Front Matter

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© International Monetary Fund

November 2001

IMF Country Report No. 01/207

Italy: 2001 Article IV Consultation—Staff Report, Public Information Notice on the Executive Board Discussion, and Statement by the Executive Director

Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. In the context of a combined discussion of the 2001 Article IV consultation with Italy the following documents have been released and are included in this package:

  • the staff report for the 2001 Article IV consultation, prepared by a staff team of the IMF, following discussions that ended on October 9, 2001, with the officials of Italy on economic developments and policies. Based on information available at the time of these discussions, the staff report was completed on October 17, 2001. The views expressed in the staff report are those of the staff team and do not necessarily reflect the views of the Executive Board of the IMF.

  • the Public Information Notice (PIN) summarizing the views of the Executive Board as expressed during the November 5, 2001, Executive Board discussion of the staff report that concluded the Article IV consultation.

  • a statement by the Executive Director for Italy.

The following document has been separately released:

Selected Euro-Area Countries: Rules-Based Fiscal Policy and Job-Rich Growth in France, Germany, Italy, and Spain—Report with Supplementary Information

The policy of publication of Article IV staff reports and PINS allows for the deletion of market-sensitive information.

To assist the IMF in evaluating the publication policy, reader comments are invited and may be sent by e-mail to

Copies of this report are available to the public from

International Monetary Fund o Publication Services

700 19th Street, N.W. • Washington, D.C. 20431

Telephone: (202) 623 7430 • Telefax: (202) 623 7201

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Price: $15.00 a copy

International Monetary Fund

Washington, D.C.

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Staff Report for the 2001 Article IV Consultation

Prepared by the Staff Representatives for the 2001 Consultation with Italy

Approved by Michael Deppler and G. Russell Kincaid

October 17, 2001


  • I. Summary and Key Issues

  • II. Recent Economic Developments

  • III. Policy Discussions

    • A. The Near-Term Economic Outlook

    • B. Fiscal Reform: From Concept to Implementation

      • Tax reform: a cautious start

      • Public expenditure: structural reform issues

      • Long-run fiscal priorities: quantifying the trade-offs

      • Fiscal balance objectives for 2001/02

    • C. Structural Priorities to Enhance Growth

    • D. Other Issues

  • IV. Staff Appraisal

  • Tables

    • 1. Selected Economic Indicators, 1996–2002

    • 2. Comparison of Medium-Term Fiscal Plans

    • 3. Adjustment Measures in the 2002 Budget

    • 4. Fiscal Developments Under Alternative Scenarios

    • 5. Indicators of External and Financial Vulnerability

  • Figures

    • 1. International Comparisons of Macroeconomic Performance, 1996–2001

    • 2. Consumption and Investment, 1998–2001

    • 3. Indicators of Inflation, 1996:1–2001:9

    • 4. Unemployment in Italy and the Euro Area, 1996–2001

    • 5. Short-Term Indicators, 1996:1–2001:9

    • 6. External Performance, 1996–2001

    • 7. Effective Exchange Rates, Selected Interest Rates, and Monetary Conditions Index

    • 8. Fiscal Developments in Italy and the Euro Area, 1996–2001

  • Boxes

    • 1. Employment-Intensive Growth

    • 2. The Government’s Plans for Fiscal Reform

    • 3. Fiscal Policy Trade-Offs for Italy

  • Appendices

    • I. Fund Relations

    • II. Statistical Information

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Public Information Notice (PIN) No. 01/121


November 20, 2001

International Monetary Fund

700 19th Street, NW

Washington, D.C. 20431 USA

Telephone 202-623-7100

Fax 202-623-6772

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November 5, 2001

Italy: Staff Report for the 2001 Article IV Consultation
Author: International Monetary Fund