Spotting: Italy – our INAC partner ELAN

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today we’re talking about bella italia!

Italy as a market

History

Italy, officially Repubblica Italiana, is a country in southern Europe. The capital and most populous city is Rome and the economic and financial center is Milan.

As the crossroads of Mediterranean civilizations, Italy’s contribution to the cultural and historical heritage of Europe and the world is notable, being the core region of the Roman Empire in antiquity, Northern Italy the heartland of the Renaissance, and Rome the starting point for the Baroque. They only became a nation state in 1861, when the small states on the peninsula, including Sicily and Sardinia, united under King Victor Emmanuel II. After the fascist era under Benito Mussolini and World War II, a republican form of government replaced the monarchy in 1946.

Italy was a founding member of NATO and the European Community. The euro has been legal tender in Italy since 2002, replacing the Italian lira.

Religion

The Roman Catholic Church in Italy is traditionally influential and has a high density of church institutions. Their capital, Rome, is the enclave of Vatican City State, which is the center of the Roman Catholic Church. The Pope is at the same time its head of state, the head of the Roman Catholic Church and the Bishop of Rome.

Industry, services and agriculture

The strength of the Italian economy lies in the manufacturing sector, especially in small and medium-sized family-run companies. The most important industries include mechanical engineering, aircraft, ship and vehicle construction, the chemical industry and the manufacture of electronic products. The textile industry is also very well represented, as are products from the food industry, oil and business.

In the service sector, Italy is particularly well represented by large banks and insurance companies.

The tourism industry has been one of their major sources of income for decades. Italy is one of the most popular travel destinations in Europe. In addition to the Italian cuisine, it attracts with an enormous cultural and scenic diversity with an estimated 100,000 monuments of all kinds. (58 UNESCO World Heritage Sites)

Although agriculture only plays a minor role in the national economy, it still produces some important goods such as viticulture, olive oil and cheese.

Social and regional differences

With youth unemployment of 23.1% and one of the lowest average earned incomes among the industrialized countries, Italy is one of the bottom places in Europe. Their public debt is very high at 155.6% of GDP. The sustainability of the ever-increasing debt burden is ensured by the monetary policy pursued by the European Central Bank (ECB) since the euro crisis.

Characteristic of Italy is the country’s economic division (north-south divide). The heavily industrialized north faces the underdeveloped south. The south of the country is one of the structurally weakest regions in Europe. This is accompanied by an increased crime rate and not least organized crime.

On the other hand Italy ranks among the TOP 10 countries with the highest total national wealth. The entire northern Italian region has a well-developed service sector and is one of the economically strongest areas in Europe. Central Italy has an economy based on businesses in the textile, footwear and furniture sectors, and particularly on tourism.