This Survey is published on the responsibility of the Economic and Development Review Committee of the OECD, which is charged with the examination of the economic situation of member countries.The economic situation and policies of Italy were reviewed by the Committee on 11 January 2017. The draft was revised in the light of the discussions and given final approval as the agreed report of the whole Committee on 24 January 2017.The Secretariat’s draft report was prepared for the Committee by Mauro Pisu and Paula Garda under the direct supervision of Patrick Lenain and Asa Johansson, and the general supervision of Alvaro Pereira and Robert Ford. Statistical research assistance was provided by Damien Azzopardi and Milenko Fadic and administrative support by Brigitte Beyeler and Raquel Paramo.The Survey also benefitted from contributions by Dan Andrews, Silvia Appelt, David Bartolini, Piet Battiau, Fabio Berton, Bert Bryce, Joanne Caddy, Flippo Cavassini, Thomas Dannequin, Emma Duchini, Michael Hewetson, Nick Johnstone, Christine Lewis, Giorgia Maffini, Fabio Manca, Giuseppe Nicoletti, Marco Marchese, Dirk Pilat, Sebastian Schich, Kevin Shoom, Raffaele Trapasso, Mariagrazia Squicciarini, Litsa Vavakis, Gert Wehinger, Juan Yermo.The previous Survey of Italy was issued in February 2015.

Italy is recovering after a deep and long recession. Structural reforms, accommodative monetary and fiscal conditions, and low commodity prices have helped the economy to turn the corner. The Jobs Act, part of a wide and ambitious structural reform programme, and social security contribution exemptions have improved the labour market and raised employment. Yet, the recovery remains weak and productivity continues to decline. Returning the banking system to health will be crucial to revive growth and private investment. More investment in infrastructure will be essential to raise productivity.

Italy is emerging from a long and deep recession (). Macroeconomic policies initiated by the Italian government and supportive monetary policy have contributed to the turnaround, along with lower commodity prices. The Jobs Act and social security contribution exemptions jolted the labour market, leading to rising employment and higher consumer spending. Mildly expansionary fiscal policy is supporting growth. Impressive progress has been made on the structural reform programme. Reforms in different areas, including the labour market, school system and public administration, have been passed and implemented or are in the course of implementation (). Greater focus has also been put on past reforms, with a sharp reduction in the backlog of decrees needed to implement them. The rejection of the constitutional reform in a referendum in December 2016 has heightened political uncertainty but the structural reform process must continue if Italy is to build a more inclusive society and improve growth prospects.

The objective of this Annex is to review action taken since the previous Survey (February 2015) on the main recommendations from previous Surveys.