Why Italy Stagnates

As an ambitious Italian entrepreneur, here are some of the government hurdles you face:

Two-thirds of your employees’ Social Security taxes are paid by you.

After hiring your 11^th employee, you must submit an elaborate assessment of every possible health and safety hazard to which your employees might be subject, including – get this – the stress caused by age, gender and racial differences.

After your 16^th employee, dismissing a staffer becomes nearly impossible. Plus, your employees then become unionized, requiring you to consult union representatives on many issues, including gender equality and the introduction of new technology. You must also begin hiring the disabled. (By your 51^st worker, 7 percent of your workers must be disabled.) 

After your 101^st employee, you must submit an elaborate report every two years on the gender dynamics in the company, including the dynamics in each production unit.

Certain exemptions ease the way. But the overall costs, include those of the applicable government bureaucracies, subtract over 47 percent from the average Italian wage. Since many costs are hidden, most Italian workers don’t know the total costs of their employment. 

No surprise that Italy’s unemployment rate is 10 percent. No surprise, either, that Italy is likely to leave the Euro.

These conditions are prevalent throughout much of Europe. Eventually, the Euro itself will probably disappear.