Rome

OECD report says Italy must continue labor market reforms

Reducing competition barriers a priority

OECD report says Italy must continue labor market reforms

Rome, February 15 - Italy needs to continue labor market reforms, "with more flexible hiring and firing", said the Organisation for Economic Co-operation and Development (OECD) in a report released Friday. Going for Growth 2013, an annual report that gives an overview of structural policy developments in OECD countries, said in its recommendations that Italy should also concentrate on improving "equity and efficiency in education". The organization's flagship report set reducing barriers to competition as a key priority, saying that Italy should "ensure that laws are implemented in practice and all levels of government" and that links between local government and service providers should be "eliminated". To avoid tax evasion, the report recommends that the government "reduce distortions and incentives to evade by reducing high nominal tax rates and abolishing many tax expenditures".

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