Stick to gov’t reforms, OECD head advises Italy

MILAN - Agence France-Presse

Italian Prime Minister Mario Monti (R) sits next to Organization for Economic Cooperation and Development (OECD) Secretary-General Angel Gurria on September 24, 2012 in Rome during a conference organized by the Italian government and the OECD on structural reforms in Italy. AFP Photo

Italy must resist the temptation to go back on key reforms launched by Prime Minister Mario Monti’s government since they are crucial for the country and the future of Europe, the Organization for Economic Cooperation and Development (OECD) said yesterday.

“No to the temptation to go back and dismantle the reforms that have been accomplished!” Angel Gurria, the head of the OECD, said as he presented a report in Rome.

Gurria said the reforms “have been necessary for a long time” and were “courageous, ambitious and vast”, adding: “This is not just about the future of Italy but also the future of the European construction.”

The mandate given to Monti last November to form a technical government to drag Italy out of crisis following Silvio Berlusconi’s resignation runs out when a general election is held as scheduled in the spring of 2013.

Before elections

Monti has focused on overhauling the labor market and restoring public finances for what is one
of the most indebted countries in Europe.

As Italy’s election season heats up, there have been calls to reverse some of the main reforms he has imposed such as a new property tax.

Gurria said Italy could increase its gross domestic product by four percentage points over the
next decade if it carried through the reforms.