OECD Economic Surveys.

Description

This OECD Economic Survey of Italy examines recent economic developments, policies and prospects. Special chapters cover labour market reform and more and better quality jobs. Table of contents Basic statistics of Italy, 2013 Executive summary Main findings Ambitious institutional reforms are under way Figure. Reforms underway can boost average annual per capita GDP growth by 0.6% over 10 years Labour market reforms and improved competition to boost productivity growth A small fiscal surplus, combined with renewed growth, will bring down public debt Key recommendations Fully implement the institutional reforms Give full priority to labour-market reforms to boost productivity growth and jobs Fiscal and financial challenges Assessment and recommendations. Figure 1. Lack of growth is linked to low scores on well-beingFigure 2. Low productivity has led to poor competitiveness, high unemployment and rising debt Table 1. Reform impacts on the level of GDP in the medium and long runs A prolonged recession and uncertain prospects Table 2. The Economic Outlook to 2016 Figure 3. Recession has widened the regional divide Figure 4. Bank lending has been declining, while interest rates remain high for private borrowers Box 1. Recent government measures to increase "Finance for Growth." Institutional reforms can be the basis for better policymaking and stronger implementationMonitoring and ongoing policy assessment is important Table 3. Progress on structural reforms A more efficient judicial system and efforts to tackle corruption Recommendations to boost efficiency through institutional reform Labour market and competition reforms to improve productivity and well-being Protecting individuals rather than specific jobs Table 4. Recent reforms easing regulation on labour market contracts in selected countries Increasing job-matching efficiency and workers' skills. Figure 5. ALMP spending is relatively low and concentrated on some categoriesProviding adequate labour incentives and targeted social benefits More flexible wage setting Figure 6. The tax wedge for low-income workers is high Encouraging participation Liberalising services and improving competition Figure 7. Low gas prices, high electricity prices Figure 8. Carbon intensity index of the energy mix Policy recommendations for the labour market and competition Addressing fiscal and financial challenges Figure 9. The underlying primary budget surplus is now large. Table 5. Fiscal consolidation in successive budgetsFigure 10. Debt will decline if the budget remains balanced Table 6. Public debt, arrears and contingent liabilities, 2013 Improving the efficiency of public spending Tax expenditures Figure 11. VAT Gap estimates in the EU26 countries, 2012 The Internal Stability Pact Recommendations for fiscal and financial policies References Annex. Taking stock of structural reforms Public sector efficiency Product markets Education Labour market Boosting innovation Environment Thematic chapters.