Liberalizing Italy’s economy: needs and opportunities
It is a long story that began back in the 1990s and that is still very much a part of the debate today. We are talking about the controversial and syncopated story of deregulation in Italy.
It is a long story that began back in the 1990s and that is still very much a part of the debate today. We are talking about the controversial and syncopated story of deregulation in Italy.
Kicking off discussions at this national conference was the observation that the current financial crisis, evidently systemic in nature, is predominantly being shaped at this stage by perceived risk factors linked to vulnerabilities in the real economy and the banking system. Efforts in the political, economic and monetary arenas – both at national and European levels – seem to have eased speculative pressures on the markets and tentatively restored international investor confidence.
As an opening premise, the participants at this National Conference noted that any reflection on the future of the Italian national health service must first start with an analysis of the value produced for the country in health terms. In this regard, statistics were cited indicating that between 1951 and the present day, life expectancy in Italy has increased by 1 month every 4 months. Italy also has the longest-lived population in Europe, with over-65s already making up 20% of the population, or 12 million people, of whom 3.5 million are over 80 years old (6%).
This National Conference got underway with the observation that, in Italy as in Europe, emerging forms of poverty have mainly affected segments of the population that were previously relatively protected but that have now become socially and economically vulnerable. This phenomenon has also been accompanied by the onset of other hardships, stemming from the intensification of migration flows.
The key objective to emerge from the discussions at this National Conference was that of transforming a constraint into an opportunity. The green economy must be made the cornerstone of a new, more sustainable and enduring development model. It was observed that, in recent years, particularly in the wake of the protracted effects of the worst economic and financial crisis in recent history, the world has begun to stop treating the “environmental factor” as a possible limitation on freedom of enterprise, but rather to see it from a more comprehensive perspective.
International openness and the circulation of people and talent during key stages of professional training and development were the central topics of discussion at this Third Conference on “Italian leaders abroad”.
Debate at this National Interest Conference got underway with the observation that overcoming the social and economic divide between Northern and Southern Italy requires a profound rethink of intervention policies together with an overall return to efficiency and effectiveness in public action.
Added value of over 140 billion euros and employment for around 3.3 million people: this was the snapshot, in figures, presented at this National Interest roundtable session of the engine of Italy’s manufacturing system, driven by the country’s leading sectors – the so-called “4 Fs” of the Made-in-Italy industry: Ferrari cars and non-electronic machinery and equipment, fashion and clothing, food and beverage, and furniture and wood products.
The Conference got underway with an acknowledgement that savings have played a key role in maintaining Italy’s stability during the more acute phases of the recent financial crisis, and may play an even more important role now as a driver of the country’s economic recovery and growth.
More than three years after the outbreak of the crisis which engulfed the world economy, Italian businesses have shown that they have, on the whole, withstood the impact of the economic and financial tsunami. The country remains the fifth-ranking global manufacturing power and the second in Europe after Germany, running counter to the trend that has seen a progressive reduction in the market shares of traditional industrial economies – the US and Japan in particular.
The National Conference got underway with the observation that one of the negative effects of the international financial crisis has been to halt debate on the problems afflicting the savings market in Italy, and on what measures are needed to overcome them. These problems were already beginning to emerge as early as the late 1990s, but they have become more evident as a result of the crisis.
In the history of any country, there are phases where it is necessary to build and phases where wealth produced needs to be distributed. Italy, hit by the international crisis, finds itself in the former condition and aims to bolster its economy by building new infrastructure and, in the process, create jobs and facilitate the movement of people and goods.
The experience gained by Italians around the world, the challenges that will need to be faced to build global skills, and the ability of the national economy to operate as a global actor are all aspects of a single issue, namely: how to make the most of overseas Italian talent. Talented Italians are finding it increasingly easier to emigrate rather than build reasonable career prospects for themselves at home.
The participants at this conference observed that, irrespective of the kind of institutional set-up a particular country may have, the public administration is the bridge between administrators and the administered. An efficient and modern public administration ceases to be a mere cost and becomes an asset for the productive system and a means for improving the quality of life of citizens and families.
If Italy’s university system is to proceed in a new direction, there are two crucial areas that must first be given a complete overhaul: its governance and its financial framework. And, that such reforms have become necessary is certainly a widely held view. The shape of these reforms and the regulations and procedures to be adopted, on this, the eve of the sitting government’s presentation of its university reform bill, is however still a matter for lively discussion both within academia and, in more general terms, the public arena.
Reform of Italy’s universities has for months been at the center of the national public debate, coinciding with the development of plans for a government review of the area. In addition to issues relating to the governance of universities and the soundness of the system’s macro-financial structure, the participants at this Conference examined ways of making the Italian university model more efficient and merit-based, focusing predominantly on the mechanisms regulating the autonomy of individual universities and the relationship between the latter and their local business communities.
The global economic scene is suffering from a worldwide slowdown in growth, the effects of the recent American financial crisis, monetary imbalances between the US dollar and the euro and rising inflation due to an increase in the price of raw materials (and not just energy resources).
The international financial crisis and its impact on the real economy have increased the need for decisive, coordinated action by international bodies, the EU and individual nations. The greatest concern is the existence of “panic” and “lack of trust” in the markets, which is indeed what is undermining the real economy all over the world. Many maintain that, in order to restore faith in the markets and therefore face the crisis, on one hand domestic consumption must be stimulated. On the other hand, an increase in the public demand is needed for investments in infrastructures.
The debate on Federalism touches a central theme of the possible reforms in the coming years. In a framework that is gradually being consolidated – as seen in the results of the survey conducted by the Constitutional Affairs Commission of the Chamber of Deputies and the Senate at the beginning of the XV legislature – we can get a fairly accurate perspective on the goals and policies that will finally allow full implementation of the Republic’s new institutional organization and any corrections needed for the constitutional revision of 2001.
Demographic waves, technological innovation and citizens’ expectations: these are today’s major challenges. And, in the years to come, healthcare will become an increasingly important issue in all major countries with advanced economies and welfare systems. In the Italian system, the healthcare challenge is particularly crucial as it represents the largest public expenditure after pensions. Healthcare and pensions absorb all those resources that could be made available for other social policies.