Italy: Staff Report for the 2001 Article IV Consultation

IMF Staff Country Reports, November 20, 2001

Source details

Italy has made impressive strides in achieving deep-rooted macroeconomic stability.
Growth has disappointed over the past decade.
The government has laid out a bold agenda to reinvigorate growth.
Specifics of an expenditure and tax reform agenda should be laid out early.
A key to achieving more dynamic growth is to tackle the root causes of Italy's large regional imbalances and labor market weakness.
Although the liberalization of product markets has been advancing, major scope remains to promote competition and efficiency.

Macroeconomic stability: notable improvement described as "deep-rooted macroeconomic stability."
Growth performance: growth has disappointed over the past decade (no numeric growth rates provided on the page).
Structural constraints:
- Large regional imbalances identified as a root cause limiting dynamic growth.
- Labor market weakness and job-market entry problems highlighted as key impediments.
- Product market liberalization has progressed, but significant scope remains to enhance competition and efficiency.
Policy focus recommended: early specification of expenditure and tax reform measures to support the government's agenda to reinvigorate growth.

Lay out specifics of an expenditure and tax reform agenda early.
Tackle root causes of regional imbalances.
Address labor market weaknesses to improve job-market entry and overall employment outcomes.
Continue and deepen liberalization of product markets to promote competition and efficiency.

Subject: Budget planning and preparation, Employment, Expenditure, Fiscal stance, Labor, Labor markets, Public debt, Public financial management (PFM)
Keywords: Budget planning and preparation, Central and Eastern Europe, CR, Employment, Europe, exchange rate, GDP, Global, government, government plan, ISCR, Italy, job-market entry, labor market, Labor markets, medium-term strategy, taxation authority