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Subject

Poverty trends in Italy.

Significance

In 2017, the number of Italians living in absolute poverty increased to over 5 million, the highest level since recording started in 2005, an ISTAT report (pdf) released in June shows. This happened despite the economic recovery over the past three years. Such data are fuelling the debate on the possible launch of a universal basic income, a flagship campaign promise of the anti-establishment Five Star Movement (M5S).

Impacts

The Conte government is divided on spending priorities and it risks achieving no meaningful result in the fight against poverty.

The ‘dignity decree’ is unlikely to lead to more, and more stable, jobs but will increase costs for businesses.

The drop in the unemployment rate to its lowest level since 2012 will not necessarily lead to a reduction in poverty rates.

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