Italian Premier Romano Prodi said on Monday that women still played too small a role in the national economy, despite a steady increase in the number of female entrepreneurs recently.
Addressing a conference attended by 300 women managers from 18 Mediterranean countries, Prodi noted that the female employment rate in Italy was, at 45%, some 10% lower than the European average.
"This is intolerable," he said, noting that in southern regions the situation was often much worse.
Data released on Monday showed that, despite the low overall level of female employment, many women were setting up companies on their own in sectors such as finance and construction.
The number of companies managed by women rose again in 2006, reaching 1.2 million, or about 24% of the total, according to Italian chambers of commerce.
In his address to the Milan conference, Prodi pointed out that in professions which require admission exams, such as journalism or the judiciary, women were always better represented.
"When there is a challenge, women win," he said.
Nevertheless, statistics show that there are still far more men than women in the country's best paid jobs, with the result that average women's earnings are 23% lower than men's.
All this translated into relatively few women in politics, Prodi continued.
Some 17% of MPs in the Italian parliament are women and Prodi himself was criticised last year for including only four women in his cabinet after promising six.
The premier said this situation, common in many Mediterranean nations, meant the region was ignoring a part of the population which could be crucial to its future.
"There's a situation of conflict which is unsustainable and we are all called on to promote peace. Women can play a fundamental role in this," he said.
Also at the conference was Milan Mayor Letizia Moratti, one of Italy's top women politicians as well as a successful businesswoman herself.
"Women's capacity to open dialogue, to discuss things, make networks and also their creativity are fundamental if we are to succeed in global challenges," she said.