This article examines the crisis of social concertation in Italy since 2000. We argue that this crisis is not due exclusively to the political shift from a centre-left to a centre-right government led by Silvio Berlusconi, or the end of the European integration phase. It reflects the continued failure of Italian social concertation to address problems of economic growth and work productivity was apparent by the second half of the 1990s. We argue that this is due mainly to the stagnation of the decentralisation process at the company and territorial levels and, in particular, the limited development of second-level collective bargaining introduced by the 1993 July Ciampi Protocol. This reflects a weakness in the Italian institutional context as well as the difficulties associated with the altering of industrial relations in global market economies more generally. The prospects for the future of concertative policy making in the Italian context are also discussed.