Today the new Governor of Bankitalia, Mr. Mario Draghi, in its first final Considerations speech at Bankitalia, speaks about the "absolute priority" of Italian economic to grow, to find again the way of the development.
In his speech its clear that the objective "to return to the increase" is, therefore, the imperative, the reorganization of the public finance, "become imperative", Mr Draghi indicate the urgent challenge that the Country must face in order to restart the motor of the development.
And, it chases the Governor, "the stability financial institution is necessary condition for the economic development: but in Italy this is its turn a requirement for the stability financial institution. It is necessary, control the first one, to re start the other".
The Italian public debt is running out of control, too many political and decision layers, stop any will of change, and burn money without a reliable output.
Italy is plagued from one productivity crisis. "The obtainable product from an hour of job has grown much less than elsewhere: beyond a point percentage is less every year, regarding the countries of the Ocse. Because of the delay in the adaptation of the technological-organizational ability to the enterprises and the system, the overall productivity has been reduced, the only case between the Countries industrializes".
Mr Draghi assert that, "the progress in the efficiency and competition is hindered by a wrong dimension of enterprises, little compatible with the new technological paradigms and overall competition" and also "an excessive specialization oriented to the more traditional productions".
Mr Draghi says: "Remove the obstacles to the enterprises' grow is the necessary condition in order to pick up the opportunity offered by globalization of the markets and in order to stimulate one wide and systematic spread of innovations in the corporate structure, in the production processes, in the product line".
This would be the main street for Italy, in order to recover international competitiveness and foster the economic development.
Deregulation is another important issue on Italy's economic structure.. Too many laws protect small sector from competition, too many obstacle to enter or grow in some markets area. A public justice that works with times that are not fit for a modern country or business development environment.
Italy needs a big change to a free markets environment and a big change on his rules structure to be linked with world economic cycle.
For integral speech (in italian): http://www.bancaditalia.it/pubblicazioni/ricec/relann/rel05/rel05it/cf05_considerazioni_finali.pdf