It would be useful to expand and modify Chancellor Merkel’s European agenda in order to reduce the possibility of undesirable, unforeseen events.
By Autumn 2017, Italy should nonetheless fulfill other more strategic objectives and, above all, strengthen its potential for growth and competitiveness.
To do so, the Italian economy needs to improve the diffusion of those technical and organizational innovations that are already present in more advanced productive systems, but that require firms of adequate size and qualified employees in order to spread.
The diffusion of innovations will create economic “losers”; analogously with other EMU member states, Italy should thus implement reforms capable of redistributing income and ensuring effective social protection to the most vulnerable subset of its population.
Finally, the Italian government must bring structural disequilibria in the public budget under control.