#SoseXpress - Press Review 11/17 december 2021

After a difficult 2020, Italy's economy is recovering faster than France's and Germany's, and, for this reason, it is our "country of the year". It is hard to deny that the Italy of today is a better place than it was in December 2020. For this reason, it is our "country of the year. 

With these words, "The Economist" crowned Italy "the country of the year". 

The debate of ideas 

 

Intesa Sanpaolo-Ipsos: the good practices of social innovation to counter the weaknesses of the moment 

For a long time, our country has experienced increasing inequalities and poverty, worsened by the Covid-19 emergency. To counter the profound economic and social crisis, the different components of our society must act with a sense of shared responsibility and favour the inclusion of the most vulnerable and social cohesion. Public policies alone cannot be effective. For this reason, it is necessary to implement a new model of private social intervention which can impact society positively. These are the results of the report "I Colori dell’Inclusione - The Colors of Inclusion" by Intesa Sanpaolo-Ipsos, aiming to identify the initiatives in line with our country’s social change of. Here to learn more. 

Agile working after the emergency 

Remote work has spread widely during the pandemic emergency in public and private companies, involving millions of workers, even in the absence of precise regulations on its use. In this regard, the Ministry of Labour and the social partners have worked on a protocol setting out the guidelines for agile working. The text emphasizes the importance of individual agreements and the voluntary nature of that choice,  highlighting the fundamental role of collective bargaining to define the characteristics of agile working after the emergency. Here to learn more. 

Eurobarometer on cultural heritage: the role of culture against social exclusion 

Social policies and the concrete work of operators today are increasingly focusing on the need to introduce indicators to estimate the economic value of culture as an antidote to social exclusion. The barometer investigates people's involvement with cultural heritage, the perceived importance and values they attach to European cultural heritage. The snapshot outlines a highly polarised situation between those who take part in cultural initiatives and those who do not. In this regard, the NRRP has recognised the significant role of culture to improve digitisation, innovation, competitiveness, and tourism. Here and here to learn more 

 

Studies, research and numbers 

 

Istat: Covid-19 impact on productivity, increasing in labour and decreasing in capital.  

According to Istat 2020 report, labour productivity increased by 1.3%, while capital productivity decreased by11.2%. Italian workers' productivity is higher compared to the EU27 average (+ 1.2%) and "much higher" than in Germany (+0.4%), France (-1.1%) and Spain, which recorded a decrease of -2.8%. Here the Note by Istat. 

Mediobanca: report on the world and Italian PayTech solutions 

In 2020, the total turnover of the 25 international PayTech firms with over one billion euro revenues amounted to € 140 billion. In general, the pandemic affected these companies' balance sheets, which showed good resilience, managing to contain the decline in aggregate turnover (-2% compared to 2019). The Open Banking revolution, evolving macroeconomic contexts and an increasingly digital economy have radically changed the global scenario of the payments industry. The banking giants now compete with new technology platforms, challenger banks and BigTechs. In 2020, cashless transactions reached an all-time high with 785 billion (compared to 389 billion in 2014). Here for more information. 

Istat: in the third quarter + 505 thousand people employed compared to the same period of 2020 

In the third quarter of 2021, labour input, measured by worked hours, increased by 1.4% compared to the previous quarter and 4.1% compared to the third quarter of 2020. GDP increased by 2.6% on a monthly basis and 3.9% on an annual basis. According to the latest Istat report on the labour market in Italy, the number of employed people increased by 121 thousand units (+ 0.5%) compared to the previous quarter, due to the rise in the number of employees (+156 thousand, + 0.9%), both permanent and temporary, opposed to the decline in the number of self-employed (-35 thousand, -0.7% in three months). The number of unemployed and inactive people aged 15-64 decreased (-134 thousand, -5.4% and -41 thousand, -0.3%, respectively). Here the Note from Istat. 

Third Censis-Tendercapital Report on social inclusion and exclusion: the heritage of the pandemic  

Since the pandemic outbreak, about 60% of Italians have experienced strong psychophysical stress, anxiety and indefinite fear. According to the Third Censis-Tendercapital Report, the Italians are afraid and pessimistic about the evolution of the pandemic in the next twelve months. Low-income workers (40.3%), employees (42.1%) and women (42.2%) are the most pessimistic. The Third Censis-Tendercapital Report “Inclusione ed esclusione sociale: cosa ci lascerà la pandemia  (Social inclusion and exclusion: the heritage of the pandemic)” highlights the centrality of social sustainability, which represents a concrete operational program for post-pandemic Italy. Here to learn more. 

