One of the "packages" envisaged by the "Sblocca Italia" decree law, announced in the Council of Ministers last Friday, concerns the "Unlock exports".
The text of the decree has not yet been definitively disclosed, but the press release issued at the end of the CDM states that the package provides for the launch of a "Plan for the extraordinary promotion of Made in Italy: and the attraction of investments in Italy" for over 270 million euros in the three-year period 2015-2017, through targeted dissemination interventions e promotion of Italian productions in the industrial and agro-food fields. It was chosen to link the promotion of Made in Italy: to significant incentives to innovation for the companies involved, also through the assumption of professional figures specialized in internationalization processes (export manager).
It is planned to build a unique distinctive sign for agri-food productions Made in Italy:, also in view of Expo 2015, and a strengthening of contrast tools to the Italian sounding in the world. In terms of competitiveness, the aim is to create logistics-distribution platforms abroad, the strengthening of agreements with the distribution networks, the valorisation and protection of the certifications of quality and origin of the products. The foreign investment attraction plan will be promoted by ICE and will include the promotion of the opportunities present in Italy, technical assistance to foreign operators and everything that can facilitate investment by the foreign operator in the national territory.
Even if there are some interesting ideas, I don't think we can speak of a revolutionary intervention, or one that could substantially affect the relaunch of our exports. As usual, too the Unblock export is mainly based on promotional interventions, in particular in the agri-food sector, which are necessary but not sufficient: just think that, despite all the efforts made so far and the ability of some of our companies in the sector to establish their products on international markets, our agri-food balance remains in deficit, due to the disastrous management of cultivable land in our country and of the competition from the import of low-priced products – but often also of poor quality – from emerging countries (tomatoes, flour, rice, oil, etc.). And instead the focus on innovation, the hiring of export managers and the creation of logistics platforms abroad is interesting, even if everything depends on the effective availability of resources and on how the implementing decrees of this law will be set (even the "when" counts, because experience teaches us that in recent times these decrees take years to become operational). In particular, the recruitment of export managers should be linked to the training of young graduates in subjects of economics, marketing, engineering in universities, masters and advanced training schools, reserving tax relief and social security contributions for companies that hire such managers on permanent contracts.
As for the other element at the basis of the "Unblock export" decree, namely the attraction of foreign investment, here too we are at deja vu. In the last 4 years we have had our six-monthly dose of announcements and denials in this regard: after the tragic experience of Sviluppo Italia, the Italy Desk was set up at ICE, which in practice was never born; the Cabina di Regia for internationalization was born (the second with the same name, the other has never been abolished), which had three meetings (the last in July 2013, then never met again) in which has been much talked about and little done; with Destinazione Italia the Ministry of Foreign Affairs appropriated the development plan by delegating it to a technical structure to be set up at Invitalia; now we are back to an "attraction plan" for foreign investments coordinated by ICE. But be careful: the draft decree circulating these days speaks of a special company to be set up in this regard with capital from the Ministry of Economic Development. What purpose does it serve? Nothing. And who is it for? The answer would be too bad and obvious, I'll leave it to the readers. Actually, the only thing we care about is that, after years of wasting time, the plan to attract foreign investments to Italy finally takes off in good time. Certainly, such a program is useless if it is not accompanied by the other measures described both in Destinazione Italia, in the Sblocca Italia and in the 1000-day plan, such as the streamlining of bureaucracy, the reform of labor law, the reform of civil justice. In fact, no regulation will be able to overcome the repulsion of potential foreign investors towards the hundreds of necessary authorizations and laws to be observed in order to do business in Italy, the difficulties of the labor market and the tax authorities, the length of times of civil justice.
There are two basic problems concerning our exports: the first is the difficulty in accessing credit for exporting companies; the second is that – for many years now – interventions on the export support system and internationalization in general were sporadic and uncoordinated.
To facilitate access to credit for our liveliest and most competitive businesses, which are those operating on international markets, up to now they have mainly Cassa Depositi e Prestiti and SACE, also with innovative tools (the financial guarantees of SACE, the Export Bank System). But that's not enough: it is necessary to find new forms that are able to drive bank credit, channeling it towards trade finance (export credit financing). We are also thinking, for example, of investment funds with mixed participation (public and private) dedicated to financing without recourse (without recourse to the exporter) even short-term export credits (invoices with payments deferred between 90 and 180 days) insured by SACE. Other solutions are being studied by SACE, which every few months invents new valid tools in this direction. The era of incentives is over, given that there are no more available funds, this is the only viable and truly useful way for our exports.
The cause of the other problem, that of the lack of coordination of regulatory interventions, is easy to identify. There has been no Ministry of International Trade for 6 years. There is no longer even an ad hoc Deputy Ministry, except for a brief and insignificant period. Lately then in fact the matter is managed in co-ownership between MISE and MAE, with visible results. In return on an already very complex basis of laws and decrees, a series of uncoordinated and contradictory rules have been stratified, almost never implemented. What would you think if, going to a good restaurant, you found two chefs cooking the same dish? Or, making another comparison, have you ever noticed that in a company led by two partners (or groups of partners) 50% each, every decision is extremely long and laborious, because it must be unanimously approved? There solution to these issues is that of give primary responsibility to one of the two ministries, naturally in respect of the competences of the other and of the Ministry of Economy and Finance. Personally I am inclined to return all the matter to the MISE, with a Ad hoc Deputy Minister who is responsible, over a 3-year period, for preparing and implementing a detailed programme rationalization of legislation and issuing of all implementing decrees that have remained on the waiting list, reduction and unification of incentives, implementation of the program to attract FDI to our country, coordination of all promotional activities. The old control room for internationalization should also be restored, which serves to bring within the CIPE the decisions of commercial policy and the use of funds in agreement between all the ministries concerned. This should also be part of Renzi's thousand days program.
