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The growth of the Italian economy, a question of enterprise culture

A Bank of Italy study shows that companies are expanding, but at an uneven rate

 

Contrary to the predictions of the pessimists, the Italian economy has grown, according to data and analysis from the Bank of Italy in a recently published research paper. This is due to productivity and ‘industrial intelligence’, but these do not hide the problems that need to be addressed, which are rooted in the need to spread a business culture that is still often for the few.

‘Le recenti dinamiche della produttività e le trasformazioni del sistema produttivo’ (The recent dynamics of productivity and the transformations of the production system) is a research paper published in the Occasional Papers series ‘Questioni di Economia e Finanza’, conducted by a large group of economists at the Central Institute. The paper takes its cue from an observation: ‘Between 2019 and 2024, the GDP growth rate was 5.6 per cent, despite the shocks related to the pandemic, energy crisis and geopolitical tensions. This was slightly higher than the previous five-year period (5.1 per cent) and higher than that of the euro area (4.8 per cent). The expansion of activity levels was most pronounced in the private sector, with growth in value added reaching almost 10 per cent. The increase has benefited significantly from generous fiscal policies, but has lost momentum in the last two years.’ This expansion primarily impacted construction and services, while manufacturing slowed, and employment grew, though productivity weakened and declined over the past two years.  These are the core facts that the Bank of Italy’s team of economists sought to examine in depth.

One of the survey’s conclusions was that the average size of companies had increased, as had their profitability and propensity to invest.  This demonstrates that a large proportion of Italian entrepreneurs tried to respond to difficulties by reallocating resources, investing, and trying to increase production efficiency. However, the problem that has emerged is no small one:  the gap between the best companies and the rest of the productive sector has increased, meaning that while the Italian economy has grown, it has done so unevenly, leaving many companies behind.

What can we do, then? The research explains: ‘In order to close the productivity gap with the main European countries and in light of recent signs of weakening, it will be crucial to promote a wider adoption of advanced technologies and strengthen the productive fabric more widely.’  In short, this means speeding up the spread of the improved corporate culture that has driven only a fraction of companies to innovate. This is not a small challenge, but it is one that must be addressed.

Le recenti dinamiche della produttività e le trasformazioni del sistema produttivo

Antonio Accetturo, Audinga Baltrunaite, Emanuele Ciani, Federico Cingano, Federica Daniele, Roberta De Luca, Irene Di Marzio, Rosalia Greco, Andrea Linarello, Francesco Manaresi and Sauro Mocetti

Bank of Italy, Questioni di Economia e Finanza (Occasional Papers), no. 953 – July 2025

The growth of the Italian economy, a question of enterprise culture
The growth of the Italian economy, a question of enterprise culture

A Bank of Italy study shows that companies are expanding, but at an uneven rate

 

Contrary to the predictions of the pessimists, the Italian economy has grown, according to data and analysis from the Bank of Italy in a recently published research paper. This is due to productivity and ‘industrial intelligence’, but these do not hide the problems that need to be addressed, which are rooted in the need to spread a business culture that is still often for the few.

‘Le recenti dinamiche della produttività e le trasformazioni del sistema produttivo’ (The recent dynamics of productivity and the transformations of the production system) is a research paper published in the Occasional Papers series ‘Questioni di Economia e Finanza’, conducted by a large group of economists at the Central Institute. The paper takes its cue from an observation: ‘Between 2019 and 2024, the GDP growth rate was 5.6 per cent, despite the shocks related to the pandemic, energy crisis and geopolitical tensions. This was slightly higher than the previous five-year period (5.1 per cent) and higher than that of the euro area (4.8 per cent). The expansion of activity levels was most pronounced in the private sector, with growth in value added reaching almost 10 per cent. The increase has benefited significantly from generous fiscal policies, but has lost momentum in the last two years.’ This expansion primarily impacted construction and services, while manufacturing slowed, and employment grew, though productivity weakened and declined over the past two years.  These are the core facts that the Bank of Italy’s team of economists sought to examine in depth.

One of the survey’s conclusions was that the average size of companies had increased, as had their profitability and propensity to invest.  This demonstrates that a large proportion of Italian entrepreneurs tried to respond to difficulties by reallocating resources, investing, and trying to increase production efficiency. However, the problem that has emerged is no small one:  the gap between the best companies and the rest of the productive sector has increased, meaning that while the Italian economy has grown, it has done so unevenly, leaving many companies behind.

What can we do, then? The research explains: ‘In order to close the productivity gap with the main European countries and in light of recent signs of weakening, it will be crucial to promote a wider adoption of advanced technologies and strengthen the productive fabric more widely.’  In short, this means speeding up the spread of the improved corporate culture that has driven only a fraction of companies to innovate. This is not a small challenge, but it is one that must be addressed.

Le recenti dinamiche della produttività e le trasformazioni del sistema produttivo

Antonio Accetturo, Audinga Baltrunaite, Emanuele Ciani, Federico Cingano, Federica Daniele, Roberta De Luca, Irene Di Marzio, Rosalia Greco, Andrea Linarello, Francesco Manaresi and Sauro Mocetti

Bank of Italy, Questioni di Economia e Finanza (Occasional Papers), no. 953 – July 2025

Finding yourself at the helm of a business

Ten CEO stories tell ten life stories

CEOs, yes, but first and foremost human beings, with all their dreams but also their problems, their aspirations and their anxieties. People who often find themselves unexpectedly running businesses and succeeding at it, driven by their innate sense of self. This is what Marco Rosetti, an entrepreneur with a background in industrial psychology, shares in ten interviews in his book ‘CEO per caso’ (CEO by accident), with a subtitle that speaks for itself: ‘Vite, imprese, probabilità’ (Lives, businesses, chances).

Rosetti explores territory that is rarely touched upon in the world of management:  the role of chance, the unexpected, and vulnerability in the lives and careers of company leaders. As mentioned, he achieves this through a collection of ten authentic and face to face interviews with the CEOs of well-known companies such as Geox, Artsana and Omnicom Media Group Italy, who share their experiences of discontinuity, uncertainty and disorientation that led them to where they are today. So these are not stories of machines programmed for efficiency, but true stories of real people’s lives, which are all enlightening for those who read them.

They are about human beings grappling with the adventures of doing business.

However, all this comes with a warning: the book doesn’t aim to teach you how to become a CEO. Instead, it explores the value of intuition, adaptability, and imperfection in an age that celebrates control and planning. What’s more, the author considers how the digital economy legitimises what the traditional economy has always rejected. Success is not always the result of a linear trajectory or rational choices; sometimes, on the contrary, it stems from setbacks, coincidences and mistakes.

In the ten stories contained in the book, readers won’t find any acts of arrogance or presumption, but they will find ambition and willpower. Empathy is also evident, in the way people are involved in the projects, and loneliness during those final moments of decision-making (companies, however attentive to nuances and differences, ultimately require clear decisions). These are all attitudes, characteristics and ways of being that stem from an awareness of inevitable mistakes, limitations and frailties. Something we can all relate to during difficult times.

Marco Rosetti’s book is well worth reading.  It helps to raise awareness of the fact that the lives of true entrepreneurs encompass much more than just efficiency and profit. They have a responsibility to act as social and cultural agents of change, driving progress and improvement in the world in which we live.

CEO per caso. Vite, imprese, probabilità

Marco Rosetti

Guerini Next, 2025

Finding yourself at the helm of a business
Finding yourself at the helm of a business

Ten CEO stories tell ten life stories

CEOs, yes, but first and foremost human beings, with all their dreams but also their problems, their aspirations and their anxieties. People who often find themselves unexpectedly running businesses and succeeding at it, driven by their innate sense of self. This is what Marco Rosetti, an entrepreneur with a background in industrial psychology, shares in ten interviews in his book ‘CEO per caso’ (CEO by accident), with a subtitle that speaks for itself: ‘Vite, imprese, probabilità’ (Lives, businesses, chances).

Rosetti explores territory that is rarely touched upon in the world of management:  the role of chance, the unexpected, and vulnerability in the lives and careers of company leaders. As mentioned, he achieves this through a collection of ten authentic and face to face interviews with the CEOs of well-known companies such as Geox, Artsana and Omnicom Media Group Italy, who share their experiences of discontinuity, uncertainty and disorientation that led them to where they are today. So these are not stories of machines programmed for efficiency, but true stories of real people’s lives, which are all enlightening for those who read them.

They are about human beings grappling with the adventures of doing business.

