ROME—Forty-something Italians are facing austerity for the rest of their working lives—just as they have since becoming adults.

"We are the lost generation," says Andrea Bolla, the 46-year-old chief executive of energy provider Vivigas and the Valdo Prosecco winery near the northern city of Verona. He says he pays more taxes and receives fewer services while navigating more red tape than his father did while running the family businesses.

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