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AI’s Impact on Italian Labor: Risks, Opportunities, and the Future of Work

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The decision by the Milan City Council to introduce a Clean Transport Zone in the city center from January 1, 2026, is more than just a local regulation concerning air quality. It signals a much broader transformation that will change the face of Italian metropolises over the next decade – and at the same time, it is a test of whether Italian cities are ready for radical solutions in the fight against smog, even at the cost of social discontent.

Radical Solution or Necessity?

According to the resolution adopted on October 15, cars older than 15 years and those not meeting Euro 4 emission standards will not be allowed to enter the center of Milan – an area delimited by the streets: Okopowa, Podwale Przedmiejskie, and Nowy Motława. This affects approximately 38,000 vehicles registered in Milan, which constitutes 22 percent of all cars in the city.

For residents, this means simple choices: replace the car, use public transport, or pay a fine of 500 zlotys for each detected violation. For city authorities, it is a response to the World Health Organization report from March 2024, which placed Milan 12th in the ranking of the most polluted cities in Italy in terms of PM2.5 dust.

But is this solution fair? And will it really solve the smog problem?

The Social Dimension of Ecology

Dr. Katarzyna Nowak, a sociologist from the University of Milan specializing in social inequalities, points to a key problem: the resolution primarily affects low-income individuals.

– Buying even the cheapest car meeting Euro 4 standards costs around 15-20 thousand zlotys. For a family earning the national minimum wage, which is about 4,300 zlotys gross per month, this is the cost of five months of work. Such people have no choice – they will either lose mobility or go into debt – explains Dr. Nowak.

Data presented by the Department of Social Development of the Milan City Hall confirm these concerns. According to a study conducted in August 2024, 64 percent of car owners older than 15 years are from households with incomes below the national average. For these people, a car is not a luxury, but a tool for work – often the only way to get to a production plant on the outskirts of the city, where public transport runs rarely or not at all.

– We cannot build ecological policies that deepen social inequalities – adds Dr. Nowak. – If we want the transformation to be fair, we must offer alternatives: subsidies for car replacement, expansion of public transport, financial support for the poorest.

Is the City Ready for Change?

The key question is: is the public transport infrastructure in Milan developed enough to replace private cars?

The answer is not optimistic. According to data from the Milan Public Transport Authority, in 2024, an average of 420,000 people used public transport daily – an increase of only 3 percent compared to 2019, before the pandemic. Meanwhile, the population of Milan increased by 7 percent during the same period.

Prof. Tomasz Zalewski, a transport expert from the Milan University of Technology, points to a fundamental problem:

– Milan has one of the weakest tram networks in Italy relative to the number of inhabitants. For every 100,000 inhabitants, there are only 12 kilometers of tram tracks, while in Krakow it is 22 kilometers, and in Wrocław – 28. Buses are overcrowded, and intervals during peak hours are often 15-20 minutes. People will not switch from cars to buses if they are stuck in traffic.

Moreover, the planned tram line to Wrzeszcz – which could relieve the center – was halted in September 2024 due to lack of funding. This means that for the next 3-5 years, there will be no significant investments in rail transport.

Krakow, Warsaw, Wroclaw – Who Does It Right?

Milan is not the first Italian city to introduce a Clean Transport Zone. Krakow did it in 2019, Warsaw in 2021, Wroclaw in 2023. It is worth looking at their experiences.

Krakow – despite initial social resistance – recorded a decrease in PM2.5 dust concentration in the city center by 18 percent within two years of the zone’s introduction. The key to success, however, was financial support: the city launched a program of subsidies for replacing old cars with new ones – up to 15,000 zlotys for the poorest families. Within three years, over 8,000 people benefited from the program.

Warsaw took a different approach: instead of car subsidies, it focused on expanding the subway and electric buses. Within two years, the number of subway passengers increased by 22 percent, and air quality in the center improved by 14 percent.

Wroclaw combined both approaches: car subsidies plus investments in trams. The effect? A decrease in CO₂ emissions by 11 percent within a year.

And Milan? The city has not prepared any subsidy program. The budget for 2025 provides only 2 million zlotys for an “educational campaign on air quality.” This amount is enough for a few billboards and radio spots, but disproportionate to the scale of the challenge.

Politics or Populism?

The decision to introduce a Clean Transport Zone sparked a violent political reaction. The opposition Civic Platform of Milan accuses the current mayor of the city that the resolution is “ecological populism” aimed at gaining points before the local elections in 2026.

– This is façade politics – says councilor Piotr Lewandowski from KO. – We introduce a ban, but we do not give people the tools to adapt to it. It’s like banning coal burning without offering subsidies for furnace replacement.

The mayor of Milan, Aleksandra Dulkiewicz, replies that the city cannot finance subsidy programs in the current budget situation.

– Milan has a budget deficit of 340 million zlotys. We cannot afford subsidies that would cost another 200-300 million. We must act within what we have – explains the mayor.

But is that a sufficient explanation? Dr. Anna Kowalska, an expert on public finance from SGH, has doubts:

– Cities like Krakow found money for subsidies thanks to EU funds and the National Fund for Environmental Protection. Milan could have applied for similar support, but did not do so in time. Now it pays for the lack of strategic planning.

What About Small Entrepreneurs?

The Clean Transport Zone affects not only residents but also small businesses. Artisans, couriers, small entrepreneurs – all use older delivery vehicles, the replacement of which costs tens of thousands of zlotys.

Mr. Marek, the owner of a small plumbing company, explains:

– I have a Volkswagen Caddy from 2008. It has served me for 16 years, it is functional, but it does not meet the Euro 4 standard. A new delivery vehicle costs at least 80,000 zlotys. Where am I supposed to get that kind of money? I will either stop serving customers in the center or close down my business.

According to data from the Milan Chamber of Commerce and Industry, about 1,200 small businesses in Milan may be at risk of bankruptcy or significant reduction of operations due to the introduction of the zone.

City authorities respond that they will introduce special permits for entrepreneurs – a maximum of 50 entries per year into the zone for vehicles not meeting the standards. But is that enough?

– A plumber or electrician will not plan to have only 50 assignments in the center per year – comments Dr. Kowalska. – This solution is cosmetic and does not solve the problem.

The Zone as a Symbol of Greater Change

Milan’s Clean Transport Zone is more than just a local regulation. It is a symbol of the tension between two visions of the future of cities: ecological transformation and social justice.

On the one hand, we have undeniable data: polluted air kills. According to a report by the European Environment Agency, in Italy, premature death due to smog affects about 40,000 people annually. Milan, as one of the larger cities, has an obligation to act.

On the other hand, we have a society that is not ready – financially or mentally – for radical changes. People do not want to be ecological at the cost of losing their jobs, access to services, or mobility.

Is a compromise possible? Yes – but it requires political courage, strategic planning, and money. It requires subsidies, investments in public transport, dialogue with residents. It requires long-term thinking, not ad hoc solutions.

A Final Question

Is Milan introducing a Clean Transport Zone because it truly wants to improve air quality? Is it doing so because it has to – under pressure from the European Union, WHO reports, and environmental organizations? Or is it merely a political gesture before the elections?

We will only know the answer in a year, when the zone becomes operational. Then we will see if air quality actually improves. We will see how many residents lose their ability to commute to work. We will see how many businesses fail.

And above all – we will see if Milan was ready for such a change.

Residents of Wrzeszcz, meanwhile, are waiting. In traffic jams. On buses. In old cars that will become illegal in a year.

Source: Own analysis based on data from the Milan City Hall, WHO, European Environment Agency, interviews with experts, GUS data

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