Abstract
In this chapter, we consider both the economic policies introduced during the seventeenth legislature and their impact on economic outcomes. We will begin by considering macroeconomic policies, then move on to what was the most important measure introduced in the legislature, the labour-market reform. We will briefly illustrate the principal measures of industrial policy and those aimed at achieving more equitable distributions of income. We will then summarise the main economic proposals contained in the programmes of the parties and coalitions presented during the election campaign and in the programme of the government formed after the elections. In the final sub-section we will present our conclusions.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
Prepared by the Monti Government on 10 April 2013 (MEF 2013).
- 2.
For an analysis of the contributions of the various components to public debt in the long term, see the recent article by Iero (2018).
- 3.
Speaking at the Global Investment Conference on 26 July 2012, Mario Draghi, President of the European Central Bank said, “The ECB is ready to do whatever it takes to preserve the Euro”.
- 4.
QE is an unconventional instrument of expansive monetary policy used by central banks to stimulate economic growth. The Central Bank carries out liquidity injections using open market operations to purchase government bonds and other securities.
- 5.
An idea of the effects of this rate of growth on citizens’ material well-being can be had by reflecting on the fact that at this rate of growth Italy’s GDP doubles after 117 years, Germany’s after 50, France’s after 44 and Spain’s after 30.
- 6.
Targeted Long Term Refinancing Operations (TLTROs) and Long Term Refinancing Operations (LTROs) are instruments used by the ECB to provide liquidity to European banks at very low cost and for short periods of between one and three years.
- 7.
See ECB (2017).
- 8.
We have considered the top five in terms of expenditure among the ten included in the OECD database.
- 9.
Recently the D.Lgs. n. 81/2015.
- 10.
This second intervention, as we shall see, was introduced only towards the end of the legislature and had no impact on the well-being of disadvantaged citizens. We will describe it anyway because it was a point of reference in the election campaign for other parties/coalitions and their proposals.
- 11.
This indicator corresponds to the total numbers at risk of poverty or severely materially deprived or living in underemployed households. Persons are only counted once even if they qualify in terms of several of the sub-indicators. At risk-of-poverty are persons with an equivalised disposable income below the risk-of-poverty threshold, which is set at 60% of the national median of equivalised disposable income (after transfer payments). Material deprivation covers indicators relating to economic limitations and durable goods.
- 12.
Coalizione di centro-destra (Forza Italia, Lega, Fratelli d’Italia, Noi con l’Italia), ‘Un Programma per l’Italia. Per la crescita, la sicurezza, le famiglie e la piena occupazione’ (Centre-right coalition (Forza Italia, Lega, Fratelli d’Italia, Noi con l’Italia), ‘A Programme for Italy. For growth, security, families and full employment’), http://www.forzaitalia.it/speciali/Programma_centrodestra_condiviso_10_PUNTI.pdf, last accessed 1/7/2018.
- 13.
Partito Democratico, ‘Più forte, Più giusta. L’Italia’ (Democratic Party, ‘A stronger, fairer Italy’), January 2018, https://www.partitodemocratico.it/politiche-2018/piu-forte-piu-giusta-italia-programma-del-pd/, last accessed 1/7/2018.
- 14.
Movimento Cinque Stelle, ‘Idee e Proposte per l’Italia’ (Five-star Movement, ‘Ideas and Proposals for Italy’), https://www.movimento5stelle.it/programma/index.html, last accessed 1/7/2018. The programme consists of 24 thematic sections.
- 15.
Liberi e Uguali, http://liberieuguali.it/programma/, last accessed 1/7/2018.
- 16.
Supported in particular by the League, while Berlusconi suggested in some television interviews an initial rate of 23%, with the prospect of a reduction to 20% over time.
- 17.
Il Fatto quotidiano, ‘Conti pubblici, l’analisi di Cottarelli su costi e coperture dei programmi dei partiti. E gli effetti sul debito’ (‘The public accounts, Cottarelli’s analysis of the costs and coverage of the parties’ programmes. And their effects on the public debt’), https://www.ilfattoquotidiano.it/2018/03/02/conti-pubblici-lanalisi-di-cottarelli-su-costi-e-coperture-dei-programmi-dei-partiti-e-gli-effetti-sul-debito/4191360/2/, last accessed, 1/7/2018.
- 18.
Massimo Baldini and Francesco Daveri, ‘Garantire la dignità costa’ (‘Ensuring dignity is expensive’), http://www.lavoce.info/archives/50449/garantire-la-dignita-costa/, last accessed 1/7/2018.
- 19.
The Fornero pension reform (introduced during the Monti government and so-called after the name of the minister who sponsored it) introduced several changes (in line with reforms introduced by previous centre-right governments) including: a considerable extension of the contributory method; an increase in the retirement age, from 60 to 65, of females employed in the private sector; a biannual adjustment of the age of retirement to life expectancy.
- 20.
The tax wedge refers to the difference between the cost of employing labour on the one hand, and employees’ net salaries on the other, and consists of the tax, social security and insurance contributions paid by companies and workers.
- 21.
M5s-Lega, 2018 ‘Contratto per il Governo del Cambiamento’ (‘Contract for the Government of Change’), http://www.ansa.it/documents/1526568727881_Governo.pdf, last accessed 7/7/2018.
- 22.
Osservatorio sui Conti Pubblici Italiani, 2018 ‘Quantificazione delle proposte del contratto di Governo’ (‘Quantification of the proposals contained in the Government contract’), https://osservatoriocpi.unicatt.it/cpi-elezioni-2018-commenti-ai-programmi-di-finanza-pubblica, last accessed 7/7/2018.
References
Capriati, M. 2018a. Capabilities, Innovation and Economic Growth: Policymaking for Freedom and Efficiency. London and New York: Routledge.
Capriati, M. 2018b. L’equità fa bene all’efficienza. Per il recupero di un nesso smarrito. In ISTAO Istituto Adriano Olivetti. Le competenze per costruire il futuro. Rome: Edizioni Comunità.
Cimoli, M., G. Dosi, and J.E. Stiglitz (eds.). 2009. Industrial Policy and Development: The Political Economy of Capabilities Accumulation. Oxford: Oxford University Press.
ECB (European Central Bank). 2017. ECB Annual Report for 2017, 9 April 2018.
Iero, A. 2018. Debito pubblico, una questione di interessi. Economia e Politica. ISSN: 2281-5260. http://www.economiaepolitica.it.
Krugman, P. 2012. End This Depression, Now! New York: Norton & Company.
MEF (Ministro dell’economia e delle Finanze). 2013. Documento di economia e finanza 2013. Rome.
UPB (Ufficio Parlamentare di Bilancio). 2015. Rapporto sulla politica di bilancio 2015.
Varoufakis, Y. 2015. Europe After the Minotaur: Greece and the Future of the Global Economy. London and New York: Zed Books.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 The Author(s)
About this chapter
Cite this chapter
Capriati, M. (2019). The Economic Context 2013–2018. In: Ceccarini, L., Newell, J. (eds) The Italian General Election of 2018. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-13617-8_3
Download citation
DOI: https://doi.org/10.1007/978-3-030-13617-8_3
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-13616-1
Online ISBN: 978-3-030-13617-8
eBook Packages: Political Science and International StudiesPolitical Science and International Studies (R0)