According to Bocconi University Professor Tito Boeri, Italy has many “deep-seated cultural obstacles to growth.” He added that “in Italy, you define your identity in terms of your membership of some specific interest group.” He said that it makes it hard to get support for any notion of the common good.
Dozens of business in Italy are finding it difficult to gain growth and expansion. The case of 88-year old entrepreneur Bernardo Capriotti, which had his building permits approved only after 30 years, shows how difficult it is to do business in Italy. He said that “Italy cannot go on like this. Either we change or we go nowhere.”
According to Italian business analysts, across Europe, many blame the austerity policies that have drained local demand and that had prolonged the six-year economic plunge of the entire region. They said it could give the impression that European countries are finally coming out of the dust, but the slow growth is attributed to red tape and lengthy proceedings.
Italy’s growth had been unstable for 20 years, and since 2008, Italy’s economy had reduced by 9% and it is even struggling to expand by 1%. With a debt 133% more than its domestic product at €2T, Italy’s insolvency could return at any time, which can be bad for the Euro.
Analysts said the root of the problem is the vested interests in the private and public sectors, which are gumming up the economy and preventing the change needed to ensure the stability of the country.