Italy

Italy is the sixth biggest economy in the world today and one of Europe’s preferred investment destinations. The country is reaping the benefits of major economic reform it had to undertake to join the euro, including reducing the public sector deficit and privatising formerly state-run enterprises. As a result, it is benefiting from historically low inflation and interest rates, and the competitiveness of the euro has brought considerable export advantages.

Foreign investment has grown considerably, particularly from the US, the UK, France and Germany; many well-known multinational companies have a significant presence in Italy. A survey conducted in the US among leading business groups revealed that Italy enjoys a favourable reputation for its innovation and creativity, excellent manufacturing base, geographical location, domestic market, its ability to produce high-quality products and its strong small and medium-sized enterprise structure.

An attractive range of incentives is available to stimulate further investment and job creation, including new tax credits to encourage investment in new plant, R&D facilities and hiring of the long-term unemployed.

To attract further foreign investment, each region in Italy is establishing specialised agencies to facilitate investment and provide support to investors. Priority sectors include the automotive industry, biotechnology, call centres, IT, pharmaceuticals, plastics, tourism, the mechanical industry, and logistics and transport.