Economic cooperation

Economic and commercial relations between Italy and the UK are solid and diversified.

According to the data of the British Customs Authorities, in 2008 the trade bilateral flow amounted to 22.948 million pounds, with an active balance for Italy of 4.512 million pounds. Among the UK’ suppliers, Italy is the fifth EU partner and the ninth overall partner (13.730  million pounds of exports). Vis-a-vis the UK, Italy is the eight overall export market and the seventh EU export market (9.218 million pounds of British exports).

Direct investments flows between the two countries have started to increase considerably from the second half of the 1990s. According to the latest surveys, UK currently attracts 11% of Italian foreign direct investments. The presence of Italian companies on the British market extends well beyond the traditional segments of fashion and food, covering also high technology sectors. An example is given by the leading role played in the UK by Finmeccanica Group.

British firms also look with increasing interest at investment opportunities on the Italian market. According to the latest available data, about 470 British companies have industrial subsidiaries in Italy, mainly located in the regions of North West and North East. There is also a continual flow of small-scale investors from Britain largely driven by merger and acquisition activity. Over the last few years, major investments have been carried out on the telecommunications market, by Vodafone, in the energy sector, by British Gas Group, and in the banking sector, by Royal Bank of Scotland and Barclays.