– The International Monetary Fund revises downwards its estimates of the Italian GDP but it expects an acceleration in the next two years. “The GDP will contract by 0.1% in 2014 and then grow by 1.1% in 2015 and 1.3% in 2016,” it said nell’Article IV on Italy. Unemployment, which this year will reach the highest level since World War II, 12.6% decline from 2015 Promoted to the government: “An ambitious reform agenda, which is essential to their implementation.”
Ambitious Agenda Renzi – IMF promotes “an ambitious agenda for reform” of the premier Matteo Renzi. “Their resolute implementation is essential to create jobs, increase productivity and increase growth potential,” said Fund. “Implementing structural reforms simultaneously and generate synergies for growth mean.”
Italian Debt sustainable but still risky – “The Italian debt is sustainable but subject to significant risks,” adds Monetary Fund, noting that Italy remains “vulnerable to a loss of market confidence” and “financial contagion”. For that Italy could also be a “source of infection for the rest of the world.” According to economic experts, our country will achieve a balanced structural budget in 2016 With a structural deficit in cyclically-adjusted 0.8% in 2014 and 0.3% in 2015.
radical action to combat unemployment – The rate of unemployment in Italy will rise this year to the highest level since the post-war period, to 12.6% from 12.2% in 2013 IMF points out that unemployment will remain in double digits up to 2017 (12.0% in 2015, 11.3% in 2016, 10.5% in 2017). For this reason, for the Fund, more radical action is needed to create jobs. The reform of government work Renzi goes in the right direction, experts say, explaining that Italy must “move quickly on reforms.” Well the idea of a “single contract of employment.” “With 70% of new fixed-term contracts, further flexibility at the margins does little to reduce duality and push investments.” “The reform of the labor market – says the IMF – is a cornerstone of the agenda Renzi” with the ‘Jobs Act’, but “the difficult outlook for the labor and productivity stagnate require more radical action.” The IMF urges to move forward in the fight against corruption in the public sector remains a serious problem in Italy: more efforts against corruption are needed to improve the business environment.
Spending review changes from pensions and health – The spending review is an “important tool”, but the analysis suggests that “additional savings will be difficult without addressing the high spending pensions. ” IMF points out that there are also spaces to improve health care spending. “As part of their efforts, the Italian authorities have embarked on a spending review to identify areas of potential savings”: it is an “important tool for improving the efficiency of the public. Analyzes suggest that further savings will be difficult without addressing the ‘ higher social security spending. ” According to the IMF public spending on pensions is the highest in the euro area and accounts for 30% of total expenditure. Italy spends seven times more for seniors than for non-elderly. “” The reforms have helped to reverse the rapid rise in health care spending over the past decade, “but there are areas for improvement.” An analysis on regional spending show inefficiencies in health care costs, especially in the south. “
Reform of justice is priority – The justice reform is a priority for growth and employment in Italy.” improve Efficiency was a priority ‘governments in recent years and the government Renzi is no exception. The online civil process is an important measure that can translate into efficiency gains. “So the IMF, pointing out that the performance of the Italian judicial system is significantly worse than the OECD average in terms of time and arrears.
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