Impact Policy Tracker Policy

Italy Social Economy (IES)



Italia Economia Sociale is a national programme originally launched in 2017 and substantially reformed by decree in 2022 to support the creation, growth, and consolidation of social economy enterprises in Italy. The programme is implemented through a blended public finance model that combines concessional lending and non-repayable grants, with a total financial endowment of €223 million. Most of this funding is channeled through the Fondo Rotativo per il sostegno alle imprese e gli investimenti in ricerca (FRI), managed by Cassa Depositi e Prestiti (CDP), Italy’s national promotional institution and public development bank, which mobilises state-guaranteed domestic savings to provide long-term concessional finance.

While not formally structured as an impact investing scheme, Italia Economia Sociale represents a significant initiative within the Italian social finance and impact ecosystem: the programme explicitly supports investments aligned with the UN 2030 Agenda, with a focus on projects generating measurable social impact, promoting environmental sustainability, and increasing employment opportunities for persons with disabilities. Eligible beneficiaries include social enterprises, social cooperatives and their consortia, cooperatives and - following the 2020 reform - cultural and creative enterprises.

Highlights

  • Turning public savings into catalytic capital for social impact: The Fondo Rotativo per il sostegno alle imprese e gli investimenti in ricerca (FRI) - which finances the Italia Economia Sociale programme - is a public revolving fund financed by domestic postal savings, one of the largest pools of household financial assets in Italy (approximately €324 billion held by 27 million savers in 2025). Managed by Cassa Depositi e Prestiti (CDP), the fund transforms state-guaranteed public savings into long-term, concessional finance for social economy enterprises. As a revolving instrument, capital is repaid and reinvested over time, allowing the State to sustain investment without relying on annual budget allocations or donor funding. By combining below-market loans with commercial bank finance - and, in some cases, targeted grants - the FRI demonstrates how governments can leverage public savings as a structural engine to foster impact economies at scale.

  • Finances a Broad Spectrum of Social and Environmental Priorities: Operating nationwide, Italia Economia Sociale supports a broad range of investments, from job creation for disadvantaged groups and social inclusion of vulnerable populations to environmental sustainability, urban regeneration, sustainable tourism, and the valorisation of cultural and creative assets. To date, the programme has financed 77 projects, mobilising around €150 million in total investment, including €83 million in public subsidies (of which €38 million has already been disbursed), €74 million in loans, and €9 million in grants. These investments have contributed to the creation of 1,067 jobs, 350 of which are for disadvantaged people.

Government’s Role:
Market Participant


Country:
Italy

Policy Type:
Funding Programmes

Year: 2022

Responsible Institution:
Ministry of Enterprises and Made in Italy and Invitalia (Italy's National Agency for Investment Promotion and Economic Development)

Funding Programmes

What are funding programmes?

Funding programmes - which provide financial resources in the form of grants, loans, equity, and guarantees - can be used by governments and public institutions to address financing gaps and attract private sector participation, often through dedicated funding windows, government-backed funds, and public-private partnerships, towards businesses that place social and/or environmental impact at their core. By doing so, they help grow a pipeline of mission-oriented organisations capable of addressing systemic challenges while contributing to inclusive and sustainable economic development.

This support can take various forms: capital provided directly to enterprises to meet early-stage or growth financing needs; investments channelled through intermediary funds to reach a broader range of businesses; or blended finance models where public or philanthropic actors absorb higher risks to make investments viable for private investors. The design of these mechanisms is often catalytic, helping to build investor confidence, promote financial inclusion, and strengthen the resilience of social enterprises across diverse sectors and geographies.