Serge Makhoul

PESTEL ITALY Political Microenvironment: Italy is a written constitution unitary federal republic. The country's President is the head of state, while the Prime Minister is in charge of the economy. Three political forces dominate Italian politics: the Five Star Movement, the Democratic Party, and the Lega. Though the nation is well-known for many aspects, it has a long history of political turmoil dating back to the end of WWII. NATO and the European Union each have Italy as a founding member (formerly known as the European Economic Community, EEC). It is also a member of the United Nations, the OECD, the World Trade Organization, the OSCE, and the Group of Seven. It has positive diplomatic ties with a number of countries. The emergence of far-right politics, on the other hand, has become a significant source of concern for the region. In the last few years, political unrest, disputes between the ruling partners, and disagreements over policies and election promises have all had an impact on the region (Ellyatt, 2019). Despite making significant gains over the years, Italy is now regarded as one of the most corrupt countries in Europe. To combat the outbreak of the coronavirus in Italy, officials have taken drastic steps. Thousands of citizens have been charged with breaking the lockout measures, according to Tondo (2020). Some people initially thought it was a harsh solution; however, perceptions soon shifted, and most people began to see it as an acceptable response to a dire situation. Economic Microenvironment: The economic climate is the next thing to consider in the PESTEL study of Italy. Italy is one of the world's top ten economies. In 2019, its nominal GDP was $2030 billion (Trading Economics, 2020). It is a member of the Eurozone, but its relationship with Brussels has been strained due to its contentious budget proposals (Winchester, 2019). Italy is one of Europe's most strong manufacturing nations. Tourism, construction, agriculture, service, and commerce are the main sectors that have been pushing the economy. Big enterprises as well as smaller, family-run companies make up these sectors. However, a scarcity of raw materials raises a significant economic threat, which the nation addresses by importing substantial quantities. Coronavirus would have a negative effect on the Italian economy in the short and long term. The government's promise to accelerate spending on a "huge shock therapy" to offset the virus's economic effects, on the other hand, has been met with largely positive responses (BBC, 2020). Similarly, many companies have moved quickly to implement remote working wherever possible in order to limit the spread of the virus and minimize financial losses. Socio-cultural macro-environment: Population: 60,367,477. (worldometers.info 02/22/2021), equivalent to 0.78% of the total world population. Age: the graph representing the division into 3 age groups in Italy is presented below (Statista, 2020). The average age is 45.7 years. In terms of population size, the sex ratio in the Italy is in favor of women, although the gender gap remains. In 2021, there were 1,56 million more women, with the difference expected to decrease by 2025. (Statista, 2021) Gender with respect to age in Italy in 2019 (Populationpyramid) The population percentages based on defined levels of basic household income are presented below. The average value in Italy is around €-. The map divided by regions with respect to household income is also presented below: Employment: the number of workers in the Italy has been decreasing in 2020, however it is recovering after the pandemic with the interference of the government, but not yet at the levels of 2019. To date, it is about 23.01million people (Statista, 2021). Technological Macroenvironment: Over the years, Italy has made tremendous strides in the digital realm. In reality, it is one of Europe's top four digital transformation countries. It has over 105,000 high-tech businesses covering all markets, and it is Europe's industry leader in robotics. It's also taken big strides in cloud computing (Fratta and Sabatini, 2020). In Italy, Internet use is rapidly increasing, with businesses spending extensively in science and technical research. There are, however, certain vulnerabilities that must be fixed. Weak internet access, as well as a shortage of advanced technology educational opportunities and infrastructure, are slowing the digital revolution's advancement. Italy has an above-average record in physics (+24 points above the world-average), psychology and psychiatry (+21 points), and space science (+18) according to National Science Indices, a database created by Research Services Group that includes lists of performance and citation statistics for more than 90 countries. Economics and industry (-23 points below world average), genetics and biochemistry (-21 points), microbiology (-20), and molecular biology (-20) are among the academic disciplines in which Italy has a smaller impact factor than the world average. Environmental macroenvironment: Italy is ranked 84th in the world in terms of environmental sustainability. Italy has risen to become one of the world's leading producers of clean energy, ranking fifth in solar energy production in 2009 and sixth in wind power production in 2008. However, the nation is confronted with a host of environmental issues. Air emissions, inadequate waste disposal, climate change, water pollution, natural resource degradation, unnecessary manufacturing of manufactured products, soil degradation, and floods are only a few examples. Air pollution is a major concern, especially in the developed north, where industrial carbon dioxide emissions peaked at the tenth highest amount in the world in the 1990s. Legislative macro-environment: Italy, as a member of the European Union, creates a stable economic and social framework in which to participate. Italy has a solid economy and ranks among the world's leaders as a member of the G8 developed nations. These aspects add to investor trust in Italy as a healthy and stable economy to invest in real estate. Despite an often-complicated tax structure, income from Italian real estate are not subject to capital gains tax. It provides the investor with the best possible return on investment. Italy was a pioneer in property tax reform, creating outstanding benefits for rural renovators, including large VAT concessions. If you move to Italy and become a citizen, you will be able to slash your buying costs in half. Our preferred tax advisors may provide more information. In contrast to many destinations in the EU, property prices remain low, and a small rural property for renovation can still be bought for as little as 60,000 Euros Italy is at the epicenter of the low-cost travel boom, with flights to its various airports accessible from nearly every international airport. This reality is continually improving its flourishing tourism industry, which draws a growing amount of visitors each year. The Italian government actively promotes foreign investment, especially in rural areas, and now provides grants to investors for the renovation of rural properties. When it comes to e-commerce, In Italy, there are two major e-commerce models: business to business, B2B and business to consumer, B2C, with younger models including consumer to business and consumer to consumer on the horizon. The legislature has introduced a variety of legislative instruments to comprehensively govern e-commerce and has arranged for the implementation of special regulations, such as: EU Directive 31/2000/EC is enforced by Statutory Decree 70/2003, with the aim of establishing an e-commerce system. The Consumer Code (Legislative Decree 206/2005) and its 2014 revisions, which introduce EU Directive 83/2011/EU on consumer protection. In addition, the laws mentioned below apply: the Civil Code's contract regulation and the Modern Administration Code's contract regulation about online signatures. EU Regulation 2016/679 Data Protection Code Electronic currencies, national provisions of online payment systems, and intellectual property are also regulated by Statutory Decree 45/2012.