On Wednesday, the central bank president advocated a minimum wage to tackle social inequality, saying Italian wages have seen some of the weakest real growth in Europe over the past 25 years.
In a high-profile lecture, Bank of Italy Governor Ignazio Visco, who leaves this year, emphasized how well-managed migration could offset the economic effects of Italy’s low birth rate over the next two decades.
At the weekend, Prime Minister Giorgia Meloni’s right-wing cabinet said a minimum wage was great but could backfire. Visco opposed.
Visco criticized Italy’s short-term contract system, which has increased employment but decreased salaries.
20% of young workers were temporary after five years.
“Too many, not just the young, do not have official jobs or, if they do, are not offered adequate contractual conditions, as in other major countries,” Visco said.
“Introducing a well-designed minimum wage system could be the response to non-trivial demands for social justice.”
Visco also encouraged the European Central Bank to avoid overtightening or under-tightening, which could enhance inflation expectations.
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