Italy’s Industrial Debate: From Developmentalism to the Twin Transitions (IV)

Executive Summary

Italy’s parliamentary debates trace the rise, fall, and cautious return of industrial policy. From post-war reconstruction to the green and digital transitions, the way Italian policymakers discuss industry mirrors shifting economic regimes. Text analysis of 75 years of parliamentary speeches reveals four phases — developmentalist consensus, fiscal retreat, EU-driven liberalisation, and a recent but externally framed revival.

Post-war developmentalism built consensus and ambition. Between the 1950s and 1970s, industrial policy was central to Italy’s economic strategy. Broad parliamentary coalitions supported state-led growth through large public enterprises and regional development for the Mezzogiorno. The state’s productive role was seen as compatible with democracy and prosperity — a unifying project across ideological lines.

Fiscal pressure and “assistenzialismo” narratives eroded legitimacy in the 1980s. Mounting public debt, inefficiencies, and political capture turned industrial policy from a tool of development into a symbol of excess. Liberal and right-wing parties attacked it as clientelistic, while mainstream parties shifted toward privatisation and public–private cooperation. Parliament’s tone grew defensive: less about strategy, more about survival.

European integration reframed the policy space. From the 1990s to mid-2010s, EU competition law, fiscal constraints, and market orthodoxy narrowed the scope for national intervention. Industrial policy debates focused on offshoring, declining sectors, and Southern Italy — a defensive use of the state, not a proactive vision for upgrading the economy. The European Single Market became both context and constraint.

The twin transitions revived salience — but within EU frames. Since the mid-2010s, green, digital, and resilience agendas have brought industrial policy back to Parliament. Yet this revival remains anchored in EU instruments such as NextGenerationEU and the PNRR. Parties across the spectrum call for strategic state involvement but largely echo European priorities rather than define a national one. The discourse has rediscovered the need for industrial policy, but not yet a shared vision for what Italy’s should be.

Italy’s industrial policy debate remains reactive rather than visionary. Over 75 years, parliamentary discourse has mirrored the country’s economic evolution — from developmental ambition to fiscal restraint and EU-framed adaptation. While industrial policy has returned to political salience through the green and digital transitions, it still lacks a coherent national vision that connects strategic sectors, productivity, quality employment, and territorial cohesion. Italy’s challenge is not rediscovering industrial policy — but redefining what kind it wants to pursue.