Interview with Attilio Fontana, President of Lombardy

20 May Interview with Attilio Fontana, President of Lombardy

Lombardy remains Italy’s top trade region, with $37.1 billion in exports recorded in Q2 2024. What factors have driven Lombardy’s economic growth in 2024?

The GDP of Lombardy amounts to €181 billion which is higher than the total GDP of many countries. If Lombardy was an independent nation, we would be the 10th-largest economy in Europe. Our economy is also on a good growth trajectory. Compared to 2019 our GDP has grown by 6.7%, compared to a national GDP growth of 6.4%.

We have also become the most attractive region for foreign direct investment in Europe. This is because we have prioritized key sectors like research and innovation and we are getting closer to the level of investment of some European countries. In recent years, Lombardy’s employment rate has grown to reach the highest level ever. Conversely, the unemployment rate has decreased. This is thanks to collaboration between the public and private sectors, which is a national-level priority, but has been best realized here in Lombardy. Our regional policies are formed based on extensive consultation with different stakeholders. We have monthly meetings of a group that bring together trade unions and professional associations and the information gathered allows us to make decisions at both political and economic level that benefit all sections of society.

Lombardy has around 800,000 businesses, most of which are small and medium-sized enterprises (SMEs) and micro-enterprises. We support them with special measures to promote energy efficiency, sustainability and digitalization to help the capitalization of these businesses and allow them to find new financing venues through the stock exchange. This work is the reason we have so many innovative start-ups. Every year we host an event in which we award the best and most innovative start-ups. Lombardy is home to 30% of all Italian start-ups because they recognize the supportive regulatory environment here. As a result we also have the highest level of patents in the country. This is how we support companies that are based here and the methodology that we use to foster partnerships between the public and private sectors.

One of our key challenges is the lack of regional autonomy and the burden of national bureaucracy, which remains a crucial issue for us. However, it is important to note that some competencies are shared between the national and regional governments. There is still much work to be done and we are committed to making further progress once we move beyond the current phase of discussions on autonomy.

Additionally, I want to emphasize the importance of human capital. Lombardy is home to 15 universities and we strongly support vocational training up to the university level, ensuring that education aligns with the evolving needs of the labor market.

We have many research centers here in Lombardy. One of them is an innovation district called Mind, which was born of a collaboration between the regional government and the national government. It has been internationally successful and many researchers from around the world have moved here for it.

Lombardy’s tourism sector has expanded significantly and the region will host the 2026 Olympic Games too. What positive impact has this surge in tourism had on the region and what measures are being taken by the government to prepare for the expected increase in visitors ahead of the Olympic Games?

Tourism has become one of the most vital sectors for our region. In 2024, we recorded 17.3 million arrivals and 45.5 million overnight stays, reflecting a 19.9% increase in arrivals and a 16.8% increase in stays compared to 2023. This marks the second-highest growth in visitor numbers in the country. Notably, 50% of our visitors come from abroad, with the majority traveling from Germany and the United States.

Lombardy offers a diverse range of tourism experiences. Our mountains provide excellent skiing in winter and scenic hiking in summer. The lakes, such as Lake Como and Lake Maggiore, attract large numbers of visitors with their breathtaking landscapes and leisure activities. The region also boasts a thriving art and cultural scene, not only in Milan but also in Mantua, Cremona, Brescia, Bergamo and numerous historic villages rich in heritage.

Another key attraction is sports tourism. We offer extensive cycling paths along rivers and lakes, a wide variety of water sports and several UNESCO-listed sites and thermal springs, which remain popular among tourists seeking relaxation and wellness experiences.

Last but not least, Lombardy’s gastronomy is a major highlight. The region is home to renowned wine production areas, including Franciacorta, Valtellina and Oltrepò Pavese, known for their high-quality wines. Additionally, Lombardy’s culinary offerings are incredibly diverse, with each area showcasing its unique flavors and traditions.

Italy’s four million SMEs generate over 65% of the country’s added value. What are the main challenges facing local entrepreneurs and SMEs in today’s market and what initiatives is the government implementing to ensure they receive the support needed to reach their potential?

The policies here in Lombardy are tailored towards helping SMEs. We have endorsed the environmental sustainability targets of the EU and we are applying an approach that protects the environment while also promoting social and economic development. Lombardy is executing specific measures to promote the digitalization and sustainable development of SMEs to make them more energy efficient. Some of our measures are also aimed at helping SMEs enter the stock exchange market to access different sources of financing. We are trying to help these small businesses overcome the current market situation, but we believe that if they can, they will reap the benefits. Furthermore, we support SMEs in their internationalization process. SMEs sometimes struggle to access international markets, so we provide programs that help them with that.

How successful has the government been in fostering a favorable business environment for international partners, particularly US businesses?

Lombardy has achieved excellent results compared to last year, with €63 billion in exports from the machinery, fashion and agricultural sectors. We aim to sustain this upward trajectory and expand into new markets that show strong demand for our products. Our recent trade mission to Saudi Arabia confirmed a high level of interest in Lombardy goods. However, the US remains our primary export market, with trade volumes increasing year after year. This is an area that deserves even greater attention and strategic focus.

While large regional companies are well-established and self-sufficient, small businesses require more support. The Milan Trade Fair serves as a crucial platform for these producers, allowing them to gain visibility, connect with potential buyers and access new opportunities. It is a key venue where supply meets demand, facilitating valuable business interactions. The trade fair industry itself experienced 10% growth last year, highlighting its increasing importance as a driver of regional economic activity.