

Italy's demographic trends and the risks they pose to the economy and society have long been known. Most worrying is the sharp decline in the working-age population. Without significant changes, output is bound to fall, making it more difficult to maintain the standard of living achieved so far. The decline in potential labour supply can be countered in a number of ways: by increasing labour force participation, especially among women and young people, which is still very low; by ensuring regular migration flows and the full integration of foreigners who have come and will come to Italy; by facilitating labour force participation also at older ages; by exploiting the opportunities for productivity growth offered by new technologies. Public policies can play a fundamental role, but interventions in the various areas must be coordinated, coherent and stable over time.
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