#SoseXpress - Press Review 20/26 november 2021

The knowledge society is the most democratic, open and fruitful outcome of the relationship between science and culture. The increasing public awareness of scientific and technological advances, and their possible implications, broadens the consensus for political decisions based on scientific evidence. 

From the speech of the Magnifico Rettore of the Rome University "La Sapienza", Antonella Polimeni, during the opening of the 2021-2022 academic year. 

The debate of ideas 

 

Reforms in Italy: now or never 

In the last decades, Italy has experienced structural problems waiting for the "season of reforms." So protracted political and institutional crises have caused the economic decline of our country well before the pandemic focused attention on the current situation. Is this decline relentless? No, it isn't, but it is necessary to fully exploit the enormous resources provided by the Next Generation Eu program, promoting investments and reforms. On LaVoce.info the full article by Paolo Sestito. 

Where is the Italian manufacturing industry going? 

According to the Confindustria Research Centre (CSC), in 2021, Italian manufacturing has steadily recovered, reaching the levels before the outbreak of the pandemic and driving Eurozone industrial growth. In Germany and France, the full recovery after the shock of the pandemic appears far away despite a less drastic decline in production volumes in the most critical months of 2020. A rather optimistic scenario. However, we must ask ourselves whether the CSC Report considers critical issues often emerged in the meetings and debates with the managers of large and small companies. Here to learn more. 

Recession risk: three factors endanger Italy in 2022 

The new pandemic wave, continuously accelerating inflation, and finally, the scarcity of raw materials and labour shortage could destabilize Italy's economic recovery in 2022, currently estimated at 4.1% of GDP. Is it possible to mitigate these risks? And which policies should be adopted to prevent them? Here for more information. 

 

Studies, research and numbers 

 

Istat published the new statistical register of active companies 

Istat disclosed the 2019 data of the Statistical Business Register (Asia) concerning all the statistical units identified according to the EEC regulation. Istat underlines that implementing the new profiling methodologies of the Asia register required significant investment for the re-engineering of the electronic register to guarantee system interoperability with the new statistical unit, the completeness of the information, the accuracy of the results and the timeliness of the data. Here the Note by Istat. 

The Bank of Italy: "Moderate risks to financial stability" 

"In Italy, the risks to financial stability are moderate" and "medium-term vulnerabilities persist, connected above all with the possibility that economic growth, which is currently solid, may lose momentum". According to the 2021 Financial Stability Report by the Bank of Italy, the Eurosystem's public and private securities purchase programmes are helping "to keep financing conditions relaxed, including in the government bond market." The financial situation of companies is also improving, and insurances are returning to pre-pandemic levels. Spreads on corporate bonds remain at historically low levels. The steady reduction in firms' default rates, made possible by the economy's good performance, mitigates the risk of sudden falls in bond prices. Here the Note by the Bank of Italy. 

Istat, record turnover for foreign-controlled companies in Italy: + 5% in 2019 

In 2019, the turnover of foreign-controlled multinational enterprises in Italy grew much more than all Italian businesses (+ 5% against + 0.8%). In the  Report "Structure and Competitiveness of Multinational Enterprises," Istat highlights that workers' competence and expertise are the main factors attracting entrepreneurs in our country. In 2019, foreign-controlled companies in Italy were 15,779, employing 1.5 million workers and generating a turnover of 624 billion, with an average number of employees equal to 95.8. 22.1% of foreign-controlled companies in Italy had planned to increase their activity in 2021-2022, 62.5% to maintain their business size, 5.3% to downsize. Between 2020 and 2021, 52.5% of the leading Italian multinational groups in manufacturing and services started new investments abroad with a majority share, 44.1% planned to invest. Here the Note by Istat. 

Eurostat: Road freight transport dropped in 2020 

In 2020, total road freight transport in the EU fell by almost 1% in tonne-kilometres (tkm) compared to 2019. The lockdowns and other measures imposed by many Member States in 2020 to counter the COVID-19 pandemic had a negative impact on road freight transport, particularly in the second quarter of 2020. This caused a disruption in the upward trend observed in recent years. However, Eurostat highlighted that road freight transport recovered even higher levels than before the pandemic in the third and fourth quarters of 2020. Compared to the third quarter of 2019, the increase was over 2% in the third quarter of 2020. Here for more information. 

The Bank of Italy-The Ministry of Labour: 603,000 new jobs created in the first 10 months of 2021 

Between 1 January and the end of October, over 603,000 new jobs were created, compared to 105,000 in 2020 and 411,000 in 2019. These are the results of a joint study by the Bank of Italy and the Ministry of Labour and Social Policies based on compulsory communications data. According to the note, job creation "is still largely supported by fixed-term employment." However, permanent hires also increased slightly in the autumn months, returning to pre-pandemic levels in October. The number of layoffs remains low even in September and October. Here and here to learn more. 

