OECD urges Italy to cut labour costs to boost growth
Protect wages, not jobs says Paris-based organisation21 February, 12:17
Matteo Renzi's government should change the focus of labour policy by providing stronger safeguards for workers' wages and less for the job per se," as well as "improving the social safety net", the OECD said.
In its Going for Growth report, the OECD said Renzi should reduce the so-called 'fiscal wedge' - the difference between what employers pay in labour taxes and what workers get - as well as cutting minimum labour costs.
Italy's slow growth may have become a structural problem, added the Paris-based organisation. The recommendation broadly reflect Renzi's economic programme.