1. Internationalization of the Italian companies in Bulgaria and in the Balkans Current Situation and Future Developments Federico Cassi- Confindustria Bulgaria

2. Italian companies in Bulgaria: statistical and geographic analysis There are around 1.000 Italian companies in Bulgaria Most of them are situated in two areas: 46% in Sofia and 25% in Plovdiv There is a significant concentration of more than 20 companies in Varna, Kyustendil and Pleven.

3. Main sectors of the Italian firms in Bulgaria 30% of the industrial activity is covered by the manufacturing sector Other important sectors are: Consulting services, Trade, Constructions.

4. Geographical Distribution of the Manufacturing activity Mainly, they are located in the Sud-west area of the country. Blagoevgrad, Kyustendil: shoe district Plovdiv: textile and food district Pleven, Gabrovo, Ruse, Varna, Vratsa: textile and clothing district Pazardzhik: food and wood district

5. Italian role in Bulgaria Italy is the third European most important trade partner of Bulgaria Total trade exchange: €3.691 billion FDI from Italy to Bulgaria have been of €289 billions in 2009 (+60% from 2008 to 2009) 2011(€)Var.% 2010/2011 Import2.112.048.23523,41% Export1.579.577.42810,43%

6. Investing in Bulgaria Advantages Tight fiscal policy GDP growth Increasing export Good implementation of EU funds Development of the infrastructure network Critical points Low consume Worsening of the external economic condition and of the external demand Weak recovery of the labour market Population ageing New challenges: Justice reform and Bureaucracy restraining

7. Balkans Balkans’ geographic position is strategic due to the transit of Pan-European corridors and for the advantageous tax rates. Bosnia- Herzegovina BulgariaMacedoniaMoldovaRomaniaSerbia VAT 17%20%18%20%24%18% Corporate Tax 10% 12%16%10%

8. Balkans’ exports: unexpected patterns Source: ISTAT 2010

9. Current situation in the Balkans GDP growth expected in 2012 Per capita GDP (€) Number of Italian active firms Employees working in the italian firms Interchange (€) Bosnia and Herzegovina 1,50%3.258605.0002.088.345.207 Bulgaria 2,60%4.8011.00025.0006.524.105.513 Macedonia 3,70%4.483802.5001.026.208.228 Romania 2,50%5.67515.700800.00021.076.269.542 Serbia 2,80%3.91725020.0003.768.935.001 Total 13,10%22.13417.090852.50034.483.863.491