areas Plan and Voucher Plan) and five Plans approved by the Council of Ministers on April 29, 2021, within the NRRP. Here to learn more. 

 

Osservatorio.net: the digital challenge of Italian museums, 70% of collections are online 

In one year, the works of art offered on the web have increased by 30%, according to the Digital Innovation Observatory in Cultural Heritage and Activities of the School of Management of the Politecnico di Milano. The cultural institutions have increasingly turned towards digital: 70% of museums (compared to 40% in 2020) offer digitized collections, almost half offer online workshops, educational activities, tours, and guided visits (45%). However, only 24% of institutions have developed a real strategic plan, including digital innovation. Here for further information.

 

14 Italian listed companies will ride the digital revolution

Italy ranks 24th among European countries considering all the indicators: connectivity, human capital, use of the Internet, integration of digital technologies, and digital public services. In the near future, Italy could be one of the main destinations for investments in the digital field. A boost in this direction could also come from the National Recovery and Resilience Plan (NRRP), which allocates around 40.7 billion euro for businesses' digital transformation. Intermonte estimated that Italy could significantly reduce this gap by 2023 and that listed companies are likely to play a leading role. Here the article by “Milano Finanza. 

 

Gender equity 

 

Women and work at the dawn of recovery 

The pandemic and, consequently, the economic crisis have further worsened the position of women in the labour market. National and European statistics have repeatedly found that the rate of inactivity has affected mainly women. The European Gender Equality Strategy and the Italian RRP aim to promote gender equality as much as possible in terms of work. But in a society that considers the woman mainly for her role within the family, will it be enough to guarantee her participation in the world of work? Here the article by LaVoce.info. 

 

How does the NRRP treat women? Employment, services, dignity, all the priorities of the government plan 

Attention to equal generational, gender, and territorial opportunities is one of the strategic transversal priorities of the six missions set by the NRRP: the Plan analyses the deep roots of the many discriminations that affect our country, causing significant delay compared to the rest of Europe. In Italy, women's participation rate in the world of work is today 53.1% compared to 67.4% of the European average. Significant wage disparities or the "glass ceiling" syndrome, which refers to the difficulty of reaching top positions, remain in every sector. The NRRP anticipates that within the first half of 2021, the Government will launch the National Strategy for Gender Equality 2021 - 2026 through the Department for Equal Opportunities. The Strategy defines five priorities (work, income, skills, time, and power) and highlights the contribution of each mission of the Plan to reduce gender gaps. Here the article on the Digital Agenda. 

 

Local Authorities

 

How to calculate municipalities' debt 

While Europe is recovering from the crisis, economic forecasts indicate that all Member States can return to pre-covid GDP levels by the end of 2022. The safeguard clause, activated in March 2020 to allow the budget overrun, will be set aside to return to the European rules that impose public administrations to take spending under control. Municipalities are subject to stringent European constraints and cannot ignore these rules. However, each municipality should know its share of debt within the entire PA to have the accounts under control. How will this be possible, and which are the calculation criteria? Here to learn more. 

 

The world of MEF 

 

Individual tax returns (Irpef) and VAT returns for the 2019 tax year 

The data of the individual tax returns presented in 2020 and referring to the 2019 tax year have been published. In 2019, the year before the Covid-19 crisis, GDP showed moderate growth, 1.1% in nominal terms and 0.3% in real terms. Irpef taxpayers are approximately 41.5 million, with an increase of over 153,000 subjects (+ 0.4%) compared to the previous year. The total declared income amounts to over 884 billion euro for an average value of 21,800 euro. The territorial analysis confirms that the region with the highest overall average income is Lombardy (25,780 euro), followed by the Autonomous Province of Bolzano (24,970 euro). In comparison, Calabria has the lowest average income (15,600 euro). All statistics and data analyses are available on the website of the Department of Finance (www.finanze.gov.it), following the path "dati e statistiche fiscali/dichiarazioni fiscali.” The data are in open data format. Here the press release by MEF. 

 

Mef: the Decree ' Imprese, Lavoro, Giovani e Salute (Business, Work, Youth and Health)' was published in the Official Gazette

The decree-law provides for further interventions to support businesses, work, young people, health care, and the areas affected by the Covid-19 emergency, allocating about 40 billion euros. It also introduces the new criterion of profit, besides the turnover, to distribute subsidies. 370,000 new VAT numbers will be included in the support program thanks to the extension of the base period. A large part of the Decree is dedicated to young people and, for the first time, provides for a fund for basic research, the " Fondo italiano per la scienza (Italian Science Fund)," allocating 50 million in 2021 and 150 million from 2022. Here the press release by MEF.