Italy’s productivity is on the decline. This is bad news for Italy and for the EU (and especially the Eurozone countries).

Italy seems to have a whole bureaucracy of regulation that keeps Italian companies small ….. making it difficult to secure economies of scale … and stops them doing lots of things that would improve their productivity.

Of course this is unsustainable in the longer-term … but Italy is a conservative country … not really open to change.

I fear things have to get worse before they get better.