Public debt and demography. An analysis of the Italian case

This paper focuses on the challenges posed by high public debt and demographic decline in Italy. The interplay between these two factors threatens debt sustainability and hinders economic growth. A large debt stock constrains economic policy choices and limits national sovereignty. Meanwhile, population decline affects public spending and tends to exacerbate public debt, further complicating its sustainability. Possible policy options to counterbalance this issue include immigration, increasing labor force participation, pension reforms, fiscal consolidation, and investment in education targeted at the young population.