Investment Compact: a new reform for Italian popular banks. After 30 years the Italian Government enacts a reform, called Investment Compact, about popular banks. Not all of them, but the 10 biggest ones will have 18 months time to become Limited Companies.
The Italian Premier, Matteo Renzi, talked about this new reform as a very important one for the country. “Italy has a sturdy banking system, but too many bankers and not too much credit”, he said. For this reason the Italian Government would like to strengthen the banking system to be able to face the European challenges without damaging the small credit institutes.
The reform will have a positive effect on Popular banks, making them stronger and more efficient, in the opinion of the Italian Economy Minister, Pier Carlo Padoan, but the NCD, the Nuovo Centrodentra Political Party, directed by Antonino Alfano, strongly disagrees.
The Investment Compact, at the beginning, had the intention to restart the investments but has lost many proceedings, as a Treaty with the Government to freeze changes of the fiscal norms, the restyling of the Central Guarantee Fund (which was to be extended to securitization to be able to transfer the securities to the ECB as part of the plan of purchases of mezzanine Abs) or the creation of a Single Agency for Investment, a sort of “super Agency” where merging the Institute for Foreign Trade, Invitalia (National Agency for inward investment promotion and enterprise development) and Enit (Italian Tourism Agency).
Among the confirmed proceedings: the extension of the benefits for start up companies, the indirect lending to facilitate the provision of liquidity to foreign investors and the extension of the “patent box” to trademarks, that is tax breaks for those using patents in their industry in order to tempt the most important companies in the luxury and food industry, emigrated abroad, to come back to Italy.