Employers call for Italian structural reform under EMU

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In May 1998, the board of the Confindustria employers' confederation approved a document, aimed at the Government and other social partners, setting out proposals for structural reforms (including labour market reform) seen as necessary to ensure Italy's development under EMU.

On 7 May 1998, the board of Confindustria- the most important Italian employers' organisation - approved a document entitled Europe: factor of competitiveness and development (Europa fattore di competitività e sviluppo) and sent it to the Government. Confindustria is highly satisfied that Italy is joining EU Economic Monetary Union (EMU) and this important new document, drawn up by its executive board, aims to propose some guidelines to the Italian Government and other social partners for the development of structural reforms which can ensure the development of Italy in the new European context. The Confindustria document deals with: the reform of the labour market and of social security; the privatisation and the liberalisation of many sectors; and the necessity of a new policy for the Italian South, or Mezzogiorno.

Confindustria acknowledges the results achieved by the current Government led by Romano Prodi and by the previous governments from 1992 on, and also acknowledges that these results were possible thanks to the sacrifices made by citizens and by enterprises. However, more than anything else, it is thanks to social dialogue and social concertation, which led to the 1993 tripartite agreements (IT9803223F), that it has been possible to reduce inflation. Nevertheless, according to Confindustria, matters still have not reached a conclusion: it is necessary to carry out the structural reforms which Italy needs with the same determination that was used to bring about the financial recovery.

"The day after the single currency, we can look towards a future of monetary stability, of low inflation, of low interest rates, of consolidation of the European single market and of better working, investment and development perspectives for enterprises," states Confindustria. The employers' body believes that the adoption of the euro represents only one of the stages of the modernisation process of the country and that remaining in EMU will not be an easy and automatic process but will require a constant and rigorous policy.

The document is divided into five main chapters which deal with issues common to all European countries. It starts (in the chapter entitled Un Europa che deve cambiare) by stressing the necessity of a change not only in Italy but in all European countries.

Confindustria also identifies what it sees as a new "European agenda" which is emerging from the reflections of governments, business people and trade union leaders. These reflections converge on the necessity of: creating the conditions for economic growth with a higher level of employment; increasing investment; reducing the tax burden on employment and production; and relaunching public investment. Europe, according to the document, can overcome its difficulties only through structural reforms. These should aim to make the labour and service markets more flexible and competitive, and to improve education and training services. According to Confindustria, in order to implement these reforms, European countries must safeguard the values of social solidarity through concertation.

The document deals with economic policy issues, starting from the necessity of carrying out structural reforms which are essential to give a new impetus and flexibility to the economy (according to the chapter entitled L'Europa motore di competitività e sviluppo). The last three chapters deal with widening the European Union (Le Nuove frontiere dell'Europa), citizens' rights (Uno Spazio di Sicurezza e di Diritti) and European institutions (Un'Europa Politicamente Legittima).