#SoseXpress - Press Review 2/8 October 2021

A new awareness is maturing in our society that research, aimed at achieving peace and integral and harmonious development, constitutes a fundamental element for the future of the planet and those who inhabit it and make our societies more just, peaceful and sustainable. 

The President of the CNR, Maria Chiara Carrozza, at the G20 Parliamentary Speakers' Summit. 

The debate of ideas 

 

Green light to the tax reform 

From the revision of IRPEF and IRES to the rationalization of VAT rates, from the gradual overcoming of IRAP to the reform of the land registry. The delegation on the tax reform must "stimulate the economic growth by improving efficiency, revising the structure of taxes and reducing the tax burden on income deriving from the use of production factors". The goal is ambitious but still very vague in content. Everything will depend on the implementing decrees and the resources that the Government will deploy. Here to learn more. 

 

Studies, research and numbers 

 

Confindustria: industry slows down, consumer confidence improves 

The Confindustria Study Centre, in the flash survey on industrial production, reports a slight slowdown in industrial production in August (-0.2%) and September (-0.3%). However, Confindustria underlines that "the prospects remain positive ". In the third quarter of 2021, production grew by 0.5%, a physiologically slower pace than in the first two (when the increase was + 1.2% and + 1.5%). "On the other hand, expectations on the economic outlook in the next three months have improved a lot". Here to learn more. 

Istat: In the second quarter GDP stable at +2.7 

In the second quarter of 2021, Italian GDP increased by 2.7% compared to the previous quarter and 17.2% compared to the second quarter of 2020, with a slight decrease compared to 17.3% at the end of August. According to Istat, all the main aggregates of domestic demand recorded an expansion compared to the previous quarter increasing by 3.4% in final consumption expenditure and 2.6% in gross fixed capital formation. Imports and exports grew by 2.4% and 3.2% respectively. Here the note by Istat. 

Ihs Markit Italy service PMI: Service output rises sharply in September 

The service sector experienced a substantial expansion in September. Although the growth rate eased to the slowest since May, production continued to grow amid reports of strong client demand. The Italian service PMI stood at 55.5 points in September compared to 58 in August. However, the index remains very solid, although it marks the slowest value since May. Production continued to grow significantly. Here for further information. 

IHS Markit PMI: Eurozone growth continues to slow down in September 

Eurozone economic growth slowed down for the second consecutive month in September due to the shortage of inputs hindering both manufacturing and tertiary sector production. The IHS Markit Eurozone PMI Composite Output Index fell to 56.2 in September, down from 59.0 in August, the lowest since April. Although indicative of a substantial expansion in business activity, it marked a considerable slowdown in growth values. The IHS Markit Eurozone PMI Services Business Activity Index fell to 56.4 in September, the lowest since April and a marked drop from 59.0 in August. However, the index was still indicative of a strong expansion in service sector business activity. Here for more information. 

Istat: households' disposable income increases in the second quarter, the saving rate begins to decline 

In the second quarter, calendar and seasonally adjusted GDP increased by 2.7% compared to the previous quarter and 17.2% compared to the second quarter of 2020. Istat underlines that the increasing prices (+0.4% the implicit deflator of household final consumption expenditure) affected the purchasing power, which grew only by 0.1% compared to the previous quarter. Households' saving rate is estimated at 12.9%, down by 4.1 percentage points compared to the previous quarter, but still above pre-crisis levels. At the same time, consumer expenditure increased by 5.4% in nominal terms. Here the Note by Istat. 

Mise: The decree on tax credit for textiles, fashion and accessories published in the Official Gazette 

The decree containing the Ateco Codes of companies entitled to a tax credit of 30% to support the textile and fashion sector, footwear and leather goods production was published in the Official Gazette. The decree aims to contain the negative effects of the increased inventory levels due to the Covid emergency. Mise specifies that the available resources amount to 245 million euros:  95 million for 2021 and 150 million for 2022. The note explains that the tax credit will become operational with an implementing act issued by the Revenue Agency, which will define the terms and procedures for accessing the subsidy. Here the press release by Mise 

Censis: in Italy, boom for digital PA, e-commerce, online banking and home delivery 

Most Italians (38.1%) considers digital innovations, from smart working to e-commerce (29.9%), and home delivery (24.2%) indispensable. For 20.2%, smart working is untouchable (and the figure rises to 28.6% among 30-44s). Censis reveals this snapshot in the 17th Report on communication " I media dopo la pandemia (The media after the pandemic)", where the SPID (Public System for Digital Identity) divides Italy in two: the highest percentages are recorded in large metropolitan areas (59.5%) and among people with higher educational qualifications, while the lowest peaks, compared to the national average, are in the South (40.2%) and among the elderly (32.1%). According to Censis, almost 49% of users have activated a digital identity, especially in the North and among young people. The Report highlights how the pandemic has accelerated innovation in the media sector, with a boom in Web TV and smart TV used by 42% of users, a growth of 7.4% in two years. Social media users rose by 6.7%. Here to learn more. 

