The session is focused on the evolution of the Italian welfare capitalism (both welfare institutions and economic production systems) in the last two decades. Through the lenses of the Varieties of capitalism (VoC) approach, all the papers will look backwards at the past reforms, while looking at the future prospects of the Italian political economy. Papers will address questions about reforms' output, outcome and the relative political dynamics. As for the latter, the role of political parties, interest groups, ideas and the EU integration will be considered. Insitutions inherited from the past are a further key variable to shed light on.