The recovery goes from investments: appeal lacks 110 billion – The Republic

MILAN – Minister of Infrastructure and Transport, Graziano Delrio, spoke of a pact with the linking of the Treasury, Pier Carlo Padoan, and with the prime minister, Matteo Renzi, to focus on investments in support of recovery. Minister of Economic Development Carlo Calenda, has herringbone Republic that a “business plan” for Italy based on investment and competitiveness can be a pass within the European Union to accept the flexibility to support it with adequate resources. At a difficult time for the global economy, with Italian GDP frozen surprise in the second quarter of the year and domestic consumption who are struggling to support the weak growth, the password to restart the machine is a single-country : investing. Both public (and therefore need the resources and more space on the deficit), both private (and in this sense the way to incentivize entrepreneurs to cut their taxes).

A photograph how important the way to accomplish arrive numbers CGIA Mestre, explaining that after inflation, between 2007 and 2015 investments in Italy have fallen by well 109.7 billion euro, or in percentage terms, to a decrease of 29.8 points. “No other economic indicator has recorded such an important percentage decline”, said the Office of mestre studies. The stock of investments deployed in 2015 (258.8 billion euro, a slight increase on the previous year) is back to the values ​​of twenty years before: in 1995 were 264.3 billion euro. To be hope was the Def fired in April 2016, which provided for an increase of 2.2 percent for this year, 2.5 percent next and in 2018 by 2.8 percent. But, as we know, many of the numbers contained in the document will have to be re-evaluated (downward) due to the economic brakes. The Cgia does not fail to point out that the industrial production to unemployment, there are some positive signs in the productive fabric of the country; but they are still “too fragile” and need an extra boost to be consolidated.

Coming to the survey on investment, the estimated Cgia is that businesses (non-financial and family businesses) are those with crisis have suffered the most, with a reduction in real terms by almost a third at an altitude of 161 billion investment. Pa also, however, he has contributed to the overall decline with an estimated 28% reduction.

Investments by sector: companies most distressed

institutional sector	Estimated investment contraction in real terms (***)	Ratings
		Var. % 2015/2007	2015 (in millions of euro)	Var. % 2015/2007	% incidence of total (2015)
Building ( *)	31.5	161 633	24.1	59.8
government	28.2	37,256	20.4	13.8
consumer households (**)	27.5	67,097	19.6	24.8
Finance companies	-3.5	4,332	+7.0	1.6
gross fixed capital	29.8	270 317	22.1	100.0

Cgia elaborations on Istat data
(*) non-financial companies and family businesses.
(**) the ISP (private social institutions, non-profit institutions serving households were also included) that have a residual impact of approximately 0.2% of total investments.
(***) It is an estimate made by applying the nominal values ​​of the individual institutional sectors the overall deflator (the total gross fixed capital formation). This estimate should be considered as an approximation of the phenomenon as the individual institutional sectors do not necessarily have the same behavior of the overall investment.

In the business world, “sectors that have suffered the most severe decline were the means transport (cars, company vehicles, buses, trains, planes, etc.), a decrease of 49.3 per cent (-12.4 billion euro), non-residential buildings (sheds, commercial buildings, public works, etc. .), a decline of 43.5 percent (-44 billion). the sub-funds of the computer / hardware and housing have instead posted a negative variation of 28.6 per cent (the first 1.8 billion, the second -28.7). also Heavy falls suffered by the plant and machinery sector (which does not include transport equipment, computers / hardware and telecommunications), which recorded a negative variation of 27.5 per cent (-23.9 billion). Only telecommunications (up 10.2 percent) and activities related to research and development (+11.7 percent) were not affected by the crisis. “

The collapse in investment in Italy: in 2015 only a timid 0.8%

INVESTMENT TYPE (rank for greater contraction% 2015/2007)	2007 (real mln euro *)	2015 (mln EUR real *)	investment Change 2015/2007		Change% investment 2015/2014
			%	real mln euro
Vehicles	25,256	12,817	-12,439	49.3	19.7
non-residential buildings and other works	101 292	57,229	– 44 063	– 43.5	1.3
Computers and hardware	6.466	4,614	-1852	28.6	1.2
Homes	100 412	71,673	-28,738	28.6	0.2
systems / machinery (**)	86,867	62,960	-23,908	27.5	1, 1
Other residual items (***)	2,400	2,113	-287	-12	1.6
Software and database	22,330	20,965	-1364	6.1	1.7
Telecommunications	5,626	6,197	571	10.2	1.4
Research and Development	18,525	20,685	2,160	11.7	0.8
gross fixed capital	368 620	258 888	-109 732	29.8	0.8

Processing Cgia on Istat data
(*) Amounts adjusted for inflation and concatenated year 2010. Please note that in case of real values ​​(concatenated) the total of gross fixed capital does not coincide with the sum of the individual items (type of investments); coincides, by definition, only in the year of chaining
ie in 2010. (**) Other transport equipment, computers / hardware, telecommunications. Including armaments.
(***) Other residual items (natural assets, mineral exploration and evaluation, artists, literary or entertainment). Account for less than 1% of total investments.

“Investments – says Paolo Zabeo of Cgia – are an important component of GDP. If we do not improve the quality of products, services and our processes production are destined to impoverish us. Without investment this country has no future. ” According to representatives of the artisans, “he has done well in recent days the government has made available 40 billion interventions in infrastructure, environment and tourism, and to include the last law of stability for the opportunity to write off 140 percent of companies purchases new capital goods. However, it remains a problem. in order for businesses and self-employed workers can take advantage of this last possibility, it is necessary that the banks return to disburse the loan. Otherwise, SMEs will use what resources to invest since they are traditionally under-capitalized and short of liquidity?”