However, all this comes with a warning: the book doesn’t aim to teach you how to become a CEO. Instead, it explores the value of intuition, adaptability, and imperfection in an age that celebrates control and planning. What’s more, the author considers how the digital economy legitimises what the traditional economy has always rejected. Success is not always the result of a linear trajectory or rational choices; sometimes, on the contrary, it stems from setbacks, coincidences and mistakes.

In the ten stories contained in the book, readers won’t find any acts of arrogance or presumption, but they will find ambition and willpower. Empathy is also evident, in the way people are involved in the projects, and loneliness during those final moments of decision-making (companies, however attentive to nuances and differences, ultimately require clear decisions). These are all attitudes, characteristics and ways of being that stem from an awareness of inevitable mistakes, limitations and frailties. Something we can all relate to during difficult times.

Marco Rosetti’s book is well worth reading.  It helps to raise awareness of the fact that the lives of true entrepreneurs encompass much more than just efficiency and profit. They have a responsibility to act as social and cultural agents of change, driving progress and improvement in the world in which we live.

CEO per caso. Vite, imprese, probabilità

Marco Rosetti

Guerini Next, 2025

September, off we go again. Providing insights into the data that reveal a demographic crisis and the shortage of skilled workers

September arrives, marking the change of season. The holidays are over (and this year they were shorter and cheaper for thousands of families). The light is no longer hazy as it was in summer; instead, it’s sharp and clear, and the shadows herald the arrival of autumn. And the ‘wonder of the night wide open to the sea’ (a line from one of the singer Mina’s most beautiful songs) gives way to the resumption of daily work. We must get used to an uncertain and difficult reality once again.

Tensions relating to wars, geopolitics and trade conflicts have not eased; far from it. All the issues that we had temporarily overlooked are now back before political decision-makers and the public.

Let’s consider some data that provides food for thought (remembering that good governance, the market economy and democracy are impossible without reliable statistics). The first figure relates to demographics.  This year, just 340,000 children are expected to be born, which is 30,000 fewer than in 2024. There has been an increasingly sharp decline in recent years: in 2024, there were 10,000 fewer births than in 2023. The second figure relates to the fact that, according to Il Sole24Ore (21 August), companies are looking for 2.3 million graduates and those with technical qualifications, but have only managed to recruit some of them, which therefore limits their growth.

These figures were published by newspapers in the summer (good information never goes on holiday, and are needed for the market and democracy).  But perhaps they were read distractedly between dips in the sea, walks in the mountains, and gin and tonics at sunset.

Why are we starting with this data? To highlight the fundamental issues that need to be addressed in order to develop sustainable projects and establish long-term policies in Europe that prevent marginalisation and subsequent decline. ‘The illusion of a strong Europe has already evaporated’, Mario Draghi recalled at the Rimini Meeting on 22 August. This is an area of the world where essential values and lifestyles coexist and must be defended and revived:  free economy, welfare, and indeed representative democracy, freedom and solidarity. The critical sense of history and innovation related to free and autonomous scientific research,  memory and the future,  with the goal  of giving the EU strong political subjectivity by addressing major issues such as security, energy, innovation, industrial policies and training (Sergio Fabbrini in Il Sole24Ore, 31 August).

Let’s look at the data, then.  Starting with the so-called ‘demographic winter’, we can see an increasing decrease in the number of births, as well as a fertility rate of 1.18 children per woman, which is one of the lowest in Europe (the European average is 1.38 and the world average is 2.20). The OECD estimates that Italy will lose 12 million active workers by 2060 — a decrease of 34% compared to today and four times greater than the average for the 38 OECD countries. If productivity does not rise, GDP per capita will fall by an average of 0.5% per year (Il Sole 24 Ore, 25 and 29 July). In short, we are becoming an increasingly ageing and impoverished country, characterised by hardship and loneliness. According to ISTAT, 41% of families will consist of one person in 2050.

‘Empty classrooms’ are a further disturbing factor, according to INAIL statistics validated by the Ministry of Economy (Il Sole24Ore, 13 August), Italy will lose 1 million pupils in ten years.

The population is shrinking, as are the workforce and the ‘knowledge economy’, which is being deprived of its most fundamental asset: people.  Firms are struggling and medium-term economic growth is becoming increasingly sluggish.

The labour market is also affected: two sets of data illustrate this well:  ‘Stem’ (science, technology, engineering and mathematics) degree alert: the Excelsior Report of Unioncamere estimates that between 9,000 and 18,000 workers could be lacking every year, leaving the current need for 2.3 million graduates and those with technical qualifications partly unmet, as noted above, with negative consequences for key sectors of our industrial competitiveness. ‘Electronics: shortage of employees holds back seven out of ten companies’, according to Anie, the Confindustria sector association (Il Sole24Ore, 26 August).  And again:  ‘Small companies short of talent: three out of four struggle to find skills and suitable candidates.’ ‘Four out of ten interviews for skilled workers are no-shows’, according to Corriere della Sera on 31 August, citing Unioncamere/Ministry of Labour data reworked by the CGIA of Mestre.

Carlo Cottarelli (Corriere della Sera, 12 August) describes the real economy as ‘anaemic’, even though employment figures are generally positive (24,326,000 people were employed in June, which is an increase on previous months), and Cottarelli adds that ‘public accounts in good order give credibility to Italy’.

Alongside the figures on demographic winter and the mismatch between supply and demand for work, there are other figures to consider.  Between 2011 and 2024, more than 619,000 young people aged 18–34 left Italy, resulting in a net loss of 433,000 people.  And this trend is growing: in 2024 alone, the estimated net loss exceeded 55,000 people, almost five times the level in 2011. ‘Italy continues to lose young people, and it is not just a question of numbers.  It is a loss of human capital, energy and future prosperity,’ argues Luca Paolazzi (Huffington Post, 16 July).

Surprisingly, he insists that the most affected regions are the most developed ones:  Lombardy, Veneto, Friuli Venezia Giulia, Emilia-Romagna and Trentino-Alto Adige, where more than 50% of young emigrants are educated to degree level.  He refers to this as ‘selective emigration, whereby the most educated are attracted to other countries where their qualifications are more highly valued and career prospects are clearer.’

This is a very heavy loss of human and social capital, which could drastically reduce Italy’s prospects for economic growth and sustainable development in the medium term, condemning it to marginalisation — not only economic, but also political.

‘There is an inseparable link between births and growth’, writes authoritative demographer Alessandro Rosina (Il Sole24Ore, 25 July), recalling that ‘GDP depends on three elements:  the number of people of working age, the employment rate and productivity. And all these factors are interdependently linked with the mechanisms of demographic dynamics.’

The political point is this: make choices that prioritise quality of life and work, training, and the sustainability of economic and social processes. Make Italy attractive to young people from the rest of the world who want to build a better future here. Rosina explains that the goal is ‘to make Italy a country where you can work well, grow well from childhood, and live well at every stage of life; a place where people can choose to stay and integrate different experiences and backgrounds positively. If we set our sights on this, we will also end up with more economic well-being and a greater desire for children.’

In our recovery of activity in politics and business, it is crucial to move in this direction and establish practical and forward-thinking measures in the upcoming Finance Law.  This will help create a more competitive, attractive and supportive Italy.

(Photo Getty Images)

September, off we go again. Providing insights into the data that reveal a demographic crisis and the shortage of skilled workers
September, off we go again. Providing insights into the data that reveal a demographic crisis and the shortage of skilled workers

September arrives, marking the change of season. The holidays are over (and this year they were shorter and cheaper for thousands of families). The light is no longer hazy as it was in summer; instead, it’s sharp and clear, and the shadows herald the arrival of autumn. And the ‘wonder of the night wide open to the sea’ (a line from one of the singer Mina’s most beautiful songs) gives way to the resumption of daily work. We must get used to an uncertain and difficult reality once again.

Tensions relating to wars, geopolitics and trade conflicts have not eased; far from it. All the issues that we had temporarily overlooked are now back before political decision-makers and the public.

Let’s consider some data that provides food for thought (remembering that good governance, the market economy and democracy are impossible without reliable statistics). The first figure relates to demographics.  This year, just 340,000 children are expected to be born, which is 30,000 fewer than in 2024. There has been an increasingly sharp decline in recent years: in 2024, there were 10,000 fewer births than in 2023. The second figure relates to the fact that, according to Il Sole24Ore (21 August), companies are looking for 2.3 million graduates and those with technical qualifications, but have only managed to recruit some of them, which therefore limits their growth.

