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Italy has one of the world's most advanced industrial economies.
It is a major market serving a population of more than 57 million
people. In addition, Italian firms are active throughout the
Mediterranean and Europe, including the emerging markets in Central
and Eastern Europe.
Following the reforms started in the early Nineties, the Italian
business environment has become more investment-friendly. The
privatisation drive, the reform of public administration, the
Euro changeover, the reorganisation of the banking system and
the setting up of a more streamlined business incentive system
have contributed to improve the country’s overall competitiveness.
The labour market
The Italian labour market is undergoing a process of change
and renovation that is making the job more flexible. The traditional
upsides of the Italian labour market are:
- Low cost of labour: the fourth and third lowest in the EU
and among G/ countries respectively;
- High productivity: first among G/ countries and fourth in
the EU;
- Rising employment: 1.5 million new jobs have been created
since 1995;
- Increasing flexibility:10% of employees have non-permanent
working contracts;
- More women at work: employment in the tertiary has gone
up by 11.46% since 1996;
- Growth of the tertiary sector: employment in the tertiary
has gone up by 11.46% since 1996;
- Loosening of controls on dismissals Italian legislation
on dismissals are among the less stringent in the OECD;
- Availibility of flexible and relatively qualified
workforce made up of young people: the number of university
graduates has gone up 9.1% since 1999;
- Generous tax benefits to sustain job creation: 70,000 new
jobs have been created in 2001 thanks to tax credits
The cost of labour
The cost of labour in Italy is among the lowest in Europe and
the third lowest among G7countries. The cost of labour per hour
is:
- approximately 14% lower than the European average
- 27% lower than in France
- 43% lower than in Germany.
The difference is even more glaring in the manufacturing industry:
the average hourly wage in Italy is lower:
- by over 40% with respect to Scandinavian countries
- by between 30% and 50% with respect to Benelux countries
- by 32% with respect to France
- by 60% with respect to Germany
Business Hours
For most banks, opening hours are: 8:30 a.m.-1:30 p.m.; 3 p.m.-4
p.m. (or 2:45 p.m.-3:45 p.m.) from Mondays to Fridays.
Most shops are open from 9:30 a.m. to 1 p.m. and 3:30 or 4
to 7 or 7:30 p.m. Shops close on Sunday and one half-day during
the week. Some department stores and supermarkets are open all
day, also on Sunday.
Post offices are open from 8 a.m. to 2 p.m. Central and main
district post offices stay open until 8 or 9 p.m. The main post
office is open on Sunday from 8:30 a.m. to 7 p.m.
Business Etiquette
Greetings
- Shake hands with everyone when arriving and leaving.
- Women may "kiss" good friends on either cheek (more
like pressing the sides of each face together).
- Italians feel comfortable standing closer together than the
normal U.S. range of 2 feet. Don't back away.
Introductions
- Don't use first names unless invited to.
- Titles are used in all forms of address. Professors and doctors
are esteemed; use the title Dottore for a man, Dottoressa for
a woman.
Appointments
- Italian businesspeople want to deal with someone they know,
even casually. Cold-calls are rarely successful. Have a local
representative make introductions and appointments for you
before you invest in a trip.
- Write first for an appointment - in Italian, if possible.
If you write to large firms in English, they will respond in
English, but it may take time. Follow up by fax or phone.
- Be on time, especially in the industrial north. Plan appointments
between 10 a.m. and 11 a.m., and after 3 p.m.
Negotiating
- The idea of an organizational chart does not apply in Italy.
You might suddenly have to deal with a new person, usually
consulted because of his experience and seniority.
- Negotiating is often long and frustrating. A sense of urgency
can weaken your bargaining position.
Entertaining
- Business dinners involve only a small, important group. If
you are the host, consult with your Italian contact for help
in deciding whom to invite.
- Paying may equate to prestige; Italians may slip the waiter
a generous tip before dinner to make sure you do not get the
bill.
- Keep the receipt for the restaurant bill. Sometimes "tax-police" check
restaurant bills outside for adherence to tax laws.
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