EXPO 2030 ROME: a great opportunity to transform Rome into a modern and entrepreneurial city and no longer a building!

EXPO 2030 ROME - A great challenge awaits us for Rome; that of fiscal and economic reforms is also a great challenge in the great challenge.

The focus of this tax reform is the double track of public and private; the public redevelops the suburbs (schools, transport, green, meeting places, etc.) the private sector enters with its entrepreneurial activities in support of the public but also to carry out innovative industrial projects that create jobs, help culture and redistribute wealth among residents. Localize, therefore, in the suburbs places and spaces for businesses, for start-ups, for technology centers, for university research and for training! We Incentivize, Attract, and Build.

EXPO 2030 ROME

Rome Capital can (or must) ask the central government more autonomy management (then also legislative) to revive the economy of the city.

Considering the critical and tragic situation in which the Capitoline administration finds itself, extraordinary measures and extraordinary reforms are required to transform Rome also and above all into a modern and entrepreneurial city (beginning to eliminate his image Palazzinara that condemns us for decades).

These reforms must look not to tomorrow but to a development of decades to the future with a modern, inclusive and productive vision. EXPO 2030 can be the starting point.

The inspiring principle is that of investment: if I attract activity on the territory with fiscal incentives in the short term, in the long term I create an economic induced growth and wealth (not only economic but above all cultural).

With such a structured plan foreign companies can also decide to settle in Rome.

The management and implementation of these reforms will have to be managed by a technical department (scientific committee) with a large autonomous decision-making power. This would be formed by professionals also able (and therefore with powers ) to streamline all the bureaucracy. For example, a single office for companies that settle in Rome).

Tax proposals to make possible EXPO 2030 Rome

The fiscal proposals for this new resurgence of Rome could be (alternatively or together):

1) To give the possibility to deal with the Tax Office the rates at the beginning of the activity of the enterprises for 5 - 10 years

The rates for new assets are negotiated, processed and decided in advance with the tax administration (as a very general example. The first year a corporate tax rate could be 2% (or 3 or 4 …) and then gradually growing according to the business e-o billed e-o profits, losses, investments and market trends etc etc). In any case, research, study, scientific development and new technologies will be further rewarded.

2) Incentives for foreign investments of Italian companies (which have their registered and operational headquarters in the municipality of Rome)

For all Italian companies that establish themselves in the territories of Roma Capitale and that invest abroad total tax exemption on the income received from the investee e-or stable foreign organizations such as:

Foreign investees and permanent establishments shall not be resident in tax havens. The foreign activities will be: industrial production, engineering, design, research and scientific development and export of Made in Italy (excluding all banking, financial and similar activities).

3) Italian holding company (SPI)

Possibility for foreign investors to set up financial and industrial holding companies in Rome with the following advantages and conditions:

- the foreign member of the PES must not be resident in a tax haven

- SPI’s income from activities outside Italy (excluding tax havens ) is exempted as follows:

Income produced by the SPI in Rome (therefore in Italy ) will be taxed according to the general internal rules mentioned in point 1 above). There could also be a specific rule for foreign managers who move to Italy to work for the SPI - so they have never been resident in Italy before - which sets a fixed rate, for example, 15% for 4 years on all the income they received as natural persons both in Italy (Rome) and abroad).

With regard to the distribution of profits from the SPI to the foreign shareholder, no withholding tax will be provided regardless of the regulatory provisions of the conventions to avoid double taxation signed. The foreign activities will be: industrial production, design, engineering, scientific research and export. (excluding all banking, financial and similar activities)

4) Zes

These special zones allow you to operate with convenient tax incentives and therefore can also attract foreign investment.

The ZES (Special Economic Zone) is in fact a "weapon" in order to be able to entice enterprises to invest in a territory offering fiscal incentives, bureaucratic facilitations and in order to attenuate the cost of the job. To all this must be added the proximity and availability of an efficient and effective infrastructure system located in the immediate vicinity, usually an airport, a port, with railways and roads easily accessible.

In various Countries of the world the ZES are used from years, some have even almost "institutionalized" such instrument, extending it to great part of the national territory.

With Law L.12 August 2017 n.123 is introduced in Italy for all the ports of the South. But once the law has been made little has been done (indeed I would say nothing) to stimulate and stimulate the creation and the birth of these Zones that could attract a lot of national and international investments (apart from the issue of tax savings for businesses we think only the position of Italy in the Mediterranean ). Rome Capital could ask for the extension of this law also to all the peripheral territories and neighborhoods to be redeveloped, serving therefore the various ports and interposing you of the Lazio.

Rome can and must succeed!

Let’s imagine presenting all these projects in 2030: a dream? Maybe but many times dreams become reality just wanting it!

Rome: history, culture, tradition, enterprise, modernity!

