Italy has come under renewed pressure from the European Commission to take “decisive action” on economic reform or face fines, just weeks after the country’s new prime minister Matteo Renzi took office.
The European Commission has launched a formal probe into Italy’s economy which will see “specific monitoring” of whether the euro zone’s third-largest economy is implementing reforms recommended to them.
High public debt levels and failure to implement structural reform will be the focus of the Commission’s monitoring mission.
“Italy has to address the very high level of public debt and weak external competitiveness; both are ultimately rooted in the protracted sluggish productivity growth and demand urgent policy attention,” the Commission said in the report.
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