16/08/2011 - Statement from OECD Secretary-General Angel Gurría.
The OECD welcomes the comprehensive package approved by the Italian government at the weekend. Fiscal adjustment measures, appropriately emphasizing spending cuts over revenue increases, will bring forward achieving a balanced budget by one year. Such measures will significantly strengthen debt sustainability which is of the utmost urgency given Italy's persistently high debt level. Importantly, this will also contribute to overall euro area resilience.
The package approved includes important measures aimed at streamlining the structure of local government which will, once implemented, also bring permanent benefits to public spending. It also includes liberalisation measures in services and products markets which will help boost the persistently low rate of growth of the Italian economy. Such measures should be implemented without delay to make the most of the short term benefits of structural reform.
The OECD stands ready to support the Italian government in the coming weeks and months in the monitoring of the economy and the implementation of the reforms.