A low level of investment is common to all the European economies; it lies at the root of the decline in employment in certain sectors and the rise in unemployment. It is serious in the more depressed regions, particularly in southern Italy; together with high labour costs, the fall in private and public sector investment is adversely affecting the economic and productive fabric.
Appropriate policies are required to restore higher rates of investment. Lower unit labour costs and increased competitiveness provide fertile ground for a recovery in investment. BIS Review 4/1998  - 10 -  I have spoken at length elsewhere of the potential and actual availability of private saving in Italy.