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

Author

Listed:
  • Mauro Napoletano

    (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur, OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po, SSSA - Scuola Superiore Sant'Anna, UniCA - Université Côte d'Azur)

  • Francesco Toni

    (UniCA - Université Côte d'Azur, GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur)

Abstract

Italy's economy has been characterized by a long-standing malaise markedby 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 territorialdisparities, and a rise in income and wealth inequality. The country's pro-ductive structure remains concentrated in traditional sectors, dominated bysmall firms, and underrepresented in strategic industries with high potentialfor productivity gains. Drawing on macroeconomic and sectoral evidence,this policy brief assesses Italy's current position and outlines the measuresneeded to reverse these trends. It argues for an industrial strategy that com-bines state-market complementarities, long-term coordination, and polycentric governance, supported by policies to halt real wage decline and reduce in-equality, 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," Sciences Po Economics Publications (main) hal-05391625, HAL.
    • Handle: RePEc:hal:spmain:hal-05391625
    Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-05391625v1
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