I've written before about the Italian Dilemma and the debt trap on a number of occasions (see this article for example) and my basic view remains the same - Italian economy needs structural reforms to escape the debt overhang trap and increase productivity in non-exporting firms. That gap, in productivity, between the exporters and non-exporters in the Italian case is vast.
Now, it is great to see BCA Research wading in with the similar concern about Italy's productivity problem and the issue of structural reforms: link here.
A chart from BCA:
here) and underemployment of Italian younger workers.
Italian workplace structures (from hiring to firing) and firm ownership (especially smaller family firms, but also unionised larger or legacy employers) actively obstruct promotion of non-Italians to management and higher professional grades. Non-EU citizens with higher skills and their residency in Italy have been regulated by antiquated laws until August 2012 (see here). These are non-meritocratic (see here and here for examples) systems that cannot be sustained in younger societies, let alone in Italy, where emigration and ageing are forcing the workforce to become older and less productive (see an early study here on effects of migration on Italian labor force comparative to other EU countries).
On underemployment of Italian younger workers, here's a chart from 2012 OECD study: