To increase Italy’s economic growth, the new coalition between the Five Star Movement (FSM) and the Democratic Party must: (i) overcome their latent internal conflict, thus avoiding the reappearance in new forms of the pre-existing climate of political uncertainty; (ii) launch an effective economic policy package that will encourage sustainable development in the short and medium-long term, one that is, at the same time, compatible with Italy’s commitments to the European institutions and with Italy regaining its central role in the European Union (EU).

In this Policy Brief author focuses on point (ii), keeping the short-term problems separate from the medium to long-term ones, even if, in the actual way the Italian economy works, the two problems are strongly intertwined.