Taxation and finance such as industrial policy levers to support investment, innovation, capitalisation and the expansion of businesses. This is the message that emerged from the conference “Accelerating growth. Taxation and finance as drivers of development”organised by Confindustria in Rome.

The proceedings were opened by the Vice-President of Confindustria for Credit, Finance and Taxation, Angelo Camilli, who referred to one of the priorities set out by the President Emanuele Orsini during the’Meeting on 26 May: “to accelerate the growth of our production system and, consequently, of the country”.

“Growth is a matter of urgency for us,” emphasised Camilli. “Today we are discussing the potential of two key levers: taxation and finance. These levers must be viewed as genuine instruments of industrial policy, capable of supporting investment, capitalisation, innovation, mergers and scale expansion.”.

Expanding in size to boost productivity

For Confindustria, the central issue remains that of growth in the size of businesses. “The country grows if small businesses become medium-sized and medium-sized businesses become large; if capitalisation and the quality of governance increase; if generational transitions become opportunities for consolidation and development”, observed Camilli, who then highlighted the need to encourage mergers, capitalisation and access to capital markets by strengthening the financial structure of businesses and supporting their development paths.

A topic also raised by the President of Small Industry Confindustria, Fausto Bianchi, according to which “taxation and finance are crucial tools for supporting the growth of SMEs”. According to Bianchi, what is needed is “tax measures designed to support mergers ”between businesses and capitalisation strategies that strengthen corporate stability and the relationship with the banking system”. At the same time, he highlighted the need for a stable framework of incentives and clear rules – elements that are essential for encouraging investment and for tackling the challenges associated with generational transitions more effectively.

More capital to support investment and innovation

During the course of the day, it was highlighted that the bank credit continues to be an essential tool for small and medium-sized enterprises but is no longer sufficient on its own to support growth. As Camilli pointed out, “bank credit remains fundamental, especially for SMEs, but it is not enough: alongside sound and efficient banks, we need to strengthen both private and public markets”.

According to Confindustria, alongside the banking system, it is necessary to develop a the entire financial sector, capable of supporting businesses through the various stages of their development via private markets, venture capital, institutional investors and the capital markets.

The panel dedicated to these issues also focused on innovation accelerators, which brought together representatives from government bodies and the financial sector. In this context, the Vice-President of Confindustria for Industrial Policy and ‘Made in Italy’, Marco Nocivelli, gave a positive assessment of the Incentive Code, whilst emphasising, however, that “the key issue” remains “the continuity of the instruments”. According to Nocivelli, the rationalisation of incentives can only yield concrete results if accompanied by “stable, predictable financial planning that is consistent with the timing of investments”.

Nocivelli also highlighted the need to ensure continuity in policies dedicated to innovation, from the Transition Plan 5.0 to the new hyper-amortisation, with a particular focus on digital investment and artificial intelligence.

Clear rules to attract investment

Considerable attention was also given to the issue of legal certainty. During the panel discussion entitled “Rules, not obstacles”, the Vice-President of Confindustria for Corporate Culture and Legal Certainty, Francesco Somma, he pointed out that “legal certainty is an essential prerequisite for the competitiveness of the production system” and that businesses need “clear, stable and predictable rules”.

According to Somma, “regulatory and administrative uncertainty represents a cost that hampers planning, slows down investment and reduces the country’s attractiveness”. Among the priorities identified by Confindustria are the continuation of the process of regulatory simplification and the modernisation of Regulation 231 on the administrative liability of legal entities, which is seen as an important step towards making the regulatory framework more consistent, effective and conducive to investment.

Orsini: rewarding those who invest in and strengthen their businesses

To round off the day’s proceedings, the President of Confindustria Emanuele Orsini which highlighted the need to develop instruments capable of providing stable support for companies’ capitalisation and long-term investment.

Speaking on the subject of the incentive-based IRES scheme, Orsini remarked that “more money was needed to make it work better. There wasn’t enough to go round, and the truth is that we’ve imposed so many restrictions that it doesn’t work”. According to the President of Confindustria, “it would have been better to keep the ACE, which was faster and more efficient”.

“We don’t need to close the fence but to widen it; we need to invest money in a long-term vision that rewards investment. I believe that is the right way forward,” added Orsini.

“Rewarding those who invest, who keep their money in their own business rather than paying themselves dividends, and who believe in it, means paving the way for the growth of the local economy and the well-being of the region: it is the only way,” said Orsini.

This position sums up the message that emerged over the course of the day. To accelerate growth, a combination of factors is needed, including – above all – more capital for businesses, stable incentives, simple regulations and, above all, a financial system capable of supporting the development of Italy’s productive sector.