February 7, 2005
Italy is a high-debt/low-growth country deeply embedded in a low growth region. In such a demanding environment, where room for maneuver is limited and trade-offs are tight, Italian authorities remain fully committed to pursue fiscal consolidation and structural reforms so as to raise the country’s growth potential. Higher, sustained, growth will critically contribute, together with fiscal consolidation, to a sustained reduction of debt.
Council of the European Union - Annual Report on Structural Reforms 2005.
December 2004 Update of the Stability Program of Italy - An Assessment, European Commission.
Empirical evidence suggests that the impact of Article 18 on firm size growth is small. See Torrini and Schiavardi “Firm size distribution and employment protection legislation in Italy” Bank of Italy, Temi di Discussione, No. 504.
Employment in Europe 2004: Recent trends and prospects - European Commission.
In 2003 the male participation rate of the 25–54 age cohort is 91.5 percent (EU-15 average is 92.4 percent).
As a forthcoming IMF Working Paper shows, while a piecemeal approach to reforms is possible in labor markets, it is usually not possible in product markets. Product markets have to be liberalized in one shot to avoid the formation of dominant positions. See T. Boeri ‘Reforming Labor and Product Markets: Some Lessons from Two Decades of Experiments in Europe’, 2005.
See M. Bugamelli and A. Rosolia, “Produttivita’ e concorrenza estera”, Bank of Italy, 2004.
See ICE (Istituto Nazionale per il Commercio Estero), “L’Italia nell’economia internazionale - Rapporto ICE 2003–2004”.
Potential growth calculations are based on actual data for 2001-03 (1.9 percent in 2001, 1.7 percent in 2002 and 1.5 percent in 2003 and 2004), and are thus a lower bound estimate.
Decision made by the ECOFIN Council on July 12, 2002.
The stock-flow adjustment in the EU member states - European Commission (ECFIN/2004).