Italy’s industrial meltdown – what is to be done?

Revolting Europe

As the crisis at white goods maker Electrolux heralds another round of plant closures in the Eurozone’s second largest manufacturing nation, economist Guido Viale argues that Italy has to take a radical new approach based on public sector intervention.

What is to be done when the owner of a company decides to close down a plant, or to transfer production abroad to pay less tax, or to pay workers less, or to pollute the environment? As a rule of thumb, the first thing to do is to seize the company (mayors have the power to do so, if only for reasons of public order) and stop it taking away the machinery. Then you should block its financial accounts and reclaim the funds, as 9 time out of 10 it has already received subsidies from the State in the form of grants , soft loans, and rebates on tax and social…

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One thought on “Italy’s industrial meltdown – what is to be done?

  1. What has happened to the forconi revolution? Are you familiar with Gar Alperovitz’ 2013 book, “What Then Must We Do?” In it he forcefully makes the case for worker co-operatives to rescue faltering industrial enterprises and gives examples where sweat equity has prevailed where private capital had utterly failed.

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