We remain sceptical that Draghi’s reform agenda will be fully delivered and consider a long-term improvement in Italy’s economic prospects as an upside scenario rather than a base case. Italy’s chance of reforming its ill-structured economy has increased with the current government and the boost from NGEU. What you will learn:
- Civil and penal justice, public administration, taxation, land registry revision – these are some of the areas in which the government is trying to tackle some of Italy’s long-standing problems. But none of these offers a quick fix to lift the economy out of its growth malaise.
- The recent positive developments have improved perceptions by foreigners, with foreign direct investment marginally up.
- But the improvement in domestic perceptions has been clearer, with stronger consumer confidence being a key factor behind the momentum of the Italian economy.