The Rise of Anti-Establishment Italy

The Rise of Anti-Establishment Italy

photo: Ewan Topping After the UK Brexit and the Trump triumph in the US, the rise of anti-establishment Italy is hardly a surprise. It is the effect of half a decade of failed austerity doctrines in Europe and decades of failed political consolidation in Italy – ever since the notorious Tangentopoli scandals. While Italy’s constitutional referendum […]

Italian Referendum: What to Expect?

Italian Referendum: What to Expect?

photo: Bobby Hidy In spite of the widely spread expectations of prominent analysts, pollsters, and economists about the likely victory of the “Remain” (in the EU) campaign in the referendum held in Britain on June 23rd, 2016 and the almost certain expected victory of Hillary Clinton in the U.S. Presidential elections of November 8, 2016, surprisingly, […]

Italy: Willingness to Reform Is the Issue, Not the Referendum

Italy: Willingness to Reform Is the Issue, Not the Referendum

Source Key takeaway – Italy’s prospects are lacklustre and growth is stagnant. The political system is focused on privilege preservation, fostering populist feelings. Reforms are needed but – due to a reluctant electorate and a cumbersome legislative process – are difficult to implement. Over the past three years, Renzi’s government announced many important reforms, but […]

Italy: Can Reforms Lift Growth Prospects?

Italy: Can Reforms Lift Growth Prospects?

Key takeaway – The Italian economy is large, relatively diversified and sturdy. Historically, growth has been driven by external factors (e.g.: the “economic miracle” after World War II) or political efforts (e.g.: competitive devaluations and fiscal spending between the 1970s and the 1990s). For decades, innovation and international competitiveness lagged most peers. After joining the […]

Hunt for Alpha Succeeds if the Entrepreneur Attracts the Right Investors

Hunt for Alpha Succeeds if the Entrepreneur Attracts the Right Investors

From a speech given at the Olivetti day: “How to finance innovation and why it needs to be done.” Brescia, Italy, 16 October 2015 Italy is experiencing a period of extraordinary importance for its future. If current developments have positive outcomes, a virtuous circle could be created with the potential to launch a new and much […]

Fiscal Debit Cards and Tax Credit Certificates: The Best Way to Boost Economic Recovery in Italy (and Other Euro Crisis Countries)

A fiscal shock to Italy Recently on this blog, Brunello Rosa had submitted an interesting policy proposal to boost Italy’s GDP. Brunello’s proposal shares many analytical premises with the one we have articulated in a public appeal published at the end of last year,  concerning the issuance of tax credit certificates as a means to […]

Europe’s Great Divide

In our previous post (here), we described post-electoral Europe’s stalemate in a European version of the  “Impossible Triplet” sketched by Dani Rodrik to describe the dilemmas of globalization. We drew a triangle given by the three constitutive dimensions of the EU: “European integration”, “National sovereignty”, “Democratic consensus”. Each one is incompatible with the other two.  […]

Wages, Productivity and Employment in Italy: Tales From a Distorted Labor Market

Italy’s labour market productivity has been stagnating in the past decade despite numerous reforms. This column gives an explanation why this is so. By focusing exclusively on flexibility, past labour market reforms have completely neglected incentives. There is severe allocative malfunctioning in the Italian labour market. Wages do not reflect sector productivity in the short […]

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