This, together with greater diversification of the sources of external funding, would make them stronger. Bringing financial leverage into line with the European average would require a capital increase of around € billion and an equal reduction in debt: this is an ambitious objective but one within the reach of Italian firms in the medium term.
Structural reforms to kick-start growth would attract equity-type funds from external investors and encourage entrepreneurs to invest their own resources, thereby being the first to show confidence in their firms’ prospects. Firms’ funding model reflects the structural traits of Italy’s economy, such as the modest size and family-based ownership of businesses.