Cnmi’s president Carlo Capasa hopes the government will not disappoint the fashion industry

«We have been in constant communication with the government and minister Adolfo Urso throughout the year. Together with the executive, we identified 5 areas of intervention to advance our sector. Unfortunately, these measures were excluded from the latest versions of the Made in Italy bill. As a result, we are requesting that the promised actions be reintroduced during the parliamentary process in preparation for the budget session». In this exclusive interview with MF Fashion, Carlo Capasa remains calm yet resolute. The 2024 budget proposal of the government, under the leadership of Giorgia Meloni, is heavily focused on cost-cutting and supporting the lowest-income groups through a reduction in the tax wedge, despite operating with a deficit. At present, there are no measures in place to aid the fashion industry, «despite our requests having piqued the interest of the ministry of enterprises and Made in Italy», as Capasa recalled. The minister reached out to the fashion industry representative, expressing hope that «they would resist the cuts proposed in the budgetary measure». Unfortunately, this did not come to pass (see MFF of october 25). On Tuesday 24th, he participated in an informal hearing in the Chamber of deputies regarding the Made in Italy bill. The requests made were focused on the budgetary measure, currently undergoing parliamentary process, which must be approved by december 31st as part of the budget law. Before the 6th of november deadline, the Cnmi-National chamber for italian fashion sent formal requests for changes to support the fashion industry. The government now holds responsibility and further information is expected. «Given the small expenses in comparison to the revenue our sector generates for the state coffers, we trust our requests are reasonable. For every billion earned, we contribute approximately 240 million euros to the country». Here are Cnmi’s detailed requests.

What specific demands do you have for the government?

Initially, we had 12 demands which we condensed to five. These demands mostly concern limited tax reductions. The sole significant expenditures can be fully financed through European funds.

What are the five areas of intervention on which you are waiting for a response?

One area, which could be entirely financed through EU aid or the Nrrp-National recovery and resilience plan, involves the sustainable and digital transition. To enhance sector competitiveness, several measures and economic support will be required. An annual investment of 500 million euros will be needed from now until 2026. All this could be achieved at zero cost for Italy, provided they work in harmony with Brussels. In fact, Italy has already set an example in this regard (see MFF of june 7).

What is the potential risk? Could our supply chain be impacted?

It is essential to maintain our competitive supply chain, which is a global leader, but is facing increasing competition from other European countries and beyond. Failure to support our industry, responsible for 70% of global fashion production, will lead to a shift in demand away from Italy. The sole industrial policy measure was Carlo Calenda’s Industria 4.0, which has now ended. No further action has been taken.

What other cost-free measures are you seeking?

The industry has 40,000 vacancies, ranging from pattern makers to digital customer service workers, due to insufficient manpower. Therefore, the proposal is to eliminate the ban on fashion company retirees leaving, thereby allowing them to teach at the companies’ in-house academies for a minimum of two years. This not only incurs no cost but also generates revenue.

What measures would require expenditure? There are two proposed measures…

Firstly, to strengthen the patent box for design and aesthetic conception, by maintaining a tax relief and increasing it to 10% from the current 5%. This would be for a limited period with the aim of protecting brands and their appeal and supporting creative research. If technical research is conducted, it is typically funded. In contrast, creative research appears to be overlooked…

What else?

Then, we propose establishing a fund to promote Italian products overseas. France allocates funds for three major exhibitions and numerous events annually. Even the latest Cnmi Sustainable fashion awards did not receive support from the Ita-Italian trade agency. This fund ought to be endowed with 50 million euros. For our industry, with a turnover of 104 billion euros and contributing 240 million euros in taxes for every billion, the expense appears to be relatively small.

Some might argue that fashion is a wealthy industry…

While it may be argued that fashion is a wealthy industry, the reality is that it comprises of numerous smaller firms that necessitate aid and direction in digitalization, including supply chain management and improving sustainability, once the prominent brands are removed. Additionally, we must consider the current complex economic climate. Minimizing turnover is not a risk we can afford.

So are you sending an alarming message to the government?

Certainly, the fashion industry is the country’s second largest, generating 104 billion euros in industrial turnover, which is multiplied by ten in the final product. The industry provides employment for 600,000 workers in the sector and another 600,000 in the tertiary sector. Not to mention the allied industries, there are 60,000 direct companies in the sector and the same number in the field. However, the government’s budgetary measure does not take this into account. We are not seeking preferential treatment, but rather recognition of the importance of fashion. We have established specific measures to achieve this goal. (All rights reserved)