“I don't think Italy will have to ask for European aid. I don't think it's necessary." The reassuring message comes from the deputy secretary general and chief economist of the OECD, Piercarlo Padoan, who spoke this morning on Radio1 Rai. Yesterday, the Paris-based organization unveiled its latest report on reforms in Italy.
"If the markets do not recognize the progress made by Italy we should be ready to evaluate the request for aid - Padoan specified -, but we also insist on one thing, and that is that the country must continue, indeed intensify the force of the reforms, because this is the most important signal that the financial markets expect; under this condition, the financing of our public debt is absolutely not in question and there is therefore no need today to have to resort to an instrument which, moreover, is in any case important that it exists: important for Italy and for Europe”.
Padoan added that the priority for Italy is to increase productivity and competitiveness: “The tax exemption of production-related wages is a good path that the OECD has been recommending for many years; obviously this can only be done on condition that it is compatible with the consolidation of the public budget: therefore if we want to lower taxes on labor we must compensate this reduction with an expense compensation, a strengthening and intensification of the spending review from this point of view would be important ”.