These figures were published by newspapers in the summer (good information never goes on holiday, and are needed for the market and democracy).  But perhaps they were read distractedly between dips in the sea, walks in the mountains, and gin and tonics at sunset.

Why are we starting with this data? To highlight the fundamental issues that need to be addressed in order to develop sustainable projects and establish long-term policies in Europe that prevent marginalisation and subsequent decline. ‘The illusion of a strong Europe has already evaporated’, Mario Draghi recalled at the Rimini Meeting on 22 August. This is an area of the world where essential values and lifestyles coexist and must be defended and revived:  free economy, welfare, and indeed representative democracy, freedom and solidarity. The critical sense of history and innovation related to free and autonomous scientific research,  memory and the future,  with the goal  of giving the EU strong political subjectivity by addressing major issues such as security, energy, innovation, industrial policies and training (Sergio Fabbrini in Il Sole24Ore, 31 August).

Let’s look at the data, then.  Starting with the so-called ‘demographic winter’, we can see an increasing decrease in the number of births, as well as a fertility rate of 1.18 children per woman, which is one of the lowest in Europe (the European average is 1.38 and the world average is 2.20). The OECD estimates that Italy will lose 12 million active workers by 2060 — a decrease of 34% compared to today and four times greater than the average for the 38 OECD countries. If productivity does not rise, GDP per capita will fall by an average of 0.5% per year (Il Sole 24 Ore, 25 and 29 July). In short, we are becoming an increasingly ageing and impoverished country, characterised by hardship and loneliness. According to ISTAT, 41% of families will consist of one person in 2050.

‘Empty classrooms’ are a further disturbing factor, according to INAIL statistics validated by the Ministry of Economy (Il Sole24Ore, 13 August), Italy will lose 1 million pupils in ten years.

The population is shrinking, as are the workforce and the ‘knowledge economy’, which is being deprived of its most fundamental asset: people.  Firms are struggling and medium-term economic growth is becoming increasingly sluggish.

The labour market is also affected: two sets of data illustrate this well:  ‘Stem’ (science, technology, engineering and mathematics) degree alert: the Excelsior Report of Unioncamere estimates that between 9,000 and 18,000 workers could be lacking every year, leaving the current need for 2.3 million graduates and those with technical qualifications partly unmet, as noted above, with negative consequences for key sectors of our industrial competitiveness. ‘Electronics: shortage of employees holds back seven out of ten companies’, according to Anie, the Confindustria sector association (Il Sole24Ore, 26 August).  And again:  ‘Small companies short of talent: three out of four struggle to find skills and suitable candidates.’ ‘Four out of ten interviews for skilled workers are no-shows’, according to Corriere della Sera on 31 August, citing Unioncamere/Ministry of Labour data reworked by the CGIA of Mestre.

Carlo Cottarelli (Corriere della Sera, 12 August) describes the real economy as ‘anaemic’, even though employment figures are generally positive (24,326,000 people were employed in June, which is an increase on previous months), and Cottarelli adds that ‘public accounts in good order give credibility to Italy’.

Alongside the figures on demographic winter and the mismatch between supply and demand for work, there are other figures to consider.  Between 2011 and 2024, more than 619,000 young people aged 18–34 left Italy, resulting in a net loss of 433,000 people.  And this trend is growing: in 2024 alone, the estimated net loss exceeded 55,000 people, almost five times the level in 2011. ‘Italy continues to lose young people, and it is not just a question of numbers.  It is a loss of human capital, energy and future prosperity,’ argues Luca Paolazzi (Huffington Post, 16 July).

Surprisingly, he insists that the most affected regions are the most developed ones:  Lombardy, Veneto, Friuli Venezia Giulia, Emilia-Romagna and Trentino-Alto Adige, where more than 50% of young emigrants are educated to degree level.  He refers to this as ‘selective emigration, whereby the most educated are attracted to other countries where their qualifications are more highly valued and career prospects are clearer.’

This is a very heavy loss of human and social capital, which could drastically reduce Italy’s prospects for economic growth and sustainable development in the medium term, condemning it to marginalisation — not only economic, but also political.

‘There is an inseparable link between births and growth’, writes authoritative demographer Alessandro Rosina (Il Sole24Ore, 25 July), recalling that ‘GDP depends on three elements:  the number of people of working age, the employment rate and productivity. And all these factors are interdependently linked with the mechanisms of demographic dynamics.’

The political point is this: make choices that prioritise quality of life and work, training, and the sustainability of economic and social processes. Make Italy attractive to young people from the rest of the world who want to build a better future here. Rosina explains that the goal is ‘to make Italy a country where you can work well, grow well from childhood, and live well at every stage of life; a place where people can choose to stay and integrate different experiences and backgrounds positively. If we set our sights on this, we will also end up with more economic well-being and a greater desire for children.’

In our recovery of activity in politics and business, it is crucial to move in this direction and establish practical and forward-thinking measures in the upcoming Finance Law.  This will help create a more competitive, attractive and supportive Italy.

(Photo Getty Images)

Leopoldo Pirelli, “The Gentleman Entrepreneur”

Leopoldo Pirelli was born on 27 August 1925 in Velate, in the province of Varese. He was the heir to a dynasty of entrepreneurs who left a profound mark on Italy’s industrial history. His grandfather, Giovanni Battista, founded Pirelli in 1872, introducing the innovation of vulcanised rubber to the country. His father, Alberto, headed the company from the early 1930s through the difficult times of Fascism and the Second World War. It was Leopoldo, remembered as the “gentleman entrepreneur”, who would lead the Group into a new era in the second half of the twentieth century.

After graduating in Engineering from the Politecnico University of Milan, Leopoldo Pirelli entered the family business with the awareness that his position was not a right, but a commitment. He embarked on a tough apprenticeship in which he learnt every aspect of the company: general accounting in Basel, industrial accounting in Brussels, purchasing in London, and finally his first official post as shift manager at the Tivoli tyre plant. Over the following decade he gradually assumed greater responsibilities, sharing an office with his father, their desks placed face to face.
In the 1950s, as Milan rose up from the devastation of war, Pirelli set his sights on building a new corporate headquarters. The task was entrusted to the architect Gio Ponti, who decided to build a “monument to honour the city and civilisation.” Thus, in 1960, one of the most powerful symbols of Italy’s economic rebirth was created: the Pirelli Tower. Together with his father Alberto, Leopoldo championed this visionary project, seeing the Pirellone not merely as a reflection of the excellence of the Group but as a work of art, a declaration of modernity, and an emblem of Milan’s visual identity. Above all, it was a testament to the idea that business could represent innovation, beauty, and culture.

In 1965 Leopoldo Pirelli became the chairman of the company, ushering in a new chapter in its history. With great discipline and a profound sense of duty, he successfully steered Italian industry through both the buoyant years of the economic boom and the turbulence of the oil crises, labour unrest, and the violent years of terrorism. His vision was reflected in initiatives such as the drafting of the “Pirelli Report” for the reform of the General Confederation of Italian Industry (Confindustria) and the so-called decretone, a package of proposals designed to anticipate workers’ demands and foster more harmonious industrial relations. Equally forward-looking was the Bicocca Project, developed at Leopoldo’s behest from the 1980s by architect Vittorio Gregotti’s studio. It pioneered a new model of urban planning, transforming the idea of factories of products into factories of knowledge, opening the company’s spaces to the city in a dialogue between past, present, and future.

In 1986, when he was awarded a medal as an Honorary Member of the College of Engineers of Milan, Leopoldo decided to tell the story of what he had learnt in a lifetime spent at the head of the Group. He chose to share not numbers, statistics or personal achievements, but rather carefully chosen words, which he referred to as “The Ten Rules of the Good Entrepreneur”. More than simple advice, they amounted to a moral code, a legacy of values practised daily within the company. Leopoldo maintained that industry was never just about profit, but a cornerstone of civilisation, a place where innovation and social responsibility must advance hand in hand. Above all, he believed that to do business was to assume a duty—towards employees, towards the community, and towards the wider world.

In 1996, after more than three decades at the helm, Leopoldo Pirelli passed the presidency to Marco Tronchetti Provera. On the 100th anniversary of his birth, we remember a man who played a decisive role not only in the growth of the family business, but also in the economic and cultural transformation of Italy itself: a leader attentive to people and principles, whose vision of business as a place of dialogue and shared progress remains a vital point of reference today.

