Beyond the NRRP: the three drivers for Italia’s growth through the economy and reforms

Three levers, which must move in unison because they are interdependent: in a strategy that spans all aspects of economic life – from energy to the human capital generated by education and research, from technological transition to active labour market policies, without overlooking issues such as healthcare and urban safety. The aim is to pave the way for the country’s stable and equitable development following the experience of the National Recovery and Resilience Plan (PNRR).
The report on ‘Levers for Growth’, drawn up with the contribution of dozens of leading experts across the many sectors covered and with the support of the National Association of Municipalities, aims first and foremost to provide a basis for discussion at a decisive juncture.

Eighty years ago, at the birth of the Republic, Italia was a torn and extremely poor country. Since then, as well as becoming one of the leading advanced economies, it has made significant strides in terms of freedom and social rights, albeit not equally distributed. But it now stands at a crossroads.
The deteriorating international context and the impact of various transitions – starting with the demographic decline – are calling our development model into question and generating economic and social insecurity that is affecting social cohesion and democratic participation. This is why it is crucial to return to a medium- and long-term perspective, examining structural trajectories.

This approach is based on the view that policies are needed to ensure robust growth that is also inclusive, by addressing stagnant real wages and widespread inequalities.
Many of these policies require a European dimension. However, there remain weaknesses specific to Italy that must be addressed at national level: these include regional and generational disparities, low productivity, difficulties in harnessing human capital and transforming research into innovation, and shortcomings in administrative capacity and strategic leadership.
It is on these vulnerabilities that the Report focuses its analysis, proceeding from the conviction that there is no single driver of growth.

It identifies three closely interdependent factors: the competitive capacity of the productive system (digital transformation, energy, the water sector, and the scaling-up and technological modernisation of businesses), social investment, and institutional modernisation.
Demographic trends make it an absolute priority to implement measures to increase the participation in economic life of regions, young people and women who are currently marginalised, to reduce the significant gaps in administrative and judicial efficiency, to enhance human capital, to minimise the influence of family background on career progression, attract talent and improve the capacity to translate research into development. This is not merely an important requirement for equity: it is a matter of broadening the productive base to strengthen growth prospects.

This also includes policies that are usually considered in terms of their social impact, such as improving safety in towns and cities, strengthening the healthcare system, or tackling the growing risks of a mismatch between job roles and skills.
Institutional modernisation is also a decisive factor: not a sector-specific objective, but a cross-cutting prerequisite for the success of public policies. Without a public administration capable of planning, coordinating, implementing and evaluating, even the best policies remain fragile. As the Report highlights, many of Italy’s challenges stem not only from scarce resources or inadequate policy choices, but also from institutional shortcomings: energy prices, water wastage and difficulties in making the most of digital infrastructure also stem from a lack of public bodies dedicated to strategic analysis, difficult institutional synergies, administrative fragmentation, a lack of technical capacity and regulatory complexity.