Positive news regarding Italy’s appeal. Research by EY

Yesterday, EY published the latest edition of the Attractiveness Survey Italy, a study that paints a picture of an Italy that is more robust than its usual self-portrayal suggests, but still far from realising its full potential. In 2025, 206 foreign direct investment projects were announced, down by 8 per cent: a decline almost identical to that seen across Europe, but less severe than those recorded in France, the United Kingdom and Germany. Italy’s share of the European market remains stable at 4.1 per cent – more than double that of the pre-Covid period – and the country retains seventh place in terms of the number of projects. It is not a boom, but it confirms that Italy’s appeal is no longer a one-off phenomenon. The second strength is specialisation in production. Projects in industrial products and mobility rose from 43 to 58, whilst those in data centres increased from 2 to 8. Italy is also attracting capital from various regions: the United States accounts for 18 per cent of investment, Germany for 14 per cent, whilst investment from Japan, China and Arab countries is growing. Perceptions of the country are also improving: Italy has risen to ninth place in Europe in terms of attractiveness, 56 per cent of respondents expect progress over the next three years and 48 per cent intend to set up or expand operations in Italy.

However, the weaknesses remain evident. The 4.1 per cent share is still modest compared with the size of the Italian economy, and the decline in projects shows that consolidation does not equate to a turning point. Investment is also too concentrated: the North-West accounts for 59 per cent of the total, Lombardy alone for 44 per cent, whilst the South stands at just 10 per cent. Lombardy has, moreover, lost 22 per cent of its projects, and the proportion of businesses intending to invest has fallen from 51 per cent to 48 per cent. The key constraint lies in the ability to translate interest into actual investment. Security, quality of life, the workforce, infrastructure and tax competitiveness all help; bureaucracy, regulatory complexity, insufficient support for strategic sectors, inadequate investment in training, energy costs and slow authorisation processes act as brakes. Italy is no longer unattractive. It is simply not yet as attractive as it could be.