Let them in!
[ROME] Back on 26 January, Hamish McRae of The Independent used the occasion of the death of Gianni Agnelli to muse upon Italy's economic prospects. What most alarmed him was population decline. He pointed out that although Italians are said to love children — they just don't have very many of them anymore. He also noted that the ratio of people of working age, relative to over-65s, will shift from the present 2.2 to 1 ratio to a 0.8 to 1 ratio in 2050, leaving fewer workers than pensioners. In "The pros and cons of Italy", he wrote:
"For most Britons, including our Prime Minister, Italy is the place for a holiday: culture, food, music and style have been interwoven into a way of life that is hugely seductive for many British people. Alongside the obvious attractions is the wonderful 'slow food' project of a clutch of Italian towns, which are trying to get people to pace their lives in a more healthy and relaxed manner — for example, to walk rather than drive as well as to eat traditional food instead of junk...Now, there are several unusual features to the Italian economy. One is that the number of hours worked is relatively low. But more remarkable is the low labour participation rate: less than 60 per cent of the people of working age are in jobs, compared with 76 per cent here. You could say that the country manages to achieve a high standard of living — as well as a high quality of life — without having to work too hard. Many would find that a rather attractive combination — if it were sustainable. Sadly, I fear it is not.
...The danger is that the brightest young Italians will look elsewhere for jobs. For example, Italy happens to produce very good economists, many of whom have come to Britain. Were outward migration to rise, the population decline would become even more serious. The big issue for Italy is in some ways the same as for Germany: how quickly can it reform? Fiat will now reform because it has no choice. It is sad, is it not, that it takes the death of a giant for that to happen?"
The answer to Italy's looming crisis? More immigration and a genuine commitment to structural reform.
Diarist of the day: Cynthia Gladwyn, 20 February 1967"A party to meet our new leader Jeremy Thorpe. A huge crowd came and drank too much champagne. Paul Hislop took Yehudi Menuhin for a Liberal candidate; David Frost kissed Violet Bonham Carter; Lord Gardiner, who looks so impressive when dressed in his Lord Chancellor's robes, came; but neither George Brown nor the Prime Minister did -- just as well, I thought. Jeremy won't be as good as Jo [Grimond], whose wonderful looks, voice, and integrity were a tremendous asset to the party, especially on television. Jeremy is a bit of an actor; in fact he would have made a marvellous actor. His imitations of Harold Macmillian, Harold Wilson, even Jo, are terrifyingly funny; and best of all is that of Ted Heath saying, Out of the House'. Admittedly, Ted behaved rudely to Jeremy, walking 'Out of the House' when Jeremy took his place there as Liberal leader."
