In Italy, austerity measures have so far failed to generate economic growth or reduce debt, and continue to exact high social costs. Like other Eurozone members, Italy needs to:
• find a viable solution to restructure its debt;
• adopt a stimulus programme to promote investments and capital spending to generate growth and employment, particularly for young people, for example in the green economy or in the tourism sector;
• develop a plan to ensure the provision of public, universal, and highquality education, and to protect the Italian health care system.
Italy can and should collect the financial resources needed to implement these policies by tackling seriously tax avoidance and evasion. Italy is a country where, in 2011, only one taxpayer out of 10 declared more than €34,600 of income and only 28,000 taxpayers out of 41.3 million declared more than €300,000 of income per year;23 and where, for the tax authority, those in employment or retired are considered richer than entrepreneurs.24 Some timid steps have been put in place since 2012,25 but more comprehensive action is needed. Addressing the non-observed economy - estimated to be equal to 21.4 per cent of Italy GDP – or €346bn per year – is also crucial to tackle the influence of Italian criminal organizations on economic and social life.
Italy might be ‘too big to fail’, but it can’t be bailed with austerity measures, as an increasing number of Italians cannot cope with their impact anymore.