The sustainability of the Italian public finances: an overview

Salustri, Andrea (2013): The sustainability of the Italian public finances: an overview.

Abstract

The Italian international reputation in mainly related to the high level of its public debt. During the Great Recession, this fact, associated to the stagnation of productivity, raised serious doubts on its economic and financial sustainability. The doubts are legitimated also by the fact that Italy is a net borrower of capitals from abroad, as its Net International Investment Position (NIIP) is negative. The statistical analysis of the Italian public finances suggests how the deep causes of the Italian financial and economic fragility rest in the malfunctioning of the institutional (public and private) and economic framework. The Italian economy should manage its structural weaknesses: i) by maturing a long term view able to involve the capital stocks in the economic reasoning; ii) by enabling SME and citizens’ participation in all the economic activities; by empowering the third sector and more in general non profit activities in order to facilitate the formation of social capital.

• Item Type: MPRA Paper
• Language: English
• Keywords: Debt-GDP ratio, spending review, economic inclusion
• Subjects: H - Public Economics > H5 - National Government Expenditures and Related Policies > H50 - General; H - Public Economics > H6 - National Budget, Deficit, and Debt > H63 - Debt ; Debt Management ; Sovereign Debt; H - Public Economics > H7 - State and Local Government ; Intergovernmental Relations > H72 - State and Local Budget and Expenditures

References

[1] DPS, 2013, “Politiche nazionali e politiche di sviluppo nei Conti Pubblici Territoriali”.

[2] Governo Italiano, 2012, “Elementi per una revisione della spesa pubblica”.

[3] ISTAT, 2013, “BES 2013. Il Benessere Equo e Sostenibile in Italia”.

[4] ISTAT, 2013, “Noi Italia. 100 statistiche per capire il Paese in cui viviamo”.

[5] WEF, 2013, “The Global Competitiveness Index 2012-2013: Country Profile Highlights”.

[6] WEF, 2013, “The Global Competitiveness Report 2013-2014”.

[7] World Bank, IFC, 2013, “Doing Business 2013. Smarter Regulations for small and Medium-Size Enterprises”.

[8] World Bank, IFC, 2013, “Doing Business in Italy 2013. Smarter Regulations for small and Medium-Size Enterprises”.