Italian welfare reforms: Missed opportunities for a paradigmatic change?

Abstract

The Italian welfare state has experienced a huge reform trend in the last two decades. This has been consistent with a lengthy (and still limited) transition towards a more financially viable system of social policies; and a more effective labour market regulation. These trends have been confirmed in the last few years, when the Italian social and employment policies saw further reforms to address short- and long-term challenges. The chapter shows the huge reform record (both before and after the recent economic crisis) has not led to paradigmatic changes: the Italian system is still heavily based on transfers, with limited social services, while active labour market policies and social investment measures in general are still of minor importance. All this confirms the Italian welfare system is still part of the Southern European model, with open questions about its future sustainability and adequacy.