Italy has been told that it must implement reforms to end poverty and restore greater equality in its society.
The toll of the economic crisis on Italy included a five-fold surge in child poverty and serious disparities in income and education, according to a report from the OECD published last week.
The survey also pointed to a devastating lack of investment and a steep decline in productivity as a result of the global financial meltdown.
Even though Italy’s economy managed to rise out of recession in 2015, eight years after the crisis erupted, productivity is still 10% lower than before the maelstrom began and investment is lower by 30%, the Organization for Economic Cooperation and Development said.
The influential think tank called for an acceleration of reform measures in order to make a full recovery from the crisis.
"In 2015, 11 percent of Italian residents under the age of 17 were living in what we consider absolute poverty. In 2006 it was only three percent," said the OECD boss Angel Gurria.
"Those figures are a signal of a need for urgent action."
The organisation pressed for a clean-up of the country’s banks which are carrying more than €300 billion in non-performing loans, boosting investment which will in turn advance productivity, and addressing skill shortages which are greater than in comparable countries.
Literacy levels were cited to be among the lowest of its 20 member states.
The OECD claimed that serious obstacles to greater economic progress included bureaucracy, a sluggish legal system and chronic tax evasion.
"Public-administration inefficiencies, slow judicial processes, poorly designed regulation and weak competition still make it difficult to do business in Italy," the survey noted.
"Innovative start-ups and small/medium-sized companies continue to suffer from difficult access to bank and equity finance, curbing incomes for many."
Finance Minister Pier Carlo Padoan said he agreed with the OECD's assessment, and said the government is committed to reducing poverty.
But it was not all harsh criticism. The OECD said that reforms already instituted “are producing results”.
Moreover, Italy is still ahead of comparable countries for work-life balance, social life, and levels of health and longevity, although there are considerable disparities across social classes and regions.
