In economies like the Italian one, where firms – by international comparison – are relatively small and heavily reliant on bank credit, the consequences of such reforms for the financing of the real economy must be analyzed carefully. In order to mitigate possible unintended consequences, the development of a more diversified financial system is a priority for the Italian economy.
In recent years the Italian authorities have introduced tax incentives and administrative simplifications to reduce the overall cost of IPOs, to incentivize bond issues and to stimulate investment in innovative startups. The legislation on ACE (allowance for corporate equity) is helping to improve firms’ capitalization levels.