All posts tagged crisis

CASH&CARRY – “Pay and receive your goods”. The difficulty of recovering  debt in Italy and the consequences.

CASH&CARRY – “Pay and receive your goods”. The difficulty of recovering debt in Italy and the consequences.

In the current context of severe economic crisis in Italy and the negative experiences suffered by traders from abroad to recover their debt claims, trade relations have changed between Italy and the rest of the world in recent years. Good trade relations always requires reliability, certainty and promptness. Italy does not offer sufficient protection in this regard. The highly negative environment is manifested through: inefficiencies in the system and bureaucracy; the inability of the justice system (civil and criminal) to respond in the short to medium term, strong information asymmetries and a lack of fair competition; deeply rooted and widespread corruption in all areas of public administration; reluctance on the part of banking establishments to provide credit to companies/families; petty and organized crime. In this context , all operators – from small family businesses to large professional enterprises – all suffering more or less the same economic constraints – trade relations have been pervaded by mutual distrust . Primarily the state is slow to pay up followed by the private concerns. This has resultantly lead to the philosophy of the cash & carry, in the sense that many businesses and professionals (probably the vast majority) deliver goods and services in Italy only upon payment. After all, this is the only way to ensure and safeguard their business and commercial survival in Italy. Therefore a prudent business practice would be to know the client or supplier with whom you intend to do business, prior to goods changing hands, in order to verify their financial liquidity and reliability and to put in place suitable contracts to avoid costly and lengthy litigation.

Annino Law Firm offers a full service to protect and promote foreign companies wishing to operate in Italy, as well as, those already trading in Italy. We offer feasibility studies, pre-screening of client reliability, trade and employment contracts, registration of companies, trademarks and brands in Italy, the recovery of debts and translation of documentation. For any further information and legal support do not hesitate to send your request to: avv.annino@libero.it or vist www.annino-lawfirm.com


Italy, Autumn 2012. Part II

Italy, Autumn 2012. Part II

The next few months, being the first of 2013, will highlight an Italy in deep recession with the correlated risks of social unrest and violent demonstrations. The crisis that the country is going through is not only economic, the lack of work will act as a driving force and catalyst for problems within our civil society. Our first thoughts go to the dire situation of the Sardinian people. We have always had a special attraction to this area which we believe to be one of the most fascinating in the world, our frequent visits for work to Sardinia have highlighted a situation of limited sustainability. Primarily due to the events at Vinyls, Alcoa and Sulcis, but also due to the serious economic situation amongst small and medium enterprises, farmers, fishermen and the tourism sector, all united by the total absence of institutions. Speaking of work, it is virtually impossible for Italian companies to compete within this negative context of fiscal burden, obnoxious bureaucracy, lack of reliable and efficient infrastructure and with the threat of criminal activity that is paradoxically linked to a justice system which has been jammed since biblical times. In this context, it is not surprising that Mr. Marchionne said that Fiat did not see it’s way clear to operating within the obsolete Italian industrial context when compared to the dynamics in the United States. In essence this is the same belief held by many Italian entrepreneurs who have left or are leaving Italy to settle in Switzerland, Eastern Europe or China. With the resultant serious loss of credibility, historical memories, knowledge (many entrepreneurs have developed extraordinary patents recognised worldwide) and jobs.


Autumn in Italy 2012

Autumn in Italy 2012

The return to work after the summer break, manifests social tensions which will have a particular impact on Italy. All sectors of society are in deep suffering; the state of crisis amongst large companies and small and medium enterprises has resulted in substantial job losses and this negative trend seems unending. The justice system, health services, education, public administration and local authorities lack efficiency. The State does not seem able to safeguard their own citizens but rather displays illegal behavior through their inhumane treatment of prisoners; awaiting trial prisoners, who’s guilt is yet to be proven; the state is criminal in the way that prisoners are treated, the daily and systematic violation of fundamental human rights which has continued for decades. In light of this it is difficult to continue talking about constitutional values, democracy and the rule of law. In this troubled time in our history the advocacy is called upon to safeguard legality to the best of their ability.