The Marcora Law was implemented in 1985. Its main goal is that any failing company can be bought out by its workers. The government promised to provide workers with low-interest loans to restore the company. This law contributed to the growth of the cooperative sector from approximately 2.2% in 1985 to 6.6% in 2017. Its growth slowed mainly due to the COVID-19 pandemic. This represents a major success for cooperatives.

How did cooperatives benefit other workers?

GDP impact: A 1% increase in cooperative employment is associated with ~0.49% higher regional GDP.

Employment multiplier: A 1% rise in cooperative jobs leads to ~0.39% increase in total regional employment.

Economic role: Cooperatives are considered a cornerstone of Italy’s economy, especially for local development and job stability.

Crisis resilience:

**1970s–80s stagnation:** cooperatives grew employment by ~86%, while overall employment rose ~3.8%.
**2008 crisis:** cooperative employment increased in most regions (2012–2017), with strong gains in many areas.

**COVID-19:** cooperatives helped stabilize jobs and recovered faster than many private/non-profit sectors.

**Key mechanism (“employment smoothing”):** Workers adjust wages or internal costs instead of layoffs during downturns.

Local wealth effect: Surpluses are largely reinvested or distributed locally, increasing regional spending and economic circulation.

Long-term growth: Share of cooperative employment in Italy rose from ~2% (1951) to ~6–7% (2017), about 1.1 million workers.

Institutional advantage: Cooperatives act as “near-community organizations,” using local knowledge to address needs and reduce market failures.

However. Capitalist class intentionaly overregulate them to prevent their growth. There is a lis tof predatory regulations.

Banking sector demutualization: 2015 Investment Compact forced large cooperative banks (>€8B assets) to become public companies (SpA) “One member, one vote” replaced by share-based voting, reducing cooperative governance 2016 reforms required small credit cooperatives (BCCs) to join larger banking groups or face liquidation, reducing autonomy,

Limits on worker buyouts (WBOs): New insolvency laws (2019, 2021) prioritize pre-insolvency mediation, where firms are not formally “insolvent” This blocks workers’ right of first refusal to purchase assets and form cooperatives Creditors and administrators gain stronger control; job preservation becomes secondary

Structural and institutional limits: Marcora-style support applies mainly to SMEs, excluding large-company rescues Limited state support beyond funding (weak legal/managerial assistance, capped at ~1% of funds) Reports of administrative bias against cooperatives in insolvency processes Overall system favors creditors over worker ownership in restructuring cases.