Last week, OECD Secretary General Angel Gurria presented at the ministry of Economy and Finance the OECD Capital Market Review On Italy 2020.
I listened to his presentation, by the way you can download his speech together with the report from the OECD website, and I can’t but agree with some of the words he said, especially after seeing that the FTSE MIB slumped near 400 points, or 1.6% on Friday morning, after preliminary estimates from ISTAT showed the Italian economy shrank by 0,3% in the last quarter of 2019, surprising markets, but not surprising who lives in Italy and knows the measures contained especially in the last budget law.
Political uncertainty is discouraging investors, this is why we proposed as League a majority electoral system for example.
We need to focus on the creation of a strong entrepreneurial fabric in order to contribute to the overall stability.
The absence of the government on subjects like our economic infrastructures unfortunately increases the degree of uncertainty.
In this context lies the OECD proposal to facilitate the access to Capital markets for the SMEs also by pushing IPO’s and aiming at the decrease and stabilization of the tax burdens.
Unfortunately in the agenda of this government there are no actions aiming to support the reforms and the rule of law, in the Agenda of this government there are only discussions about who’s going to seat in the boards of state owned companies.
We need to create a positive framework for the development of our economy starting from assets like Human Capital, enterprises and savings; the latter too often are not invested in our real economy and that’s why for example as league we proposed to dedicate a portion of the Individual Saving Plans for investments in the Small Mid Cap markets and to Detax the capital gains on investment in ELTIFs.
The first measure is now in place and effective, the second one needs to be authorized by the EU Commission and I really hope it will work.
As the OECD says Capital Markets in Italy are still small compared to the size of the Economy. A bigger size would definitely help the creation of a stronger Fabric.