The phrase Italy in EU evokes a fascinating mosaic of history, culture, economic challenge and opportunity. As a founding member of the European Union and home to one of Europe’s largest economies, Italy occupies a unique position. In this article we dive deep into Italy’s standing within the EU in terms of its economy, education system, tourism sector, quality of life and salary levels — all compared with other EU countries. We will highlight where Italy shines, where it struggles, and where reform or change may lead to a more promising future.
Italy’s Economy within the EU
Italy is the third-largest economy in the eurozone and among the top in the EU by size, yet in many respects it underperforms when compared to its peers. For example, Italy’s GDP per inhabitant in 2022 was around €33,000, compared to the EU27 average of about €35,400. EURES (EURopean Employment Services)+1
Despite its size, Italy is weighed down by structural issues: stagnant productivity growth, high public debt (over 130% of GDP) and a chronic north-south divide. While recent reports show improvement in fiscal discipline — with the International Monetary Fund noting Italy is over-performing on deficit targets — growth remains weak (forecast ≈0.5%-0.7% annually) Reuters+1
Strengths
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Italy is globally competitive in manufacturing, luxury goods, fashion, food & beverage, engineering and design.
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Tourism (covered later) provides a strong revenue stream.
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Life expectancy is among the highest in the EU (see quality of life section).
Challenges
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GDP per capita below EU average: this shows Italy is somewhat lagging.
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Employment rate weak: as of Q4 2024, Italy’s employment rate for ages 15-64 was 62.2 %, around 8.7 points below the EU average. ANSA.it
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Wages and productivity: average gross earnings in Italy (2023) were ~€2,791/month while the EU27 average was ~€3,417/month. EURES (EURopean Employment Services)
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Working life expectancy (how many years one is expected to work) is second-lowest in the EU: 32.9 years in Italy vs 36.9 years EU average. ANSA.it+1
In short: Italy remains a heavyweight in size, but relative to EU peers it under-delivers in key metrics of productivity, employment and wages.
Education: Where Italy Stands
Education is a crucial pillar for long-term growth, innovation, and economic competitiveness. How does Italy compare?
Italy’s investment in the education sector is lower than many EU peers: public spending on education was 3.9% of GDP compared to an EU average of 4.7% in 2023. The Journal+1
What this suggests is that Italy’s education system has fewer financial resources (relative to GDP) than many of its neighbours. That does not mean the system lacks merit or cultural richness, but the under-investment means opportunities for improvement remain significant.
Key facts
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University graduates in the EU tend to earn significantly more: in Europe overall, highly educated people earn on average 38% more than those with medium level education. euronews
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The transition from school to work in Italy is protracted, especially for youth and women, and the number of young people not in employment, education or training (NEET) remains relatively high compared to some EU neighbours. arXiv
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Regional disparities: in northern regions the employment and education outcomes tend to be better; in the south, much weaker. EURES (EURopean Employment Services)+1
Takeaway
Italy’s educational infrastructure and outcomes give solid cultural and human capital, but the relative lack of investment and structural inefficiencies limit its ability to match stronger EU countries in the innovation and skills race. Strengthening the system — with targeted investment, regional focus and stronger connections between education and the labour market — would help bolster Italy’s long-term EU competitiveness.
Tourism: Italy’s Global Strength
If there’s one sector where Italy punches well above many peers, it’s tourism. The phrase “Italy in EU” here is almost synonymous with tourism excellence.
In 2023 Italy recorded 133.6 million tourist arrivals (highest since 2008) with foreigners comprising about 50.8 % of arrivals. EU Transition Pathways+1 Italy ranks second among EU countries for tourist presence (behind Spain) and has experienced robust growth. Agenzia Nova+1
Visitor satisfaction is also high: in early 2025 Italy achieved a tourist satisfaction score of 86.4 (on scale) and ranked second in Europe in major destination comparisons. AlbengaCorsara News+1
Why it works
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Rich cultural heritage (art-cities, history, cuisine) attracts millions.
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Strong brand “Made in Italy” in food, wine, fashion, lifestyle.
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A broad range of destinations: coastline, mountains, cities, rural agritourism.
