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In my opinion, Silvio Berlusconi has expanded the Italian economy since being elected Prime Minister in May 2001. I will aim to illustrate Berlusconi’s affect upon the Italian financial system by utilising a number of sources including relevant books, web sites, as well as magazine articles.
The first way that Berlusconi has been able to enhance the Italian economy concerns the increased entrepreneurial tendencies evident within the country. In this instance, Berlusconi is profoundly responsible for changing the culture of private investment within Italy. ...
As Prime Minister, he has advised the Italian population that if he can achieve such financial success by entrepreneurship, then if they are courageous enough to invest and be more innovative in particular business adventures, then they too may be able to profit in a similar way. Therefore, small and medium-sized firms have been encouraged to invest further in order to become more substantial in terms of both size and profit. He has specifically concentrated upon businesses within the manufacturing sector as it accounts for about 25% of Italy’s GDP and approximately 90% of Italys total merchandise exports. Thus, it is ascertained that Berlusconi is trying to push Italy through the process of ‘Americanisation’ as far as domestic commerce is concerned.
Berlusconi has introduced certain regulations whereby private investment can be rewarded in order to promote a proliferation in investment. ... htm#meno%20tasse)
One of Berlusconi’s primary objectives for the Italian economy is to attempt to augment the number of Multinational Companies based on Italian soil through private investment. For example, in comparison to the UK, France and Germany, Italy has less corporations with bases outside it’s borders, with FIAT being one of very few Multinational Companies in Italy. ... However, some commentators suggest that there should be no reason why Italian companies should not be more of a dominant force when trade relations are considered. ... It has a small and diminishing primary sector and a service sector that contributes close to two-thirds of Italy’s GDP. It’s believed that if the suitable economic criteria inaugurated, Italian corporations would flourish. One principal rationale for this proclamation is that Italian produced goods and services are considered to be associated with high a level of quality, which no other country is acknowledged for.
Hence, Berlusconi is attempting to lay the foundations for a successful and vibrant economy. The augmentation of private investment within the economy, is expected to encourage a more competitive market, where Italian companies are involved in more transactions, both inside and outside of it’s borders. ...
Indeed, Berlusconi is trying to regress from an Italian economy where there is low productivity growth, which added to with Italys relatively high exposure to competition from emerging economies, has contributed to a loss of export market shares in recent years.
However, it’s not just the issue of the level of private and public investment of a state that initiates a more proficient economy, although it is definitely a contributory factor. There are also various other factors, which are responsible for an efficient economy, for example the GDP per head and the wage rate of a country, as well as a low level of unemployment.
Although the amount of investment within the Italian economy has greatly increased during the period of 2001 to the present day, the first half of 2003 saw a decline in investment. ... Nevertheless, the total amount of investment in Italy’s economy has increased since 2001 largely due to the influence of Berlusconi.
Approximate Word count = 2843
Approximate Pages = 11.4
(250 words per page double spaced)
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