ABSTRACT
Since the 1990s, the deep economic, political, and institutional crisis that befell Italy precipitated the unsustainability of its welfare system. Consequently, policymakers embarked on a now 25-year-long reform trajectory, whose aims were to restore the financial viability of social policies, reduce the rigidity of labour market regulation, and fundamentally recalibrate the welfare state. This trajectory was often shaped by external pressures, especially by the conditions attached to the accession and membership of the Economic and Monetary Union (EMU). In particular, the sovereign debt crisis that started in 2008–2009 and led to a rethinking of the rules governing the EMU rekindled a reform effort in Italy. Unlike previous attempts, these measures did not consist of retrenchment only, but also of timid recalibration and, unlike in the past, they displayed greater ideational and policy consistency. Yet, the patchy and chiefly crisis-induced nature of reforms still prevented Italy from adopting a new, modernised, and consistent version of welfare capitalism.
