OECD indicators of structural policy show that policy changes in Italy since 1998 should have improved the environment for entrepreneurship significantly, but in the same period its economic performance has deteriorated noticeably. This may be partly because there is a difference between policy measures intended by the government or parliament and their impact on the business environment perceived by entrepreneurs. There is no certainty as to what are the main culprits, but a number of policy steps would help to improve the situation. These include better thought out and better written legislation and implementing regulations, more use of performance-oriented management in public administration, and further streamlining and reduction of incentives to procrastination in the judicial system. Legislative simplification and transparency will increase economic efficiency in themselves, while also making a contribution to reducing the incentives and opportunities for corruption and organised crime to flourish. Clear operational independence with accountability is essential for bodies monitoring and assessing the extent of corruption. This Working Paper relates to the 2013 OECD Economic Survey of Italy (www.oecd.org/eco/surveys/Italy).