Italy’s Central Bank (ICB) has said the country’s high corporate tax burden is the main reason for the poor performance of the Italian economy.

However, ICB economists say, to increase competitiveness, the priority should be action to reduce high tax levels and energy costs in Italy, rather than cutting labour costs, which are already competitively low when compared with other EU economies (15 % less than Belgium and France and 30 % less than in Germany).  Italian corporate tax burden over 2.5% higher than the EU average, and when regional corporate tax is included, the difference increases to 5%.

Italian companies also have to suffer extra costs associated with uncertainties about regulations ans and ad hoc decision by local authorities.