Eurozone entry and Italy’s modest growth

Schilirò, Daniele (2019): Eurozone entry and Italy’s modest growth.

Abstract

Since adopting the single currency, Italy has experienced a prolonged period of economic stagnation characterized by structural deceleration. This paper analyzes Italy’s macroeconomic performance across three distinct phases: the pre-crisis slowdown (2000–2007), the dual impact of the global financial and sovereign debt crises (2008–2013), and the subsequent period of sub-average recovery (2014–2019). The study examines how the shift to a unified monetary regime, coupled with intensifying global competition, exposed deep-seated structural vulnerabilities within the Italian economy. By synthesizing previous research, this work identifies the primary drivers of this stagnation—specifically focusing on low productivity and innovation, labor market rigidities, tax system inefficiencies, and constraints on factor supply. Furthermore, the analysis addresses critical institutional barriers, emphasizing the need for market liberalization, particularly in the service sectors, and a redefined role for the state. The paper concludes that comprehensive structural reforms are essential to restoring national competitiveness and ensuring sustainable growth within the Eurozone framework.

• Item Type: MPRA Paper
• Language: English
• Keywords: Italian Economy; GDP Growth; Single Currency; Economic Stagnation
• Subjects: E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook; F - International Economics > F0 - General; J - Labor and Demographic Economics > J0 - General > J01 - Labor Economics: General; L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General

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