Istat: in August, retail trade up by 0.4% on a monthly basis and 1.9% annually 

In August 2021, Istat estimated a cyclical growth in retail trade (+ 0.4% both in value and volume), compared to -0.3% in the previous month (revised from - 0,4%). The increase in non-food product sales (+ 0.7% in value and + 0.8% in volume) is accompanied by substantially stable food product sales (+ 0.1% in value and -0.1% in volume). Sales of non-food products grew both in value (+ 1.3%) and in volume (+ 1.1%), while food product sales increased slightly in value (+ 0.2%) and decreased in volume (-0.3%). In August 2021, retail trade increased by 1.9% in value and 1.0% in volume on an annual basis. Here the Note by Istat. 

 

The voice of Stakeholders 

 

Confartigianato: the increase of raw material commodity prices cost 46 billion euros per year 

"Too expensive and often unavailable raw materials are slowing down the recovery. Companies' value-added and propensity to invest are decreasing, affecting both the innovation processes and employment". The alarm was raised by Confartigianato, which estimated the impact of price increases on 848,000 manufacturing and construction micro and small businesses, involving 3,110,000 employees. The price increased by 31.9% and cost 46.2 billion / year to SMEs. The North East suffers the most onerous effect (the increase in raw material commodity prices affects 3.3% of micro and small enterprises' GDP), followed by the North West (2.8%), the Centre (2.3%) and the South (1.8%). Here to learn more. 

Confartigianato: double-digit recovery for digital services revenues + 11% e-commerce + 59% 

According to the latest Covid-19 report by Confartigianato, digital economy sectors continue to be the engines of the recovery with an increase in turnover of 10.9% for IT and other information services firms in the first half of 2021, compared to the same period of 2019.  In detail, revenues in the software and IT consulting sector recorded + 11.0%, while IT services recorded + 10.2%. In manufacturing, the production of computers and electronics in the first six months of 2021 is 7.9% higher than in the same period of 2019. Confartigianato also shows robust growth in e-commerce, with sales increasing by 58.8% in the first six months of 2021 compared to the pre-Covid-19 period. Here for more information. 

 

Innovation 

 

Unioncamere: cybersecurity, 3.000 anti-hacker companies 

Italian anti-hacker companies continue to grow, reaching almost 3 thousand units, and in the last two and a half years, with an increase of more than 6% after the real leap experienced in 2017-2019 (+ 300%). According to a study by Unioncamere-InfoCamere on data from the Business Register of the Chambers of Commerce, the number of employees (+7,000 between 2018 and 2020) increased from 21,500 to 28,400 units, corresponding to an average of 15 employees per company. As regards the financial performance, Lazio is on the top step of the podium in terms of turnover achieved by companies in the sector with 1.3 billion (44.8% of the total). Lombardy is second only with 754 million, while the third region, very distant, is Emilia-Romagna (294 million). Here to learn more. 

For 80% of firms, Pec (certified email) is a fundamental tool of the digital transition 

According to a new survey conducted by Aruba and IDC to assess the level of innovation achieved by small and medium-sized enterprises (SMEs), over 80% of interviewees consider PEC essential for digitising their business.  Moreover, the survey showed that 98.5% of firms use PEC continuously, with an interesting frequency of use: 82% use it at least once a week. 38% of the interviewees consider PEC essential to communicate with INAIL, INPS and social security funds, 30% with the Revenue Agency (sending F24 forms, assessments, patent box, etc.). 23% prefer it for contracts, agreements and negotiations with commercial partners, stakeholders and investors, 21% for invoices and payment receipts with customers and suppliers, while 14% for filling out ISTAT questionnaires and surveys. Here for more information. 