Intesa-Einaudi: Liquidity on current accounts up by 110 billion euros, but savers decrease

The "Luigi Einaudi" and Intesa Sanpaolo Research Centre presented the 2021 report on Italians' savings and financial choices. Liquidity is increasing, but the number of Italian savers is decreasing. In detail, the share of savers dropped from 55.1 to 48.6%, while involuntary savings increased by 6.7%. The effect is an overall increase in liquidity on households' current accounts of 110 billion euros. Here and here to learn more. 

Check-up Mezzogiorno, the South resists the impact of the crisis: GDP up by 5% in 2021 

The South is recovering and has resisted the socio-economic impact of the pandemic. However, it must consolidate its sustained growth by seizing all the relevant opportunities offered by the numerous recovery tools and measures, such as the NRP and the new 2021-27 Structural Funds. Confindustria (Territorial Cohesion and Infrastructure Area) and Srm (Study Centre of the Intesa Sanpaolo Group) reveal this snapshot of the southern economy in 2021, showing a marked improvement compared to last year. The first significant, positive signal comes from the Synthetic Index of the Southern Economy, which increases after the sharp slowdown in 2020, recovering the values of 2019. The forecasts on GDP in 2021 confirm a sustained increase in the South of 5%, compared to 6.3% at the national level and 6.8% in the Centre-North. Here to learn more. 

Federmeccanica: production increases in the third quarter (+ 0.7%) 

Federmeccanica published the 160th edition of its economic survey on the metalworking industry. According to the report, the expansion phase of the metalworking sector, begun in June 2020, continues in the third quarter of 2021, albeit with slower growth rates than in the first six months. In the third quarter of 2021, the engineering activity increased by 0.7% compared to the previous quarter, after an increase of 1.5% in the first and 1.3% in the second. Many problems derive from the increasing production costs, the shortage of raw materials and semiconductors, and the difficulty in finding professional profiles. However, the production volumes in the third quarter are approximately 2.5 percentage points higher than in the pre-pandemic period (January-February 2020). Here for more information. 

PA: agile working during the pandemic, a change with many contrasts 

The lack of training and qualified staff, especially ICT, curbs growth for 67% of institutions. The spread of Smart Working before and during the Covid-19 emergency showed that only a few public institutions, 3.6%, had adopted Smart Working (SW) in the pre-pandemic phase. First of all, the Prime Minister's Office and Ministries (66.7%), State Agencies (50.0%), Metropolitan Districts (28.6%), Public Universities (27.1%) and the regional governments (25%). On the contrary, Municipalities with under 20,000 inhabitants, small Municipalities and mountain communities are less oriented towards agile working. Only 46.4% of them equipped employees with mobile devices. Just three months after the conclusion of the direct survey, Istat disseminated the first preliminary results of the multipurpose survey linked to the permanent census of public institutions. Here to learn more. 

Istat: foreign trade, in October, exports up by 7.4%, imports by 19.4% on an annual basis. 

In October 2021, Istat estimates economic growth for both incoming and outgoing flows with foreign countries, more intense for imports (+ 2.8%) than for exports that increased by 1,4% in the EU and 1.6% in non-EU areas. In the quarter August-October 2021, compared to the previous one, exports grew by 2.4%, imports by 6.6%. In October 2021, the year-on-year increase in exports was 7.4%, more sustained in the EU area (+ 10.6%) than in non-EU markets (+ 4.0%). Imports recorded a significant year-on-year increase (+ 19.4%) in the EU area (+ 12.3%) and, more marked, in the non-EU area (+ 30.1%). Here the Note by Istat. 

 

The voice of Stakeholders 

 

Coldiretti: employment down by 5.5% in agriculture 

"In contrast to the general trend, the worked hours in agriculture dropped by 5.5% due to bad weather that "decimated" production and cut harvesting activity". These results emerge from the analysis conducted by Coldiretti on the data released by Istat in the report "The labour market" relating to the third quarter of 2021. The study highlights "the negative effects of extreme events on over one million workers in agriculture". In 2021 agriculture was upset by abnormal weather conditions causing damages in the countryside for over 2 billion while the Covid emergency destabilized international markets. Here to learn more. 

