1. AGN World Congress – Venice 22-24 September 2013
Prof. Andrea Ballancin: “Italy – Its place in Europe and the World”

2. Economic analysis

3. Average annual growth in real GDP per capita, 2000 - 11 (OECD source)

4. General governament gross debt (as % of GDP)

5. Economic analysis
Italy's debt exceeded 130% of gross domestic product (GDP) in the first quarter of 2013
Government debt: State financing by issuing bills, securities and government bonds

6. Italian budget deficit % of GDP
Economic analysis
Italian budget deficit % of GDP

7. Economic analysis
Spread BTP (4,555%) / BUND (1,882%) Sep.16th, 2013

8. Economic analysis
Financial Times Stock Exchange Milano Indice di Borsa

9. Economic analysis
Stock index: ENI Market capitalisation € 63 billion - Sep. 2013

10. Economic analysis
Stock index: ENEL Market capitalisation € 26 billion - Sep. 2013

11. Economic analysis
Stock index: FIAT Market capitalisation € 7,6 billion - Sep. 2013

12. Economic analysis
Stock index: TELECOM Market capitalisation € 8 billion - Sep. 2013

13. Economic analysis
Stock index: GENERALI Market capitalisation € 23 billion - Sep. 2013

14. Economic analysis
Stock index: UNICREDIT Market capitalisation € 26,8 billion - Sep. 2013

15. Economic analysis
Stock index: SNAM Market capitalisation € 12 billion - Sep. 2013

16. Economic analysis
Stock index: INTESA SANPAOLO Market capitalisation € 24,8 billion - Sep. 2013

17. OECD Economic outlook 2013-2014
According to OECD estimates, Italian economy is projected to remain weak in the coming years
Government debt is projected to increase to % of GDP in 2013 and % of GDP in 2014
Low growth and weakness of banking system
High unemployment rate (11,5% in early 2013)

18. OECD Economic outlook 2013-2014
Falling employment may have long-term effects
Budget deficit continues to decline: budget deficit is projected to be approx. 2,2 / 2,3 % in 2014
Government's plan to pay off part of public arrears (positive impact of this long overdue measure is uncertain): projected cumulative impact on GDP in approx. 0.5%
Weak internal spending
Positive impact of market growth on exports

19. Economic reforms Balanced budget amendment imposed by the EU
Provisions mainly consisting of fiscal consolidation measures, including a new round of pension reforms, growth-enhancing actions (mostly focused on business environment and liberalization)

20. Economic reforms Pension system:
Extension of the contribution-based regime passed in 2012
Statutory retirement age increased
As from 2012, employees may retire earlier, regardless of their age (with approx. 40 years of contributions)
Age and number of contribution years, will be indexed to changes in life expectancy

21. Economic reforms Labour Market:
Incentives to increase permanent hiring
Re-shaping of the incentives to increase fixed-term contracts
Changes to the apprenticeship system
Rationalization and expansion of the unemployment benefit system

22. Economic reforms Public administration: Spending review
Increase privatizations
Solution / management of payment arrears by the public administration

23. Economic reforms Tax system: Introduction of a municipal service tax
Increased taxation of “luxury” (e.g. cars, yachts, helicopters, and aircrafts)
Reduced taxation of employment (IRES / IRAP)
Projected further increase of VAT: 22% from October 1, 2013
Introduction of an allowance for corporate capitalisation
Fight against tax evasion (estimated tax evasion / avoidance approx. € 120/180 billion a year)

24. Anti-avoidance rules Italian tax law provides for:
a general anti-avoidance rule
specific anti-avoidance provisions intended to counter specific tax avoidance practices
moreover, the Italian Supreme Court ruled in favor of the existence of a general anti-abuse rule

25. Increased attention to cross border transactions
Specific anti-avoidance rules concerning:
Shifting of profits and income into tax haven countries (cf. also OCED BEPS project)
Residence of individuals (transferred in ”tax heavens”)
Residence of foreign entities (“esterovestizione”)
Deductibility of costs incurred with ”tax heavens” entities
CFC rules
Transfer pricing