why business is growing in Milano

The last quarter of 2005 has seen optimism in regard to the future of the economy and a period of growth common to most European countries.

A reduction in prices and streamlining and improvement of products along with the seeking out of new markets have helped manage the blow dealt by the introduction of the euro.

The association Assolombardo, which counts 5,800 business among its members, says that only 200 of those businesses have more than 250 employees. However, these small concerns employ a good half of Milan’s workforce.

In 2004, Milanese businesses reached its second-highest growth rate of the last decade and the labour market saw an increase in employment of 4%.

Almost a half of those who obtained work have been hired with an open contract. The increase of highly skilled professionals is also constantly growing. In Milan the unemployment rate is about 4.5 % as opposed to the national rate of 8%.

The new REACH Directive of the European Parliament, which governs registration, evaluation and authorisation of chemical substances, has raised some concern. The Italian chemical sector fears it will be be especially vulnerable to excessively bureaucratic regulation, since the sector is made up of small to mediumsized companies, which due to their size might be unfairly penalised and will therefore not be able to compete. Moves have been made through the Italian Confederation of Industry, “Confindustria”, to ask the European Council to reconsider the decisions already taken with special attention to the needs of this sector. The Region of Lombardy has 43% of the Italian chemical industry and provides work to 69% of its labour force.

The future should see a continuation of the work that is underway with the decentralisation of the Milan trade fair (Fiera) to the peripheral town of Rho. In Milan there are some 10 million square metres being transformed or renovated. Long abandoned structures like the Porta Victoria train station are finally being transformed, while the Fiera will decentralise, stimulating the outlying areas of Milan.