26 / 72
/26/
• As of FY 2015, a new tax credit is introduced for companies that have qualifying
R&D expenditures to the extent those expenditures are higher than the average of
the same in FY 2012, FY 2013, and FY 2014.
Recent Developments in Italian Employment Law Legislation
In May 2015 a new reform on employment law was enacted, aimed at making the
employment market in Italy more competitive.
According to the reform:
• Employment protection is now linked to an employee’s length of service;
• There will be a reduced number of cases in which a court can order reinstatement
(compensation will now be the only potential remedy in the case of redundancy);
• The potential financial consequences of an unlawful dismissal are reduced;
• The current mandatory pre-dismissal attempt to find a settlement agreement
before the Labor Office in the case of economic individual dismissal is abolished for
new recruits;
• A new pre-litigation settlement procedure will apply.
Israeli Italian Trade Relations
Italian-Israeli trade stands at approximately US$ 4 billion, out of which US$ 790 million
(in 2015) were Israeli exports to Italy (machines and accessories, plastic and rubber
products, metal, industrial monitoring equipment, minerals, telecommunications, food
and beverage) and US$ 3.1 billion were Italian imports to Israel (mainly in the realm of
machines, automotive, chemicals and metals).
Italy and Israeli benefit from strong political ties. The two countries are parties to
multilateral and bilateral agreements (including a bilateral R&D agreement).
The Current Opportunities in the Italian Market Place
Most foreign investors are engaged in identifying business opportunities related
to companies representing Italy’s sectors of excellence. This year has seen a rise in
foreign investments in real estate in Italy from a number of countries, including Israel.
In other sectors, where Italy excels, businesses and entrepreneurs are looking for
opportunities in these sectors where Italy excels. Design, food, machinery, traditional
industry, automotive and life sciences sectors all continue to attract attention. As
they have been facing severe financial challenges, and are therefore undervalued or in
need of financing not available for them in Italy, they are of primary interest to foreign
investors. This is one of the areas in which Israeli companies can step into the gap and
work together to drive their businesses forwards.