Today, there are only two countries in the EU where the economic power of their citizens is lower than twenty years ago. One is Greece, the other is Italy.
In the period 2004 to 2024, the average real wealth per capita on the continent increased by more than a fifth (+22.3 per cent). Germany recorded a growth of 24.3 percent, France 21.2 percent, and Spain 10.7 percent. Italy, on the other hand, experienced a fall of almost four percentage points (-3.9 percent), while Greece fell even more (-5.1 percent).
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When we talk about real income, we are not just referring to wages, but to total personal income – from work to return on investments and rental income – adjusted for inflation. In other words, it’s not about how much you earn, but about how much you actually get to buy with your money in real life.
Italy’s long-term stagnation
Italy’s long-term stagnation is largely related to how the economic structure is organized. For two decades, GDP growth has been minimal. The country relies heavily on mature, low-productivity industries, such as tourism, and a network of very small businesses that often invest little in innovation and struggle to compete in global markets.
Nor has the efficiency of the workforce made much progress. The workforce is, on average, less skilled, placed in outdated structures, and weighed down by slow processes and extensive bureaucracy. On the wage front, collective bargaining comes late: about one in two workers is bound by expired contracts, with adjustments chasing inflation when the damage has already been done.
The final balance is clear: in large parts of Europe, revenues have managed to grow faster than prices, preserving purchasing power. In Italy, this mechanism has stalled.
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