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The Tartar Steppe of Italian Growth: Strategies for Renewal in a Slowing Europe

Author

Listed:
  • Mauro Napoletano

    (Université Côte d'Azur, CNRS, GREDEG, France)

  • Francesco Toni

    (Université Côte d'Azur, CNRS, GREDEG, France)

Abstract

Italy's economy has been characterized by a long-standing malaise marked by low growth, stagnant productivity, and high public debt. In recent years, these weaknesses have been compounded by declining real wages, the underutilization and outward migration of skilled labor, widening territorial disparities, and a rise in income and wealth inequality. The country's productive structure remains concentrated in traditional sectors, dominated by small firms, and underrepresented in strategic industries with high potential for productivity gains. Drawing on macroeconomic and sectoral evidence, this policy brief assesses Italy's current position and outlines the measures needed to reverse these trends. It argues for an industrial strategy that combines state–market complementarities, long-term coordination, and polycentric governance, supported by policies to halt real wage decline and reduce inequality, with the aim of rebuilding productive capacity and ensuring broadly shared prosperity.

Suggested Citation

  • Mauro Napoletano & Francesco Toni, 2025. "The Tartar Steppe of Italian Growth: Strategies for Renewal in a Slowing Europe," GREDEG Working Papers 2025-44, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    • Handle: RePEc:gre:wpaper:2025-44
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    Keywords

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    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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