Economic policy and development in Austrian Lombardy, 1815-1859

The question of economic integration is not new in Europe. Historically, the birth and construction of nation-states was important in stimulating interest in the systematic relationships between political and economic integration. In the case of the multinational structure of the Habsburg monarchy in the nineteenth century, the result was an economic policy that, for political reasons, aimed to unite the material interests of a state that was completely heterogeneous in other respects. Lombardy was a case in point. Traditionally the region had been in the economic vanguard in central Europe. When it again became part of Austria in 1815 it also became subject to the imperial policy of political integration. As a result its economic priorities were partially reformulated. On the one hand, Austria had a protectionist system aimed at autarky which made incentives to industrial production a priority. Lombardy's purely mercantilist outlook, on the other hand, was based around the production of a few highly specialized goods, most notably silk, for export. Conflict between economic interests in Lombardy was the inevitable result. Nevertheless, the imperial government had to take account of the fact that it was impossible to restrict Lombardy's international trade relations exclusively to the Austrian market. And the problems that beset any effort to tie the Lombard economy into a denser network of relationships with the Austrian market were not due to the political formation of the Italian nation because Northern Italy, and Lombardy in particular, continued to occupy an anomalous position within the context of the Italian economy.