Who's Holding Italy Back?
Bloomberg Businessweek Middle East|16 June, 2018

Populist politicians indulging pensioners are ruining the country for the young

Peter Coy & Alessandra Migliaccio
Who's Holding Italy Back?

At just 31 years old, Luigi Di Maio, head of Italy’s populist Five Star Movement, is no one’s image of a gerontocrat. Yet since helping form a new coalition government, Di Maio has given priority to rolling back a gradual increase in Italy’s retirement age— even though doing so would help older Italians while adding to the debt burden on his own generation.

Dismantling a money-saving 2011 pension measure is one of a handful of issues on which Di Maio sees eye to eye with his coalition partner, Matteo Salvini, 45, of the right-wing, anti- immigrant League party. Asked earlier this year about former Prime Minister Silvio Berlusconi’s goal of preserving the “good parts” of the 2011 measure, Salvini said, “It’s no problem, because there are no good parts in it.”

It’s not easy to be young in Italy, even apart from the pension burden. The country’s economic output is smaller now than it was in 2004, and employment policies are skewed to protecting jobs, not creating them. The number of Italians registered as living abroad rose 60 percent from 2006 to 2017, to almost 5 million. Among those who stay, it’s common for unemployed young people to live with their parents instead of starting their own families, which is one reason the country has one of the world’s lowest birthrates.

It’s understandable that after years of stagnation, Italian voters were eager for a change in government. But for a country that needs optimism and entrepreneurial vigour, the new leadership has a backward- looking agenda. The League wants tax cuts and tight restrictions on immigration. Five Star wants a guaranteed minimum income for all. Both say they want to stay in the European Union—but threaten to defy its rules on migration and debt.

هذه القصة مأخوذة من طبعة 16 June, 2018 من Bloomberg Businessweek Middle East.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

هذه القصة مأخوذة من طبعة 16 June, 2018 من Bloomberg Businessweek Middle East.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

المزيد من القصص من BLOOMBERG BUSINESSWEEK MIDDLE EAST مشاهدة الكل
Golfing With The Enemy
Bloomberg Businessweek Middle East

Golfing With The Enemy

Did Donald Trump's executives violate the Cuban embargo?

time-read
10+ mins  |
August 16, 2016
Super-Rich Syrians Wait for War's End
Bloomberg Businessweek Middle East

Super-Rich Syrians Wait for War's End

Actor, author, playwright. Gill Pringle tries her hand at unravelling the mystery behind this enigmatic multi-hyphenate

time-read
10+ mins  |
July 01, 2016
Pam Codispoti
Bloomberg Businessweek Middle East

Pam Codispoti

The mastermind behind the industry-shaping Chase Sapphire Reserve Card sets her sights on banking

time-read
2 mins  |
January 16, 2018
This Time It's The Economy
Bloomberg Businessweek Middle East

This Time It's The Economy

President Rouhani’s budget sets offprotests from people angry about unemployment and inflation

time-read
5 mins  |
January 16, 2018
Saudi Prince Counts On Support Of Citizens
Bloomberg Businessweek Middle East

Saudi Prince Counts On Support Of Citizens

State-worker salary increases appeal to the people, but policy may throw the budget off track

time-read
3 mins  |
January 16, 2018
Stalin's Legacy Is Choking The Ukrainian Economy
Bloomberg Businessweek Middle East

Stalin's Legacy Is Choking The Ukrainian Economy

The government has resisted pressure to lift a ban on land sales, despite pressure from the IMF and investors

time-read
4 mins  |
January 16, 2018
Catastrophe Bonds Survive A Stormy Year
Bloomberg Businessweek Middle East

Catastrophe Bonds Survive A Stormy Year

The turbulence of 2017 couldn’t destroy a market for betting against disasters

time-read
3 mins  |
January 16, 2018
Riding The West Bank's Credit Boom
Bloomberg Businessweek Middle East

Riding The West Bank's Credit Boom

Increased consumer lending is creating a bubble in the West Bank

time-read
3 mins  |
January 16, 2018
You'd Be Crazy To Buy Pizza With Bitcoin
Bloomberg Businessweek Middle East

You'd Be Crazy To Buy Pizza With Bitcoin

Speculative fervour makes the cryptocurrency clumsy for commerce

time-read
3 mins  |
January 16, 2018
What If The President Loses His Party?
Bloomberg Businessweek Middle East

What If The President Loses His Party?

Trump has to figure out a way to work with Republicans in Congress, or the global economy may be at stake

time-read
6 mins  |
August 16, 2017