STOCK MARKET WATCH - Friday, 27 January 2012

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41. Italy The hour of deregulation has come

http://www.presseurop.eu/en/content/article/1446681-hour-deregulation-has-come

In the wake of austerity measures, on 20 January, Mario Monti’s government launched a vast plan for deregulation which aims to generate new jobs and open protected sectors of the economy to competition. However, the professions concerned, led by taxi drivers and truckers, have responded with mass protests.

Make way for deregulation. Business opening hours have already been extended [since 1 January shops can stay open 24 hours a day]. Administrative obstacles that blocked entry into a wide range of highly regulated sectors have been removed: pharmacies, taxis, newsagents, self-employed professions etc. In short, a wave of competition is about to break over the Italian peninsula.

To understand the scope of these measures, you have to bear in mind the dichotomy that has emerged over the years between the protected sectors of the Italian economy and those that are exposed to international competition, in particular competition from developing countries.
More competition implies advantages for customers

Sectors open to competition, that is to say almost all of the manufacturing sector and certain segments of the tertiary sector (market services) have seen major upheavals over the last 20 years: enormous price pressure, increased competition on foreign and domestic markets, the ongoing need to innovate etc.