The Bank of Italy: Investment in FinTech technologies increase, 530 million for 2021-2022 

According to the third Fintech survey on the Italian financial system, conducted by the Bank of Italy, spending on Fintech technologies amounts to 530 million euros for the two years 2021-2022 increasing by 456 million euros compared to the previous two years. The number of investor banks also rose (from 77 to 96), as did projects (from 267 to 329), suggesting a greater take-up rate of innovative technologies within the financial system. Mobile banking, digital lending and services associated with open banking are the most innovative areas. Here the note by the Bank of Italy. 

Istat: exports to non-EU countries are growing again 

In October, foreign trade with non-27EU countries increased, imports by 3.2% and exports by 1, 5%. On an annual basis, exports slowed down (+ 3.9%, from + 5.2% in September). In the quarter August-October 2021, the exports to non-EU countries decreased slightly. However, Istat highlights, this trend is influenced by the occasional high-impact transactions (sales of maritime vessels) recorded in October last year, net of which the year-on-year increase in exports is greater (+5.4 %). The growth of imports, both on a monthly and annual basis, is largely due to energy products. Here the Note by Istat. 

Istat, consumer confidence fell in November, business confidence is stable

According to Istat, the consumer confidence index decreased significantly (from 118.4 to 117.5) in November, while the business confidence index remained practically unchanged (from 115 to 115, 1). The decline in the consumer confidence index is essentially due to a worsening of expectations on the general economic situation and households’ financial situation. More in detail, the economic and future climates are significantly worsening (the relative indices fell, respectively, from 142.2 to 139.8 and from 125.4 to 121.0). The personal climate index recorded a more contained reduction (110.4 to 110). Only the current climate increased from 113.7 to 115.2. On the other hand, business confidence climate improved in manufacturing (from 115.1 to 116.0) and retail trade (from 105.4 to 106.8). In market services and construction, the index fell from 112.1 to 111.3 and 159.2 to 157.4, respectively. Here the Note by Istat. 

 

The voice of Stakeholders 

 

CNA survey on young people and micro-enterprises 

77.2% of young people under thirty employed in micro-enterprises have a permanent contract. According to a study carried out by the CNA Study Centre on Istat data, enterprises with fewer than ten workers employ young people aged 15-29. In Italy, 22.4% of employees in micro-enterprises are under thirty. In absolute terms, they amount to 673,000 units. Here to learn more. 

Confindustria: manufacturing during the pandemic. The recovery and its uncertainties

After the collapse of the first months of 2020, industrial activities recovered quickly worldwide in the rest of the year. However, after the rebound, the growth substantially stopped in 2021, both in the advanced and emerging countries. Over the last year, the negative effects of lockdowns in many emerging countries due to the uncontrolled spread of Covid-19, the increasing transport costs, and the slowing of trade flows of raw materials and semi-finished products due to the crisis of sea logistics services have worsened the structural slowdown affecting the industrial growth before the pandemic outbreak. Unlike previous global economic crises, after the 40 % decline in March and April 2020, Italian manufacturing has not only steadily recovered the levels before the pandemic. Still, it has become one of the main drivers of industrial growth in the Eurozone. This scenario emerges in the 2021 Report "Scenari industriali" (Industrial Scenarios) by the Confindustria Study Centre. Here to learn more. 

Confartigianato: digital technologies and construction are driving the recovery among risks and uncertainties  

The recovery has not yet involved the entire business system: 42.7% of micro and small enterprises (1.9 million units with 4.8 million employees) and 53.6% of artisan enterprises (541 thousand units with 1.4 million employees) are recovering. In 2021, they have recorded an activity rate or revenues higher than in 2019 before Covid-19. These results emerge from the 16th report "'Verso il 2022 del rilancio" by the Confartigianato Study Centre. Exports and 13 manufacturing sectors are recovering the pre-crisis levels thanks to construction, the digital economy and e-commerce. On the other hand, fashion and services connected to people mobility and tourism lag behind: in the three summer months of 2021, the spending by foreign travellers in Italy remained 43.2% lower than the same period in 2019. On the labour market, employees have recovered the pre-crisis levels, but the effects of the pandemic weigh totally on self-employed people. Here the report by Confartigianato. 

Unioncamere: by 2025, 6 out of 10 workers must have green or digital skills 

By 2025, green or digital skills will be required for 6 out of 10 workers. In the next five years, the labour market will need at least 2.2 million new workers to develop eco-sustainable solutions and strategies (63% of the five-year needs including turnover) and 2.0 million workers able to use digital technology (57%). Furthermore, from 2022, the PNRR implementation will boost the demand for these skills. These are the medium-term forecasts (2021-2025) elaborated by the Excelsior Information System of Unioncamere, presented at the thirtieth edition of Job & Orienta. Here for more information. 

Confcommercio launches the "Imprendigreen" project 

The importance of sustainability as an investment opportunity and strategic area is now evident. Its role will acquire increasing consideration in a future characterized by the need to rethink development, consumption and production models as the Covid-19 emergency has highlighted. "Imprendiigreen" is a new mission set up by Confcommercio in the field of environmental sustainability. The project aims to raise awareness and consolidate entrepreneurs’ sustainable commitment through specific training courses, involving above all the sectors represented by the Confederation that have not yet launched initiatives in this field. Furthermore, "Imprendigreen" will support companies in the delicate transition from a linear to a circular economy, to make them aware of investment opportunities, to qualify and strengthen their sustainable commitment. Here the Confcommercio project. 

