5 charts that explain big challenges facing Italy’s new government

Giuseppe Conte Donald Tusk 2018

From left to right: Mr Giuseppe CONTE, Italian Prime Minister; Mr Donald TUSK, President of the European Council. Shoot location: Rome – ITALY. Shoot date: 20/06/2018. Copyright: European Union

This article is brought to you thanks to the strategic cooperation of The European Sting with the World Economic Forum.

Author: Emma Charlton, Writer

Earlier this month, Giuseppe Conte – a law professor with little political experience – was sworn in as Italy’s prime minister. During the hard-fought election and political turmoil that preceded his appointment, the economy became a key battleground.

As the new coalition government settles in, these charts illustrate just a few of the economic challenges it faces.

Anemic growth

Despite emerging from recession, growth remains sluggish and Italy still lags behind its European peers. The OECD projects growth will slow from 1.6% to 1.4% this year and 1.1% in 2019.

Image: OECD

Debt fears

Debt levels are worryingly high. As a percentage of gross domestic product, Italy’s government borrowings are the second highest in the eurozone, after Greece.

Image: OECD

Investors are concerned about the prospect of a debt crisis in the eurozone’s third-largest economy. And the power struggle in the months after the March election between anti-establishment populist parties and tensions over Italy’s use of the euro triggered further anxiety in global financial markets.

Competitiveness

Italy ranks 43 out of 137 in the latest World Economic Forum Global Competitiveness Index, behind other southern eurozone countries Spain and Portugal.

This chart shows factors that executives identified as barriers to doing business in Italy. Problem areas identified include bureaucracy, tax rates and labour laws.

Image: World Economic Forum Global Competitiveness Index 2017-2018

Italy’s overall score showed scope for improvement in wage policies and attracting and retaining talent. In the financial realm, a lack of access to loans and funding, as well as concerns about the soundness of banks were key themes.

Innovation

The nation also lagged behind its peers in a Global Competitiveness Index measure that tracks how countries have performed over the last decade in innovation. This metric includes capacity for innovation, the quality of scientific research and company spending on research and development.

This is particularly troubling, as the Forum report noted that the pace and disruptiveness of technological change is creating unprecedented opportunities and challenges for every country.

“These emerging technologies have immense potential to be a source of growth, but their future evolution is uncertain,” the report said. “A key challenge is how to unlock their potential in a way that benefits society as a whole given that they can profoundly reshape the national and global distributions of income and opportunities.”

Image: World Economic Forum Global Competitiveness Index 2017-2018

Prepared for disruption?

In a separate measure: “technological readiness” – how well economies are prepared for future advances – Italy has improved recently, but remains some way behind Germany, the UK and France.

the sting Milestones

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Brexit Preparedness: European Commission adopts final set of “no-deal” contingency measures for Erasmus+ students, social security coordination rules and the EU budget

The journey begins – 2021 is the European Year of Rail!

Three experts on why eradicating plastic pollution will help achieve gender equality

Informal meeting of heads of state or government, Sibiu, 09/05/2019

State aid: Commission opens in-depth investigation into public support for expansion of LG Chem’s electric vehicles battery plant in Poland

Rising number of young people excluded from jobs, education and training

Iran protests: Live ammunition reportedly used, says UN human rights office

In dreams and in love there are no impossibilities

Opening Remarks by H.E. Ambassador Yang Yanyi, Head of the Chinese Mission to the EU at the Chinese Fashion Night

EU Facility for Refugees in Turkey: €5.6 billion out of €6 billion now allocated in support of refugees

Forget 2009, this is the real credit crisis of our time

Is there a cure for corruption in Greece?

COVID-19 vaccination campaigns and their challenges

EU Visa Policy: Commission welcomes agreement to strengthen EU visa rules

How to unleash the potential of regions like São Paulo

A comprehensive strategy for Eurozone’s long term growth gains momentum

US-EU trade negotiations: pointless tariffs against real economic growth

A Sting Exclusive: “Paris is the moment for climate justice”, Swedish MEP Linnéa Engström claims from Brussels

The ECB proposes a swift solution for SMEs’ financing

Major UN aid operation for 650,000 gets underway across Syria-Jordan border

Latest leaked TTIP document confirms EU sovereignty may be under threat

Societies must unite against ‘global crisis of antisemitic hatred’, Guterres urges

How powering food storage could end hunger

What are antibody tests and can they get the world back to work?

Education should be like everything else. An on-demand service

A new European banking space is born this year

Smart city experts should be looking to emerging markets. Here’s why

JADE Spring Meeting 2016 highlights

European research priorities for 2021-2027 agreed with member states

Latest tragedy in the Mediterranean claims over 100 lives – UN refugee agency

Parliament demands ban on neo-fascist and neo-Nazi groups in the EU

Memoirs from a unique trip to China: “my new old dragon” (Part II)

We need to rethink cybersecurity for a post-pandemic world. Here’s how

COVID-19 amplifies inequality. Fight back with long-term thinking

How COVID-19 vaccine efforts could help defeat other diseases

Former Chilean President Bachelet put forward by UN chief as next High Commissioner for Human Rights

Young people are key to defusing unrest and restoring public trust

A third of young people polled by UN, report being a victim of online bullying

The reskilling revolution can transform the future of work for women

European Defence Fund: EU funds new joint research and industrial projects

Coronavirus Global Response: EU Humanitarian Air Bridge supports Venezuela

Search Engine neutrality in Europe in danger: Are 160.000 Google filtering requests good enough?

Why we need different generations in the workplace

Mexico: UN chief saddened by pipeline blast in which dozens were killed

Use space technology to build a better world for all, urges UN chief

UNICEF urges ‘transformative shift’ in family-friendly work policies to reap ‘huge’ benefits

EU cracks under the weight of its policy on the Ukraine-Russia nub

We need a global convention to end workplace sexual harassment

Climate Change : An Already Health Emergency

10 reasons to be optimistic for the future, from young change-makers

COVID-19 practices are constantly changing – this app helps emergency doctors cope

After the European Parliament elections – what happens next?

Scourge of slavery still claims 40 million victims worldwide, ‘must serve as a wakeup call’

Chernobyl nuclear disaster-affected areas spring to life, 33 years on

Why the UK government must do more to boost green revolution

UN chief praises Africa for keeping ‘hearts and borders open’ in refugee crisis

OK computer: why the machine age still needs humans

In Bali, UN chief Guterres outlines importance of international financial cooperation for sustainable development

TTIP 9th Round marked by American disappointment: Will some optimism save this trade agreement?

As Dubai switches on its first 5G, what is all the fuss about?

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s