Assessment and recommendations

I. Economic conditions and the prospects for faster growth

Overview
Slow growth gives way to renewed expansion
Forces acting and short-term prospects
Medium-term growth impediments: inflation inertia and export performance

II. Issues in fiscal policy

Introduction and overview
Fiscal consolidation in 1998 and 1999
The medium-term plan and 2000 budget: a greater emphasis on growth
Medium-term strategy: automatic stabilisers and fiscal flexibility
Public debt and longer-term issues
Progress in primary spending control
Progress in tax reform

III. Coping with the ageing problem

The demographic shock
Institutional background to the Italian pension system
Trends in pension spending and system imbalances
Care for the elderly
Ageing, labour supply and economic growth
Conclusions and policy recommendations

IV. Towards more balanced growth: progress in structural reform

Overview
A new strategy for convergence
Privatisation and market liberalisation
Fostering employment expansion
Promoting a business-friendly environment