Italy’s pallid growth
euros which Italy received from the EU's Structural Funds, Cohesion Fund, and several national funds between 2006 and 2013 has been used, 36 suggesting potentially improper use of fiscal policy.
Finally, the COVID-19 crisis, although causing an 8.9% drop in GDP in 2020, 37 did not affect Italy’s growth rate disproportionately when compared to other European countries. We can therefore conclude this external factor did not cause ‘poor’ growth for Italy, relative to other countries. Other structural factors such as inefficient public administration (e.g. a remarkably poor civil justice system) 38 may contribute to Italy’s stagnant economic growth, although their significance is uncertain, given the lack of available statistical evidence.
IV.
Conclusion
Ultimately, although inequalities of opportunity from regional disparities themselves are not entirely responsible for Italy’s stagnation in the 21 st century (since they have, to a large extent, been historically present), it is plausible that without them, such economic shortcomings would have been mitigated, given the limitation they place on long-term growth potential, by preventing the optimal use of human capital. Troubles in business management in the age of globalization seem to be the largest contributing factor, while regional disparities act as friction that impedes the Italian population from working efficiently, as a congruent economy.
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