Press Review #SoseXpress 29 May-04 June 2021

Italy was rebuilt from its rubble. The Constitution indicated the Republic the way forward. The Constitution is the founding value of the Republic, a living Constitution, which is realized every day in its citizens' behaviours, choices, and assumption of responsibilities at all levels and in any role. 

Sergio Mattarella, during the ceremony for the 75th anniversary of the Italian Republic. 

The debate of ideas 

 

PA. No digitization without simplification. The analysis by Carlo Mochi Sismondi 

The Public Administration will not be able to face the radical innovation of digital transformation without adequate regulatory simplification that makes its work fast and effective. Computerization and simplification must necessarily walk together to implement the expected transformation and significantly change PA’s activities. In this regard, the interoperability of the two functions represents the key prerequisite for success. Carlo Mochi Sismondi, President of Forum PA, expressed this idea in his article published on the Agenda Digital website. 

 

Studies, research and numbers 

 

The Public Administration engine of recovery

The PA, engine of recovery: what actions should be undertaken for a competent, simple, smart, and digital administration? FPA, a Digital360 company, realized a study involving about 1000 employees. Eight out of ten public employees asked for a revision of the systems to determine the staffing needs. Seven asked for a radical modification of competition procedures to make the Public Administration the engine for recovery. The employees underlined the urgency of introducing new strategic profiles in administrations to meet the ambitious objectives of the NRRP: Here to learn more.  

 

The Bank of Italy: Annual report for 2020. Governor's concluding remarks  

"This year GDP could exceed 4% thanks to the vaccination campaign and the National Recovery and Resilience Plan. Both represent the hope of restarting the country as soon as possible. Production is strengthening and Recovery is a formidable challenge to modernize the country". This is what the Governor of the Bank of Italy, Ignazio Visco, claims in his annual report. The support measures so far "have mainly benefited the most affected sectors and have prevented a rise in inequalities." Then Visco added: "As uncertainty subsides, public intervention must become more selective focusing on the sectors that will continue to struggle due to the public health crisis and seeking to avoid subsidizing companies that have no chance of survival while guaranteeing support for their workers". Here the full report. 

 

Censis: work and the pandemic 

In 2020, 456,000 fewer people were employed than the previous year (-2.0%). But the increase in inactive people is also significant: 711,000 more. This considerable share of the population does not see a new job on its horizon. In addition, the number of inactive people who could work increased by 217,000, reaching 3 million. Young people, women, and foreigners were most penalized by the crisis, with a serious "risk of retreating": 14 million women and 3 million young people are not looking for a job. These data emerge from the project " Italia sotto sforzo. Diario della transizione 2020/21 (Italy under stress. Diary of the transition 2020/21) "developed by Censis to analyse the difficulties originating from the past that cause Italy's unpreparedness to face the Covid-19 emergency optimally. Here the Press Release by Censis. 

 

Employment: the Covid pandemic put a generation at risk of education. In Italy, Neets exceed 20%.  

According to a report published by the European Commission in the second quarter of 2020, Neets, young people neither in employment nor in education and training, rose by 11.6% compared to the same period of the previous year across the European Union. In Italy, during the pandemic, they increased up to 20,7%. This situation affects Italy more than the rest of Europe and southern regions more than northern ones. In the EU, the measures against Covid mitigated the employee income decrease, particularly among low-wage workers. However, the low-wage workers' income decreased in Italy, and the per capita income recorded only a slight increase. These elements have exacerbated social-economic differences, particularly concerning education, which is an essential tool for emancipation, especially for young people from disadvantaged family backgrounds. Here for more information. 

 

Istat: In the first quarter, service sector turnover up by 0,6%, 1,6% on an annual basis. 

Istat estimated that the services turnover index increased in most sectors in the first quarter of 2021. According to Institute of Statistics, the seasonally adjusted index increased by 0,6% compared to the previous quarter, and by 1,6% on an annual basis. Transportation and storage (+3,5%), travel agencies, and administrative and support service activities (+3,4%) registered the more significant increases. Only accommodation and food service activities suffered a marked drop (-15,9%). Here the note by Istat. 

 

Istat: In May, inflation speeded up by 1,3% on an annual basis. 

