A seminar entitled “The Road to Milan: New Legislation for Italy in a Changing Financial Landscape” was held on 3 July at the Embassy of Italy in London, organised in partnership with BonelliErede, one of Italy’s largest law firms, with offices in Italy, Belgium and the UK as well as recently opened branches in Egypt and Ethiopia.
The event was opened with a speech by the ambassador, Pasquale Terracciano, who pointed out that although the UK’s exit from the EU has led to a number of systemic uncertainties, it has also opened up opportunities for cities such as Milan. Massimiliano Danusso, a managing partner at the London offices of BonelliErede, then spoke about two major changes in lending regulations that have recently been introduced in Italy.
This was followed by a panel discussion between Fabrizio Pagani, the head of the technical department at the Italian Ministry of the Economy; Arabella Caporello, the head of the Municipality of Milan; Alessandro Barnaba, a managing director at JP Morgan; and Umberto Nicodano, a partner at BonelliErede and a specialist in financial services and private equity. The discussion, moderated by Rachel Sanderson, the Milan correspondent at the Financial Times, focused on Milan’s attractiveness as an investment destination and the city’s potential for intercepting segments of the financial industry as they leave London.
Pagani and Nicodano highlighted how the reforms introduced by recent governments are yielding encouraging results, making Italy a more attractive and competitive investment destination, especially in terms of job-market regulation. They cited the various reforms implemented by the most recent governments, including the Jobs Act, interventions in public administration, banking reform and changes to tax regulation (for example a reduction in tax on business income from 27.5% to 24%). They also mentioned the introduction of an advantageous tax regime on income obtained abroad for so-called non-domiciled residents, aimed at attracting skilled professionals.
Caporello discussed the short-term opportunities that Brexit offers Milan but also pointed out the need for a new medium-term strategy to relaunch sectors in which the city is traditionally competitive, such as manufacturing and fashion. Barnaba outlined the strengths and weaknesses to be taken into account in Milan’s bid to attract important segments of the financial industry that are expected to relocate from London. He explained that although there may be some residual uncertainty in the mechanisms of Italy’s legal system and labour market, the reforms of the past few years have placed the country, in particular Milan, at an advantage compared to many other European cities in terms of services, connectedness and quality of life.
