A recent study conducted by the Directorate-General for Economic and Financial Affairs of the European Commission has analysed the state of private investment in Italy, focusing on the barriers that limit its expansion.

The authors first highlight the central role of investment in fostering the country's growth , as it would enable an increase in productivity and a reduction in the public debt-to-GDP ratio. Conversely, it is noted that even before the onset of the severe economic crisis, Italy was already suffering from structural weaknesses that hindered its development path: these include, for example, a low propensity to invest in intangible assets.

The analysis also highlights the significant progress made regarding tax incentives for innovation – a recent development in Italy – and their positive effect on investment. At the same time, however, it is observed that the persistence of other barriers is leading the country towards stagnation. In this regard, the strategy identified by the authors to stimulate private investment includes elements such as improving non-bank access to finance, well-targeted public investment and a more appropriately skilled workforce.

The report can be downloaded in the attachment.

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