Portrait of the Regions - ITALY - FRIULI-VENEZIA GIULIA - Economy

Portrait of the Regions - ITALY - FRIULI-VENEZIA GIULIA - Economy

FRIULI-VENEZIA GIULIA - Economy

The economy of Friuli-Venezia Giulia is one of the most developed in the country. Its core is based on small- and middle-size enterprises (the so-called ?North-East model?), on specialised farming and on high-quality tourism with a significant inclination towards exports.

In the year 2000 the gross domestic product of the region was of nearly 27 million Euros, with a total contribution to the national GDP equal to 2.3% in the same year (against a population which is 2.1% of the national total).

Moreover, due to the region's geographical position on the national borders and its proximity to neighbouring Eastern Europe countries, the last decade has witnessed a considerable expansion in exports towards those countries, not only of finished and/or semi-finished products but also of technology, plants and equipment. In view of the enlargement of the European Union, increasing efforts are nowadays being made to strengthen relations at different levels with neighbouring candidate countries.

As mentioned above, the economy of the region is based on a widespread mosaic of small and medium-size enterprises; of particular importance are the four industrial districts where a multitude of such highly specialised enterprises are concentrated. These districts are centred around the towns of Manzano (accounting for the production of 30% of chairs in the world), San Daniele del Friuli (cured ham), Maniago (knives) and Brugnera (furniture).

A number of large enterprises are also present in the region in both the industry and services sector. Some of these companies are world-leaders in their relevant sectors; such are Fincantieri (based in Trieste and in Monfalcone) for the construction of the world?s largest cruise ships, Zanussi-Electrolux (Pordenone) in the production of electrical appliances and Assicurazioni Generali in Trieste, one of the leading insurance companies in the World.

Agriculture and farming maintain an essential role in the economy of the region and employed in 2001 around 95 000 persons. In 1999 this sector generated a gross value-added per employed person, 18% higher than the national average. Its high quality products are exported not only within the country and Europe (fruit and vegetable, cheese) but have become known worldwide for their quality (cured ham and wines, especially white ones). Noteworthy is also the production of soy (third producer in Italy with more than 37 000 hectares cultivated in 2000) and timber production in Carnia.

Again, in the services sector the city of Trieste plays a leading role (with knock-on effects on the other provincial capitals); it is in fact here that activities such as the regional government, large banking and insurance companies are concentrated. With its commercial Free Port, Trieste also plays an essential role in the trade sector: special custom regulations ensure exclusive financial conditions to operators. The Port of Trieste is today the most important centre worldwide for the trade of coffee and plays a strategic key role in trade with northern and eastern Europe.

Tourism

Thanks to its position, variety of landscapes, limited distances and a good road and motorway network, Friuli-Venezia Giulia is increasingly a region for tourism and vacation, offering sea, mountains, history, art and environment. With nearly 10 million visitors in 2001, tourism is in fact one of the most important sectors in the economy of the region.

The seaside resorts (the Trieste coast, Lignano and Grado) have their own consolidated tradition and attract Italian and above all foreign visitors, particularly from countries of Central Europe for whom the region has always been their access to the Mediterranean Sea.

In the mountains, numerous resorts for winter sports (Tarvisio, Piancavallo, Sella Nevea, Forni di Sopra among the others) are also experiencing a period of growth thanks to growing investments in structures as well as in marketing. In 2001 there were more than 9.5 million tourists in all collective accommodation establishments, of which 43% were foreigners.

History, culture and archaeology also play an essential role in attracting tourists and visitors. Among the most important destinations are: Trieste (a city of history, architecture, culture, science, traditions and nature on the Gulf of Trieste), Aquileia (one of the most interesting roman archaeological sites in Italy with unique mosaics), the star-shaped citadel of Palmanova founded by the Venetian Republic in the 16th century, Cividale del Friuli (with historical and artistic monuments of great value and home of important cultural events), as well as Udine, Gorizia, Pordenone and numerous castles that dot the central/eastern hilly areas.

The central area of the region is also receiving increasing interest, thanks to its environmental beauty and landscapes, local traditions, culture and cuisine.

The infrastructure network

Although small in size, Friuli-Venezia Giulia has always been ?in the centre of Europe? and has played an important role in connecting Italy (and the Mediterranean) to central and Eastern Europe. Its role will become even more strategic as a logistical platform with the imminent enlargement of the European Union. Hence the importance of the infrastructure network of the region, which can today be considered first rate in quality and diversity.

The motorway network consists of more than 200 km that run from North to South and from West to East, perfectly connecting the region to Austria and Slovenia.

The railway network consists of around 500 km of track, with the two twin-line ?backbones? Venice-Trieste and Trieste-Udine-Tarvisio-Austria.

The motorway and railway networks are linked to the ports of Trieste, Monfalcone and Porto Nogaro, the three most northerly ports of the Mediterranean. Trieste, in particular, has a free port for goods since 1719. It is the Italian port with the greatest capacity for covered storage, with a surface area of more than 2 million square meters and 70 km of rail tracks.

Intermodality is guaranteed by the Cervignano terminal, in operation since 1988, to serve the increasing commercial traffic between Italy and Eastern European countries.

Lastly, the regional airport of Ronchi dei Legionari is situated 30 km from Trieste and 40 km from Udine and is closely connected to the motorway and railway networks. The airport offers regular national and international flights including destinations in Eastern Europe.

The region is now placing much of its hopes for future economic development in the construction of a high speed Pan European Transport Corridor (n° V) connecting Lion, Turin, Venice, Trieste, Ljubljiana, Budapest and Kiev, so as to improve the traffic of goods and services with new EU partners.

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Text finalised in March 2004