Retailers' association
Confcommercio said Friday that fixing Italy's structural
defects, such as excessive bureaucracy and illegality and human
capital weaknesses, would boost gross domestic product by 230
billion euros at current prices, around 16% of GDP.
"Excesses and structural deficits in our country cost each
citizen 3,800 euros a year," said Confcommercio President Carlo
Sangalli.
"We know it's a long, difficult challenge, but it's the
only path worth taking".
Confcommercio added that even modest reductions in these
'structural gaps' could have a big impact, adding over 45
billion euros a year to GDP in real terms.
The retailers association said that it forecast real GDP
growth of 1.6% both this year and in 2017.
It said the growth will be fueled by rises in consumer
spending of 1.4% and 1.7% respectively and supported by
increases on gross fixed investment of 3% and 3.7%.
The association said some government measures, such as
support for poorer households and the suspension in
social-security contributions for some groups of young workers
employed on steady contracts, would contribute to the growth.
But it added that this outlook was far from satisfactory.
"Our country's performance is consistently below that of
Germany and the United States," said Confcommercio President
Carlo Sangalli, pointing out that Italy's GDP was up by only
0.8% last year.
"Despite this, we think that a spurt forward is possible -
down the road of reforms, cuts in unproductive public spending,
reductions in excessive bureaucracy and tax cuts".
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