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Italy’s Industrial Core Sounds Alarm as Unions and Business Demand Urgent EU Action

Leaders from labor and industry unite in warning over energy costs, global competition, and the risk of economic stagnation

1 min read
Maurizio Landini, General Secretary of CGIL

Italy’s leading trade union and top business association have issued a stark warning about the future of the country’s industrial system, calling for urgent intervention at both national and European levels. The appeal came during a high-level debate in Rome on April 23, where representatives from labor and industry gathered to assess mounting economic pressures and outline possible solutions.

The central discussion between Maurizio Landini, General Secretary of CGIL, and Emanuele Orsini, President of Confindustria, underscored a shared sense of urgency despite differing approaches. Both leaders agreed that Italy’s industrial base is facing a critical moment, shaped by an economic slowdown, complex industrial transitions, and rising geopolitical tensions.

Energy costs emerged as the most immediate and pressing challenge. Italy continues to face higher energy prices than the European average, placing its manufacturing sector—particularly energy-intensive industries—at a significant competitive disadvantage. Both sides stressed that long-delayed structural reforms must now be implemented without further hesitation.

At the European level, Landini called for the suspension of fiscal constraints under the Stability Pact to unlock public investment in innovation, employment, and industrial development. He argued that the absence of a cohesive national industrial strategy has further weakened Italy’s economic resilience, making coordinated policy action even more critical.

The debate also highlighted the need for a stronger and more unified European response to global competition. Participants emphasized the importance of reinforcing common tools to support industrial transformation, particularly in strategic sectors such as energy, advanced technologies, and supply chains. The discussion pointed to the growing intensity of global competition as a key factor shaping Europe’s industrial future.

Another major issue raised was the imbalance in public debt strategies between Europe and the United States. Both Landini and Orsini suggested that Europe should consider expanding common debt mechanisms to better support growth and investment. They noted that the strength of the euro against the dollar is currently disadvantaging European companies, in some cases more significantly than trade tariffs.

Concerns were also voiced about competition from China, which was described as posing challenges to European industries through practices perceived as unfair. The speakers called for a coordinated European response to protect the continent’s productive capacity while maintaining competitiveness in global markets.

Investment was identified as a decisive factor in preventing industrial decline. Strengthening Italy’s ability to attract capital and reinforce its production chains was seen as essential to sustaining long-term growth. In this context, closer alignment between national and European industrial policies was highlighted as a key priority.

Overall, the discussion painted a troubling picture of Italy’s economic trajectory. Without swift and decisive action, both leaders warned, the country risks entering a prolonged period of stagnation, with significant consequences for its industrial base and broader economy.

Sri Lanka Guardian

The Sri Lanka Guardian is an online web portal founded in August 2007 by a group of concerned Sri Lankan citizens including journalists, activists, academics and retired civil servants. We are independent and non-profit. Email: editor@slguardian.org

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