Italy

This edition of OECD's periodic review of Italy's economy finds a welcome economic recovery under way with improvements in export and labour market performance. But medium-term prospects remain challenging: total factor productivity shows little signs of resurgence, highpublic indebtedness threatens fiscal sustainability and population ageing looms large. Without further reforms to restore economic dynamism, living standards will be dragged down relative to other countries. This survey discusses policies undertaken by the government to address these challenges, notably to boost competition in public markets, achieve fiscal sustainability, and make fiscal federation work - all in support of growth and adjustment.

Executive Summary Assessment and Key Recommendations Chapter 1. Italy's Key Challenges -Encouraging Improvement in Italy's Macroeconomic Performance -But Longer-Term Economic Prospects Remain Challenging -The Survey Deals with These Important Policy Challenges -Annex: Taking Stock of Structural Reforms -Annex: How To Make Italian Firms Grow Chapter 2. Enhancing Competition and Productivity in Services -Recent Measures to Liberalise the Economy -Wholesale and Retail Trade -Professional Services -Financial Services -Conclusion Chapter 3. Achieving Fiscal Sustainability -Short-Term Fiscal Developments -Reducing Public Debt -Implementing Pension Reforms -Concluding Remarks Chapter 4. Making Federalism Work -Main Trends and Features -Spending Issues -Funding Principles -Fiscal Rules for Budget Discipline -Annex: Internal Stability Pact