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Tuesday 25 September 2012 - 07:36

Italy discusses structural reform‎

Story Code : 198445
Italy discusses structural reform‎
At the conference the OECD presented a dossier which includes analysis and recommendations on the Italian economy. The international organization said that Italy has implemented an ambitious agenda of fiscal and structural reforms that will boost Italy's GDP by 4 per cent over the next decade. Despite these efforts the country remains vulnerable, OECD said.

The OECD urged the Italian government to focus on five main aspects, namely competitiveness, strengthening public sector efficiency and integrity, strengthening social cohesion, implementing the reforms recently introduced by the Monti-led government and introducing eco-compatible policies.

Elections in Italy are due in April 2013. There is a growing anti-European Union sentiment in the parliament and in the general public that may lead to the appointment of a government which dismantles the reforms introduced by the Monti-led executive.

At the latest local elections a Eurosceptic party called the Five Star Movement obtained notable results. Lately the populist movement has consistently scored around 15-20 per cent nationally in opinion polls, frequently ahead of Berlusconi's People of Liberty party and second only to the Democratic Party.

Speaking to reporters following the conference, the head of the OECD Gurria reiterated that Italy should ask for help from the European Central Bank's new bond-buying programme if markets do not sufficiently recognize the merit of the reforms introduced by its technocratic government.

The question is whether the Italians themselves will recognize that merit.
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