Abstract

The paper describes the evolution of industrial relations and labour market reforms in Italy. It illustrates how the interaction of labour reforms, austerity policies, and structural reforms in the areas of taxation, pensions, and welfare have aggravated precariousness, inequality, and poverty. The analysis highlights the costs that derive from relying exclusively on labour market reforms to revive employment and growth, supporting the view that revitalisation of social dialogue and a shift from austerity to implementation of an effective industrial policy can provide a better recipe to weather the crisis and address the challenges of the emerging techno-economic system in a globalised and competitive environment.