Leopoldo Pirelli, “The Gentleman Entrepreneur”
Leopoldo Pirelli, “The Gentleman Entrepreneur”

Leopoldo Pirelli was born on 27 August 1925 in Velate, in the province of Varese. He was the heir to a dynasty of entrepreneurs who left a profound mark on Italy’s industrial history. His grandfather, Giovanni Battista, founded Pirelli in 1872, introducing the innovation of vulcanised rubber to the country. His father, Alberto, headed the company from the early 1930s through the difficult times of Fascism and the Second World War. It was Leopoldo, remembered as the “gentleman entrepreneur”, who would lead the Group into a new era in the second half of the twentieth century.

After graduating in Engineering from the Politecnico University of Milan, Leopoldo Pirelli entered the family business with the awareness that his position was not a right, but a commitment. He embarked on a tough apprenticeship in which he learnt every aspect of the company: general accounting in Basel, industrial accounting in Brussels, purchasing in London, and finally his first official post as shift manager at the Tivoli tyre plant. Over the following decade he gradually assumed greater responsibilities, sharing an office with his father, their desks placed face to face.
In the 1950s, as Milan rose up from the devastation of war, Pirelli set his sights on building a new corporate headquarters. The task was entrusted to the architect Gio Ponti, who decided to build a “monument to honour the city and civilisation.” Thus, in 1960, one of the most powerful symbols of Italy’s economic rebirth was created: the Pirelli Tower. Together with his father Alberto, Leopoldo championed this visionary project, seeing the Pirellone not merely as a reflection of the excellence of the Group but as a work of art, a declaration of modernity, and an emblem of Milan’s visual identity. Above all, it was a testament to the idea that business could represent innovation, beauty, and culture.

In 1965 Leopoldo Pirelli became the chairman of the company, ushering in a new chapter in its history. With great discipline and a profound sense of duty, he successfully steered Italian industry through both the buoyant years of the economic boom and the turbulence of the oil crises, labour unrest, and the violent years of terrorism. His vision was reflected in initiatives such as the drafting of the “Pirelli Report” for the reform of the General Confederation of Italian Industry (Confindustria) and the so-called decretone, a package of proposals designed to anticipate workers’ demands and foster more harmonious industrial relations. Equally forward-looking was the Bicocca Project, developed at Leopoldo’s behest from the 1980s by architect Vittorio Gregotti’s studio. It pioneered a new model of urban planning, transforming the idea of factories of products into factories of knowledge, opening the company’s spaces to the city in a dialogue between past, present, and future.

In 1986, when he was awarded a medal as an Honorary Member of the College of Engineers of Milan, Leopoldo decided to tell the story of what he had learnt in a lifetime spent at the head of the Group. He chose to share not numbers, statistics or personal achievements, but rather carefully chosen words, which he referred to as “The Ten Rules of the Good Entrepreneur”. More than simple advice, they amounted to a moral code, a legacy of values practised daily within the company. Leopoldo maintained that industry was never just about profit, but a cornerstone of civilisation, a place where innovation and social responsibility must advance hand in hand. Above all, he believed that to do business was to assume a duty—towards employees, towards the community, and towards the wider world.

In 1996, after more than three decades at the helm, Leopoldo Pirelli passed the presidency to Marco Tronchetti Provera. On the 100th anniversary of his birth, we remember a man who played a decisive role not only in the growth of the family business, but also in the economic and cultural transformation of Italy itself: a leader attentive to people and principles, whose vision of business as a place of dialogue and shared progress remains a vital point of reference today.

The Finalists of the 63rd Premio Campiello Talk about Their Books

The story of a North that is more than just geography, one that is woven from memory, emotion and human ties; the madness and poetry in the life of a nineteenth-century doctor and his companion; eight winter tales, suspended between longing and dread; a dark narrative of bloodshed in the Maremma at the dawn of the Fascist era; a journey through the sites and recollections of book burnings across history, meditating on the enduring power of reading. Who will claim the 63rd Premio Campiello?

While waiting to know the name of the winner, the Pirelli Foundation spoke with the five finalist authors, who talked about their books. In the week before the announcement, we will hear their voices, discovering one book each day through the video interviews available on this page.

Here is the complete programme:

Monday 8 September 2025: Marco Belpoliti – Nord nord (Einaudi)

Tuesday 9 September 2025: Wanda Marasco – Di spalle a questo mondo (Neri Pozza)

Wednesday 10 September 2025: Monica Pareschi – Inverness (Polidoro)

Thursday 11 September 2025: Alberto Prunetti – Troncamacchioni (Feltrinelli)

Friday 12 September 2025: Fabio Stassi – Bebelplatz (Sellerio)

 

The Awards Ceremony, broadcast live on RAI5, will take place on Saturday, 13 September, at the Teatro La Fenice in Venice, where the winner of the Premio Campiello 2025 will be proclaimed. Pirelli, long a champion of reading and corporate culture, is once again proud to support the event.

Enjoy the show – and the read!

The Finalists of the 63rd Premio Campiello Talk about Their Books
The Finalists of the 63rd Premio Campiello Talk about Their Books

The story of a North that is more than just geography, one that is woven from memory, emotion and human ties; the madness and poetry in the life of a nineteenth-century doctor and his companion; eight winter tales, suspended between longing and dread; a dark narrative of bloodshed in the Maremma at the dawn of the Fascist era; a journey through the sites and recollections of book burnings across history, meditating on the enduring power of reading. Who will claim the 63rd Premio Campiello?

While waiting to know the name of the winner, the Pirelli Foundation spoke with the five finalist authors, who talked about their books. In the week before the announcement, we will hear their voices, discovering one book each day through the video interviews available on this page.

Here is the complete programme:

Monday 8 September 2025: Marco Belpoliti – Nord nord (Einaudi)

Tuesday 9 September 2025: Wanda Marasco – Di spalle a questo mondo (Neri Pozza)

Wednesday 10 September 2025: Monica Pareschi – Inverness (Polidoro)

Thursday 11 September 2025: Alberto Prunetti – Troncamacchioni (Feltrinelli)

Friday 12 September 2025: Fabio Stassi – Bebelplatz (Sellerio)

 

The Awards Ceremony, broadcast live on RAI5, will take place on Saturday, 13 September, at the Teatro La Fenice in Venice, where the winner of the Premio Campiello 2025 will be proclaimed. Pirelli, long a champion of reading and corporate culture, is once again proud to support the event.

Enjoy the show – and the read!

Multimedia

Video

The skándalon of Milan and the need for a housing plan for the middle classes and students

Necesse est enim ut veniant scandala (For it is necessary that scandals come), says the Gospel according to Matthew. This dense phrase, full of intelligence and historical significance, comes to mind when considering the lessons to be learned from the current judicial and political events affecting Milan, its administration and its development projects, even in the context of our own modest history. Rather than considering our modern understanding of a scandal as an event that causes public outrage, let’s go back to the etymology of the word. The ancient Greek skándalon, meaning ‘stumbling block’ or ‘obstacle’.

Beyond the outcomes of the investigations by the Public Prosecutor’s Office, justice should take its course. Without being distracted by media uproar and the judicial fervour of ‘summary trials’ via social media, it is precisely the ‘stumbling block’ in Milan’s rhetoric of success as an attractive, ever-changing metropolis that forces everyone to reflect deeply on the city’s new characteristics, on whether it is or is not ‘a model’, and on development paradigms that must once again be capable of reconciling productivity and social inclusion, competitiveness and solidarity. Milan can achieve anything, except reduce itself to being, as Alberto Mattioli wrote in La Stampa on 17 July, ‘beautiful without a soul, increasingly sparkling and less and less authentic’.

After all, Milan is not just Milan, but Italy, and our city is more international and economically a heavyweight engine in Europe. Culturally and socially, it is a cornerstone for innovation (including the negative aspects, which must be governed and limited). ‘Milan is an asset; it needs to be defended, and a vision needs to be offered,’ write Emanuele Orsini, president of Confindustria, and Alvise Biffi, president of Assolombarda, in an editorial in Il Sole 24 Ore (25 July). It is a significant political and communicative choice of national scope.  Business is not standing by; once again, it is ready to play its part in the recovery and relaunch of the metropolis and the country by ‘working together with institutions, companies, universities and civil society’. Furthermore, Assolombarda’s culture is well established in the harmonies between productivity and solidarity, and between local roots and a global outlook. ‘Insieme’ (Together) is the title of the book, which was edited by the Assolombarda Foundation and published by Marsilio to celebrate its eighty years of history. ‘Far volare Milano per far volare l’Italia’ (‘Making Milan fly to make Italy fly’) was the strategic vision of Gianfelice Rocca, one of Assolombarda’s most ambitious and forward-thinking presidents (2013–2017). An idea that is still relevant.

