New special economic zones (SEZs) within western Europe are few and far between. The European Commission’s historical ban on state aid has made it difficult for member states to launch free zone programmes akin to those seen in Asia, the Middle East and central America. While the likes of Poland and Croatia were allowed to continue operating their SEZs when they joined the EU, most other member states have struggled to become part of the global free zone movement. 

However this changed last year, when Italy opened eight SEZs that span the mainland’s six southernmost regions — Abruzzo, Molise, Campania, Puglia, Basilicata and Calabria — and the islands of Sicily and Sardinia. The European Commission greenlit these zones to help spur job creation and economic growth in the country’s most underdeveloped areas. 

Alessandro Di Graziano, commissioner of ZES Sicilia Orientale, one of the eight new free zones, speaks with fDi about how the ambitious programme enhances what the country’s south can offer investors. 

Q: In 2022, all eight SEZs opened their digital one-stop-shops. How big a step is this for Italy’s SEZ programme?

A: It represents a fundamental milestone for the SEZs. It means that when companies need to obtain permits and approvals, they can interact with the SEZ as a sole entity, rather than different public bodies. To open a bakery in Italy, you need about 38 permits. Just think that to open an industrial factory, you now need just one authorisation from the SEZ. You can see how remarkable that is. 

Q: Italy has established eight SEZs in close proximity within a short timeframe. Is this going to spark competition to attract investors? 

A: We are not in competition with the other SEZs. The country’s entire southern region is going to work together, under the guidance of the ministry of the south, to close the economic development gap between the country’s south and north. The SEZ programme is an economic cohesion measure, which is why all the region is working together. 

Q: The overarching goal of the SEZ programme is to spark economic development. But is another goal to better integrate Italy’s south into global supply chains? 

A: Yes, the aim of SEZs is also to integrate local companies into global supply chains, and attract investment from groups interested in exploiting the centrality of southern Italy as a logistics platform between three continents: Africa, Europe and the Middle East. It is a big opportunity. If southern Italy can overcome its gaps in terms of bureaucracy and perceived corruption, it is a good chance to attract international investment as the gateway to Europe.

Q: These two challenges, along with poor infrastructure, are key hurdles facing potential investors in the country’s south. Can SEZs help overcome these? 

A: Yes, we are able to do this. In terms of infrastructure, government-led programmes are investing millions of euros to improve railway lines and port connections. With bureaucracy, the digital one-stop-shop is the answer. In ZES Sicilia Orientale, the company can speak with my staff or with me, and we can guarantee the amount of time needed to gain approvals and permits. As for perceived corruption, this is connected to bureaucracy. By lodging all requests via the digital one-stop-shop, the company’s applications and replies are all tracked and completely transparent. It offers a completely digital avenue to invest in a SEZ, which is important in terms of both bureaucracy and corruption. 

This article first appeared in the August/September 2023 print edition of fDi Intelligence