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Governing complexity in the country system: challenges, priorities and Italy’s choices

    • Venice
    • 9 May 2014

          The participants at this ASL seminar noted that Europe has made it past the most acute phase of the economic and financial crisis, but is still struggling to embark on a virtuous process of sweeping and sustained growth.

          It was felt that in order to accomplish this, the Member States need to fully seize the opportunities offered by the digital revolution and confront the associated challenges and risks – including to the quality of democracy – arising from the change that this technological paradigm brings with it.

          It was stressed that any internal rethink of public policies and their purview must perforce take into account the European framework, which clearly sets the objectives and constraints for national legislative and administrative action. Yet Italy’s numerous infringements thereof, stemming from failures or delays in nationally transposing EU legislation, added to its inability to satisfactorily tap into European funding, plainly indicates that Italy continues to be particularly wanting in this regard.

          The country’s prospects of returning to growth were also seen as depending greatly on the success of public spending review and administrative reform strategies.

          The participants considered there to be still ample scope for making efficiency gains, with respect to both public procurement of goods and services as well as in matters of administrative organization and the management of the public service workforce. It was deemed, however, that the most difficult decisions – of a political and not so much technical nature – concern benefit payments and subsidies for households and businesses, especially as it is these that make a substantial call on the public purse. Cuts and reallocations of resources in this area may very well translate into a reduction of the services available to the community, but they can also help introduce proper incentives for efficient market behavior.

          It was felt that, ultimately, in light of these considerations, the need arises for far-reaching reform of the Italian social security system, which would appear to be heavily skewed in the constituency it serves, first and foremost because of demographic trends which show continuous increases in life expectancy and a low birth rate.

          Leaving this aside, however, the participants emphasized that it is the manner in which welfare resources are allocated in particular that is inefficient on the one hand and unfair on the other, with safety nets being doled out heedlessly between different risk groups, while future generations are left to bear an increasingly heavy burden. The upshot – it was remarked in conclusion – is that, unlike in the past, younger generations can no longer count on the prospect of benefiting from a greater wellbeing than that enjoyed by previous generations.