Therefore, let us try to think more positively about the idea of a skándalon and start with the memory of a date:  1942. On 17 August that year, in a time of war, military tensions and social concerns, the Mussolini government issued Law No. 1150 immediately after the approval of the Civil Code. This law defined a general and uniform urban planning discipline across the national territory, introducing ‘building regulatory plans’ and ‘general regulatory plans’, as well as ‘territorial coordination plans’. More than eighty years later, this law is still in force and continues to serve as the cornerstone of national urban planning legislation, albeit with numerous modifications, integrations and variations that have complicated its application. This is also because, in the meantime, cities have changed; lifestyles and living habits have evolved; and production, economic and social processes have undergone radical transformation. The business models of financial investors and builders have also changed. In short, it’s a completely different world. The rules increasingly struggle to effectively frame and regulate the tensions and trends concerning the development of cities and a primary good for Italians: a home.

Those familiar with Italian political history will remember the ‘Housing Plan’, which from 1949 to 1963 led to significant public housing construction, facilitating profound urban and rural transformation (the ‘Fanfani Plan’, named after its creator, the Minister of Labour). Another measure was introduced in 1962 with Law 167, which was proposed by the then Minister of Public Works, the Christian Democrat Fiorentino Sullo. This stimulated the construction of new public residential settlements for over five million inhabitants.

These were the times of the economic boom. The impetuous force of reconstruction and recovery moved millions of people from southern peasant villages to northern industrial areas in search of better working and living conditions, primarily in Milan and Turin. Politics and public intervention sought to respond to these new social needs.

However, in such a disruptive context, Sullo failed to implement the key urban planning reform in 1963. This was fiercely opposed by large landowners and the right wing, and ultimately renounced by the Christian Democrats themselves. This had a negative effect on the first centre-left government, which was presided over by Aldo Moro. The Italian Socialist Party finally entered the ‘seat of power’’, but its reformist momentum slowed significantly. There was no reform to modernise and simplify the process of providing homes for Italians, nor to curb the demands of those who were then putting their ‘hands over the city’ (as depicted in the film of the same name by Francesco Rosi about real estate speculation, especially in Rome and the cities of the south). It was a daunting task to make incisive reforms in this country.

In summary,  as far as construction is concerned, Italy changes, but the laws do not — except for cautious yet confused modernisations and adjustments. Four very different individuals have commented on this Milan skándalon. Firstly, there is Piero Bassetti, a scholar of great acumen and former president of the Lombardy Region, who says that the regulatory package in the fields of construction, building and urban development is ‘old and inadequate’, and that we are faced with ‘a not simple dialectic between new interests and outdated regulations’ (La Repubblica, 17 July; Il Foglio, 22 July). Then there is Gabriele Albertini, a former centre-right mayor of Milan, who initiated urban regeneration on 11 million square metres of land freed up by industrial closures during his two terms in office from 1997 to 2006. He argues, ‘A rule never repealed, although written in 1942:  from this political knot all the problems derive’ (Il Sole24Ore, 26 July). Next is Federica Brancaccio, president of Ance (the Association of Builders):  ‘In Milan, there is a problem with the interpretation of the Lombardy regional law and the municipal resolutions that refer to it, as well as with harmonising this interpretation with the national regulations dating back to 1942.  It is a paradox’ (Il Foglio, 24 July). Finally, Carlo Ratti, an architect, urban planner and professor at MIT in Boston, said:  ‘Anyone who has dealt with building permits is well aware of the complexities of Italian bureaucracy.  The regulations are an opaque labyrinth that hinders both efficiency and transparency’ (Il Sole24Ore, 27 July).

Setting aside the Milanese judicial affair, the skándalon tells us that there is a legal and administrative problem to address:  rules to be rewritten (a responsibility of the national government and Parliament, not the mayors), procedures to be clarified and simplified, and good governance to be encouraged through legislation that meets the needs of the present day (taking into account legitimate interests and new financial techniques and construction technologies). There must also be governance of the territory based on the fact that ‘at the administrative and decision-making level, Milan cannot stop at the municipal perimeter. We must give powers to the metropolitan city’, as Francesco Billari, the demographer and rector of Bocconi University, argues in Corriere della Sera (23 July). Milan must also be governed in terms of the interconnections between services and the movement of people, ideas and capital. In the ideal map of a ‘Greater Milan’, it should be considered in relation to other nearby cities.

It is a matter of efficiency, of the effectiveness of economic, urban and social choices, and of legality in the broadest sense of the term.

There is also a social demand to consider:  to provide opportunities for changing social classes and, of course, for the increasing number of students who choose Milan for university and to build a quality professional future. As Carlo Cottarelli, an economist with extensive international expertise, argues, ‘The problem with Milan is not that skyscrapers are being built, but that not enough houses are being built for the middle class’ (Corriere della Sera, 23 July).

So, what can be done? The answer lies in striking a balance between construction projects for wealthy individuals, including international ones attracted to Milan, and those for the middle and lower-middle classes. This approach would offer a return on investment over a longer period than the more demanding profit dynamics, providing tax advantages and careful use of urbanisation charges, which would be borne by large real estate funds. In short, it is a set of political choices.

The point is, the Prosecutor’s Office is doing its job, operating according to the laws in force. But those who govern a city in continuous transformation are also doing their part, trying to provide answers for investors and young people who choose Milan in the hope of a better future, as well as for those who are still drawn to the idea of working, creating, designing and producing. Entrepreneurs want to do their job, and citizens still uphold the values of Milan civil life: competitive, yet inclusive.

These are all issues that apply to Milan, but they also apply to other cities. ‘Urban planning laws are written by politicians; magistrates must limit themselves to fighting crime,’ summarises Claudio Martelli, a former socialist politician and minister (including of Justice), who has a particular focus on Milan, his home city (La Stampa, 22 July). However, the trouble is that, as we have seen, politics has not yet taken responsibility for urban planning laws.

‘Milan, it is time to think about the second act,’ concludes architect Ratti, who is well aware of the economic and ethical values that must inspire a smart city.

How? The discussion about the Housing Plan has returned, recalling (with all due differences) Minister Fanfani’s approach of providing public resources for private residential construction.

The Municipality of Milan has launched its own ‘Housing Plan’ to build 10,000 affordable housing units over ten years (with a rental price of around 600 euros per month for a 100-square-metre apartment). ‘In September, we will put out the first tender call,’ announces Emmanuel Conte, Councillor for Budget, State Property, and indeed the Housing Plan (Corriere della Sera, 26 July).

Looking beyond Milan, Federica Brancaccio of Ance considers more general needs, arguing that a Housing Plan of 15 billion euros is needed (Il Sole24Ore, 23 July) to be financed with state and EU resources to leverage robust private investment. She is also evaluating which projects deserve regulatory and tax benefits.  ‘Let’s imagine a social impact rating, a grid of requirements to ensure the possibility of bringing affordable housing to market and restoring the city to what it should be for its citizens:  a forge of stimulation and growth, where young people, the elderly and families can live and social mobility can flourish’ (this will be discussed in October at the “Cities in the Future 2030-2050” conference, under the guidance of Francesco Rutelli).

Even during this skándalon, Milan is demonstrating the strength of its character, built over a long history (as discussed in last week’s blog):  an attitude of openness to discussion and criticism, and a willingness to propose solutions to problems, even the most difficult ones. In these controversial times, this is how we move forward.

The skándalon of Milan and the need  for a housing plan for the middle classes and students
The skándalon of Milan and the need  for a housing plan for the middle classes and students

Necesse est enim ut veniant scandala (For it is necessary that scandals come), says the Gospel according to Matthew. This dense phrase, full of intelligence and historical significance, comes to mind when considering the lessons to be learned from the current judicial and political events affecting Milan, its administration and its development projects, even in the context of our own modest history. Rather than considering our modern understanding of a scandal as an event that causes public outrage, let’s go back to the etymology of the word. The ancient Greek skándalon, meaning ‘stumbling block’ or ‘obstacle’.

Beyond the outcomes of the investigations by the Public Prosecutor’s Office, justice should take its course. Without being distracted by media uproar and the judicial fervour of ‘summary trials’ via social media, it is precisely the ‘stumbling block’ in Milan’s rhetoric of success as an attractive, ever-changing metropolis that forces everyone to reflect deeply on the city’s new characteristics, on whether it is or is not ‘a model’, and on development paradigms that must once again be capable of reconciling productivity and social inclusion, competitiveness and solidarity. Milan can achieve anything, except reduce itself to being, as Alberto Mattioli wrote in La Stampa on 17 July, ‘beautiful without a soul, increasingly sparkling and less and less authentic’.

