Geopolitics: effects and risks for the business system

Geopolitics: effects and risks for the business system

Pandemic, geopolitical tensions, war in Ukraine, Israeli-Palestinian conflict and the Red Sea crisis, which erupted on 19 October 2023 when the Houthis started a series of attacks against southern Israel and against ships transiting the strait. All traumatic events which in the last three years have caused commercial and energy shocks, exposing the vulnerability of the global economic system based on the Western model and the danger of excessive dependence on a small number of suppliers of a specific raw material (for example , Russian gas for European countries or rare earths from China, fundamental for the green transition).

These themes will be at the center of the event entitled “Geopolitics: risks and implications for the business system”, organized by PwC Italia, on 14 February (11 am): an appointment in the “Italy 2024: People, Work, Business” cycle , the platform for dialogue with the leading exponents of the world of institutions and business, promoted in collaboration with the Gedi publishing group.

During the episode the guests will analyze the international macroeconomic and geopolitical context, and will discuss the main challenges for Italian companies in 2024, also in light of two new phenomena that have occurred in Italy (and in the world): the so-called reshoring or friend-shoring, i.e. the relocation of production in one’s own country or in countries aligned from a geopolitical point of view, and greater diversification in raw material supply chains.

On the energy front, Italy has tried to rapidly change its supply strategy by gradually increasing imports of raw materials, in particular gas (through gas pipelines that arrive directly on national soil especially from: Transmed, Tap, Greenstream), from other countries, replacing the shares coming from Russia. On the supplier front, our companies have increased the shares of national supplies up to 15% (if they are local, therefore in the same region) and by 20% outside the region (source: Tagliacarne-Unioncamere study centre).

The appointment will also be an opportunity to understand the sentiment of businesses and what the concerns of business leaders are at the moment. A first indication comes from PwC’s latest “CEO Survey” which shows that geopolitical tensions today are less scary than in 2022, the year of the conflict in Ukraine. The latest data found indicates that only 18% of CEOs interviewed expect their companies to be exposed to threats due to geopolitical conflicts in the next 12 months compared to 32% of global CEOs in 2022 and 31 of Italian CEOs.

They will speak:

– Giovanni Andrea Toselli, President and CEO of PwC Italia

– Prof. Lucia Visconti, Professor of Financial Science – University of Milan Bicocca;

– Emanuela Pettenò, Consumer and Deals Markets Leader of PwC Italia;

– Giampiero Massolo, President of ISPI (Institute for International Political Studies) and of Mundys;

– Prof. Mario Mauro, former Minister of Defense,

– Alessandro Grandinetti, Markets Leader PwC Italia.

He will lead

– Alessandro De Angelis, Deputy Director of HuffPost.

The event will be broadcast live on all PwC Italia social platforms – on the PwC Italy Youtube channel, on the PwC Italy Twitter page, PwC Italy Facebook and Linkedin PwC Italy and on the homepage of La Repubblica, La Stampa, Huffpost and GNN.

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