London – In the context of Italy’s Economic and Labour reform, conference at the LSE on May 29 , we have asked some question on the current situation italian politics, Jobs Act Reform and UE, to Filippo Taddei Assistant Professor, SAIS – Johns Hopkins University:
Which country and leadership have inspired you for the Jobs Act Reform ?
rather than a single country, the inspiration has been a certain perspective on Italy and Europe. The perspective was bult on two assumptions: Italy is a country with great potential and a great deal of delay in addressing its fundamental problems, starting with its labor market; Europe and the promise of the Euro of fostering economic and political integration rely on the ability of European institutions to provide prompt policy responses and on the capacity of national institutions to undertake domestic reforms. Only when member countries implement a clear commitment to solve their national problems, they also acquire the political strenght to foster change at the the European level. Economic reforms in Italy work on both fronts: we are changing the country and also trying ro have an impact in Europe.
It has the highest level of youth unemployment in the EU after Greece. Has the Jobs Act produced any relevant effect in Italy‘s stagnant Labour Market?
The pace of the reform has been impressive and its implementation is about to be completed – two more months. Since the labor market reform was announced last June, in December the Parliament has given mandate to the Government to implement the relevant decrees. The first decrees has been sent to Parliament ion Dec 24th2014 and they have become laws on March 7th 2015. In two weeks we will have the last decrees and in two months they will become law. It’s only more than 40 days that we have the new permanent contract with increasing protection and more extensive and longer unemployment insurance. We already see the benefits kicking in: more workers are transitioning into permanent contracts, gaining better working conditions and acquiring more training on the job. The duality of the Italian labor market is starting to correct itself. More is coming but the initial data are showing considerable improvements. We observe more hiring with the right contracts that increase productivity. The new permanent contarct is more flexible, posibly the most flexible in Europe, but its the right kind of flexibility on and off the job. We are not mimicking some country model, we are building the Italian model.
Italians are voting for Regional Election this coming weekend. What are the next Economic reforms of Matteo Renzi‘s government ?
Overcoming labor market duality is not important only on the grund of equality but also with respect to enhancing human capital, the real loss of this crisis. We are an advanced economy and we want to compete with the skills of our workers, not because we ask them to cut their salaries. After making the labor market more flexible, we want to help also capital to reallocate itself in search for more productive uses. Italy offers tremendous upside potential after all it has loss. It’s time to recover the deficit emerged during the crisis by supporting investment as we have never done. If an investor looks for a place where they can build a company relying on good quality human capital, they must know that they will find in Italy the right amount of flexibility, skills and available “at a discount”. We are investing on investors to foster job creation and the transformation of the industrial structure. The fiscal year started with the investment compact to support liberalization in our financial sector and incentivize growth of our SMEs. It will continue with the competition law and the spending review 2.0 necessary to lower taxation on tax wedge on labor. We have just started: “let us continue” as Lyndon Johnson would say
2012-present Assistant Professor, School of Advanced International Studies – The Johns Hopkins University
2012-present Research Fellow, Collegio Carlo Alberto
2007-2012 Assistant Professor, Collegio Carlo Alberto
2008-2012 Vice Director Allievi Program, Collegio Carlo Alberto (CCA)
2005-07 Lecturer, School of International and Public Affairs (SIPA), Columbia University
2005 Ph.D. in Economics (with Distinction), Columbia University
2003 M.Phil. in Economics, Columbia University
2002 M.A. in Economics, Columbia University
2000 Laurea in Economics (cum Laude), University of Bologna, Italy