After all, Milan is not just Milan, but Italy, and our city is more international and economically a heavyweight engine in Europe. Culturally and socially, it is a cornerstone for innovation (including the negative aspects, which must be governed and limited). ‘Milan is an asset; it needs to be defended, and a vision needs to be offered,’ write Emanuele Orsini, president of Confindustria, and Alvise Biffi, president of Assolombarda, in an editorial in Il Sole 24 Ore (25 July). It is a significant political and communicative choice of national scope.  Business is not standing by; once again, it is ready to play its part in the recovery and relaunch of the metropolis and the country by ‘working together with institutions, companies, universities and civil society’. Furthermore, Assolombarda’s culture is well established in the harmonies between productivity and solidarity, and between local roots and a global outlook. ‘Insieme’ (Together) is the title of the book, which was edited by the Assolombarda Foundation and published by Marsilio to celebrate its eighty years of history. ‘Far volare Milano per far volare l’Italia’ (‘Making Milan fly to make Italy fly’) was the strategic vision of Gianfelice Rocca, one of Assolombarda’s most ambitious and forward-thinking presidents (2013–2017). An idea that is still relevant.

Therefore, let us try to think more positively about the idea of a skándalon and start with the memory of a date:  1942. On 17 August that year, in a time of war, military tensions and social concerns, the Mussolini government issued Law No. 1150 immediately after the approval of the Civil Code. This law defined a general and uniform urban planning discipline across the national territory, introducing ‘building regulatory plans’ and ‘general regulatory plans’, as well as ‘territorial coordination plans’. More than eighty years later, this law is still in force and continues to serve as the cornerstone of national urban planning legislation, albeit with numerous modifications, integrations and variations that have complicated its application. This is also because, in the meantime, cities have changed; lifestyles and living habits have evolved; and production, economic and social processes have undergone radical transformation. The business models of financial investors and builders have also changed. In short, it’s a completely different world. The rules increasingly struggle to effectively frame and regulate the tensions and trends concerning the development of cities and a primary good for Italians: a home.

Those familiar with Italian political history will remember the ‘Housing Plan’, which from 1949 to 1963 led to significant public housing construction, facilitating profound urban and rural transformation (the ‘Fanfani Plan’, named after its creator, the Minister of Labour). Another measure was introduced in 1962 with Law 167, which was proposed by the then Minister of Public Works, the Christian Democrat Fiorentino Sullo. This stimulated the construction of new public residential settlements for over five million inhabitants.

These were the times of the economic boom. The impetuous force of reconstruction and recovery moved millions of people from southern peasant villages to northern industrial areas in search of better working and living conditions, primarily in Milan and Turin. Politics and public intervention sought to respond to these new social needs.

However, in such a disruptive context, Sullo failed to implement the key urban planning reform in 1963. This was fiercely opposed by large landowners and the right wing, and ultimately renounced by the Christian Democrats themselves. This had a negative effect on the first centre-left government, which was presided over by Aldo Moro. The Italian Socialist Party finally entered the ‘seat of power’’, but its reformist momentum slowed significantly. There was no reform to modernise and simplify the process of providing homes for Italians, nor to curb the demands of those who were then putting their ‘hands over the city’ (as depicted in the film of the same name by Francesco Rosi about real estate speculation, especially in Rome and the cities of the south). It was a daunting task to make incisive reforms in this country.

In summary,  as far as construction is concerned, Italy changes, but the laws do not — except for cautious yet confused modernisations and adjustments. Four very different individuals have commented on this Milan skándalon. Firstly, there is Piero Bassetti, a scholar of great acumen and former president of the Lombardy Region, who says that the regulatory package in the fields of construction, building and urban development is ‘old and inadequate’, and that we are faced with ‘a not simple dialectic between new interests and outdated regulations’ (La Repubblica, 17 July; Il Foglio, 22 July). Then there is Gabriele Albertini, a former centre-right mayor of Milan, who initiated urban regeneration on 11 million square metres of land freed up by industrial closures during his two terms in office from 1997 to 2006. He argues, ‘A rule never repealed, although written in 1942:  from this political knot all the problems derive’ (Il Sole24Ore, 26 July). Next is Federica Brancaccio, president of Ance (the Association of Builders):  ‘In Milan, there is a problem with the interpretation of the Lombardy regional law and the municipal resolutions that refer to it, as well as with harmonising this interpretation with the national regulations dating back to 1942.  It is a paradox’ (Il Foglio, 24 July). Finally, Carlo Ratti, an architect, urban planner and professor at MIT in Boston, said:  ‘Anyone who has dealt with building permits is well aware of the complexities of Italian bureaucracy.  The regulations are an opaque labyrinth that hinders both efficiency and transparency’ (Il Sole24Ore, 27 July).

Setting aside the Milanese judicial affair, the skándalon tells us that there is a legal and administrative problem to address:  rules to be rewritten (a responsibility of the national government and Parliament, not the mayors), procedures to be clarified and simplified, and good governance to be encouraged through legislation that meets the needs of the present day (taking into account legitimate interests and new financial techniques and construction technologies). There must also be governance of the territory based on the fact that ‘at the administrative and decision-making level, Milan cannot stop at the municipal perimeter. We must give powers to the metropolitan city’, as Francesco Billari, the demographer and rector of Bocconi University, argues in Corriere della Sera (23 July). Milan must also be governed in terms of the interconnections between services and the movement of people, ideas and capital. In the ideal map of a ‘Greater Milan’, it should be considered in relation to other nearby cities.

It is a matter of efficiency, of the effectiveness of economic, urban and social choices, and of legality in the broadest sense of the term.

There is also a social demand to consider:  to provide opportunities for changing social classes and, of course, for the increasing number of students who choose Milan for university and to build a quality professional future. As Carlo Cottarelli, an economist with extensive international expertise, argues, ‘The problem with Milan is not that skyscrapers are being built, but that not enough houses are being built for the middle class’ (Corriere della Sera, 23 July).

So, what can be done? The answer lies in striking a balance between construction projects for wealthy individuals, including international ones attracted to Milan, and those for the middle and lower-middle classes. This approach would offer a return on investment over a longer period than the more demanding profit dynamics, providing tax advantages and careful use of urbanisation charges, which would be borne by large real estate funds. In short, it is a set of political choices.

The point is, the Prosecutor’s Office is doing its job, operating according to the laws in force. But those who govern a city in continuous transformation are also doing their part, trying to provide answers for investors and young people who choose Milan in the hope of a better future, as well as for those who are still drawn to the idea of working, creating, designing and producing. Entrepreneurs want to do their job, and citizens still uphold the values of Milan civil life: competitive, yet inclusive.

These are all issues that apply to Milan, but they also apply to other cities. ‘Urban planning laws are written by politicians; magistrates must limit themselves to fighting crime,’ summarises Claudio Martelli, a former socialist politician and minister (including of Justice), who has a particular focus on Milan, his home city (La Stampa, 22 July). However, the trouble is that, as we have seen, politics has not yet taken responsibility for urban planning laws.

‘Milan, it is time to think about the second act,’ concludes architect Ratti, who is well aware of the economic and ethical values that must inspire a smart city.

How? The discussion about the Housing Plan has returned, recalling (with all due differences) Minister Fanfani’s approach of providing public resources for private residential construction.

The Municipality of Milan has launched its own ‘Housing Plan’ to build 10,000 affordable housing units over ten years (with a rental price of around 600 euros per month for a 100-square-metre apartment). ‘In September, we will put out the first tender call,’ announces Emmanuel Conte, Councillor for Budget, State Property, and indeed the Housing Plan (Corriere della Sera, 26 July).

Looking beyond Milan, Federica Brancaccio of Ance considers more general needs, arguing that a Housing Plan of 15 billion euros is needed (Il Sole24Ore, 23 July) to be financed with state and EU resources to leverage robust private investment. She is also evaluating which projects deserve regulatory and tax benefits.  ‘Let’s imagine a social impact rating, a grid of requirements to ensure the possibility of bringing affordable housing to market and restoring the city to what it should be for its citizens:  a forge of stimulation and growth, where young people, the elderly and families can live and social mobility can flourish’ (this will be discussed in October at the “Cities in the Future 2030-2050” conference, under the guidance of Francesco Rutelli).