Federalberghi: in 2021, foreign tourism fell by 52% 

Federalberghi estimates that, in 2021, foreign tourism will fall by more than 50%. In the first 11 months of the year, Italy recorded a 34.8% decline in tourism compared to 2019 (-52.8% for foreign tourists and -16% for Italian tourists), equal to 146 million travellers, of which approximately 113 million foreign tourists. Federalberghi also underlines that, in the first ten months of the year, the room occupancy rate was 31.8% in Rome, 34.4% in Venice, 34.5% in Florence and 35.4% in Milan. In all these locations, the decrease is more than 50% compared to 2019. Here to learn more. 

 

Innovation 

 

Minister Orlando accelerates on the National Plan: focus on digital technologies

The government accelerates on new skills, and the Minister of Labour and Social Policies, Andrea Orlando, signed the Decree to adopt the National New Skills Plan closely related to the NRRP. The National New Skills Plan aims at "reorganizing the training of workers and unemployed people and strengthening the training system to support workers who benefit from support allowance or wage integration. The adoption of the Plan implements mission No. 5 of the NRRP, allocating more than 6 billion for active training policies in addition to 500 million from React-Eu and 700 million from the New Skills Fund. Here for more information on "Corriere delle Comunicazioni". 

Three-year plan 2021-2023 for ICT in the Public Administration 

The Agency for Digital Italy has published the three-year plan 2021-2023 for ICT in the PA, drawn up in collaboration with the Department for digital transformation, PagoPA S.p.A. and with the contribution of many central administrations, regions, and metropolitan cities. The document incorporated the observations of the Permanent Conference of the Regions and Autonomous Provinces, the Union of Provinces and the National Association of Italian Municipalities. The plan includes innovations concerning the implementation of the NRRP, its objectives and the supervision of the digital transformation obligations provided for by Article 18-bis of DAC (Digital Administration Code). Here to learn more. 

 

Gender equity 

 

Iren: a study on gender equality in the service sector 

"Women Empowerment @Iren-Valorizzare il ruolo delle donne nelle aziende del settore energetico, infrastrutture e trasporti (Women Empowerment @ Iren-Enhancing the role of women in companies in the energy, infrastructure and transport sectors)" is the study carried out by Luiss Business School in collaboration with Iren to outline the actions already completed and planned to understand the phenomenon of gender equality from different perspectives. The study investigated online content in 5 countries (Italy, France, Germany, United Kingdom, Spain) and 4 sectors (Energy, Waste, Water, Telecoms) in 2017-2021. According to data, the energy sector is predominant on the network in terms of gender-based content: out of 1,845 web sources dealing with gender-based content, 43.7% are from the energy sector, followed by telecoms (23.8%), water (14.3%) and waste (13.6%). The semantic investigation of the content made it possible to identify the most relevant topics. The theme of equality (22.3%) as gender equality is at the top, followed by inequality, which faces the same problem from the opposite perspective (11.2%). Here to learn more. 

World Inequality Report 2022 and gender inequalities 

The latest World Inequality Report 2022 highlights income inequalities between men and women at the national and international levels due to strong differences in wages and jobs. It is interesting that women's income has remained unchanged since 1990. Here and here to learn more. 

Fondo impresa femminile: the decree of MIse published in the Offical Gazette 

The interministerial decree of Minister Giancarlo Giorgetti, implementing the Fondo Impresa Femminile (Women enterprise fund), was published in the Official Gazette. The Fund aims to encourage the participation of women in the business world, supporting their skills and creativity for new entrepreneurial activities and the implementation of innovative projects through non-repayable grants and subsidized loans. The Women Enterprise Fund relies on an initial fund of 40 million euros and is one of the measures planned by the Ministry of Economic Development within the NRP, which provides 400 million to support female entrepreneurship. Here the Note by Mise.

 

Local Authorities 

 

10th IFEL Conference: Thanks to the NRRP, municipalities will increase their expenditure on public works by 75% within 2026

"Today, the ability to spend the additional resources provided by the NRRP, is for municipalities a priority compared to their ordinary and daily activities". The President of ANCI, Antonio Decaro, said these words at the opening of the 10th annual IFEL Conference "Municipalities for development. Local finance from the crisis to the NRRP challenge ". According to the President of the National Association of Italian Municipalities, "In 2019, Municipalities represented 25% of the entire expenditure on public works in the country, and we will increase this expenditure up to 75%, using the additional 40 billion euros provided by NRRP, until 2026 ". Here for more information. 