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The green economy introduced by Hamid-Reza Khoyi

GREEN ECONOMY HAMID-REZA KHOYI - Green economy, blue, circular are now many adjectives that we hear accompany this word. But what do we mean when we use them? To explain Green Economy is Hamid-Reza Khoyi, with hints also to the blue economy.

Green Economy and Blue Economy explained by Hamid-Reza Khoyi

Let’s start by defining what is meant by Green Economy and Blue Economy. Green Economy indicates the economic model aimed at achieving well-being and social equity, while reducing environmental risks and ecological scarcity. The blue economy is nothing more than a development of the green economy, which directs its interests towards the marine and oceanic world. Where the green aims to achieve a CO2 reduction within an acceptable limit, the blue economy plans to achieve zero CO2 emissions.

The greatest danger for these economic models is to be used for the wrong reasons. There are many who believe, for example, the Blue economy can be the answer to the possibility of a future in which there is a loss of employment due to the use of robotics and artificial intelligence. Most likely this will be true, but limiting these economic models to only this uses is a very wrong thing. The primary purpose of the application of green and blue economy is not to create jobs, but to safeguard our planet.

The commitment of individuals, companies and politics

Unfortunately, there are still not many companies that implement actions in line with the principles of the Green economy and even less the number of those who consider it a feasible project. The commitment must come from everyone.

Europe currently produces 10% of global pollution, compared to India and China, which produce almost all of it. But if we wait for the great powers to be the first to move, we will not go anywhere. Somewhere you have to start to start the change and the first are us. The commitment of the individual starts from the attention in the purchases, the consumption and the origin of the various products. Making prudent purchases, however, requires commitment and time. A facilitation could come from the institutions with the introduction of a globally recognized mark or certification that helps the consumer to distinguish who respects the principles of the green economy and who does not.

Limits and potential of the Green Economy identified by Hamid-Reza Khoyi

As we have said, consumers play an important role in implementing the green economy. Very often, however, they may not be encouraged to take green action by the bonus that green products have. For this reason, demand could decrease day by day, resulting in a further increase in the price of products in line with the green economy, which in turn will lead to a greater reduction in demand.

The green economy also has the potential to become a strong ally of the economy of small countries. In fact these, having an economy in the beginning, have more ease in implementing the moves necessary to make their economy green, compared to the large realities that have situations already established for decades. If they manage to enter the market they will have greater possibilities to create a strong competitive network with the West where the demand for green products is very high, at the expense of a low-level and high-cost offer.

Do it because it’s right, not because you have to

The implementation of the green economy must not be a burden for companies but a necessity. Something that is done, not because we must but because we want, for our own good, that of the Planet that sustains us and for generations to come. If a company chooses the green economy because it believes it will surely be more successful and successful than one that does it because it must and will know how to put in place the best and most fruitful actions. This is the thought of Hamid-Reza Khoyi on the green economy.

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Inflation is coming: protecting cash and deposits

INFLATION CASH DEPOSITS - The healthcare crisis that the whole world has been experiencing for a year now has caused several consequent crises. One of them concerns the economy and the world of markets. Inflation is around the corner, therefore it is necessary to protect our cash and deposits. Oliver Camponovo, financial analyst, explains to us what is happening.

Similarities between the present and the first post-war period

It is likely that global economies will soon face a “hyper inflation”, which will determine an increase of the price of foodstuff above all.

The current economic period has several structural similarities with the first post-war period situation. It was characterized by 9 years of expansion of the money supply and a year of hyperinflation in 1923.

The extreme Quantitative Easing (QE) implemented by FED (and by BCE, BE, BJ and BNS) as a consequence of Covid19 (but started in 2010 to support post-subprime economy) created the perfect basis for a 2.0 version of the economic tragedy of 1923.

The role of the FED in the inflation game

The reading key can be found in the following graphs, the first of which illustrates the total of de-couple in place between the M2 money stock, put into circulation by the FED, and relative speed of transmission. The second one shows the leap from one year to another of the velocity and inflation dynamics experienced by the Weimar Republic between 1918 and 1919.

For years the FED has been chasing after the “totem” goal of reaching 2% of inflation through expansive policies never seen before. Now the FED (and indirectly the main Central Banks of the world) may be close to a dramatic Dantesque retaliation. In fact, it is forced to face almost seamlessly the exact opposite: hyperinflation.

The FED may be complicating the situation, by acting in a way that leads to an increase in inflation, also by purchasing TIPS and selling the long yield curve wall (20+).

Inflation and its consequences for investors

But what does the inflation represent for an investor on a practical level? Why is it so feared by the market?

Is this inflation an advantage or a disadvantage for cash and deposits?

In view of the above, how can you take advantage of the increasing inflation?

Let’s make an analysis of this case:

For the bond part in my private deposit I sold bonds with a maturity of more than 4 years.

This allows a regular reinvestment without illiquidity phenomena. This allows a regular reinvestment without illiquidity phenomena. This is what happened in March 2020 instead (however, we believe there is a low probability, taking into consideration the intervention of central banks).

Let’s move on