Even during this skándalon, Milan is demonstrating the strength of its character, built over a long history (as discussed in last week’s blog):  an attitude of openness to discussion and criticism, and a willingness to propose solutions to problems, even the most difficult ones. In these controversial times, this is how we move forward.

What happens when an industry shuts down

The consequences on the local economy of the failure of a large factory

When an enterprise closes, a piece of human history is lost and the wings of development are clipped . Experience tells us this, although there are many cases of rebirth and revival.  But the path is always tortuous and tiring, full of unknowns. So, it is important to analyse some of the most notable cases. Francesco David, an economist from the Analysis and Territorial Economic Research Division of the Bank of Italy’s Palermo office, has done just that in his Occasional Paper, ‘Gli effetti della chiusura di un grande stabilimento industriale sull’economia locale’ (The effects of the closure of a large industrial plant on the local economy), which refers to the closure of the FIAT plant in Termini Imerese, Sicily.

David starts with the assumption that the presence of large industrial plants can benefit local economies but may also result in territories becoming overly dependent on the decisions of individual operators, particularly when a significant proportion of employment is concentrated within them. The case of Termini Imerese is precisely the demonstration of this. The paper then analyses the socio-economic consequences of the 2011 closure of the FIAT plant, which employed 43% of the local industrial workforce.

After framing the topic and summarising the history of the plant since its creation, the research uses statistical methods to investigate the impact of the closure on employment and the local area. David shows that, following the closure, employment in Termini Imerese fell substantially compared to a scenario of continued activity (1,500 employees), with an estimated decrease in the employment rate of 3.9 percentage points by the end of 2021. The impact was mainly on direct employment, with limited effects on induced employment.  However, there were also other consequences: a decrease in population, local income and property values.

Francesco David thus highlights, in quantitative terms, the significant impact of effective business management and its repercussions on the local area, which extend far beyond mere economics. This demonstrates the consequences of industrial policies that are not always attentive, as well as the need for a production culture that considers a multitude of factors.

Gli effetti della chiusura di un grande stabilimento industriale sull’economia locale

Francesco David

Bank of Italy, Questioni di Economia e Finanza (Occasional Papers), No. 952, July 2025

What happens when an industry shuts down
What happens when an industry shuts down

The consequences on the local economy of the failure of a large factory

When an enterprise closes, a piece of human history is lost and the wings of development are clipped . Experience tells us this, although there are many cases of rebirth and revival.  But the path is always tortuous and tiring, full of unknowns. So, it is important to analyse some of the most notable cases. Francesco David, an economist from the Analysis and Territorial Economic Research Division of the Bank of Italy’s Palermo office, has done just that in his Occasional Paper, ‘Gli effetti della chiusura di un grande stabilimento industriale sull’economia locale’ (The effects of the closure of a large industrial plant on the local economy), which refers to the closure of the FIAT plant in Termini Imerese, Sicily.

David starts with the assumption that the presence of large industrial plants can benefit local economies but may also result in territories becoming overly dependent on the decisions of individual operators, particularly when a significant proportion of employment is concentrated within them. The case of Termini Imerese is precisely the demonstration of this. The paper then analyses the socio-economic consequences of the 2011 closure of the FIAT plant, which employed 43% of the local industrial workforce.

After framing the topic and summarising the history of the plant since its creation, the research uses statistical methods to investigate the impact of the closure on employment and the local area. David shows that, following the closure, employment in Termini Imerese fell substantially compared to a scenario of continued activity (1,500 employees), with an estimated decrease in the employment rate of 3.9 percentage points by the end of 2021. The impact was mainly on direct employment, with limited effects on induced employment.  However, there were also other consequences: a decrease in population, local income and property values.

Francesco David thus highlights, in quantitative terms, the significant impact of effective business management and its repercussions on the local area, which extend far beyond mere economics. This demonstrates the consequences of industrial policies that are not always attentive, as well as the need for a production culture that considers a multitude of factors.

Gli effetti della chiusura di un grande stabilimento industriale sull’economia locale

Francesco David

Bank of Italy, Questioni di Economia e Finanza (Occasional Papers), No. 952, July 2025

Stories of work, factories and offices

When literature does the talking for the culture of production

Human beings and work, offices and factories. Communities made of common labours and dreams, conflicts and hopes. A culture of production that becomes industrious reality, and a desire for well-being, and a rich subject matter. This has often, very often, been the case in the history of literature, as well as in literature today. It is important to occasionally visit (or revisit) some of the countless examples of stories of work and enterprise that literature is full of, perhaps to read them again or for the first time.

Thus, it is possible to read The Government Clerks (written by Honoré de Balzac in 1844, but still relevant and worth reading in some respects), which describes the office world of the time with merciless wit (a world that, in many respects, resembles that of today). Xavier Rabourdin, the protagonist, works in a ‘big room’, which could be referred to as an open-plan office today. Like the protagonists in Charles Dickens’ Hard Times, he fights every day to build a career, albeit in a very different environment. Hard Times describes factories and labour relations in the early days of the English Industrial Revolution in no uncertain terms. Dickens had experienced factory life, albeit briefly, and later became a parliamentary journalist.  He combined the ability to tell with the ability to see, in no uncertain terms.  Starting with the places and characters. ‘In Coketown,’ writes Dickens, ‘the piston of the steam-engine worked monotonously up and down (…). It contained several large streets all very like one another, and many small streets still more like one another, inhabited by people equally like one another, who all went in and out at the same hours, with the same sound upon the same pavements, to do the same work, and to whom every day was the same as yesterday and to-morrow, and every year the counterpart of the last and the next’.

The factory is depicted as a place of conflict (and possibly redemption), confrontation, as well as alienation. This is what happens to the protagonist of the 1925 novella The Train Has Whistled by Luigi Pirandello. The protagonist, Belluca, is an office worker who is mistreated by his colleagues and has a family that he feels he cannot connect with. Belluca eventually goes mad.

But are work and enterprise exclusively areas of drudgery and alienation? Clearly not, although these aspects have often been the focus of literature. One example is enough to refute the rule: Primo Levi, who, in his The Monkey Wrench, speaks of the toil of work and the factory, but also of its beauty. Levi — writer, chemist, man of letters and science, and witness to both the Holocaust and corporate work — tells of a particular aspect of human happiness in one of his most well-known passages. He writes, ‘If we can except those isolated and miraculous moments fate can bestow on a man, loving your work (unfortunately, the privilege of a few) represents the best, most concrete approximation of happiness on earth. But this is a truth that not many know’.

 

The Government Clerks

Honoré de Balzac

Garzanti, 1996

Hard Times

Charles Dickens

Feltrinelli, 2015

The train has whistled…

in, ‘Novella for a year. The lonely man’

Luigi Pirandello

Mondadori (various editions)

The Monkey Wrench

Primo Levi

Einaudi (various editions)

Stories of work, factories and offices
Stories of work, factories and offices

When literature does the talking for the culture of production

Human beings and work, offices and factories. Communities made of common labours and dreams, conflicts and hopes. A culture of production that becomes industrious reality, and a desire for well-being, and a rich subject matter. This has often, very often, been the case in the history of literature, as well as in literature today. It is important to occasionally visit (or revisit) some of the countless examples of stories of work and enterprise that literature is full of, perhaps to read them again or for the first time.

Thus, it is possible to read The Government Clerks (written by Honoré de Balzac in 1844, but still relevant and worth reading in some respects), which describes the office world of the time with merciless wit (a world that, in many respects, resembles that of today). Xavier Rabourdin, the protagonist, works in a ‘big room’, which could be referred to as an open-plan office today. Like the protagonists in Charles Dickens’ Hard Times, he fights every day to build a career, albeit in a very different environment. Hard Times describes factories and labour relations in the early days of the English Industrial Revolution in no uncertain terms. Dickens had experienced factory life, albeit briefly, and later became a parliamentary journalist.  He combined the ability to tell with the ability to see, in no uncertain terms.  Starting with the places and characters. ‘In Coketown,’ writes Dickens, ‘the piston of the steam-engine worked monotonously up and down (…). It contained several large streets all very like one another, and many small streets still more like one another, inhabited by people equally like one another, who all went in and out at the same hours, with the same sound upon the same pavements, to do the same work, and to whom every day was the same as yesterday and to-morrow, and every year the counterpart of the last and the next’.

