In a fast changing economy Italy fails to stay ahead

In 2007 I wrote an open email/letter to the Italian Government as follow:

This e-mail is in protest and solidarity for those who do not make it in Italy at the end of the month, those who pay taxes and do not receive services from local government, regional and central, for those who, due to lack of security, lose goods and loved ones.

As a former manager of multinational companies, a former entrepreneur who has not managed to take off in this economy, that is liking on all sides, today in doing a makeshift job door to door on small businesses, shopkeepers and restaurateurs, (I interview from 25 to 35 people a day) I can tell you that everyone is very angry and disappointed about your lack of sight.

To the so called "bamboccioni", it is true that they are at home with mom and dad, you are giving the excuse to stay home. As things stand now young people no longer trust the country nor in those who govern them. They think that sacrificing will not be repaid and in these economic and social conditions they are right to think that.

Remember that economies are based on the confidence for the country the system and that consumers and producers need that. It is the lack of this that we are already collapsing.

Take immediately a drastic initiative, for example cut those glorious salaries and benefits that you get by yourself .... that money is from the taxpayers! .... in doing so maybe the people will give you confidence again. Hire those who have worked outside the political sphere and who can bring constructive experiences to the restoration of the economy. It is clear that such initiatives are not enough but it would be all in favor of re-establishing trust in the political class.

 In the past many entrepreneurs and CEOs have done that (see the story of Lee Iacocca at Chrysler).

So more than ten years has passed since that letter and today a new ball game say I was right. Disruption is the major game in today's global economy. Uber has disrupted transportation, Amazon the mailing services, Tesla the automotive industry, Air b&b the hotels. Most of the time Italian culture tend not to disrupt because prefers to keep a status quo. That is the reason why Italy is always behind 20 to 30 years, dragging the economy down. Most of the Italian politicians, bankers and entrepreneurs are afraid of the change. They are afraid that changes will take from them the status quo they have inherited. They don't want to lose idea of "bella vita". What they don't understand is that the country is sinking and they will sink too. Even Italian soccer sucks now days. Major industries like FIAT have being transfer outside of Italy. Once upon a time this country was the fifth industrial place of the world, it was the land of "la dolce vita". Now the only market left with a strong and quick potential would be tourism and tax exemption to attract investors. But blindes prevails.

Why is it that political parties won't let anyone to make changes. Acting with the same failing model over and over will ir the most absurd thing I have ever experienced. What is it that they don't understand when it comes to the need of motivating more tourism and more investors to come to this land of Gods? What is it that they don't understand, from examples like Portugal and Canary Islands or even Malta, Holland, Ireland did?

I am not a genius but Italy needs out of the box thinking, Italy needs new exemption tax rules on some regions in order to attract billions of Euros in tourism, real estate and some type of high tech investors with innovative boot camps and accelerators.

Italy could potentially have an economic growth never seeing before. Retired people is the key, Newcos are key, leveraging resources is key. Retired folks are exponentially growing and they are looking to land where the best ROI is, while during happy ending years in a hygge situation. In regions like Sicily, tourism could easily work ten month per year instead of four or five and not only for their spectacular weather but because the region has so much to offer. Tour operators would come over, low cost airlines will follow, constructors will build hotels and villas, swimming pools and highways and new infrastructure in a land where the sun and the wind allows to become power independent. Make it a low tax region having instead of 22% iva a 6,5% Igic like in Canary Islands. Eliminate all the old "accise" on the fuel price, have an honest price so that people will move around and buy new cars, witch means needing new garages, new roads, more insurances, more nautical economy. It would be an explosion of business that could well build millions of jobs. Not only for the local people but also to the rest of the Italian regions where there is not enough work.

We are loosing innovation so Italian politicians better disrupt now or the country as we new the "Bel Paese" will become the joke of the European Union.

Probably it is already like that.

Armando Addati