Every mistake, small or big, could be fatal. The Italian south needs a long cycle of public and private investments that favor efficiency over speed. Every mistake, small or big, could prevent us from consolidating progress in the golden season of the post-pandemic period or at least seriously slow down the virtuous process that has been underway for more than four years. A long cycle is needed because the cycle in which investments for a third of the country’s population have almost disappeared and their citizenship rights have been denied has been too long. The result of this short-sightedness is that all indicators point to a decline in incomes and employment, resulting in a per capita GDP in the southern regions that is just over half that of the central-north regions. Effective public and private investments, along with the end of social welfare, are the critical challenge that must be overcome..
The deep meaning of the analytical speech of the Governor of the Bank of Italy, Fabio PanettaWhich was held yesterday in Catania under the title “Yet it Moves: The Economy of the South after the Crisis“It is to move forward, being careful not to stop the post-pandemic process of GDP growth, exports and employment, but above all, to move forward well. Which means choosing the right people, organizing properly, and using the mountain of European funds set aside to strengthen the water and electricity networks first and foremost, both essential to boost companies’ activities and exploit the comparative advantage in the production of renewable energy. It is the new geopolitical framework and the geographical location of the only European platform extending to the Mediterranean that offer southern Italy this historic opportunity. This applies to the entire country and the entire old continent.
The truth, and this newspaper did not fail to report, is that between 2019 and 2023, the trend continues in 2024, with the GDP of the South rising by 3.7% compared to 3.3% in the other regions, with exports growing by 13%, 4% more than the center-north. Employment rose by 3.5% compared to 1.5% in the rest of the country. We could go on, but it is right to stop here. What matters is something else. What is important to understand is that it only takes a moment for everything to stop. You just have to go back to the usual propaganda that reduces everything to a request for public money that is either not spent or wasted.
The real game is about how to use available European and national public investments. Which can be generally estimated at a value equivalent to 5% of GDP each year until 2030. It is clear that the process of convergence and boosting the Italian economy will continue if this money is used correctly, helping to create the right production context. Because this is the context that thus mobilizes private investments and encourages the attraction of international capital.
We are talking about 5% of GDP, between the Pnrr and the structural, cohesion and development funds. To this figure, which is impressive in itself, the Infrastructure Equalization Fund for the South could add more. We are facing a mountain of money. Let us consider that during the golden period of the extraordinary intervention of the Pescatore Foundation, significant resources were used, equivalent to 2% of GDP. Today, the stakes are more than double. In the first case, 2% of GDP well spent raised per capita income in the South, compared to the Center and the North, from 50% to 60%. So today, more can be done, but mistakes cannot be made.
Panetta concluded his remarks with a quote: Donato MenichellaGovernor of the Bank of Italy who won the Oscar of the world lira and was the theorist with De Gasperi, Vanoni, Campelli and Piscatore of the extraordinary phase of the Casa del Mezzogiorno which was the decisive technical instrument of the Italian economic miracle that transformed a second-rate agricultural country into a world economic power. Menichella’s words at the time are as follows: «No tool, however well designed, can produce useful results if it is not entrusted to expert hands and upright consciences.».
This must be the reference model today for the Single Special Economic Zone to truly succeed and for the healthy growth of the New South to continue at the pace of the economic miracle without which there is no internal convergence, but in the long term. They have stopped everything, including Italy and Europe. The precious work done so far, and the choice, not inspired by criteria of political affiliation, but of competence, to guide the Single Special Economic Zone, which constitutes the new instrument, feeds solid expectations. However, let us always remember that There is still a long way to go and every little stumbling block needs to be nipped in the bud.We need to be very strict on this because the perverted welfare circle is not dead and is just looking for an opportunity to infiltrate and disrupt everything. Let’s not let our guard down.
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