The factory is depicted as a place of conflict (and possibly redemption), confrontation, as well as alienation. This is what happens to the protagonist of the 1925 novella The Train Has Whistled by Luigi Pirandello. The protagonist, Belluca, is an office worker who is mistreated by his colleagues and has a family that he feels he cannot connect with. Belluca eventually goes mad.

But are work and enterprise exclusively areas of drudgery and alienation? Clearly not, although these aspects have often been the focus of literature. One example is enough to refute the rule: Primo Levi, who, in his The Monkey Wrench, speaks of the toil of work and the factory, but also of its beauty. Levi — writer, chemist, man of letters and science, and witness to both the Holocaust and corporate work — tells of a particular aspect of human happiness in one of his most well-known passages. He writes, ‘If we can except those isolated and miraculous moments fate can bestow on a man, loving your work (unfortunately, the privilege of a few) represents the best, most concrete approximation of happiness on earth. But this is a truth that not many know’.

 

The Government Clerks

Honoré de Balzac

Garzanti, 1996

Hard Times

Charles Dickens

Feltrinelli, 2015

The train has whistled…

in, ‘Novella for a year. The lonely man’

Luigi Pirandello

Mondadori (various editions)

The Monkey Wrench

Primo Levi

Einaudi (various editions)

Multimedia

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AI and its governance

The analysis of policies dedicated to Artificial Intelligence

 

Artificial intelligence needs to be governed on several levels. This issue is just as important as striking the right balance between the potential of AI and its risks. AI is a theme that lies between the culture of production, awareness, and the rules that organisations must impose on themselves. It is also a rapidly evolving technological phenomenon with radical and disruptive social impacts that require different tools to address. In their book, Politiche dell’intelligenza artificiale. Arene, strategie, poteri’ (Artificial intelligence policies. Arenas, strategies, powers), Ernesto d’Albergo and Giorgio Giovanelli seek to answer the question of the convergences and differentiations that arise when examining AI from the perspective of the instruments used to govern it. The book reconstructs the mutual influences of economic, cultural, and institutional factors, as well as the role played by various social forces, actors, and political systems in the complex field of ‘artificial intelligence policies’.
In answering the underlying question, ‘Who, among governments, businesses, experts, civil society and citizens, exercises power in AI policies, to what extent, and how?’, — d’Albergo and Giovanelli present the results of an analysis of policy strategies focused on various priorities,  such as encouraging the development of technological innovation, regulating the trade-off between the potential and risks of AI models and systems, and adopting them for public purposes. The authors then examine the various actors involved, their objectives, and the issues, decisions, and primary policy instruments guiding the development and adoption of AI, whether by prioritising the protection of human and social rights, deregulating its use, or attempting to reconcile the two.

In one of the introductory passages, which provides a synthesis of the authors’ thinking, we read that ‘the politics of AI policies share modes of action, alternative strategic orientations, conflict and conflict management styles with other arenas, such as sustainable development and climate change policies’.

Politiche dell’intelligenza artificiale. Arene, strategie, poteri

Ernesto d’Albergo, Giorgio Giovanelli

Franco Angeli Open Access, 2025

AI and its governance
AI and its governance

The analysis of policies dedicated to Artificial Intelligence

 

Artificial intelligence needs to be governed on several levels. This issue is just as important as striking the right balance between the potential of AI and its risks. AI is a theme that lies between the culture of production, awareness, and the rules that organisations must impose on themselves. It is also a rapidly evolving technological phenomenon with radical and disruptive social impacts that require different tools to address. In their book, Politiche dell’intelligenza artificiale. Arene, strategie, poteri’ (Artificial intelligence policies. Arenas, strategies, powers), Ernesto d’Albergo and Giorgio Giovanelli seek to answer the question of the convergences and differentiations that arise when examining AI from the perspective of the instruments used to govern it. The book reconstructs the mutual influences of economic, cultural, and institutional factors, as well as the role played by various social forces, actors, and political systems in the complex field of ‘artificial intelligence policies’.
In answering the underlying question, ‘Who, among governments, businesses, experts, civil society and citizens, exercises power in AI policies, to what extent, and how?’, — d’Albergo and Giovanelli present the results of an analysis of policy strategies focused on various priorities,  such as encouraging the development of technological innovation, regulating the trade-off between the potential and risks of AI models and systems, and adopting them for public purposes. The authors then examine the various actors involved, their objectives, and the issues, decisions, and primary policy instruments guiding the development and adoption of AI, whether by prioritising the protection of human and social rights, deregulating its use, or attempting to reconcile the two.

In one of the introductory passages, which provides a synthesis of the authors’ thinking, we read that ‘the politics of AI policies share modes of action, alternative strategic orientations, conflict and conflict management styles with other arenas, such as sustainable development and climate change policies’.

Politiche dell’intelligenza artificiale. Arene, strategie, poteri

Ernesto d’Albergo, Giorgio Giovanelli

Franco Angeli Open Access, 2025

A closer look at employment in Milan

Research carried out on the labour market in Lombardy’s capital city provides a snapshot of the current situation and the remaining steps to be taken

Milan is an example of a labour market that should be studied and understood. It is an emblematic case of progress and innovation, and can be compared with the problems common to other geographical and economic areas of the country. In view of this, Milan is at the centre of extensive research, ‘Dinamiche del mercato del lavoro a Milano’ (Dynamics of the Labour Market in Milan), edited by Silvia Salini and inspired by the ‘Milano Occupazione 2024 (MiO2024)’ study day held in May 2024.

The study is the result of a collaboration between the Milan Economic Impact Evaluation Centre (MEIEC) and the University of Milan. It is one of the activities promoted by the Lombardy Territorial Table, which was set up by ISTAT, the regions and autonomous provinces, ANCI and UPI. This large working group was bought together to examine the situation and evolution of the labour market in the Lombardy capital, identifying its peculiarities and lines of evolution.

The survey examines local cyclical demand for work, the specific situations faced by young people and women, and the importance of effective links between the labour market and administrations, as well as accurate information. It also considers the crucial shift from the concept of ‘a job for life’ to ‘a lifetime of jobs’.

In their conclusions, the authors of the research write about the important evolution that the labour market in Milan still has to undergo. Although permanent contracts appear to be increasing, many questions remain, ‘Although the data show a strengthening of this component, it remains to be seen whether this growth represents a structural change in the labour market or is to be interpreted as a transitory phenomenon. In particular, the short average duration of contracts and high turnover suggest that the market has not yet reached full maturity in terms of employment stability.’ And, further, ‘Overall, the Milan labour market is a system in transition. It is seeking to consolidate recent progress, but it continues to face significant structural challenges’ .

Dinamiche del mercato del lavoro a Milano

Silvia Salini (ed.)

Milan University Press, 2025

A closer look at employment in Milan
A closer look at employment in Milan

Research carried out on the labour market in Lombardy’s capital city provides a snapshot of the current situation and the remaining steps to be taken

Milan is an example of a labour market that should be studied and understood. It is an emblematic case of progress and innovation, and can be compared with the problems common to other geographical and economic areas of the country. In view of this, Milan is at the centre of extensive research, ‘Dinamiche del mercato del lavoro a Milano’ (Dynamics of the Labour Market in Milan), edited by Silvia Salini and inspired by the ‘Milano Occupazione 2024 (MiO2024)’ study day held in May 2024.

The study is the result of a collaboration between the Milan Economic Impact Evaluation Centre (MEIEC) and the University of Milan. It is one of the activities promoted by the Lombardy Territorial Table, which was set up by ISTAT, the regions and autonomous provinces, ANCI and UPI. This large working group was bought together to examine the situation and evolution of the labour market in the Lombardy capital, identifying its peculiarities and lines of evolution.

The survey examines local cyclical demand for work, the specific situations faced by young people and women, and the importance of effective links between the labour market and administrations, as well as accurate information. It also considers the crucial shift from the concept of ‘a job for life’ to ‘a lifetime of jobs’.

In their conclusions, the authors of the research write about the important evolution that the labour market in Milan still has to undergo. Although permanent contracts appear to be increasing, many questions remain, ‘Although the data show a strengthening of this component, it remains to be seen whether this growth represents a structural change in the labour market or is to be interpreted as a transitory phenomenon. In particular, the short average duration of contracts and high turnover suggest that the market has not yet reached full maturity in terms of employment stability.’ And, further, ‘Overall, the Milan labour market is a system in transition. It is seeking to consolidate recent progress, but it continues to face significant structural challenges’ .

Dinamiche del mercato del lavoro a Milano

Silvia Salini (ed.)

Milan University Press, 2025

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