Policy without politics? Technocratic aspirations, international push and domestic politics in Italy’s labor market reform

Wednesday, June 26, 2013
A0.08 (Oudemanhuispoort)
Stefano Sacchi , University of Milan
A good deal has changed in Italian labor policy and politics lately.  The installation of a non-partisan government led by Mario Monti in late 2011, grudgingly supported by a vast majority in Parliament glued by the fear of economic catastrophe, paved the way for a wave of structural reforms, including a wide-ranging labor market reform passed in July 2012. It breaks away with a tradition of reforms at the margin, to reduce EPL for open-ended workers, a move long advocated by international organizations such as the OECD and EU institutions, alongside international business community.

This paper aims to trace the policymaking process of the reform, reconstructing the various stages it went through, the interest-based coalitions that mobilized to support its various parts or to advocate changes, the way in which interests defeated in the negotiation stage tried, failed or succeeded to have their way in the parliamentary stage, the struggles occurring between the government and its reluctant majority. All this in the context of a new policy style by the Monti government, which forced decisions in the shadow of hierarchy and even took unilateral action, pursuing its policy recipes under the legitimacy provided by the international actors and the sense of urgency stemming from the sovereign debt crisis.

The Italian labor market reform makes an unparalleled venue to cast light on the role played by interest-based coalitions, economic ideas, state bureaucracies and international actors in domestic emergency policymaking, and more in general on the curbing of democratic politics in hard times.

Paper
  • SACCHI_CES AMSTERDAM.pdf (404.0 kB)