— Analysis

  1. Markets

    Bond markets favor the periphery and Italian treasury reopens 50-year BTP

    by Claudio Celio

    IT
    24 Exclusive content for IT24

    The round of government bond auctions at the end of March has come at a favourable market moment for euro zone periphery debt, and for Italy especially. Yesterday Italy issued €2.5 billion worth of zero coupon CTz bonds at negative rates (-0.085%) and did better than Spain and Portugal on the secondary market despite there being plenty of supply on the agenda up to Thursday (a total of €18 billion). On the secondary ...

  2. Business and economy

    Europe's locomotive is no more, German economy only pulling itself

    by Marco Fortis

    IT
    24 Exclusive content for IT24

    While Trump’s decisions on the economy and immigration, and the legal controversies surrounding Brexit, have drawn widespread attention, the problem underlying a consistently low European growth has moved decidedly to the back burner. Recent data on German GDP in 2016 (+1.9% from 2015) was applauded by analysts with surprising satisfaction and without a hint of criticism. They find it reassuring that the GDP of Europe is ...

  3. Public finance

    Growth and reforms must not take the back seat to political consensus

    by Giorgio Santilli

    IT
    24 Exclusive content for IT24

    The political debate around the EU's request to cut the deficit next month, the budget blueprint for 2018 and the National Reform Plan should stop relying on slogans and focus on the true issue right now: what are the priorities that the Gentiloni government must pursue and how can it fund the initiatives to pursue them? The first question was answered yesterday by the prime minister himself. His answer is understandable: priorities and jobs are the ...

  4. Business and economy

    The importance of well-being indicators alongside simple GDP figures

    by Fabrizio Galimberti

    IT
    24 Exclusive content for IT24

    During a conference on the future of Europe organized by the Italian Alliance for Sustainable Development (ASVIS), Economy Minister Pier Carlo Padoan did not spare criticism for current EU policies. If Europe, “which has often been at the forefront of equality and inclusion” does not “make a symbol of inclusive growth,” “it will always be seen as the problem instead of the solution,” Padoan said. The ...

  5. European view

    Why we need a new pact with the young

    by Antonio Tajani*

    IT
    24 Exclusive content for IT24

    Today we celebrate the best sixty years of a free Europe. Yet today, more than ever, there's a sense of distance from the European project. Nationalism is growing inside and ...

  6. Markets

    Italian banks take up the most liquidity in ECB's Tltro2, €62 bn out of €233 bn total

    by Luca Davi

    IT
    24 Exclusive content for IT24

    European banks showed record appetite in the fourth and final sale of cheap funds by the European Central Bank, also known as Tltro2. Demand from 474 lenders was for €233 billion, double the expected size and a record since the program was launched. It’s difficult for European banks to waste a good opportunity to fund themselves at almost zero interest rates with four-year maturity loans, especially when loans can yield up to ...

  7. Business and economy

    Milan prosecutors looking at "dark spots" in Vivendi's Mediaset stake building

    by Fabio Pavesi

    IT
    24 Exclusive content for IT24

    Was it really a lightning attempt to gain control, a fast blitz that in just three sessions, between December 12-14, allowed French media group Vivendi to go from 3% to 20% of Italian broadcaster Mediaset’s share capital? Or was it a move prepared over the long term, months before, with the help of huge investments in derivatives capable of depressing the shares, and the support of foreign brokers? The latter is what ...

  8. European view

    If Trump ends up pushing the EU closer to China

    by Adriana Cerretelli

    IT
    24 Exclusive content for IT24

    What if, after the collapse of CETA and a reversal of TTIP, European trade policy starts over again, moving ahead without US President Donald Trump and the United States, and ...

  9. Business and economy

    Exports skyrocketed in January, reassuring for the outlook of Italian economy

    by Luca Orlando

    IT
    24 Exclusive content for IT24

    Things have gone well for almost all of Europe; raving about Italy’s January exports would be a tad over the top. But the more-than-13-point surge in exports of ‘Made in Italy’ products (better than Germany and France’s performance) has at least partially reassured the outlook for the entire Italian economy. With domestic demand still at weak levels, reduced growth in consumption, and investments that have yet ...

  10. Business and economy

    How Milan Malpensa airport survived Alitalia's de-hubbing betting on long haul and cargo flights

    by Marco Morino

    IT
    24 Exclusive content for IT24

    Malpensa’s traffic rose 5.1% in the first two months of 2017, double the national average. The risk of bankruptcy is behind it and the prospects for one of Milan’s two airports (the other being Linate) seem promising. In an usual situation for the airline industry, Malpensa hosts many intercontinental flights with no hub carrier. “For this area of the country, it’s vital to focus on intercontinental flights at ...

  11. Markets

    Why Veneto popolari banks' shareholders feel betrayed, even as they lean towards accepting a settlement

    by Katy Mandurino

    IT
    24 Exclusive content for IT24

    More than three years have passed since the case of the “Veneto popolari” mutual banks exploded, starting the financial decline of two major Italian lenders: Banca Popolare di Vicenza and Veneto Banca. These two banks were strongholds of one of the richest and industrialized regions of Europe, the Veneto in Northern Italy. And still we are unable to come to terms with how such a collapse could have happened. It has been an unrelenting ...

  12. Public finance

    In a two-step move Italy's government plans to cut at least €6 billion in spending

    by Marco Rogari

    IT
    24 Exclusive content for IT24

    Nearly €1 billion immediately by mid April in the revised “mini-budget” and at least €5 billion a year starting in 2018, driven by the next budget proposal in the fall. It’s a two-step move the government is gearing up to usher in “phase 3” of the spending review, which, for the first time, will be incorporating new restrictions on national ministries and administrative centers established last summer by ...

