In Italy there is a huge debate about the elimination of the so called "giusta causa di lincenziamento", that is, with the current law, employees who work for firm with more than 15 persons, cannot be fired without a valid motivation.  In Particular if a judge finds that the motivations for firing a worker are not valid, he can force the firm to hire again the worker.  A large part of italian media,  sees the elimination of this norm, as a sort of Panacea against all the ills of the Italian economy. For me, it is not clear why such reform should help italian economy. The medium size of the italian firm is 3 employees, furthermore to my knowledge there is not a paper that clearly  shows that EPL reduces total employment.

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