M&A investing in Italy

Italy is the 10th largest economy in the world based on purchasing power parity. The fiscal situation is fragile and political circumstances could damage reforms and could lead to further instability. An €40bn ($56.2bn) austerity program should tackle the weak financial position. According to Transparency International’s Corruption Perception Index 2010, Italy is ranked 67th among 178 countries. The foreign investment laws of Italy are similar to those of other EU countries, structural rigidities and the dominant public sector have an adverse impact. Tax rates in Italy remain relatively high. The effective tax rate is 31.4%, basic rate of corporate tax in Italy is 27.5% and local tax is imposed at a rate of 3.9%. The EU average in 2010 was 23.2%.

Economic situation in Finland

Finland joined the European Union (EU) in 1995. Finland’s debt remains below the 60% benchmark set by the European Union's (EU’s) growth and stability pact. It is declining from 44% of the GDP in 2008 to 38% in May 2011. Despite the debt level, exports are still not returned to the level before the crisis. Due to the decline in international trade the total value declined from $129bn in 2008 to $89bn in 2009 with a small recovery to $90bn in 2010.

Almost no corruption exists in Finland. The country is ranked 4th out of 180 on the Transparency International’s Corruption Perceptions Index. This makes Finland an attractive country for foreign (M&A) investments.