As a result of the reform on the transfer of competences on the matter of trade policy and internationalisation of the Country System (Decree Law No. 104 of 21 September 2019, converted into Law No. 132 of 18 November 2019), as of 1 January 2020, the Ministry of Foreign Affairs and Economic Cooperation (MAECI), in agreement with the Ministry of Enterprise and Made in Italy ( MIMIT), will share the activity of guidance and strategy on the matter of foreign investment attraction.
With the aforementioned reform, MAECI, has acquired the competences in the field of trade policy and internationalisation of the Country System, including the functions of direction and supervision of ICE-Agency, whose activity abroad, through its Offices and network of special Desks and Analysts, in conjunction with the diplomatic-consular network, is an indispensable component for the interception and attraction of foreign investments in our country. The Farnesina is called upon to play a fundamental role in strengthening the image of Italy as a privileged destination for new international investments. The national governance, whose main competence in the matter is assigned to MIMIT, is hinged on the Committee for the Attraction of Foreign Investments (CAIE). While playing this role, the Foreign Ministry makes available an extraordinary asset, i.e. its diplomatic and consular network, which is the first authoritative and recognisable point of contact for institutional and large private investors.
With a view to making foreign investment attraction policies more effective, the connection between all institutional players involved is even more important in order to achieve a single and integrated governance model for the whole country.
The main actors in investment attraction are:
- Steering and Coordination Unit for Internationalisation (2011): co-chaired by the Ministry of Foreign Affairs and International Cooperation and the Ministry of Business and Made in Italy, it annually represents the framework in which the priorities and strategies to be implemented on the subject also of foreign investment attraction are discussed; it is financed with ad hoc resources within the Plan for the extraordinary promotion of Made in Italy and the attraction of investments in Italy (Decree-Law 133/2014). On 20 April 2021, an extraordinary session of the Cabina di Regia dedicated to the attraction of foreign investments was held, co-chaired by the two Ministries. In March 2024, the 12th meeting of the Steering Committee for Internationalisation was held, under the co-chairmanship of the Minister of Enterprise and Made in Italy Adolfo Urso and the Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation Antonio Tajani. At the heart of the meeting was the signing of an important memorandum of understanding between ICE and Invitalia, countersigned by MAECI and MIMIT, for the coordination of their respective activities. The objective, as the first concrete initiative of the Cabina di Regia, is to encourage qualified foreign investment in Italy and strengthen the attractiveness of the country system on international markets. Below is the link:
https://www.esteri.it/it/sala_stampa/archivionotizie/comunicati/2024/03/internazionalizzazione-riunita-la-cabina-di-regia-mimit-maeci/
- Interministerial Committee for attracting Foreign Investment (CAIE): a coordinating body for foreign investment attraction policies, established by the so-called ‘Sblocca Italia’ Decree (DL 133 of 2014, art. 30). The CAIE is chaired by MIMIT and is composed of representatives of MAECI, MEF, Minister for Public Administration and the Conference of Regions and Autonomous Provinces. ICE-Agenzia and Invitalia S.p.a., an agency supervised by MIMIT, also regularly take part in its work.
CAIE performs a twofold function: (i) to formulate proposals, including legislation and regulations, to improve the attractiveness of the country and the investment climate, and (ii) to follow up specific foreign investment projects with a high impact in terms of economic growth, employment and contribution to innovation, facilitating dialogue with the central and local administrations involved in the various administrative procedures underlying the implementation of the investment itself. In 2021 the Steering and Coordination Unit for Internationalisation committed to strengthen governance in the area of foreign investment attraction through the establishment of a CAIE Technical Secretariat to follow and support the most relevant investments. In 2022, a fund was set up to implement initiatives aimed at surveying potential strategic foreign investors. In 2023, it was also planned to establish at the MIMIT the Mission Unit ‘attraction and unblocking of investments’ aimed at facilitating, directing and unbureaucratising the procedures to attract investments in Italy (Art. 14 of DL no. 44 of 22 April 2023). Within the Technical Secretariat there is the One-Stop Shop, which provides for the management of the investment, from the negotiation phase to its execution, in order to provide accompaniment and support to the investor, with reference to all the fulfilments and paperwork necessary for the concrete realisation of the investment.
- The International Indexes Working Group: in 2017 the Steering and Coordination Committee set up an “International Indexes Working Group” within CAIE, which includes MAECI, MISE, MEF, Bank of Italy, ICE-Agenzia and Istat. The Working Group’s objective is to identify the most relevant international indexes, in order to improve – through targeted actions and activities – Italy’s positioning in the various international rankings.
- ITA Trade agency and the network of Foreign Investment attraction Desk and Analysts: The Sblocca Italia decree (Decree Law No. 133 of 12 September 2014) established Desks dedicated to the activity of foreign investment attraction within ITA Trade Agency. The institutional and promotional activities of ITA Trade agency’s network of Foreign Direct Investment (FDI) Desks and Analysts, over which the Farnesina exercises supervisory and guidance functions, as well as the valuable support of the diplomatic-consular network, represent an indispensable component for attracting investment to our country, The aim is to have a capillary network (in priority countries) of FDI attraction desks to carry out incisive market intelligence, promotion of investment opportunities, business and investment scouting and support to potential investors. To date, there are 23 FDIdesks. On an operational level, FDI attraction activities are followed by the two national agencies, ICE-Agenzia and Invitalia Spa, supervised by MAECI and MIMIT respectively. The new Memorandum of Understanding on FDI attraction between MAECI- MIMIT-ICE-Invitalia of 8 march 2024 defines in detail the methods of coordination between the Agencies: a) ITA Trade agency, in close coordination with MAECI, would be responsible for activities of an international nature, especially related to promotional initiatives conducted in foreign markets and the identification of potential investors; b) Invitalia, in close coordination with MIMIT, would be responsible for activities of a national nature relating to the definition of the offer, accompanying and supporting the investor in the national territory. A strengthening of promotion activities is also envisaged, thanks to a unified website that will present the main investment opportunities in Italy in English (https://www.investinitaly.gov.it/)
- Conference of Regions and Autonomous Provinces: a fundamental role in national governance is played by Regions, represented within CAIE by the Permanent Conference for Relations between the State and the Regions, which identify investment opportunities in the territories and accompany investors in the implementation of their projects.
- Coordination Group for the Exercise of Special Powers (the so-called Golden Power): the investment made in Italy in specific sectors is subject to the scrutiny of this Group, which ensures the protection of national strategic interests (Decree Law No. 21 of March 15, 2021) (Law Decree n° 21 del 15/03/2012).
- Gruppo Cassa Depositi e Prestiti (CDP): controlled by the Ministry of Economy and Finance, it is the National Promotion Institute and its aim is to develop the national economy, also through the growth, innovation and internationalisation of Italian companies. The main use of financial resources is represented by loans to the State and local governments, investment in the venture capital of Italian companies operating also abroad, and participation in real estate, infrastructure and financial projects deemed strategic for the development of the national economy. Financial resources also partly stem from bond issues made on foreign markets and, to this end, the CDP Group companies have established several investment funds in which foreign institutional investors participate.