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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 Publicationpolicy@imf.org.
Copies of this report are available to the public from
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INTERNATIONAL MONETARY FUND
ITALY
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
Contents
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
FOR IMMEDIATE RELEASE
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