Investing In Italy: An Offer You Can't Refuse?

With Italian elections drawing closer, so do the fears of financial investors in Europe increase. For weeks, the Movimento 5 Stelle (Five Star Movement) leads the polls. However, it remains to be seen which political parties are going to form the new government after the elections on March 4th, 2018. One of the options is a minority government led by the anti-EU Movimento, with the support of the right-wing Lega Nord (North League).

This option would make investors nervous. The Five Star Movement called in the past for a referendum on Italian participation in the euro. Not only that, Italy specifically attempted to attract more foreign investors by cutting taxes. Because of this, Italy is currently the 15th recipient of FDI (Foreign Direct Investments, investments made by a company or individual in one country in business interests in another country) in the world ahead of economies like France, Mexico, Spain and Japan. The outcome of the upcoming elections, however, could make Italy's investment offer less attractive.