1. 1 Seminar on undeclared work Confindustria Paola Astorri Brussels, September 19, 2005

2. 2 Statistical data on undeclared work in Italy Shadow economy: 27 % of GDP (IMF) Undeclared labour: ranging from 15,2% to 16,9% of GDP Strong gap between Northern and Southern Italy, specifically 10,8% of GDP in North-Western Italy 22,4% of GDP in Southern Italy (ISTAT - Central Statistics Institute )

3. 3 Actions to undertake to combat undeclared work (Confindustria) New policies/actions/initiatives to contrast all forms of undeclared labour relations between employer and employee no temporary effects, but structural effects (Instead: the Regularization Campaign started in 2001 only provided tax and contribution benefits for a three-year period. After that? No structural emersion from undeclared work)

4. 4 Actions to undertake to combat undeclared work (Confindustria) According to employers, an effective, credible fight against undeclared labour requires several actions: reduction of labour costs flexible working arrangements bureaucratic/administrative simplification cross control of data (phone/power/gas/ consumption, etc.) strengthening of the sanction system

5. 5 Actions to undertake to combat undeclared work (Confindustria) Reduction of labour costs Labour cost contributes to expand undeclared labour in Italy Labour cost in Italy has been increasing from 2,9% to 3,3% in the last two years, compared to 1,9% and 2% in Germany 2,2% and 3,2% in France Given 100 as the net salary, the cost charged to the Italian enterprise is 185, compared to 175 in NL, 159 in SP, 158 in NOR, 145 in UK, 133 in IRL

6. 6 Actions to undertake to combat undeclared work (Confindustria) Flexible working arrangements Flexible working arrangements in companies play a significant role in fighting irregular forms of labour The recent reform of the labour market is intended to give an important contribution to the emersion of irregular forms of labour (one of its purposes: to provide a balance between social protection/guarantees for the workers and a more efficient work organization for enterprises)

7. 7 Actions to undertake to combat undeclared work Simplification of bureaucracy International operators place Italy in the last positions as far as the relationship between bureaucracy and enterprise is concerned (World Competitiveness Yearbook – IMD) In Italy, the start of a business activity requires (World Bank) the following steps 9 administrative procedures (e.g. 3 in Sweden, and Finland, 6 in UK, 4 in Denmark) overall costs amounting to 3,800 $ (257 $ in Sweden, 346 $ in Finland, 314 $ in UK, 0,0 $ in Denmark) average working days: 13 (8 days in France, 5 days in US,4 days in Denmark)

8. 8 Actions to undertake to combat undeclared work cross control of data the identification of businesses operating in (totally or partially) irregular situations may be identified through cross control of data (phone/power/gas/water consumption, etc.) strengthening of the sanction system preventive information on the civil and criminal law consequences to be applied in case of law violations (e.g. information campaign promoted by government and social partners)

9. 9 Actions to undertake to combat undeclared work Policies/actions against undeclared labour must be elaborated taking into account the specificities of the territory of reference, e.g. level of productivity of the geographical area economic growth rate sector of reference (e.g. joint opinions) Involvement of social, political, economical actors in the process for the emersion of undeclared work

10. 10 Seminar on undeclared work Confindustria Paola Astorri Brussels, September 19, 2005