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‘Brexit can make Italy great again – but it needs to act fast’

Britain's decision to leave the bloc should be good news for Italian business, writes consultant and writer Jean Moncrieff - but the key word is 'should'.

'Brexit can make Italy great again - but it needs to act fast'
Could Brexit make Italy great again? File photo: Rawpixel/Deposit photos

Italy has the potential to attract innovation and entrepreneurship in a post-Brexit Europe, but will the government seize the opportunity?

Italy has a long tradition of entrepreneurship.

Ninety percent of the country's economy consists of small and medium-sized business. Many Italians dream of being their own boss, and many foreigners dream of bringing their businesses to Italy.

So, entrepreneurship should be thriving in this country.

But it isn't, at least according to the 2014 National Experts Survey, which ranked Italy below the other major European countries across almost all aspects of the entrepreneurial ecosystem.

The survey identified government policies, government programs and entrepreneurial education as particularly lacking.

Recently the Italian foreign minister, Angelino Alfano, announced that he planned to put an emphasis on taking small and medium-sized businesses abroad, and promoting the ‘Made in Italy’ brand.

This is certainly an encouraging step, but there is an argument to be made that the government needs to do more to support entrepreneurs in the early stages of business development.

READ MORE: Milan can attract businesses that leave Brexit Britain, says Italy FM

Francesca Fabbri (26) and Nicolas Barosi (22) are co-founders of Lès Geometries and are passionate about building a clothing brand for young, on-the-go city dwellers.

Lès Geometries has already made it into a handful of boutique clothing stores in Milan, and the pair is optimistic about growing beyond Italy in the future, but their immediate challenges centre on education and funding.

“We need better support structures,” explains Francesca, “people with experience that can help us navigate some of the challenges we face as a startup.” 

Francesca Fabbri and Nicolas Barosi, co-founders of Lès Geometries. Photo: Enrico De Luigi 

Under Matteo Renzi, the Italian government passed the Italian Startup Act, aimed at supporting high-tech startups.

The act makes it easier to launch a company, get investment and obtain fiscal deductions, but for entrepreneurs outside of the high-tech space, none of these benefits applies.

Instead, many small businesses in Italy rely on assistance from family and friends.

Gianluca Festa, a commercialista and partner at Studio Festa, suggests that the Italian government needs do more to support early stage businesses and attract foreign entrepreneurs.

He explained: “To improve entrepreneurship there should be an economic and fiscal policy to fund the first year of a new company; making it easier for entrepreneurs to launch a new venture and access support and funding.”

For foreigners starting a new business in Italy, the challenge can be even more daunting.

Chris Luccarda – a second-generation Italian born in South Africa – recently moved back to Italy where he and his partner Eve Feng have opened the Loving Hut Vegan Cafe in Rimini,  a small city 120km south-east of Bologna.


The Loving Hut Vegan Café Team: Francesca Spensieri and owners Eve Feng and Chris Luccarda. Photo: Jean Moncrieff

Luccarda was advised to buy an existing business rather than to open a new one.

Chris says: “Given all the red-tape involved, our accountant advised us that it would be simpler and less expensive to take over an existing business, rather than to set up something from scratch.”

He was also lucky to find a local lawyer who could speak some English and helped them broker a good deal.

However, since taking over the business more than six months ago, they have fallen victim to the country's complex regulatory frameworks and rigid labour market.

Brexit is a real opportunity for Italy, but only if the Italian government acts now. Berlin has its sights set on usurping London as the startup capital of Europe. Paris has announced seven new skyscrapers to lure London jobs.

If Italy doesn’t move quickly to reduce bureaucracy, it will be left picking up the Brexit scraps.

Jean Moncrieff has a passion for helping entrepreneurs grow their businesses. He is a writer, photographer and marketing consultant who splits his time between Rimini and London.

Want to write a guest blog or opinion piece for The Local? Get in touch at [email protected] 

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HEALTH

Brits living in Italy under post-Brexit rules won’t pay healthcare fee

British nationals who moved to Italy before January 1st 2021 are exempt from paying Italian healthcare fees, according to an update on the UK government website for British nationals overseas.

Brits living in Italy under post-Brexit rules won't pay healthcare fee

Italian authorities have clarified that British residents covered by the post-Brexit withdrawal agreement (WA) should not be subject to fees for using the Italian national health service (servizio sanitario nazionale, or SSN), according to the update published on the British government’s Living in Italy website on Friday afternoon.

“The Italian government has recently decided that British nationals who entered and have been living in Italy prior to January 1st 2021 and are beneficiaries of the Withdrawal Agreement can register for free with the Italian national health system and are therefore not required to make voluntary contributions,” it read.

READ ALSO: Trouble proving residency rights leaves Brits in Italy paying €2k health charge

The unexpected announcement came as a relief to many of The Local’s British readers, who have been battling local authorities’ varying interpretations of the rules for those who are covered by the WA.

However there were no further details available immediately about how the rules would work or how this would be communicated to local healthcare offices around Italy.

The British government’s update stated: “We continue to engage to fully understand guidelines and requirements,” and added that any updates would be published on the website.

Clarissa Killwick, citizens’ rights campaigner with Beyond Brexit, told The Local the update on Friday had come as “a big surprise”.

“Obviously very good news, but we need to wait and see the detail as to how this is going to work.”

READ ALSO: Why Brits in Italy say they’ve been ‘hung out to dry’ over €2K healthcare fee

“There has been a very positive reaction from our members,” she said. “I can feel a great weight lifting from those who have gone through a lot of anxiety since the new minimum of €2,000 for SSN voluntary contributions was first mooted last October.”

Italy’s government confirmed the new minimum €2,000 charge applies from the start of 2024, though there has been a persistent lack of clarity over exactly who it applies to.

In the absence of clear national guidelines, local health authorities have reportedly applied differing interpretations of the rules for WA beneficiaries, with several British nationals reporting being wrongly charged the fee in January.

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