Addressing Italy’s Slow Economic Growth

The Euro Area The Euro Area is currently in the middle of a recovery from the financial crash of Some countries have done well since the crash (Such as Germany). Others haven’t fared as well (Greece)

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

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%

Reinforcing Italian enterprise -Due to Red tape and economic debts some Italian Companies are suffering. -Reducing government laws and red tape will allow companies to flourish and improve Italy’s thriving GDP to prosperity. -Increase trade and small bailout will improve Italy debt which will help Italy overcome the ridiculously large GDP debt.

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 the continuously restricts entrepreneurship is critical

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 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

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