Addressing Italy’s Slow Economic Growth

The Euro Area The Euro Area is currently in the middle of a recovery period from the economic crash of Since then, a large majority of nations have continued to regain sustainability, while a select few are still lagging behind.

Inflation Rates

Unemployment Rates

EA Annual GDP Growth Compared to the United States EA Growth marked at 0.9% United States’ GDP Growth marked at 2.4%

Comparing Italy to EA in Inflation Italy’s Inflation rate is -0.09% Euro Area’s Inflation Rate is -0.3

Comparing Italy to EA in Unemployment Rates 12.6% in Italy, all time high of 13.3% 11.2% average through entire euro area

Italy’s Annual GDP Growth Italy’s GDP Growth marked at -0.5%

Policy Recommendation Support Italian Enterprise Increase Exports

Reinforcing Italian enterprise -Due to red tape and economic debts Italian companies are limited in international trade. -Reducing government laws and excessive red tape will allow companies to flourish and improve Italy’s economy -Increasing trade and a small bailout will improve Italy’s debt problems. -Improving the Mezzogiorno will help sustain Italy as a whole

Italy’s Overwhelming Debt -Fixing Italy’s massive debt (130% of its GDP) will take time and patience -Backing Italian small business and corporations with loans will help increase the export rates dramatically. -Import rates should not be above export rates! -Italy ‘s economy will continue to rise. -Tax rates will slowly rise when Italy economy is prospering again.

Tourism -Since 2011, tourism revenue (in billions of $US) has dropped from 43.0 to Tourism contribution to GDP fell by -1.4% -Italian spending on tourism fell 3.2% -projected contribution to GDP in 2023 is only 1.3% more than More advertisment from the government will help tourism immensely Improving tourism = significant GDP growth

Red Tape ● People that aspire to create new businesses in Italy do not require a minimum capital ● However, licensing requirements take over three months on average ● A rigid labor code hurts competitiveness and employee prospects ● Thus, the labor market remains stagnant

Foreign Investment ● Foreign investors only own 13% of Italian stock ● This is the smallest amount of foreign-owned stock in Europe ● High taxes and excessive bureaucracy discourage foreign investment ● Dismantling the red tape that continuously restricts entrepreneurship is critical

Policy Recommendation Focus industrial development in the Mezzogirono Develop energy resources Alternative energy – manufacturing and use to generate energy

The Split ● Italy has long since been split into two economic halves ● Northern Italy is industrialized, economically healthy ● Southern Italy is agricultural, corrupt, economically weak ● 4% higher unemployment rate than Northern Italy

Reviving the Mezzogiorno ● Italy has multiple ways to bring industrial advances and job opportunities into the Mezzogiorno ● One way that the Italian government can help the Mezzogiorno is encourage companies to begin investing in the South; i.e. energy companies

Manufacturing Alternative Energy

Basilicata is full of oil; in fact, it holds the majority of Italy’s 1.4 billion, proven barrels of on- shore oil- Europe’s largest.

Reducing Imports ● As a net importer of oil and natural gas, Italy is heavily dependent on imports to meet its energy needs. Net imports of petroleum and other liquids were over 1.1 million barrels per day (bbl/d) in ● To alleviate this problem, Italy can begin utilizing its large gas reserves, mostly in the South, and begin developing a foothold in the field of renewable energy.

Italy’s Future ● Italy’s future depends its citizens ● Reviving the Italian economy will require reform of economic policies and red tape ● The government must encourage foreign investment and begin revitalizing the Mezzogiorno ● Doing so will lead to an improved economic status and standard of living

Thank You!