  13. Business and economy

    Realism and the strength needed for the job ahead

    by Guido Gentili

    IT
    24 Exclusive content for IT24

    Il Sole 24 Ore is living through the most difficult period in its history. It is necessary to acknowledge this realistically and together, with all the energy and determination possible, look to the future. I am honored to be able to serve Il Sole 24 Ore and grateful to the publisher for the confidence it has shown in me. I am fully committed to continue the forward progress of an entity that is a unique and successful piece of Italy’s cultural and ...

  14. Business and economy

    Manufacturers are starting to borrow again

    by Luca Orlando

    IT
    24 Exclusive content for IT24

    More investment, fewer bad loans. The Bank of Italy's January data shows a gradual improvement in the manufacturing sector, where the amount of risky credit is starting to show a significant reduction. Gross bad loans for manufacturing (non-financial companies or family businesses) stood at €32.8 billion: €741 million less than in December of 2016. Compared with January of the previous year, they fell by ...

  15. European view

    Inflation and rates: Draghi's two challenges

    by Alessandro Merli

    IT
    24 Exclusive content for IT24

    The European Central Bank is not a political institution. Or at least that's what they say in Frankfurt. But the institution has never had to deal as much with politics before as it has ...

  16. Public finance

    The path to the next budget will be all uphill, the final tally no less than €25 bn

    by Dino Pesole

    IT
    24 Exclusive content for IT24

    The bill for the 2018 budget is growing exponentially, between the neutralization (total or partial) of 2018 safeguards, new measures to support growth (cuts to the fiscal wedge are being studied for new long-term hiring) and pressing expenditures. The final tally won’t be less than €25 billion. With what financial resources? The idea of returning in part to a higher deficit is back under consideration. For the ...

  17. Public finance

    Italy's slow growth looks unlikely to go away any time soon

    by Marco Mobili and Gianni Trovati

    IT
    24 Exclusive content for IT24

    The Italian economy will grow by 1% in 2017 and 2018, in line with the government's forecasts but less than the advanced economies of the eurozone. The confirmation of the potential and limits of the Italian recovery came from the Organization for Economic Cooperation and Development (OECD), which yesterday released the first of the two “Interim Outlook” reports due this year. According to the OECD, global growth remains ...

  18. Government policies

    The reform of Italy's mutual banks and the ongoing challenge

    by Matteo Renzi

    IT
    24 Exclusive content for IT24

    Our challenge is the future: imagining a vision for the Italy of the next five years, capable of competing in a world that is moving at an increasingly fast pace. But today I would like to clarify one of the most delicate steps of the one thousand days of my government and to recall the terms of a challenge that Italy will be dealing with for a long time: the problems of credit and the reform of the “popolari” mutual banks. For a long time in ...

  19. Business and economy

    PSA-Opel deal shifts Fiat Chrysler Automobile's merger hopes to US

    by Andrea Malan

    IT
    24 Exclusive content for IT24

    Seeing General Motors (GM) Chief Executive Mary Barra's handshake with Peugeot (PSA) boss Carlos Tavares will not have pleased Fiat-Chrysler's (FCA) Sergio Marchionne. The past twelve years in which Marchionne has managed Fiat and then FCA has been scattered with relations with GM and Peugeot, from the complicated divorce from GM in 2005 to the negotiations for the purchase of Opel in 2009 to talks to get closer to the French ...

  20. Business and economy

    Italy's non-existent bank rescue strategy

    by Luigi Zingales

    IT
    24 Exclusive content for IT24

    Fifteen months have gone since the “rescue” of the four regional banks and almost one year since the creation of the government mandates and privately funded bank rescue fund Atlante . After all this time, we can conclude that the strategy adopted by the government of postponing the resolution of banks' problems and pretending they are not so serious (a strategy also known as “extend and pretend”) is not working. Deferment has cost Italy ...

  21. Business and economy

    Manufacturing companies regaining efficiency and solidity but the service sector is falling behind

    by Stefano Manzocchi

    IT
    24 Exclusive content for IT24

    Italian industry is on the battlefield while the service sector is falling behind: this is the main message of a report from national statistics office ISTAT on competitiveness in productive sectors, presented yesterday. Reaching its fifth edition, the study paints a picture of the structure of economic segments in a unique moment, at the end of the double dip recession of 2008-2013 and in the first year of recovery (2014) and illustrates how ...

  22. Politics

    A juicy public sector contract attracts huge appetites

    by Guido Gentili

    IT
    24 Exclusive content for IT24

    We are clearly facing an extraordinarily important situation, for its political and judicial implications. The events surrounding the €2.7 billion public tender for cleaning services for Italian schools, the largest deal for such a contract in Europe, according to prosecutors, cannot be ignored. Consip is a company owned by the Economy Ministry that works exclusively for Public Administration. The company attracts huge appetites and ...

  23. Markets

    The €5.5 bn price tag for rescue of four regional banks shows the high cost of wasted time

    by Marco Ferrando

    IT
    24 Exclusive content for IT24

    While the closing of the deal will still take some time, the sale of CariFerrara to Banca Popolare Emilia Romagna (BPER) for one euro is a step to wrapping up the sale of the four “good” banks created from their €3.6 billion rescue in November 2015 (CariFerrara, Banca Marche, Popolare Etruria and CariChieti). The final price, according to Il Sole 24 Ore calculations, is very high: around €5.5 ...