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The abolition of the ICE is not enough to relaunch support for exports

Between perplexities and shortcomings of the Financial Maneuver, the abolition of the ICE is fine, but there is still a long way to go to improve our support for companies that want to export and invest abroad

In the 2011-13 Financial Maneuver (law 111/2011) the only part that concerns internationalization is that relating to the suppression of the ICE. Yet even the Istat data speak for themselves: in May, while the industry's turnover fell by 1,7%, good news came from orders, which showed a 4,1% increase in the economic situation. The figure derives from the 0,8% drop in domestic orders and the parallel 12,2% increase in foreign orders. Only exports, therefore, can lead us out of the crisis. But politics, in our country, does not seem to notice it, except for some isolated attempts by the new undersecretary Polidori to introduce some innovations (as we reported in the article of July 21 in this section "The Made in Italy portal will be born in September") .

Therefore, the suppression of the ICE has been a reality since last July 17th. I state that I agree with what Dr. Ugo Calzoni wrote on the pages of FIRST online in his two articles of 5 and 14 July, namely that this decision (abolition of the Institute of Foreign Trade and transfer of its foreign network to the Ministry of Foreign Affairs) could have been taken earlier. But it could also have been taken better, in the sense that there are several things that give rise to some perplexity or that are missing in the approved law (the relevant articles are those from 17 to 26, shown here in the attachment). Let's see them:

1. The human, financial and instrumental resources of the dissolved Institute are transferred in an initial phase to the Ministry of Economic Development (MISE). The previous financial endowments will be transferred to a special Fund for the promotion of exchanges and the internationalization of companies to be established in the estimates of the Mise. Subsequently, on the basis of a decree of the Prime Minister (to be adopted by 17 August), the employees of the ICE foreign network (with a maximum of 100 units) will be assigned to the Ministry of Foreign Affairs (Mae) in Sections for the promotion of exchanges, led by a Head of Mission (accredited with the local authorities on the diplomatic list). Part of the availability of the aforementioned Fund will also pass along with them. The procedure is complex and articulated, but substantially correct, provided that the two basic purposes that the abolition of the ICE must pursue are respected, namely:

a. cost savings, which must be obtained through the closure of useless Italian offices, the rationalization of the foreign network, the cutting of superfluous expenses;

b. maintaining the useful functions of past management: I am thinking, for example, of the excellent Research Office of the old ICE, which has always been a point of reference for evaluating the effects of trade policy on our foreign trade; in addition to those spearheads in the foreign network already mentioned by dr. Trousers;

2. The art. 19 of the law states that: "The powers of direction and supervision in matters of promotion and internationalization of companies are exercised by the Ministry of Economic Development and the Ministry of Foreign Affairs." Here a first perplexity arises. Until now these powers, all in the hands of the Mise, have been exercised with discontinuity and imperfections. What will happen when there are two cooks in one kitchen? Furthermore, we remind you that our internationalization support system is based on three pillars: promotion, insurance, financial support. Now, the promotion is in the hands of Mise and Mae, the insurance aspect is entrusted to Sace (whose capital is held by the Ministry of Economy and Finance), the financial aspect to Simest (the majority of whose capital is in the hands of the Mise): there are therefore at least three cooks. I also want to remind you that the laws that marked the times in this matter were determined and desired by competent foreign trade ministers with their own dicastery (Ossola, Ruggero, Fantozzi, Fassino);

3. The same article subsequently claims that: "The guidelines and strategic guidelines for the use of the related resources in the field of business promotion and internationalization are assumed by a control room, set up without new or greater burdens, co-chaired by the Ministers of foreign affairs and economic development and composed, in addition to the Minister of Economy and Finance or a person designated by him, by a representative, respectively, of Unioncamere, the General Confederation of Italian Industry and the Italian Banking Association." The doubts are growing, for two reasons. The first is that it is not clear what role this control room will have, i.e. whether it will be a consultative, decision-making role (with very important players, but external to the government?) or support to the CIPE. The third alternative would be the most plausible, but let's not forget that a control room already exists with these functions, established with Legislative Decree 143/98. This control room, the fifth permanent commission of the CIPE (which, moreover, has never been convened in this legislature), has never been abolished.[1] On this point there must necessarily be a clarification;

4. In two laws, 56/2005 and 99/2009, the government was empowered to reorganize the bodies involved in internationalisation. In the second law they were also called by name: Ice, Simest, Informest, Finest, Italian Chambers of Commerce Abroad. The proxies have expired without being applied. To these bodies we can also add Buonitalia (promotion of Italian food abroad), Invitalia (promotion of foreign investments in Italy) and Enit (promotion of foreign tourism in Italy). The case of the latter institution is emblematic: according to the words of the then Deputy Minister Urso, “Enit's responsibilities have been transferred to the regions, but it maintains 24 branches abroad, 200 employees and as many as 19 executives. He no longer spends a single euro on promotion, it only serves to keep himself alive” (interview with Repubblica, 21 July 2010). Now, the situation is as follows: for Simest and the Italian Chambers of Commerce abroad the discussion is more complicated and must be dealt with separately; Ice has been put down; Finest and Informest can be managed directly by the regions that hold the capital (those of the Triveneto); the last three bodies can be conveniently suppressed, and their functions transferred to the Mise. In this way, cost savings and rationalization of interventions could be achieved: unless you want to keep presidents, boards of directors and directors completely useless.

Between perplexities and shortcomings, in short, the abolition of the ICE is fine, but there is still a long way to go to improve our system of support for companies that want to export and invest abroad.

23.07.2011

www.gpgarioni.it


[1] See the description on the site http://www.mincomes.it/cabina_regia/delibere_Cipe/elencdel1.htm


Attachments: LAW_15_July_2011_Maneuver_financial_2011-3_Abolition_ICE.pdf

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