THEevent's audience organized by European Investment Bank (EIB) at the Ministry of Economy and Finance (MEF) in Rome saw the participation of entrepreneurs, bankers, economists and representatives of the public and private sectors. During the event, the results of the EIB report 2022-2023, with particular attention to the investments of Italian companies.
The meeting, opened by the Minister Giancarlo Giorgetti and by the Vice-President EIB Jasmine Vigliotti, saw the presence of various speakers, including the President of the Conference of Regions and Autonomous Provinces, Massimiliano Fedriga, the Chief Economist of Cassa Depositi e Prestiti, Andrea Montanino, the Director of the Study Center of Confindustria, Alessandro Fontana, the Deputy General Manager of Abi, Gianfranco Torriero, the Chief Economist of Sace, Alessandro Terzulli, and the Deputy Head of the Department of Economics and Statistics of the Bank of Italy, Andrew Brandolini.
Find best practices to support businesses
During the discussion, the speakers addressed the policies and the best practices to support companies in a difficult and uncertain economic environment, taking into account factors such as the war in Ukraine, inflation and rising prices. The Director General of the Treasury, Riccardo Barbieri Hermitte, concluded the conference by emphasizing the importance of investment support for stable and lasting growth.
The European Investment Bank (EIB) has carried out a role of support to Italy for many decades, financing the public and private sector, promoting innovation, supporting infrastructure development, small and medium-sized enterprises and transitions towards a green and digital economy.
The key points of the EIB Report 2022-2023
Deborah Revoltella, Director of the Department of Economics of the EIB, presented i main points of the bank's report on the trend of investments in Italy. Despite the pandemic crisis, Italian companies have managed to emerge from it in relatively positive conditions and have also withstood the shock of the war in Ukraine by continuing to invest robustly, benefiting from public support, including that of Pnrr funds. The context, however, remained complicated due to the rise in interest rates.
While on the one hand the EIB survey shows that the credit access conditions for Italian companies they have improved and there are no significant differences (in terms of cost) compared to other European countries, on the other hand, the increase in financing costs is starting to be felt. Furthermore, it has been noted that Italian companies often face higher barriers than those of other European nations when it comes to investment.
Other element of complexity concerns the public investments, which have a positive effect on private investment, especially during periods of economic slowdown. In the last two years, there has been an acceleration of public investments, and it is expected that this push will continue thanks to the resources made available by the Pnrr.
" European economic policy must maintain the emphasis on coordination of actions and support for public investments, while Italian economic policy must act to maximize the absorption of available resources, improve the management capacity of public interventions and direct them towards the removal or at least the reduction of the barriers that hinder private investments,” he commented Deborah Revoltella.
Post-pandemic investments
Il 55% of Italian companies it has taken measures in response to the pandemic, benefiting from the aid provided by the Government and the European Union. While this figure is similar to that found in the 2021 EIB survey, it is nonetheless lower than the current EU average (63%). Only 41% of Italian companies have invested in digitalisation, compared to 53% of the EU average.
Overall, 68% of Italian companies use at least one tadvanced digital technology, in line with the EU average where, however, there is a higher percentage of companies that have adopted more than one digital technology.
Despite repeated economic shocks, theinnovation of Italian companies has not stopped. Almost half of Italian companies (47%, in line with previous years) have worked on the development or introduction of new products, processes or services, exceeding the EU average of 34% in this area.
Regarding the investments for the climate transition, the percentages of Italian companies that have invested (36%) or plan to do so (39%) to combat climate change are lower than European companies (53% and 51% respectively).
The survey also shows a growing interest among Italian businesses for introduction of stricter regulations and standards as an opportunity, with an increasing percentage compared to the 2021 survey (from 24,7% to 28,4%), especially among large companies (37,5%), suggesting that the propensity to reap the benefits of the climate transition can rapidly increase.
Giorgetti: "fundamental role of the EIB"
“The results of the Report confirm the importance of the role played by the EIB in supporting development and cohesion policies in Italy. A team game between public and private that must be exploited to overcome bureaucratic constraints, give continuity to investments and face the complex challenges we face" he declared Giancarlo Giorgetti, Minister of Economy and Finance.
“The post-pandemic investment recovery in Italy has been robust but the structural gap to be filled still remains large. Business dynamism must be accompanied by reforms and initiatives aimed at promoting innovation and productivity. The full use of the resources of the PNRR and of the structural funds represents a key driver of growth for the Italian economy. The EIB Group will continue to support the investment recovery and promote the mobilization of private capital” was the comment of Jasmine Vigliotti, EIB Vice-President.
“The EIB report on investments is an important opportunity to bring the contribution of the Conference of Regions. I am referring to the role that regional policies can have for investment and the development of territorial systems, above all in the light of the extraordinary opportunities offered by the new EU programming of the structural funds and by the PNRR. It is also necessary to strengthen public investments in order to ensure the development and lasting growth of the territories and of the country. Finally, we hope to have the possibility of planning the expenditure of the Regions through multi-year investments” he said Massimiliano Fedriga, President of the Conference of Regions and Autonomous Provinces.
