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.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Featured Stings

EU’s tougher privacy rules: WhatsApp and Facebook set to be soon aligned with telcos

Snowden is the “EU nomination” for this year’s Oscars

Trump questions US – Europe kinship, approaches Russia

Capital markets selloff: The financial moguls send messages to monetary authorities

European Youth calls on European Council for urgent action on “humanitarian crisis” and questions the EU/Turkey deal respect of human rights

MWC 2016 LIVE: Under Armour learns from “robust community of data”

Why climate change matters for future health professionals

Peacekeeping chief highlights challenges facing UN Police

Parliament votes reform for better European Co2 market but critics want it sooner than later

Is the ECB ready to flood Eurozone with freshly printed money?

EU Facility for Refugees in Turkey: EUR 400 million Special Measure on education adopted

Bank resolutions set to remain a national affair

IFMSA and IPSF on the Health of Migrants and Refugees

Quality Education on the table at the European Parliament

Inflation keeps falling in Eurozone

A revolution, an ecosystem, an ocean: 5G is just the beginning

Why capital markets have no more reservetions about Eurozone

Here’s the secret to financing a greener future

Hungary’s laws on helping vulnerable foreigners are ‘blatantly xenophobic’: UN rights chief

PM May fosters chauvinism, declares trade war on Europe

No tears for Cyprus in Brussels and Moscow

Britain declares trade war on mainland Europe

These are the countries where it’s still illegal to get an abortion

UN says ‘many humanitarian achievements’, one year after ouster of ISIL from Mosul

The challenges of mental health among the Syrian medical students

Why does the whole world want Britain to stay in the EU?

Liaison Officer – 2020

Deutsche Bank chased away from US, threatened with more fines

The Americans are preparing for the next financial crisis

Greece did it again

UN chief hears ‘heartbreaking accounts’ of suffering from Rohingya refugees in Bangladesh; urges international community to ‘step up support’

Modern humanitarian aid at times of global crises

Russia won’t let Ukraine drift westwards in one piece

COP21 Breaking News_10 December: the final sprint of the Final Agreement Negotiations

UN chief welcomes formation of unity government in Madagascar

Ukrainian civil war: Is this the beginning of the end or the end of the beginning?

Learn from the margin, not the center: digital innovation with social impact as transformative force bridging digital divide

The Fourth Industrial Revolution needs a social revolution, too. Here’s how we can make this happen

China is among the 20 most innovative economies for the first time

Eurozone closer to a deflation – stagnation trap

European Confederation of Junior Enterprises hosts in Geneva the Junior Enterprise World Conference

Half of Eurozone in deflation expecting salvation from monetary measures

G20 GDP growth nudges up to 1.0% in the second quarter of 2018

Europe led by Germany seems vulnerable to Trump’s threats

FROM THE FIELD: Weaving profits in Azerbaijan

EU-China trade: closer ties as US-China trade battle brews

A Sting Exclusive: “China-Africa Cooperation Sets a Fine Example of South-South Cooperation”, by China’s Ambassador to EU

Counting unemployment in the EU: The real rate comes to anything between 16.1% and 20.6%

European Commission determined to conclude EU-Mercosur trade deal this year despite French concerns

You’ve heard of 5G, but what about the quantum internet?

Refugee crisis: Commission proposes a new plan urging EU countries to help Italy

EU fight against tax-evasion and money laundering blocked by Britain

G20 LIVE: G20 Statement on the fight against terrorism

The European Parliament fails to really restrict the rating agencies

Europe enters uncharted waters with Kiev-Moscow standoff

Brexit uncertainty keeps shaking the world’s financial markets

A Sting Exclusive: “Regional Policy: a fully-fledged investment policy”, Commissioner Cretu reveals live from European Business Summit 2015

2016 crisis update: the year of the Red Fire Monkey burns the world’s markets down

MWC 2016 LIVE: The top 5 themes of this year’s Mobile World Congress

UN chief welcomes agreement by rival leaders in South Sudan, as a step towards ‘inclusive and implementable’ peace

More Stings?

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