EZA 943 Report: ITALY

15 April 2010

EZA943/16April 2010: Improving background for economic reforms after regional elections

 

• The outcome of recent local elections (28/29Mar), with an unexpectedly strong showing from the Northern League, promises to help reforms in both the public sector and in the private economy.
• This encouraged the industry association Confindustria to call for a substantial overhaul of business and labour market legislation on 08Apr.
• The key to both public and private sector reforms will be the legislation in the Fiscal Federalism Act. This Act, if passed, should not only enhance government efficiency but also help boost business reforms aimed at increasing competitiveness.

 

Asset conclusion: political calm in the coming two to three years will offer an unprecedented window of opportunity for business friendly reforms, hence positive for stocks and bond spreads.

 

Please see the attached briefing note from the EZA team; simply read onscreen or print and read at your convenience

 

Discussion Partners

 

Dr Michael Clauss: Politics / Economy / Equities Sectoral Analysis
Tel: +49 89 64254046

michael.clauss@eurozoneadvisors.com

 

John Arrowsmith: ECB / Regulatory

Tel: +44 7720 59 1726

john.arrowsmith@eurozoneadvisors.com

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