Analysis of NAPs Inclusion Italy

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ITALY: ANALYSIS OF REPORTS PER COUNTRY


This page is a result of the revision by Peter Ramsden and Magda Barceló of the report "European National Action Plans for Social Inclusion and microfinance: Participation strategies, importance and challenges" (Trans-formando, 2008)

Joint Report on Social Protection and Social Inclusion 2006 – 2008 http://ec.europa.eu/employment_social/social_inclusion/docs/2006/nap/italy_it.pdf

National Action Plan on Social Inclusion 2003 – 2005 http://ec.europa.eu/employment_social/social_inclusion/docs/it_nap_final_en.pdf

Contents

Situation and key trends

  • Economic growth declined to 0% in 2005, which is below the EU average (1.6%). However, the Italian government expected a 1.6% economic growth in 2006. The budget deficit represents 3.8% of Italy’s GDP in 2006. The public debt ratio - which is 109% - is the second highest in the OECD, with no sign of significant decline (figures of 2006).
  • Since the late 90’s, the unemployment rate has declined and is now 7% - which is the lowest rate in the last 20 years, below the EU average (8.7%). In 2005, thanks to the increase in employment, women, elderly people and also long-standing jobless people have benefited from this. People who were looking for a job for more than one year count for less than 4% of the workforce (EU average: 4%). The employment rate of people aged 55-64 rose to more than 30%, which is below the EU average (42.5%).
  • The labour market has been affected by economic difficulties. Between 2003 and 2005, the employment rate has been constantly around 57.5%. Furthermore, in 2006, good signs regarding economic growth in Italy are raising this rate, which is of 58.9% nowadays - below the EU average (70%).
  • The age structure of the population is worrying the Italian government, which raises a “demographic risk” . In fact, Italy has the highest rate of people aged 65+ in all of Europe, which arouses the problem of pensions and welfare system (social expenditure for example). For instance, 30% of people aged 65+ are non self-sufficient and this rate is expected to double before 2040.
  • The effective labour market exit age in 2005 was 59.5, below the EU average which is 60.7. Regarding poverty, 19% of the Italian population was below the at-risk-of-poverty threshold in 2004 (16% in the EU).
  • Regarding social expenditure as a percentage of GDP, Italy is still below the EU average (25.6% compared to 27.1% in the EU in 2005) even though this rate is expected to grow by 1.7 points by 2050. For instance, less than 4% of social expenditure is intended to expenditure regarding families, largely below the EU average (8%). Furthermore, 22% of young people aged 18-24 have no degree taken after 2 years at university, which is above the EU average (15%).
  • Life expectancy at birth (78 for males and 84 for females in 2005) is above the 2003 EU average (World Health Organization figures) showing a 2-year increase in 5 years (76.0 and 82.0 in 2000) and is one of the highest in the EU. Healthy life expectancy (71.0 and 75.0) is above the EU average. The infant mortality rate (4.0‰ is 2005) is below the EU average.
  • An important point is that those previous figures are a little bit distorted, due to the important role played by the unofficial economy in Italy.

Priority and objectives of the NAP

There are 9 main objectives in the Italian plan:

  • To fight against poverty
  • To promote equality
  • To promote job security
  • To reduce inequalities between the south and the north of the country
  • To promote employment, especially for women and young people
  • To support social help for unemployed people
  • To invest in research and education
  • To help migrants join the mainstream
  • To beef up help for non self-sufficient people


These main objectives are included in this social plan and are developed page 15 to 18. Each objective is followed by measures to reach them.


The 1rst and the 8th objectives are the most related with microfinance. Microcredit is one of the ways that can help lower social classes to get out of poverty and that can help migrants to work.

Financial Inclusion or Microfinance mention

Joint Report on Social Protection and Social Inclusion 2006 – 2008

  • This report is focused on Pensions, Health Care, Social Inclusion. Chapter 2 deals with poverty and high-poverty. In order to fight against poverty, the government offers different measures.
  • It boasts a “Plan for the Youth”, which includes credit for: studies, accommodation, consumption, acquiring a computer, employment etc…

National Action Plan against poverty and social exclusion 2003 – 2005

  • Chapter 2 “Analysis of improvements done in the 2003 – 2005 plan ” Section 2.2.3 “To increase the employment regarding disadvantaged people” and “All regional administrations have reserved funds in order to allocate small social subsidies by helping Non Governmental Organization and social meetings”. But there is nothing specific about Microfinance.

Major changes with previous reports

  • Previous reports are not so different. They all try to design solutions regarding social inclusion in a way that is attuned with European objectives: the Copenhagen and the Lisbon ones for the two last reports.
  • The main change is about principal objectives. The last report is more focused on the struggle against poverty in order to reach “social equity”. This report insists on the fact that the labour market is highly connected to poverty and that in order to reach a healthy economic situation, the Italian government has to curb the number of people under the poverty line.
  • Another change is that the 2006-2008 report deals more with the split between the North and the South of Italy than the previous report. For years, this long-standing split is the Achilles’ heel of Italy, especially regarding economic development.

Preparation of the report

  • The report has been coordinated by the Ministry of Labour and Social Affair, the Ministry of Social Solidarity, and the Ministry of Health. The intention of these ministries is to reach social equity by taking measures involving national, regional and local actors.

Comments

  • As a consequence of the fact that micro-finance is becoming more important in Italy, the Minister of Labour has proposed some measures for the unemployed and for the young people that mention the creation of micro-credit funds for the independent job and self-employment.
  • Although micro-credits are becoming more important in Italy, the dimensions are comparatively small. The programs are about 20, the gross loan portfolio is about five million euro, and the number of borrowers is about 1500.
  • Some local organizations are also involved in micro-finance, each time more.
  • Self-employment is a clear priority in the Italian plan


Contacts of interest

  • Microfinanza Srl:

Mameli Biasin: Director Telephone: (+39) 02 36565019 Fax :+39 02 365 650 18 Email: info@microfinanzarating.com Website: www.microfinanza.it


  • Mag 2 Finance:

Barbara Aiolfi: CEO Telephone: (+39) 02 66 96 355 Email: aiolfi@mag2.it

  • "Ministero del Lavoro e della previdenza sociale"

Minister: Cesare Damiano Secretary: Prof. Francesco Tomasone tel. +39 0648161638-9 E-mail: segrgabinetto@lavoro.gov.it http://www.lavoro.gov.it/lavoro/

  • "Ministero del Lavoro e della SolidarietaSociale "

Minister: Paolo Ferrero Tel: +39 800 196 196 E-mail: informa@solidarietasociale.gov.it http://www.solidarietasociale.gov.it/SolidarietaSociale/

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