10th IFEL Conference: "The resources of the NRRP are a great opportunity for Italy" 

Municipalities will be protagonists of the cooperation network to achieve the objectives of the 2030 Agenda. This idea emerged from the debate on local finance during the 10th annual IFEL Conference. The political agreement between ANCI and the Government will provide 600 million euros to hire about 15,000 fixed-term employees for more than 36 months. Even the president of the National Council of Anci, Enzo Bianco, highlighted that "Italy's commitment to sustainable development sees Municipalities as protagonists in creating useful networking to develop and implement policies. Here and here for more information. 

NRRP: From the ministry for ecological transition 200 million to make 19 small islands more sustainable 

The decree launching the "Green Islands Program" has been published in the Official Gazette. This program uses 200 million euros of funds from the National Recovery and Resilience Plan (NRRP) to promote and strengthen the environmental and energy sustainability of 13 municipalities of 19 minor non-interconnected islands through integrated projects for energy and water efficiency, sustainable mobility, waste management, circular economy and renewable energy production. The program involves the municipalities in Isola del Giglio, Capraia, Ponza, Ventotene, Tremiti Islands, Ustica and Pantelleria, including a non-interconnected minor island, Leni, Malfa and Santa Marina Salina, in the island of Salina; Favignana, Lampedusa and Lipari, including other minor islands. Here to learn more. 

NRRP: 3.2 billion allocated to local authorities for water infrastructures, the development of Social Economic Zones and urban and tourist bicycle paths 

The decrees of the Minister of Sustainable Infrastructures and Mobility, Enrico Giovannini, allocate to Regions and local authorities 3.2 million euros from the NRRP, including 630 million to improve the connections between the Special Economic Zones (Zes) and encourage their development, 150 million to strengthen urban cycling. 50% of these resources are for the South and add to the 50 million allocated for projects already in progress. The remaining funds are for constructing at least 565 kilometres of urban and underground cycle paths that connect key points to travel in cities and urban areas. Here to learn more. 

NRRP: resources for sustainable and smart cities 

A decree of the Ministry of the Interior (Decree 6 December 2021, n.152) approves the model by which the metropolitan cities identify the projects relating to "integrated urban plans, to finance according to the giudelines of th NRRP". The projects aim to improve dilapidated urban areas, economic regeneration, and revitalization, with particular attention to creating new personal services and enhancing accessibility and infrastructures, transforming vulnerable territories into sustainable and smart cities. Here the note by the Interior Ministry. 

 

The world of MEF 

 

Mef: Credit and liquidity for households and businesses 

Moratoriums are still active for a total value of approximately 56 billion, out of roughly 500 thousand suspensions granted. Requests for guarantees on new bank loans for micro, small and medium-sized enterprises submitted to the Guarantee Fund for SMEs rose to 216.5 billion. The loans guaranteed through the "Garanzia Italia" fund of Sace amount to 30.8 billion euros, out of 3,949 requests received. 

These are the main results of the survey carried out by the task force set up to implement the measures to support liquidity adopted by the Government during the Covid-19 emergency, including MEF, MISE, the Bank of Italy, ABI, Mediocredito Centrale and Sace. The active moratoriums granted to non-financial companies account for approximately 46 billion. Households' moratoriums on loans for 7 billion euros are still active, of which 1 for the suspension of the mortgage payments on the first home. Loans were granted to around 94% of applications. Here the press release by Mef. 

Mef: tax and social security revenues grew by 9.6% in the first ten months of 2021 

MEF estimates that tax and social security revenues in the first ten months of the year increased by 9.6% (+ € 50,270 million) compared to the same period of 2020. The figure considers the increase of 11.4% (+39.111 million €) in tax revenues and 6.1% (+11.159 million) in social security revenues. Tax revenues include the main taxes of local authorities. The comparison between the result of the first ten months of 2021 and the corresponding period of the previous year still presents elements of inhomogeneity that reflect the effects of the measures adopted by the Government to deal with the health emergency, including suspensions, reductions or recovery of payments for different types of tax. Here the press release by Mef. 

Mef: report on the evasion of tax and social security contributions  

According to the latest report published by Mef, in 2019, the gap between tax and social security revenues fell to 99.27 billion, about 10 billion less than in 2014. For 2019, the evasion of tax and social security contributions decreased by 3.1 billion, producing a recovery of 3 % compared to 2018. In particular, tax revenues decreased by 3.5 billion, while social security revenues increased by 429 million. Mef highlights that in the period 2014-2019, evasion fell from 22% to 18%, with a recovery of 11.7 billion on the hidden income. Here the Note by the Finance Department.