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High value tourism: cultural heritage, gastronomy, weddings, luxury travel. 9Colonne
Comparisons
Compared to many EU peers, Italy exceeds in sheer tourist volume and satisfaction, but faces challenges of overtourism in key locations (Venice, Florence, etc.) and has to manage sustainability, infrastructure and regional spread of benefits. The Times+1
Implication
Tourism is a major asset: it boosts employment, regional development (especially in the south and islands), foreign currency flows and global brand awareness. However, depending too much on tourism without diversification can leave a country vulnerable to global shocks (pandemic-like disruptions) and structural issues such as seasonality, low-paid jobs, and regional imbalance.
Quality of Life: Italy’s Standing
Quality of life encompasses multiple dimensions: health, life expectancy, satisfaction, work-life balance, environment, social services. Let’s compare Italy in the EU context.
Life expectancy & health
In 2023 Italy had a life expectancy at birth of about 83.8 years, above the EU average (~81.5 years) and among the highest in the Union. European Commission+1
Life satisfaction
According to Eurostat data, Italians scored 7.2 out of 10 in life satisfaction (2022), just above the EU average of 7.1. ANSA.it
Population & working life
However, there are areas of concern: Italy has the oldest average population in the EU: average age 48.7 years in 2024 vs EU average 44.7 years. ANSA.it
Moreover, the expected working life of a 15-year-old in Italy is just 32.9 years, second-lowest in the EU, compared to EU average of ~36.9 years. ANSA.it
Regional disparities & labour market
As noted earlier, employment rates are lower than EU average, particularly for women: Italian female employment in Q4 2024 was 53.1% compared to EU average 66.3%. ANSA.it
Takeaway
On many human and social indicators Italy compares favourably or above average (life expectancy, satisfaction), but structural issues remain: ageing population, shorter working life, weaker participation rates (especially women), regional inequality. For Italy’s quality of life to remain strong, addressing labour market inclusion and demographic renewal is crucial.
Salaries & Income: How Much Do Italians Earn vs EU?
When we look at remuneration and purchasing power, Italy lags behind many EU countries.
Average earnings
According to EURES data (2023) Italy’s gross average monthly earnings ~€2,791, while EU27 average is ~€3,417. Net equivalent: Italy ~€2,017 vs ~€2,351 EU27 average. EURES (EURopean Employment Services)
According to ISTAT reporting, Italian wages are about 12 % lower than EU average and about 23 % lower than equivalent wages in Germany (adjusted for purchasing power). ANSA.it
Industry breakdown
In Italy, salaries vary widely by region and sector. For example, in IT/Tech you might find €35-50k per year (entry to mid-level) whereas tourism/hospitality is much lower (~€18k-35k depending on role) Global Citizen Solutions+1
Purchasing power & regional imbalance
Northern regions such as Lombardy, Lazio, Liguria command higher average salaries (~€33k annual) while southern regions (e.g., Basilicata, Calabria, Puglia) are lower (~€26k-27k). Expats Living in Rome
Implication
Lower average salaries mean many Italians feel less wealthy relative to EU peers, even if cost of living may also be lower in some areas. Also, the wage stagnation combined with lower productivity raises concerns about the long-term competitiveness of Italy in the EU labour market.
Comparative Summary: Italy vs Selected EU Countries
| Dimension | Italy’s Position | Comparative Note vs EU Peers |
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| GDP per capita | ~€33k in 2022, below EU average (~€35.4k) EURES (EURopean Employment Services) | Slightly lagging |
| Employment rate | 62.2% (Q4 2024) vs EU avg ~70.9% (gap ~8.7 pts) ANSA.it | Lower participation especially women |
| Education spending | 3.9% of GDP vs EU avg 4.7% The Journal | Under-invested |
| Average earnings | ~€2,791/month gross vs €3,417/month EU average EURES (EURopean Employment Services) | ~12% lower than EU avg; ~23% lower than Germany ANSA.it |
| Life expectancy | ~83.8 years (2023) above EU avg (~81.5) European Commission | Strong performance |
| Life satisfaction | Score 7.2 vs EU avg 7.1 ANSA.it | Slightly above average |
| Tourism | #2 in EU tourist presence, strong growth 9Colonne+1 | Leading position |
| Working life expectancy | 32.9 years (second-lowest in EU) ANSA.it | One of the weakest |
Why Italy’s Position is the Way It Is
Multiple interconnected factors influence Italy’s current performance:
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Regional Divide: The persistent north-south divide means that while northern regions may match or exceed many EU peers, the southern regions lag significantly in employment, investment, infrastructure.
