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Italy
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Italy is an International Labor Organization member country. Terms and conditions of employment are ... periodically fixed by collective labor agreements in different professions. Most Italian unions are grouped into four major national confederations: The General Italian Confederation of Labor - CGIL; the Italian Confederation of Workers' Unions - CISL; the Italian Union of Labor - UIL; and the General Union of Labor - UGL. The first three organizations are affiliated with the International Confederation of Free Trade Unions (ICFTU), while the UGL has been associated with the World Confederation of Labor (WCL). The confederations negotiate national level collective bargaining agreements with employer associations, which in effect are binding on all employers in a sector or industry. As the result of a tripartite agreement among employer groups, the government, and unions, the confederations accepted wage moderation in exchange for participation in formulating national economic policy.
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From the 16th to the late 19th centuries Italy was ruled over by various foreign powers, including the French and Spanish Bourbon Dynasties. Even the Republic of Venice, a powerhouse of trade and once master of the seas, had been dissolved with the arrival of Napoleon. It was not until 1861 that the Kingdom of Italy was formed under Victor Emmanuel II of the House of Savoy with the help Count Cavour and Giuseppe Garibaldi. However it would take several more years before the entire peninsula would be unified as the Kingdom of Italy. By the 1920’s the King was powerless in the face of the Fascist dictatorship of Benito Mussolini and with the regime’s defeat in WWII, Italy dissolved the monarchy. In 1946 the Italian Republic was formed and two years later Italy adopted its new constitution.
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Italy has a diverse and industrial economy, the sixth largest market economy in the world, with the highest proportion of manufacturing jobs among the G-7. Small- and medium-sized firms dominate the Italian economy. Germany, France, and the U.S. remain the most important export markets. Industrial activity is concentrated in the north, one of the most industrialized and prosperous areas in Europe. By contrast the center and particularly the south are less developed, with unemployment in some areas three times that or the north, and per capital incomes much lower. The Italian government does provide incentives for investing in the South, in accordance with European Union (EU) regulations, in an effort to counter the regional economic divide.
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Italy has one of Europe’s largest telecom markets, worth some €42 billion in 2004. Mobile phone penetration is far above the EU average. Internet penetration is ... high, while the country has the fourth largest broadband subscriber base in Europe. DSL dominates broadband access, since there is no significant cable infrastructure, but growing competition is offered by some of the continent’s most comprehensive fibre networks. This report analyses the key aspects of the Italian telecom market in 2005 and 2006. Comprehensive data is provided on the country, the fixed network services sector, and the Internet, mobile, and digital broadcasting sectors.
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Italy continues to court foreign investors by actively seeking to implement the 2003 legal reforms designed to lift the Italian economy out of its malaise. In 2003 Italy successfully reformed its civil code and made important modifications to its Unified Rules on Financial Intermediation, including specific provisions for listed companies. In addition, at the end of 2005 Italy approved the financial market oversight reform and a new, more favorable bankruptcy law. However, stumbling blocks that discourage investment appear stubborn, such as the inefficient delivery of public services and bureaucratic red tape. The upcoming 2006 April elections and the installation of a new government are unlikely to spur significant change in the investment climate. Yet Italy remains competitive with other developed countries in offering guarantees and opportunities for investment.
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In the late 1970s and early 1980s Italy, along with other Western nations, experienced chronic inflation and unemployment. Labor unrest, frequent government scandals, and the violence of extremist groups (especially the left-wing Red Brigades terrorists, who kidnapped and murdered former premier Aldo MORO in 1978), all contributed to a volatile political situation. In 1981 the Christian Democrats relinquished the premiership for the first time since World War II when a Republican, Giovanni Spadolini, became prime minister. The economy, which had suffered during the turbulent 1970s, experienced a new resurgence under the leadership (1983-87) of Socialist Bettino CRAXI, a strong premier who remained in office longer than any of his postwar predecessors. The Craxi government was succeeded by two short-lived coalitions and then by the government of Christian Democrat Giulio Andreotti, which took office in July 1989.
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