In May, inflation speeded up for the fifth consecutive month, reaching levels not seen since November 2018. According to Istat, in May 2021, the Italian consumer price index for the whole nation (Italian acronym NIC) remained unchanged on a monthly basis. It increased by 1,3% on an annual basis (+1,1% compared to the previous month), excluding tobacco products. Istat explains that the speed-up of the all-item index derives from the increasing prices of non-regulated energy products (+1,1%) and non-processed food products (+0,9%). Here the note by Istat. 

 

Eurostat: euro area unemployment at 8.0% 

Eurostat reported that in April 2021, the eurozone seasonally adjusted unemployment rate stood at 8.0%, down from 8.1% in March 2021 and up from 7.3% in April 2020. The EU unemployment rate was 7.3% in April 2021, stable compared to March 2021 and up from 6.7% in April 2020. Eurostat estimates that in April 2021, more than 15 million men and women in the EU were unemployed. Here the Eurostat Press Releases section. 

 

Istat: slight increase in employment in April 

The new Istat survey on the Labour Force estimates for April 2021 a slight increase in employed persons and a more significant growth in the unemployed, while the inactive decreased. The employment growth (+ 0.1%, equal to + 20 thousand units) concerns women, temporary employees, and young people under 35. On the other hand, men, permanent employees, self-employed people and the over 35s are decreasing. The employment rate rose to 56.9% (+0.1 points). Compared to the previous month, the number of inactive people aged 15-64 also decreased (-1.0%, equal to -138 thousand units) following the widespread decline in both genders and all age classes. The inactivity rate dropped to 36.2% (-0.3 points). Here the Note by Istat. 

 

Istat: in the first quarter, GDP positive at + 0.1% 

After the contraction of the last part of 2020, the Italian GDP grew by 0.1% in the first quarter of 2021, and the downward trend reduced from 6.5% to 0.8% compared to the previous quarter. In its preliminary estimates, Istat had reported a short-term reduction of 0.4% and a declining trend of 1.4%. "A moderate recovery in production is the synthesis of an increased value-added in agriculture and industry and a contraction in the tertiary sector still affected by the effects of measures against the health emergency." Here the Note by Istat. 

 

IHS Markit: a new record for the Italian manufacturing PMI 

In May, the manufacturing PMI in Italy reached a new record thanks to the steady recovery in demand. The index compiled by IHS Markit continued to increase from 60.7 in April to the new record value of 62.3. According to IHS Markit, “Production growth continued to be among the highest due to the record increase in new orders and employment levels, and a further expansion in customer demand in the middle of the second quarter.” Here for more information. 

 

IHS Markit: in May, a record for the Eurozone manufacturing PMI    

The eurozone manufacturing economy experienced a new record improvement in operating conditions during May. This emerged in the latest IHS Markit report on PMI, the indices on the expectations of purchasing managers of manufacturing companies. The manufacturing PMI index recorded 63.1 points, exceeding 62.8 of the preliminary estimate and expectations, and compared to 62.9 points of the previous month. Therefore, the indicator of the state of health of the manufacturing sector is above the threshold of 50.0 no-change mark that separates growth from contraction. Here to learn more. 

 

The voice of Stakeholders 

 

Confindustria: production recovered in April (+ 0.3%) and May (+ 0.4%) and the prospects for the future are good

According to the Confindustria Study Centre, Italian industrial production has further increased in the spring months, after the recovery recorded in the first quarter (+ 0.9%). After the setback reported by ISTAT last March (-0.1%), in April and May, production advanced at a moderate pace (+ 0.3% and + 0.4% respectively), supported by domestic and foreign demand. Entrepreneurs show greater optimism: the confidence index rose in May to its highest levels since the autumn of 2017, in line with the improvement in the health crisis and the relaxation of restrictions. Here the data by Confindustria. 

 

Coldiretti: inflation is the record of the decade for agricultural raw materials

According to an analysis by Coldiretti on the data on inflation in May, based on futures contracts listed in the Chicago Board of Trade (CBOT), the international reference point for the future market of agricultural commodities, prices have practically doubled in the last year. The increase was 74% for corn (the most significant growth of the decade) and 77% for soy, reaching the peak in almost seven years. Here to learn more. 

 

Confartigianato: recovery for confidence and production in manufacturing 

In the first quarter of 2021, the manufacturing production indicator increased by 0.7% compared to the previous quarter, in line with the recovery (+ 1%) of the European Union, recording the best performance among the major countries of the European Union. The analysis by the Confartigianato research department of micro and small enterprises reported positive economic signs for manufacturing. The business confidence index is also growing in the sector, from 106 in April 2021 to 110.2 in May, recording the fourth consecutive increase. Here the data by Confartigianato. 

