Abstract

This article analyses the most recent changes in the Italian youth employment policy. Since 2014, the Renzi government has adopted some important reforms in unemployment benefits, active labour market policies and vocational education and training. Although such reforms seem to follow a new policy trajectory, it is too early to say if Italy has actually abandoned the previous youth employment regime. Low institutional capabilities, deficiencies in the reform design and limited financial resources severely hinder the possibility of a swift change. Moreover, any successful strategy in this policy domain has to be accompanied by demand-side policies focused on the creation of quality jobs and by strong investment in benefits and services for supporting inclusive transitions. Nevertheless, the funding of these interventions is constrained by budgetary restrictions and the limited growth of the national economy. This situation calls for solutions also at the European level which point to the revision of the austerity policy strategy and the adoption of new instruments of transnational solidarity. In that respect, the article outlines a proposal for the creation of a new European scheme aimed at supporting active transitions of young workers.