Italy

The Italian economy is weakened by the lack of infrastructure development, market reforms and research investment. In the Index of Economic Freedom 2008, the country ranked 64th in the world and 29th in Europe, the lowest rating in the Eurozone. According to the World Bank, Italy has high levels of freedom for investments, business and trade. Despite this, the country has an inefficient state bureaucracy, low property rights protection and high levels of corruption, heavy taxation and public spending that accounts for about half of the national GDP. In addition, the most recent data show that Italy’s spending in R&D in 2006 was equal to 1.14% of GDP, below the EU average of 1.84% and the Lisbon Strategy target of devoting 3% of GDP to research and development activities.

Demographic Data

Economic Data

Cultural & Other Data

GDP (PPP, $bn)

1821

Capital

Rome

Area (sq. km.)

301,230

GDP Real

Growth (%)

-0.7

Other Large Cities

Milan, Naples Torino

Population (million)

58.1

PerCap GDP ($)

31,000

Primary Language

Italian

Population

Growth %

-0.047

Prime Lending

Rate (%)

10.93

Urban

Population %

68

% Population

Under 15yrs

13.5

Inflation Rate%

3.6

Urban Growth %

0.4

Population below

poverty line (%)

NA

Unemployment%

6.8

Literacy

(% of population)

98.4

Agricultural Workers

(% of population)

4

Foreign Direct

Investment($bn)

374.8

Education spending

as % of GDP

4.5

Industrial Workers

(% of population)

31

Debt-External

($bn)

1060

CPI Score

(1-10)*

4.8

Service Workers

(% of population)

65

Exports ($bn)

566.1

Corporate Income Tax %

31.4

Labor Force (mil)

25.09

Imports ($bn)

566.8

Ease of Doing

Business Ranking **

65

CURRENCY EXCHANGE RATE

05/08/09 $1 = 0.75 EUR

Franchising Laws Overview

Disclosure laws:

  • Disclosure required 30 days prior to the contract.

Relationship laws:

  • The franchisor must have “tested its business concept in the market.”
  • Contract must be at least 3 years.
  • May only terminate for “substantial” breach.
  • Franchise may not re-locate without franchisor’s consent.

Registration laws:

  • None.
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