The background of this legislative evolution is that during the last decades the most industrialised countries have faced competition from emerging economies. Here production is less expensive thanks to many well known factors including a lower degree of bureaucracy, low salaries and, in the worst-case scenario, blatant labour exploitation, including child labour.
The reaction of many Italian companies has been to move abroad the whole productive process or a part of the same; this is the so-called “delocalisation”. However, they continued to use signs recalling Italy, or even saying “made in Italy”, in contravention of the new rules.