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When Draghi took office, he pledged to rescue Italyโs economy from the pandemic and fix its structural weaknesses by using the $315 billion that were received through mostly European Union funds.
This has seemingly worked when in 2022 Italy saw a 3.6% growth spike, but many assumed this was more due to another COVID rebalancing rather than any actual work put into the economy. Then in 2023 the GDP grew by 1.6%, which was a slightly more reasonable amount compared to the 3.6% of the year prior. However, now the economic growth is a measly 0.8%. All the while, the population growth continues to be negative, with people leaving Italy, seeking better opportunities elsewhere.
The big question has been: where is the impact of Draghi's policies? There has been some movement, but it has mostly been quiet, with southern Italy still lacking heavily in terms of economic output. While the government has improved in some facets, we are still being weighed down by longstanding structural issues, low labor productivity, blocking red tape in public administration and the courts, low foreign investment, and an underperforming educational system. These are critical sections of any nation, but usually we see a nation as large as Italy directly addressing these glaring problems. Italy has yet to do much in regards to these problems, but Draghi has issued promises that new programs will be instituted to direct address them.
The Italian people are a little skeptical, especially given what seems to now be failed promises, but it is up to Draghi to win the people's hearts back.
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