It had been in the air for some time: many observers indeed argue that in recent years Spain has had a “gear up” compared to Italy. And now it is captured by the numbers, those of the study conducted by Amazon and The European House Ambrosetti (TEHA) according to which between 2015 and 2024 Spain attracted 304 billion euros of foreign investments, compared to the 191 billion recorded by Italy. A gap of 113 billion euros not insurmountable but requiring targeted reforms, according to the report’s authors.
THOUSANDS OF JOBS ALSO AT STAKE IN THE MATCH BETWEEN SPAIN AND ITALY
The research, benefiting from the contributions of a Scientific Committee composed of former Prime Minister Enrico Letta (Dean of the IE School of Politics, Economics and Global Affairs at IE University in Madrid; President of the Jacques Delors Institut), Carlo Altomonte (Associate Dean of SDA Bocconi), Patricia Gabaldón (Professor of Economics and Academic Director of the Economics degree program at IE University) and Jordi Sevilla (Economist, Context Director and head of the Intelligence Unit at LLYC; former Minister of Public Administration in Spain; former Chairman of Red Eléctrica de España – REE), shows that the 856 greenfield projects implemented in Spain up to 2014 generated 72,416 new jobs in the same period, while the 303 projects started in Italy created 40,006 jobs.
WHAT WE SHOULD IMPROVE: JUSTICE
Spanish courts resolve civil and commercial disputes much faster than Italian ones (275 days versus 527), with a simplified appeals process and immediate enforceability of first-instance rulings, ensuring greater legal certainty for investors. Spanish regions score higher in terms of regulatory quality measured by the (European Quality of Government Index). At the same time, Italy’s greater centralization allows for slightly faster business procedures, with SMEs dedicating 26.1 hours per month to administrative compliance compared to Spain’s 27.7.
INFRASTRUCTURE AND COSTS
Spain offers better digital public services and better cross-border digital services according to the European Quality of Government Index. Spanish companies also benefit from lower electricity costs (€166.6/MWh versus €252.9/MWh in Italy).
LABOR MARKET
The labor force participation rate, i.e., the ratio between the labor force and the working-age population, stands at 80.2% in Spain compared to 71.7% in Italy. This means that a higher percentage of the working-age population is actively present in the labor market in Spain than in Italy, with a difference of 8.5 percentage points.
Labor productivity in Spain increased by +3.2%, while Italy recorded a decline of -2.6%, highlighting how good labor market performance in Italy has not fully translated into economic growth.
EDUCATION: ACHILLES’ HEEL FOR BOTH?
Both countries invest less than 5% of GDP in education and remain below the EU average for per capita spending on tertiary education, weakening quality and competitiveness. The leading country in the European Union (Sweden) invests 7.1% of its GDP.
WAGE DIFFERENCES
In 2023, the tax wedge in Italy reached 45.1% of labor costs, compared to 40.2% in Spain, mainly due to a higher personal income tax in Italy. This gap also affects real wages: between 2000 and 2023, real wages in Italy decreased by 3.3%, while in Spain they increased by 4.9%. Despite similar nominal rates, Spain’s simpler tax structure and lighter labor burden make it a more competitive environment for international investors.
TAXATION
A significant difference concerns the management of relations with taxpayers: in Italy, even minor or non-fraudulent tax errors can lead to criminal consequences. According to Legislative Decree 74/2000, offenses such as failure to declare, inaccurate declarations beyond low thresholds, or transfer pricing discrepancies can be prosecuted even without intent. In contrast, in Spain criminal liability arises only when both fraudulent intent and unpaid taxes exceeding €120,000 per year are proven.
REFORMS TO BECOME COMPETITIVE AGAIN (AT LEAST WITH SPAIN)
The message is clear: attracting foreign investments is not achieved through isolated measures, but by creating a stable, predictable, and coherent environment. Regulatory simplification, judicial system efficiency, public administration modernization, innovation ecosystem development, and skill enhancement, including at the international level, are decisive levers to transform Italy’s potential into concrete opportunities.
The research proposes five key recommendations for policymakers: first, implement administrative modernization. That is, initiate a complete digital transformation of public services, with unified digital platforms for business procedures and standardized protocols among regions.
LEGAL CERTAINTY
To make the system more competitive, it is essential that the legal and regulatory framework offers predictability, so that multinationals have not only incentives to invest but also certainty that their investments are protected.
HARMONIZE AND SIMPLIFY RULES
It is necessary to reduce bureaucracy and simplify rules within the European Union to make the single market more competitive. A clearer and more uniform regulatory framework would allow SMEs to grow beyond national borders, freeing resources currently absorbed by administrative complexity and creating new opportunities for innovation and export.
MORE INNOVATION NEEDED TO ATTRACT TALENTS
Strengthen links between research institutions and industry through targeted incentives for R&D collaboration, focusing on emerging technologies. Create more favorable conditions for international talents through simplified visa procedures, support programs for international business communities, and initiatives to strengthen the digital skills of the workforce.
THE LEVERAGE OF MULTINATIONALS
Regardless of Spain’s overtaking, Italy remains an attractive destination for global investments, and foreign-controlled multinationals continue to drive innovation in Italian supply chains and the competitiveness of the national production system. This is what emerged from the Final Report of the tenth edition of the Global Attractiveness Index (GAI) 2025, an analysis platform developed by TEHA in 2016 to measure countries’ attractiveness and provide guidance to support business strategies, in collaboration with Philip Morris Italy, Toyota Material Handling Italy, and Amazon.
WHERE DOES ITALY RANK?
The GAI 2025 depicts a growing Italy, but still called to overcome decisive structural challenges to strengthen its competitiveness and to face a complex global context marked by economic instability, geopolitical tensions, and uncertainties in energy markets. The country ranks 16th, three positions higher than the previous year.
According to the research, the improvement reflects a path of structural reforms and the resilience of the economic system, but also highlights the need to continue acting on three fundamental levers to increase attractiveness: update the education system to reduce skills mismatch; enhance talents and attract and retain qualified workers; make bureaucracy and regulation more effective.
THE AMAZON CASE
According to the report, the presence of multinationals is essential for the country’s ecosystem. For example, Amazon, present in Italy for 15 years now, has created over 19,000 permanent jobs, distributed across more than 60 locations including logistics centers, corporate offices, and data centers, as well as tens of thousands of indirect and induced jobs along the entire supply chain. Amazon guarantees structured career paths, continuous training, and competitive benefits, strengthening the country’s ability to attract and develop qualified talents, in line with the priorities indicated by GAI 2025.
Since 2014, over 4,000 employees have participated in the skills growth program offering career opportunities inside and outside the company, at no cost to them, enabling the attraction and retention of qualified workers. In this perspective, in September 2024 the Group announced its commitment to support 200,000 talents in Italy in STEM education by the end of 2026, through programs such as Amazon Future Engineer and Amazon Women In Innovation.
DIGITALIZATION OF ITALIAN SMEs
At the same time, Amazon has supported over 20,000 Italian small and medium enterprises in the digitalization process and opening to international markets, supporting the adoption of advanced technologies, more efficient processes, and e-commerce strategies capable of increasing competitiveness and productivity. The company’s investments have also had tangible effects on the territories where logistics centers operate, contributing to local employment growth, strengthening the economic fabric, and greater resilience of real estate markets.