Politecnico di Milano: with cashback, digital payments fly high to 145bn, + 23% 

Digital payments in Italy are also growing thanks to the "cashback" effect. According to the last report by the Innovative Payments Observatory of the Politecnico di Milano, in the first half of 2021, digital payments reached 145.6 billion euros, marking an increase of 23% compared to 2020. The rise concerned mainly contactless payments, which increased by 66% from 31.4 to 52, 1 billion euros compared to the same semester of 2020. All other mobile payments by smartphone also increased by 108%, reaching 2.7 billion euros. Here for more information. 

 

Gender equity 

 

Mise: The “Fondo Impresa Donna” decree was signed, 40 million for female entrepreneurship  

The inter-ministerial decree providing for Fondo Impresa Donna was signed. Complying with NRP, the measure aims to strengthen investments to support female entrepreneurship, encourage the participation of women in the business world, improve their skills and creativity for the start-up of new entrepreneurial activities, and implement innovative projects through non-repayable grants and subsidized loans. The Fondo Impresa Donna provides an initial loan of 40 million and additional 400 million euros from the NRP for female entrepreneurs. Here the note by Mise. 

 

 Local Authorities 

 

The National Registry of Resident Population: the use of the first available services is growing 

The National Registry of Resident Population (Italian acronym ANPR) continues to grow. Over a million citizens have access to the national registry services by digital identity codes (SPID, CIE or Electronic Identity Card, CNS or National Service Card) in a few months. After reaching over 98% of the population (equal to more than 59 million Italians) equal to about 66 million citizens (including Italians abroad), the launch of the first services on the platform recorded significant numbers. The personal data self-certification service alone recorded over 70,000 requests. Here to learn more. 

The data on the value-added by the "Centro Studi Tagliacarne" and Unioncamere: all Italian provinces' 2020 balance sheets are in the red  

Covid has redesigned the geography of Italian development. Although all the provinces closed 2020 with negative value-added data, the most affected areas were: - 7.4% the North, -7.9% industrial areas (in particular, fashion and entertainment), and -7.5% those with the highest presence of small businesses, compared to a national average of -7.1%. On the opposite front, even in a context of general contraction, the provinces showing better resilience were in the South (- 6.4%) - where 8 out of 10 provinces show more contained reductions. These data emerge from the analysis carried out by the Centro Studi Tagliacarne and Unioncamere on the provincial value-added in 2020 compared with 2019. According to the report, 19.7% of the country's wealth is produced in Rome and Milan (+2% compared to 2000), with the top 20 provinces producing 55.4% of all the wealth. Here for more information. 

 

The world of MEF

 

Mef: in September 2021, the state sector shows a borrowing requirement of 15.3 billion 

In the first nine months of the year, the state-sector borrowing requirement improves, reaching approximately 85,500 million, an improvement of roughly 42,800 million compared to the same period of 2020 (128,310 million). According to Mef, in September, the state sector working balance is estimated at 15,300 million, an improvement of about 6,700 million compared to the corresponding month last year (-22,000 million). Mef also highlights that the local and central government higher expenditure and the first 700 million euros financing the new Italian carrier, Ita, weigh on the September budget. Here the press release by MEF. 

Mef: in the first eight months of the year, tax revenues reached 302.1 billion euros

In the period January-August 2021, the tax revenue based on the criterion of legal competence amounted to 302,180 million euros, increasing by 30,614 million euros compared to the same period of 2020 (+ 11.3%). Mef reported that in August tax revenues grew to 4,117 million euros (+ 10.1%), due to the increase in direct tax revenues of 1,788 million euros (+ 8.3%) and indirect tax revenues of 2,329 million euros (+ 12.2%). Here the press release by MEF. 

MEF: credit and liquidity for households and businesses

Moratoriums are still active (pursuant to law and voluntary) for a total value of approximately 69 billion, against about 620,000 suspensions granted. Requests for guarantees on new bank loans for micro, small and medium-sized enterprises submitted to the Guarantee Fund for SMEs exceeded 200 billion. The loans guaranteed through the “Garanzia Italia” fund of Sace amount to € 28,3 bn, out of 3,093 requests received. These are the main results of the survey carried out by the task force set up to promote the implementation of the measures to support liquidity adopted by the Government during the Covid-19 emergency. The task force includes the Ministry of Economy and Finance, the Ministry of Economic Development, the Bank of Italy, the Italian Banking Association, Mediocredito Centrale and Sace. Here the Press Release by MEF.