Sectoral Regulatory Reforms in Italy

Abstract

This paper discusses product market regulatory reforms in Italy over the past decade. Special attention is given to the underlying macroeconomic context for sectoral reforms and the role played by such reforms in consolidating the gains of macroeconomic convergence for entry into the European Monetary Union. The paper suggests that the shift towards more market-oriented and less interventionist policies, has allowed Italy’s legal and institutional framework to come closer to the mainstream of good regulatory practices in the OECD countries. With Italy having been initially a laggard on the regulatory reform front, recent achievements have been remarkable. They are, however, incomplete. A major challenge is the need to secure competition in the sheltered sectors of the economy, where inflation inertia raises costs and affects the exposed sectors, thereby weakening international competitiveness ...