Industry Body Appeals for Urgent financial Relief Amidst declining Exports

The Italian fashion accessories sector, a cornerstone of the nation’s economy, is facing significant headwinds. Confindustria Moda Accessori, led by Giovanna Ceolini, president of Assocalzaturifici, recently engaged with parliamentary commissions to highlight critical issues and propose solutions to safeguard the industry’s future. The discussions centered on unresolved tax credit disputes,access to credit,and the need for enhanced support for internationalization efforts.

Tax credit Impasse Threatens Financial Stability

A primary concern raised by Confindustria was the unresolved tax credit situation for research and growth investments made between 2015 and 2019.Despite promises of resolution,companies in the fashion sector are still awaiting the promised balance. This financial uncertainty is exacerbating the challenges already faced by businesses navigating a complex economic landscape.

Those who have used it is indeed to create samples and collections, investments necessary to deal with the most complex years who followed one another, from Covid to war to the general fashion crisis.

Giovanna Ceolini, president of Assocalzaturifici

Confindustria is advocating for a targeted solution that would allow companies to pay only a defined percentage of the tax credit, steadfast by an interministerial decree, but not less than fifty percent of the necessary, thus preventing financial distress or closures. This proposal aims to strike a balance between recouping funds and ensuring the survival of businesses that legitimately benefited from the tax credit.

Economic Downturn and Export Decline

The Italian fashion accessories industry, represented by Ceolini, encompasses 9,868 companies, employing 139,923 workers, and generating a turnover of approximately €30 billion. However, the sector has experienced a 5% decrease in the number of companies compared to 2023, and a concerning 8.2% drop in exports, which account for €25 billion of the total turnover. This decline underscores the urgent need for government intervention to bolster the industry’s competitiveness.

Access to Credit and Moratoriums: A Call for Streamlined Processes

while acknowledging government support through SIMEST, Confindustria emphasized the need for a more streamlined and accessible credit system. The current system grants excessive autonomy to banks in the renegotiation of funding guaranteed by SACE, SIMEST, and Mediocredito during the COVID-19 pandemic and the subsequent crisis triggered by the conflict in Ukraine.

Companies need see at least the postponement of the refund of installments guaranteed in the capital account of both medium/long -term funding and short -term ones for demobilize the circulating capital.

The industry is urging for a moratorium on loan repayments to alleviate the financial strain on businesses and free up working capital. This measure would provide much-needed breathing room for companies to navigate the current economic challenges.

Investing in Internationalization: Supporting Italian Excellence

Confindustria also highlighted the importance of supporting internationalization efforts, particularly through the financing of international fairs held in Italy.This would enable companies in the leather supply chain to access global markets without further straining their working capital cycles. Investing in these initiatives is crucial for maintaining Italy’s position as a leader in the fashion accessories industry.

Preserving Skills and Jobs: A Plea for the Future

The stakes are high for the Italian fashion accessories industry. The potential loss of skills, quality, and tens of thousands of jobs to other nations in the mediterranean basin poses a significant threat to Italy’s cultural heritage and economic prosperity. Confindustria’s appeal underscores the urgent need for government support to safeguard this vital sector and preserve a basic aspect of Italian identity.