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Demographics: Italy has the oldest population in the EU (average age ~48.7) which affects labour force size, dependency ratio, economic dynamism. ANSA.it
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Labour Market Structure: High percentages of low-productivity jobs, part-time/temporary employment, delayed transitions from education to work. arXiv
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Investment in Innovation & Education: Lower relative spending on education and research means slower accumulation of human capital as compared to more investment-intensive EU states. opus.bsz-bw.de
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Legacy Issues: High public debt, slow bureaucracy, regulatory burdens, and weak productivity growth hamper Italy’s ability to match faster-growing EU peers.
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Tourism and Services-based economy: While tourism is a strong asset, the economy is less weighted toward high-tech, high-productivity sectors compared to e.g. Germany or Netherlands.
Opportunities & Pathways Forward
Despite the challenges, Italy in the EU has multiple avenues for improvement and growth:
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Enhance human capital: By increasing investment in education, vocational training and innovation, Italy can boost productivity and wage potential.
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Better labour market inclusion: Especially for women, youth, and southern regions. Tackling structural unemployment can lift overall employment rates closer to EU average.
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Promote diversification beyond tourism: While tourism is strong, pushing more into digital economy, green technologies, advanced manufacturing could increase resilience.
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Address regional disparities: Targeted investment and incentives for the south could harness latent potential.
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Manage demographics: Policies that support families, immigration and active ageing might help mitigate population ageing and labour force decline.
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Sustain tourism quality & infrastructure: Given tourism’s importance, managing overtourism, upgrading infrastructure, promoting off-season and regional tourism will sustain growth long term.
Conclusion
In conclusion, the phrase “Italy in EU” captures a nation with tremendous assets — culture, history, human capital and a prominent place in Europe — but also one facing structural headwinds. On the one hand, Italy compares favourably in quality of life indicators (e.g., life expectancy, satisfaction), and leads in tourism across the EU. On the other hand, its economy, education investment, employment rate and wages place it below many of its EU peers.
For Italy to truly thrive within the EU framework and raise its standing, the focus must shift to boosting productivity, narrowing regional divides, elevating education and innovation, and invigorating labour market participation. With the right mix of reforms, investment and strategic vision, Italy can leverage its strengths and reduce its gaps — ensuring that its role in the EU is not just historic, but dynamic and forward-looking.
FAQs
What is Italy’s employment rate compared to the EU average?
Italy’s employment rate for people aged 15-64 was 62.2% in Q4 2024, about 8.7 percentage points below the EU average. ANSA.it
How do Italian salaries compare with other EU countries?
In 2023, the gross average monthly earnings in Italy were ~€2,791 compared to ~€3,417 for the EU27 average. Italy’s wages are about 12% below the EU average and about 23% below German wage levels at equivalent purchasing power. ANSA.it
Is Italy’s life expectancy above the EU average?
Yes. Italy’s life expectancy in 2023 was about 83.8 years, which is above the EU average of ~81.5 years. European Commission
How much does Italy invest in education vs the EU?
Italy’s public expenditure on education was about 3.9% of GDP (2023) compared to the EU average of 4.7%. The Journal
How significant is tourism in Italy compared to other EU countries?
Very significant. Italy ranks second in Europe for tourist presence, and in 2023 reported ~133.6 million tourist arrivals, half of them foreign. EU Transition Pathways+1
What are key challenges for Italy’s quality of life and labour market?
Italy faces an ageing population (average age ~48.7), one of the shortest expected working lives in the EU (~32.9 years), and relatively low female employment participation. ANSA.it+2ANSA.it+2