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Italy Country Profile Italy Country Profile ITALY Country Profile Politics Economy Trade & Industries General Profile Total area 301,340 sq km Population 61,261,254 (July 2012 est.) 2007 2008 2009 2010 2011 Growth World Population YoY (in billions) 6.6 6.7 6.8 6.9 7.0 1% Government type republic Chief of state President Giorgio NAPOLITANO Head of Prime Minister and Minister of Finance Mario MONTI government Capital Rome Climate predominantly Mediterranean; Alpine in far north; hot, dry in south Italian (official), German (parts of Trentino-Alto Adige region are predominantly German speaking), French (small French-speaking Language minority in Valle d'Aosta region), Slovene (Slovene-speaking minority in the Trieste-Gorizia area) ROME (capital) 3.357 million; Milan 2.962 million; Naples 2.27 million; Major City Turin 1.662 million; Palermo 872,000 (2009) Economy Profile 2009 2010 2011 World GDP Real -0.8% 5% 3.6% Growth World GDP (in 58.1 63.3 70.2 Profile General Trillions) Italy GDP Real -5.2% 1.3% 0.4% Chapter: Chapter: 1 Growth GDP $2.246 trillion (2011 est.) GDP – Per capita $30,100 (2011 est.) agriculture: 1.9% GDP – Composition industry: 25.2% by sector services: 72.9% (2011 est.) Inflation 2.8% (2011 est.) euros (EUR) per US dollar - Exchanges Rates 0.7107 (2011 est.) Primary Economy manufacture of machinery, motor vehicles, clothing, footwear, and Sector food processing Unemployment 8.4% (2011 est.) Rate Economy Profile Economy Chapter: Chapter: 2 Ports and Augusta, Cagliari, Genoa, Livorno, Taranto, Trieste, Venice oil terminals: Melilli (Santa Panagia) oil terminal, Sarroch oil terminal Terminals International Bologna-G Marconi Airport, Florence - Amerigo Vespucci Airport, Genoa Airport, Milan-Malpensa Airport, Milan - Orio Al Serio Airport, Trieste - R Dei Legionari Airports Airport Senate - percent of vote by party - NA; seats by party - S. BERLUSCONI coalition 174 (PdL 147, LN 25, MpA 2), W. VELTRONI coalition 132 (PD 118, IdV 3), UdC 3, Election results other 6; Chamber of Deputies - percent of vote by party - NA; seats by party - S. BERLUSCONI coalition 344 (PdL 276, LN 60, MpA 8), W. VELTRONI coalition 246 (PD 217, IdV 29), UdC 36, other 4 Prime Min. Mario MONTI Under Sec. for the Presidency of the Council of Ministers Antonio CATRICALA Min. of Agriculture Mario CATANIA Min. of Community Policy Enzo Moavero MILANESI Min. of Cultural Assets Lorenzo ORNAGHI Min. of Defense Giampaolo DI PAOLA Min. of Economic Development Corrado PASSERA Min. of Economy & Finance Mario MONTI Min. of Education Franceso PROFUMO Min. of Environment Corrado CLINI Ministry Name Min. of Foreign Affairs Giulio TERZI di Sant' Agata Min. of Health Renato BALDUZZI Min. of Infrastructure & Transport Corrado PASSERA Min. of Interior Anna Maria CANCELLIERI Min. of Intl. Cooperation Andrea RICCARDI Min. of Justice Paola SEVERINO Min. of Labor, Welfare, & Equal Opportunity Elsa FORNERO Min. of Relations With Parliament Piero GIARDA Min. of Territorial Cohesion Fabrizio BARCA Min. of Tourism & Sport Piero GNUDI Governor, Bank of Italy Ignazio VISCO Center-Right: People of Freedom or PdL [Silvio BERLUSCONI] Center-Left: Democratic Party or PD [Rosy BINDI] Centrist Third Pole: Future and Freedom for Italy or FLI [Gianfranco FINI]; Political parties Movement for Autonomy or MpA [Raffaele LOMBARDO]; Union of the Center and leaders or UdC [Pier Ferdinando CASINI] no affiliation: Italy of Values or IdV [Antonio DI PIETRO]; Lega Nord or LN [Umberto BOSSI] Italy has a diversified industrial economy with roughly the same total and per capita output as France and the UK. This capitalistic economy remains divided into a developed industrial north, dominated by private companies, and a less developed agricultural south, with 20% unemployment. Most raw materials needed by industry and more than 75% of