Extract 1 – The Italian Mezzogiorno Divide

In recent years, economic policy debates in Italy have focused heavily on addressing the persistent developmental and welfare disparities between the industrialised North and the historically underdeveloped South (the Mezzogiorno). While northern administrative regions benefit from strong manufacturing sectors, close integration with central European markets, and high employment rates, southern regions continue to face structural unemployment and lower productivity. This geographic disparity is reflected in the distribution of net financial resources available to households across different regions, as shown in Table 1.1.

Table 1.1: Average Annual Household Net Disposable Income (€) by Selected Italian Region in 2023