master.jpg
Introduction to the Concept of Economic Decline
•Economic Decline,
the Euro and
Euroscepticism in Italy
•
•Roberto Di Quirico (Ph.D.)
Brno 2024-25
•diquirico@unica.it

print.jpg
What is Economic Decline?
•
•Definition: A prolonged process of worsening economic performance in a country
•Key characteristics:
•• Persistent slowdown in economic growth
•• Loss of international competitiveness
•• Decrease in relative economic well-being

print.jpg
Main Indicators of Economic Decline
•
•GDP per capita (growth and relative level)
•Labor productivity
•Total Factor Productivity (TFP)
•Share of global export market
•Innovation and R&D investments

print.jpg
GDP per capita
•
•Definition: Total value of goods and services produced in a country in a year, divided by the
number of inhabitants •Growth: Percentage increase in GDP per capita from one year to the next
•Relative level: Comparison of a country's GDP per capita with that of other countries or an
average (e.g., EU) •Importance: General measure of a country's economic well-being

print.jpg
GDP per capita
Source: World Bank, https://databank.worldbank.org/source/world-development-indicators#

print.jpg
Labor Productivity
•
•Definition: Quantity of output (goods or services) produced per unit of labor •Calculation: GDP
divided by the total number of hours worked in a country •Importance: Indicates the efficiency with
which labor is used in the economy •Example: If productivity increases, more is produced with the
same number of hours worked

print.jpg
Labor Productivity
Source: AMECO,
https://economy-finance.ec.europa.eu/economic-research-and-databases/economic-databases/ameco-datab
ase_en

print.jpg
Total Factor Productivity (TFP)
•
•Definition: Measure of the overall efficiency with which an economy uses all its productive
factors •Concept: Part of economic growth not explained by the increase in inputs (labor and
capital) •Importance: Reflects technological progress and innovation in an economy •Example:
Improvements in production processes that allow more to be produced with the same inputs

print.jpg
Total Factor Productivity
Source: AMECO,
https://economy-finance.ec.europa.eu/economic-research-and-databases/economic-databases/ameco-datab
ase_en

print.jpg
Share of Global Export Market
•
•Definition: Percentage of world exports coming from a given country •Calculation: (Country's
exports / Total world exports) x 100 •Importance: Indicates a country's international
competitiveness •Example: If the share decreases, it means other countries are exporting relatively
more

print.jpg
Share of Global Export Market
Immagine che contiene diagramma, testo, linea, Diagramma Descrizione generata automaticamente
Source: ISTAT, https://www.istat.it/storage/ASI/2023/capitoli/C15.pdf

print.jpg
Innovation and R&D Investments
•
•Innovation: Introduction of new products, processes, or methods into the economy •R&D: Research
and development activities to create new knowledge and technologies •R&D investments: Financial
resources allocated to research and development activities •Importance: Crucial for long-term
economic growth and international competitiveness •Measurement: Often expressed as a percentage of
GDP invested in R&D

print.jpg
Innovation and R&D Investments
Immagine che contiene testo, diagramma, linea, Diagramma Descrizione generata automaticamente
Source: ISTAT, https://www.istat.it/it/files/2021/05/La-spesa-in-ricerca-e-sviluppo.pdf

print.jpg
Summary of Italian Economic Decline
•
•Key points:
•• Since 1990: GDP per capita growth lower than EU15 average
•• 2000-2010: Negative TFP growth
•• 2010: Only EU country with GDP per capita lower than in 2000 •Implications for competitiveness
and economic well-being

print.jpg
Introduction to Euroscepticism
•
•Definition: Criticism of or opposition to the European Union and European integration
•Key aspects:
•• Ranges from soft (reformist) to hard (rejectionist) Euroscepticism •• Can be based on economic,
political, or cultural concerns
•• Often linked to national sovereignty issues
•In Italy:
•• Traditionally pro-European country
•• Euroscepticism emerged mainly in the 1990s and grew after the 2008 crisis

print.jpg
From Permissive Consensus to Constraining Dissensus
•
•
•
•
•PERMISSIVE CONSENSUS:
•
•Definition: Passive acceptance of European integration by citizens, primarily driven by political
elites.
•
•Key Features:
•Low public attention to EU matters.
•Increasing levels of support for integration during the 1970s and 1980s.
•European policies perceived as technical and distant.
•
•Transformative Factors:
•Maastricht Treaty (1992): Introduction of "high politics" topics (e.g., single currency,
sovereignty, EU citizenship).
•Greater EU impact on citizens' daily lives.
•
•Initial Consequences:
•Growing public dissent towards integration.
•End of permissive consensus: more public involvement, but with critical attitudes.

print.jpg
Constraining Dissensus and the Rise of Euroscepticism
•
•CONSTRAINING DISSENSUS:
•Definition: Increased division and polarization of public opinions on European integration.
•
•Key Features:
•More dispersed opinions and flatter distributions.
•Higher public engagement, but less overall consensus.
•Politicization of European integration.
•
•Political Implications:
•Opportunities for Eurosceptic parties to exploit dissent.
•Pressure on political elites to revise their approach to integration.
•Emergence of potential internal political cleavages.
•
•Long-term Outcomes:
•Decline in average support, coupled with greater fragmentation of public opinion.
•Need for strategies addressing citizens' growing concerns.

print.jpg
The Role of the Euro in Fueling Dissensus
•
1.The Euro as a Symbol of Political Integration:
oThe euro represented a key step toward deeper political union, not just economic integration.
oPerceived as a loss of national sovereignty, fueling dissent in various member states.
2.Perceived Economic Impacts:
oAssociated with negative economic changes such as price increases and reduced purchasing power.
oStrengthened critical narratives and fueled Euroscepticism.
3.Polarization of Public Opinions:
oThe euro divided public opinion between those who saw it as progress and those who saw it as a
threat.
oContributed to a more dispersed opinion distribution, a hallmark of constraining dissensus.
4.Political Consequences:
oPoliticization of the euro provided fertile ground for Eurosceptic parties and populist movements.
oThe euro became a symbol for broader criticism of the European project, deepening the divide
between pro-integration elites and critical citizens.
•

print.jpg
The Role of the Euro in Fueling Dissensus (2)
•
•Conclusion: The introduction of the euro was not merely a technical decision but a systemic event
that heightened discussions on national identity, sovereignty, and economic governance, playing a
crucial role in the shift from "permissive consensus" to "constraining dissensus."
•
•