On April 29, during the interview on RainNews with Roberto Vicaretti, Pietro Paganini stressed that Europe is becoming increasingly vulnerable in the new global crisis: lower growth, weaker productivity and declining purchasing power.
For Italy, managing the status quo is not enough. The Government needs a bolder strategy: lower taxes on labour, more investment in innovation, and a negotiation with Brussels for fiscal room tied to a credible industrial growth plan.
Lagging Behind
The global crisis is progressively weakening the European economy. Compared with the United States, China, and India, Europe appears to be the most exposed region: it grows less, innovates with greater difficulty, loses productivity, and sees the purchasing power of citizens and families decline.
Italy's Productivity Challenge Starts with Labour
Inflation is not the only risk we should worry about. The deeper danger is prolonged stagnation: an economy that does not invest enough, does not create sufficient opportunities for young people, does not adequately support businesses, and fails to turn new technologies into productivity gains.
This is why the Italian Government must show greater courage. The first priority is labour. Italy needs a structural reduction in taxes on work and on hiring. Without a stable reduction in labour costs, companies will continue to struggle to hire qualified workers, while employees will continue to see their purchasing power eroded.
Growth Requires Investment and Discipline
The second priority is investment. Italy’s SME-based economic model can grow only if entrepreneurs are given stability, regulatory certainty and real incentives to invest in innovation, digitalisation, automation and skills. This applies to industry, but also to agriculture, which must be enabled to increase productivity, quality and competitiveness.
Then there is the European dimension. Under the current budgetary conditions, the room for manoeuvre is limited. Italy should therefore negotiate with Brussels for fiscal space aimed at growth. Any budget deviation should not finance current expenditure, temporary bonuses or short-term political consensus. It should be linked to a measurable industrial plan: productivity, youth employment, technological innovation, automation, training and business competitiveness.
The most liberal, reformist and innovation-oriented forces within the Government, starting with Forza Italia, should push decisively in this direction. Lower taxes on labour, more productive investment, and greater courage in negotiating a European framework that allows Italy to build a serious growth strategy.