CUCCHIANI: MORE FOREIGNERS IN ITALY, WHY NOT?
The "slap" of 2009 has not yet been forgotten by the Italian economy, districts included. But both in 2010 and last year the boxer got up again: 2010 turnover rose by 8,3%, last year by 8,5%. Unfortunately, in general, the recovery will slow down in 2012, the year of recession, in which it will not go beyond one percentage point (+3% in 2013). “But compared to 2009 – underlines Gregorio De Felice, chief Economist of Banca Intesa – the impact of the crisis will be less violent because the driving force of international demand will not cease”. Here is the result in a nutshell "Report on the economy of the districts" by Banca Intesa based on the analysis of 49 thousand companies belonging to 139 districts (about a third of the Italian GDP), an occasion, not by chance, for the first public appearance in Italy of Enrico Cucchiani, the bank's new managing director, aware that he is starting out in an uphill situation, more for the Italian economy than for the system bank.
“I believe – began Cucchiani – that the bank must set itself three objectives at the service of the Italian economy. First, promote the internationalization of our businesses. Already today the panorama presents lights and shadows. Among these are the payment times, over 120 days, which are absolutely not worthy of a European country. But we cannot overlook the fact that in the companies that have driven growth, the international turnover is equal to 51%. But, above all, there is a subset of excellent companies that have recorded growth rates of 47%: the pride of the country. In this frame, the bank must help the internationalization process of our economy. The foundations are there: 31 Intesa employees, out of over 100, work in a global network that not only covers the traditional capitals of the economy but is operational in China, the Middle East, South America and all the other markets with the highest of growth".
Second development direction: strengthening the assets of small and medium-sized enterprises. “It is our priority task – continues Cucchiani – to help the evolution of family capitalism. I'm not impressed by the phenomenon of delisting: it is normal that, when prices are low, the control groups can buy back their minority shares. But this does not diminish the need to create opportunities for family businesses to make a leap in quality”. Despite some slight improvements (the minimum size of district enterprises goes from 2,5 to 4,3 million) the size of our groups remains too modest to capture the trends in international demand. “Take the megacities business that is emerging in Asia and South America: our teams are underpowered for those challenges. A big country needs big companies”.
Finally, the bank must spend energy to stimulate innovation and R&D, accelerating the process of integrating with universities and other centers of excellence. Three directions of progress to reduce the many gaps in the Italian system. One, in particular, that the rhetoric of the flag has often relegated to the background: the lack of attractiveness of the Bel Paese in the eyes of foreign capital. “From research numbers – underlines Cucchiani – the gap between the investments of Italian companies across the border emerges, correct and necessary strategy to conquer the markets and the shortage of foreign investment. In Italy the figure is less than a quarter of what is allocated to France, a gap that is reflected in the lack of employment”.
There are many causes for its lack of attractiveness: tax authorities, slowness of justice, bureaucracy, poor infrastructure. “I think everything can be summarized in one word: lack of credibility” which also contrasts with a communication from the bank to international interlocutors. In short, the battleship of Italian credit does not hold back, from the top of an impressive presence: 454 billion credit lines in 2011, more than a quarter of Italy's GDP, with a flow of medium-long term loans growing by 15% (17% for SMEs). Such a pervasive presence that, necessarily, obliges the bank not to operate in a Darwinian sense, favoring companies with a greater driving force but also to avoid, as far as possible, crises that would have serious impacts on employment and, consequently, on consume. "From this point of view - comments De Felice - the hope is that the fight against tax evasion will allow for a reduction in the tax burden by the end of the year".
In the meantime, the chief economist shines a light on two sectors, which are potentially driving forces: the agro-food sector, which is experiencing strong international growth thanks to the innovative and quality content that forms a barrier for competitors (forced to shop for local companies); the technological poles made up of Ict, biomedical, aeronautical and pharmaceutical which, although not part of the hi-tech world gotha, show growth rates well above the international districts.