 

Fipe-Confcommercio, 150 thousand workers are missing in the catering sector 

Fipe-Confcommercio raises the alarm: when 160,000 businesses (about 46% of catering businesses) will reopen after the restrictions since April 26th, 150 thousand workers will lose their jobs in the sector. According to Fipe, "over the last year, 120 thousand permanent employees have preferred to change jobs and interrupt their contracts due to the many restrictions imposed on our activities. Other 20 thousand workers last year worked on a fixed-term basis and today they might prefer income support tools instead of a real job also considering the uncertainty about the future". Here the data by Fipe-Confcommercio. 

 

Unioncamere: female businesses under 35 are on the rise 

Female entrepreneurs under 35 are driving the birth of new businesses in the first quarter. According to Unioncamere and InfoCamere Women's Entrepreneurship Observatory data and the registrations in the first three months of 2020, new enterprises founded by under 35s increased by 8.1%. After the decline recorded during 2020, the number of female businesses rose slightly in the first quarter of 2021: 26,299 between January and March, compared to 26,044 in the same period last year, the lowest number since 2015. Here the details of the data by Unioncamere web portal. 

 

Innovation 

 

European SPID, the EU accelerates

The European SPID (Public Digital Identity System) is coming. The EU Commission has proposed creating a European digital identity for all citizens, residents, and businesses of the Union. The goal is to provide secure access to public and private services with a single online identification code through a European digital wallet, which the EU27 citizens will use through an App based on the most advanced security, privacy, and interoperability standards. The European digital identity wallets will give a new possibility to store and use data for all types of services, from check-in at the airport to car rental. Here to learn more. 

 

NRRP: the industrial plan of the ICT leaders: a game to play 

The Recovery Plan represents an unprecedented opportunity in terms of resources, innovation, and the new economy. The innovations related to the development of fixed and mobile ultra-broadband represent an enormous technological and economic opportunity. The NRRP can concretely promote innovative skills and public-private partnerships using public funds to develop value-added services, generating competitiveness and giving life to the national innovation ecosystem. ICT companies are moving on this path. Here to learn more. 

 

Gender equity 

 

Gender mainstreaming in the EU budget 

On May 26, The European Court of Auditors published a report assessing whether gender mainstreaming has been applied in the EU budgets and spending programs. In particular, the Court evaluated whether the gender equality strategies were implemented in compliance with the OECD guidelines: verification of gender analysis in impact assessments, identifying gender objectives in the budget, monitoring results through indicators, and accountability through reporting. Only four spending programs of the 58 in the 2014-2020 budget initially included specific references to promoting gender equality among their objectives. Here to learn more. 

 

Gender equality fosters growth 

For years, gender equality has never been at the top of governments' agenda and has progressed at a discouragingly slow pace, despite corrective policies, such as gender quotas. Gender equality is the focus of many programs, but government investment has always been low. The pandemic could represent a backward step but also an unexpected opportunity, thanks to the resources provided for recovery. This is a decisive moment to promote equality and invest massively in women's employment. Here for more information. 

 

The world of MEF 

 

Data from the Liquidity Task Force 

The task force set up to promote the implementation of the measures adopted by the Government during the Covid-19 emergency, involving the Ministry of Economy and Finance, Ministry of Economic Development, the Bank of Italy, the Italian Banking Association, Mediocredito Centrale, and Sace published the updated data on liquidity. Moratoriums are still active on loans for 144 billion, and 1.3 million suspensions have been granted; guarantee requests for new bank loans for micro, small and medium-sized enterprises submitted to the Guarantee Fund for SMEs exceeded 173 billion. "Garanzia Italia" of Sace guaranteed loans for € 24.1 billion based on 2,186 applications received. Here the press release by MEF. 

 

Mef: in May 2021, the state sector working balance shows a borrowing requirement of 15.1 billion euros 

In May 2021, the state sector working balance is provisionally estimated at 15,100 million, with a decrease of about 10,500 million compared to the same month of 2020 (25,586 million). In the first five months of the current year, the working balance is estimated at 68,900 million, with a decrease of about 5,600 million compared to the same period of 2020 (74,464 million). Compared to the previous year, the State working balance benefited from the increase in fiscal revenues that last year affected the suspension of tax payments due to the Covid-19 health emergency. Here the Press Release by MEF.