Italy remains one of the more frustrating jurisdictions, as the positive effects of access to infrastructure, stable pricing environment and growing demand is offset by continued rises in tax take and a shambolic licencing and permitting regime. The decline in Italian attractiveness as a host country continues. The latest licence terms are punitive and the regulator's approach to rule of law in the wake of Rockhopper's arbitration award makes the country increasingly untenable as a long-term energy investment destination.
March 2, 2023
Europe - Mediterranean
Southern Europe, a peninsula extending into the central Mediterranean Sea, northeast of Tunisia.
Italy operates a relatively simple Concession fiscal regime, with royalty and corporate income tax payable, that is made complicated by the lack of a uniform licencing approach across regions and segments (onshore and offshore). Licence terms, therefore, are deemed to be bespoke, within a wide framework.
Italy is a charter member of NATO and the European Economic Community ("EEC") and its subsequent successors the EC and the EU. It has been at the forefront of European economic and political unification, joining the Economic and Monetary Union in 1999. However, membership of the euro has created system issues such as sluggish economic growth, high youth and female unemployment, which has lead to growth in organized crime, corruption, and economic disparities between southern Italy and the more prosperous north.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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