 

Innovation 

 

Big data Analytics: the market restarts in 2021, up by € 2 billion, + 13% 

In 2021, the Analytics market will reach an estimated value of over € 2 billion, up by 13%, after the severe slowdown of data management and analysis investments due to the pandemic in 2020.  The software component with an increase of 17% (with peaks of over 30% for the Data Governance and Data Science & AI platforms) and consulting and customization services drive the growth. In contrast, investments in infrastructure increase less than the market average. The recovery involves all sectors, with investments in Data Management & Analytics increasing by more than 10%. Insurance, manufacturing, and telco & media show the most significant growth. Public & Hybrid Cloud services represent a fifth of investments in Analytics solutions, recording + 21% compared to 2020. These results emerge from the Report " La Data Science è ripartita: siete pronti a seguirla? (The Data Science has restarted: are you ready to follow it?) " realized by the Big Data & Business Analytics Observatory of the School of Management of Politecnico di Milano. Here to learn more. 

Anitec-Assinform: digital market up by 5.5% in 2021 

According to the report " Digitale in Italia 2021. Previsioni 2021-2024 e Policy (Digital technologies in Italy 2021. Forecasts for 2021-2024 and Policy)" by Anitec-Assinform (Confindustria association of ICT companies), the Italian digital market continues its recovery and is expected to increase by 5.5% this year compared to 2020. Except for network services, the whole sector will increase by 5% per year in the next three years (2022-2024), thanks to the resources and the reforms envisaged by the NRRP. Here to learn more. 

Polimi: 2020 boosts SMEs' digitalization, but skills and tools are still lacking 

Digital tools are growing in Italian SMEs, but digital skills are still limited or unevenly distributed among the staff in over 4 out of 10 companies (42%). In general, digital transformation remains limited to specific services and operational tools, struggling to implement a strategic review of processes. First, 43% of entrepreneurs lack a long-term strategy and still show resistance in their approach to digital. Considering the same sector, size and geographical area, the most digitally mature SMEs show higher resilience and better economic performance. This scenario emerges from the report "Obiettivo innovazione digitale, il Next Gen EU per trasformare le PMI italiane (Digital innovation, the Next Gen EU to transform Italian SMEs)", the first edition of the Digital Innovation in SMBs Observatory of Polimi in Milan. According to the report, almost 220,000 SMEs (companies with 10 - 249 employees and a turnover below 50 million euros) out of approximately 4.4 million companies in Italy constitute a pillar of the Italian entrepreneurial fabric representing 41% of the national turnover. Here for further information. 

 

Gender equity 

 

Orange The MEF, gender equality to prevent violence against women 

On November 25, the International Day for the Elimination of Violence Against Women 2021, the Ministry of Economy and Finance joined the UN campaign "UNiTE by 2030 to End Violence against Women". To show its commitment to these values and the involvement of the MEF professional community in the campaign's objectives, the facade of  Palazzo delle Finanze, via XX Settembre in Rome, was illuminated on November 25 for twenty-four hours in orange, the colour symbol of the UN initiative. On November 26, the Department of General Administration, Personnel and Services of MEF organized the virtual event "Non c’è alcun rifugio dentro di me…(There is no refuge inside me ...)." The event is part of the seminars "MEF per le persone (MEF for people)" and will focus on the effects of the pandemic on gender-based violence. Here the press release by Mef. 

 

Local Authorities 

 

Anci-Invitalia agreement to implement municipalities’ and metropolitan cities’ projects

Anci and Invitalia signed an agreement to collaborate according to the Ministry of Economy and Finance guidelines and the measures promoted by the Government to accelerate the implementation of the NRRP in the coming months. The aim is to share solutions to implement the NRP projects under the responsibility of Municipalities and Metropolitan Cities, improving their "capacity building", defining sustainable, innovative, and rapid plans and strengthening the quality of public spending. The PNRR projects involve several areas: urban regeneration, redevelopment and enhancement of public assets and improving the quality of public networks, systems, and services. Invitalia will provide technical and operational support to Municipalities and Metropolitan Cities and act as a central purchasing body, providing standard tender procedures. Here to learn more. 

 

The world of MEF 

 

Italy joins the coalition "Export Finance for Future (E3F)"

Italy joined the coalition "Export Finance for Future (E3F)", highlighting the role of public financial support for exports through the transition to projects and investments compatible with the objectives of the Paris Agreement. Mef underlines that the initiative is in line with the goals of the Rome declaration of 31 October at the end of the G20 Summit, the principles declared in the G7 Summit in Carbis Bay last June and the commitments undertaken during the recent COP26. The coalition, including Denmark, France, Germany, the Netherlands, the United Kingdom, Spain and Sweden, aims to generate value within an ecological transition providing a gradual and neat path to citizens, businesses and employment. Italy's membership in the coalition was finalized during today's meeting and was concurrent with Belgium and Finland's. Here the press release by Mef.