The Organisation for Economic Cooperation and Development has warned political parties looking for votes ahead of next year’s Italian election not to scrap the reforms introduced by Prime Minister Mario Monti.
The OECD believes Monti’s policies are crucial for Europe and for Italy.
Speaking in Rome, OECD Secretary-General Jose Angel Gurria said: “The structural reforms started by the Monti government in terms of fiscal consolidation, liberalisation, the simplification of labour laws and the fight against corruption create the foundation for a stronger Italy, a more competitive Italy and a fairer Italy.”
Mario Monti, though downbeat, appears satisfied with his country’s performance. “Italy has been able to get off the list of countries that were a major source of problems for the eurozone and contribute to the formulation of policies for growth in the eurozone,” he said.
The country still faces huge challenges, Rome must move to reduce massive youth unemployment and boost productivity.
Many in Italy have asked Monti, a respected economist, to stay on after the election. Monti has so far declined such a request.