Business
Business Profile
Rome’s left-wing mayor, Walter Veltroni (elected in 2001), has continued work on a major investment programme set up by his predecessor. The scheme aims to maximise the possibilities opened up by tourism and to encourage major national and multinational corporations to have a presence in Rome – the political and administrative centre of Italy. These initiatives are set to counter the negative effects of the Government’s decentralisation programme, which could result in a decreasing role for the capital city as a public sector employer. Mergers and acquisitions, combined with the government-initiated privatisation process, add further elements of risk to the local economy.
The strength of the national economy lies in the service sector, which accounted for 68% of GDP in 2004. Tourism is the country’s largest industry, with Rome as the ‘number one’ destination. Other significant industries in the capital include finance and banking, insurance, printing, publishing and fashion. Italy’s film industry is located at nearby Cinecitt. Since Cinecitt was inaugurated in 1937, it has turned out more than 3,000 films, 47 of them Oscar-winners. Though it suffered a long period of neglect in the 80s and 90s, since becoming largely privatized in 1997 (the state now holds only a 25% share) the studios have gone from strength to strength hosting major big-budget productions such as Martin Scorsese’s Gangs of New York, sequences from Mel Gibson’s The Passion of Christ and Steven Soderbergh’s Ocean’s 12, and the massive HBO-BBC co-production Rome. The business district is largely clustered within the centro storico (historic centre) – partly because no one else can afford to pay the high rents. Trade Fairs and large business conventions are normally held in EUR, a modern suburb 6km (4 miles) south of the city centre. The United Nations Food and Agriculture Organisation (FAO) is based in Rome, as is the World Food Programme (WFP), the United Nations International Fund for Agricultural Development (IFAD), and the International Centre for the Study of the Preservation and Restoration of Cultural Property (ICCROM).
Unemployment in Rome, which was 11.7% in 2003, is higher than the national average, which was 8.6%. However, it is decreasing (it was 14.7% in 2000) and the city continues to reap the rewards of the massive investment programme set up for the year 2000 celebrations – many of the projects completed in the years afterwards. Tourism was given a fine boost – hotels were upgraded, museums refurbished and the public transport system rationalised.
Business Etiquette
Although less formal than their Milanese counterparts, Romans do take their business seriously. Greeting take the form of a handshake (social kissing is reserved for friends and family) and then business cards are exchanged. If possible, it is best to have one side printed in Italian and one in English – all company literature should be provided in Italian. Colleagues should be addressed by their surname and academic/professional titles respected. Although some of the Italian business community will speak some English or French, Italian is the dominant language of business. It is wise to take the precaution of employing an interpreter, to minimise the degree of misunderstandings.
In Rome, appearance counts. It is best to dress in a smart suit (with tie for men and stylish accessories for women). The odd designer label does no harm. Personal relationships are extremely important and it is unlikely that decisions will be made before trust has been established between the two parties. Business lunches provide the ideal opportunity to build relationships and small talk is an essential part of any business meeting. Standard office hours are 0900-1730, with an hour-long lunch break.
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Business