energy requirements are imported. Italy Economy Over the past decade, Italy has pursued a tight fiscal policy in order to meet the requirements of the Economic and Monetary Unions and has benefited from Overview lower interest and inflation rates. The current government has enacted numerous short-term reforms aimed at improving competitiveness and long- term growth. Italy has moved slowly, however, on implementing needed structural reforms, such as lightening the high tax burden and overhauling Italy's Terminals Ports and rigid labor market and over-generous pension system, because of the current economic slowdown and opposition from labor unions. Chapter: Chapter: 3 The trade weighted average tariff rate is low, but cumbersome non-tariff barriers raise the cost of trade. Foreign investment is officially welcome, but Macroeconom complex bureaucracy and arbitrary enforcement of regulations remain y Policy impediments to dynamic investment growth. The financial system, although relatively well developed, is subject to political interference, and banks have been highly strained by the impact of the European sovereign debt crisis. With a view to attract foreign investment in the country, the Federal Government of Italy has laid down a mandatory rule that it would discriminate between the benefits and incentives granted to the foreign investors and the local investors. This is a huge initiative taken by the Italian government to attract foreign investment in the country. • The Italian Federal Government provides various benefits to the foreign investors in terms of tax benefits, investment loans at discounted rate of Trade & interest, state guarantee for exporters and other financial aid. The Italian Investment government grants financial assistance to the foreign investors depending on Policy the geographical location of the investment, the size of the investing company and the sector in which the company is investing. • A foreign investor investing in certain areas in southern Italy, where rate of unemployment is high, the government of Italy grants tax exemptions (corporation tax and local tax) for a period of 10 years. Owing to such favorable FDI policy of Italy, it is one of the most preferred destinations in EU amongst big conglomerates for Investment. trade’s primary purpose to generate long term growth and employment in Trade the European economy . Acting within the WTO and bilaterally in order to priority 2020 secure a better market access for EU automotive industry and a level playing field vis-à-vis our external competitors should be the key goal . ADB (nonregional member), AfDB (nonregional member), Australia Group, BIS, BSEC (observer), CBSS (observer), CD, CDB, CE, CEI, CERN, EAPC, EBRD, ECB, EIB, EMU, ESA, EU, FAO, FATF, G-20, G-7, G-8, G-10, IADB, IAEA, IBRD, ICAO, ICC, International ICRM, IDA, IEA, IFAD, IFC, IFRCS, IGAD (partners), IHO, ILO, IMF, IMO, IMSO, organization Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, LAIA (observer), MIGA, MINURSO, participation NATO, NEA, NSG, OAS (observer), OECD, OPCW, OSCE, Paris Club, PCA, PIF (partner), Schengen Convention, SELEC (observer), UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNIFIL, Union Latina, UNMOGIP, UNRWA, UNTSO, UNWTO, UPU, WCO, WHO, WIPO, WMO, WTO, ZC Italy Potential infrastructure, energy, concrete production and commerce tourism, machinery, iron and steel, chemicals, food processing, textiles, motor Main Industry vehicles, clothing, footwear, ceramics Industry Type Name of the company Aerospace & Defence Finmeccanica Apparel/Accessories Prada Automotive Fiat Group Biggest Automotive Parts Pirelli & C Company ENEL Electric Utilities Edison Terna Heavy Equipment Fiat Industrial Policy Macroeconomy Telecommunication Service Telecom Italia Chapter: Chapter: 4 Chapter: Chapter: 5 .
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