The Italian Economic Business Model

Italy's greatest export-Sophia Loren
Italy's greatest export-Sophia Loren

The Italians are still and have been famous for many things: Ferrari, Fiat, Pizza, Pasta, Roman Empire and Sophia Loren, but for business economics, they are not. In fact, like other nations, they are seriously close to defaulting and needing a bailout from Germany.

Many businesses(25%) in Italy try to remain small and find ways in being a creative bookkeeper for accounting. With unemployment of 10%, the Italian government it looking within for answers. They should because they are the ones that created the maze of law that force businesses into this mode.

About 66% of what an employer pays goes to social security and once your small biz hires the 16th employee, a series of laws enter into the equation. The worse one is that it becomes near impossible to fire\dismiss an employee for any reason. Another reason is that this magic number invites the unions into the labor picture. This mandates that employee reps get eight hours of pay when doing union related work per month. The Union reps are important because management must consult with union reps on all matters, even introduction of new technology into the workplace. Once #16 employee occurs, #17 must be disabled in some manner. So, by the 51st employee, your biz will have 7% disabled workers. It is law, not an option. By your 101st employee, your biz must now report gender dynamics in detailed fashion.

Italian law does have a few tax credits, for instance, if you hire a woman on a permanent position, under age 35, AND from one of the eight designated regions, your credit is 15,000 euros. If your biz is less than 15, you do not have to pay into the the national unemployment fund, and if you are in the tourist or retail trade, no payment into the fund until employee 51 his hired.

So, from a person's wage in Italy, 47% goes to the government before payroll.

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Kyricus profile image

Kyricus 4 years ago from Ohio

The Italian Model, like many European models, tilts too far in one direction. Unless the people are willing to pay even higher taxes than they currently do, the model implodes.

Additionally, Italy's, and to some extent Spain's, insistence in protecting small businesses above all else (even those that are unprofitable and should fail) creates a very a lopsided playing field that hampers growth. To much reliance on one part of the economy, big or small, can wreak havoc.

All that said, my main point in replying was, to agree with your picture! Italy's best export, Sophia Loren! Makes me glad to be Italian-American!

perrya profile image

perrya 4 years ago Author

She was so hot and tough in some of her roles.

limpet profile image

limpet 2 years ago from London England

I agree about Sophia Loren's acting skills however in one of her particular roles, that of Lucilla in The fall of the Roman Empire. In the final sequence Sophia is to be burned at the stake as a heretic. She doesn't show the fear of being burned alive even as the flames are rising her anguish is so feigned unless she knew she was going to be rescued!

limpet profile image

limpet 5 months ago from London England

Speaking of Sophia Loren as a economic business model in the 1960 production of 'The Millionairess', Sophia Loren in staring role as Epifania a multi millionairess billed as the richest woman in the world. Epifania's would be suitors in order to impress her need to make shrewd investments that triple in 90 days or be rejected as losers. In one scene Epifania has to deal with a troublesome lecherous male she quickly puts him in a judo hold and flattens him on his back.As he tries to get up she then throws him over her shoulder into a river unawares he can not swim.

limpet profile image

limpet 5 months ago from London England

Sophia Loren actually set a precedence for women using the martial arts to defend themselves as it was about anothrt three years befor we got all the girls throwing men around in movies.

limpet profile image

limpet 5 months ago from London England

OOPS ! For anothrt READ another. The glamorous English actress Honour Blackman and sensational Italian actress Monica Vitti just two of whom come to mind.

limpet profile image

limpet 5 months ago from London England

However Monica Vitti did use a 'stand in' double for the fighting sequences in the 1966 Modesty Blaise. The double was a Dutch lady highly skilled in martial arts and capable of handling two male opponents at once.

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