OECD recommendations for Italy: from real estate to retirement.

The last year approved reforms that require full implementation in Italy. In order to reduce the burden on taxable labor, it is proposed to shift it to real estate, and to improve the competitiveness of lagging regions by allowing collective bargaining at the regional level rather than at the level of the country as a whole. These are just some of the recommendations contained in the Going for Growth report released today by the OECD.

The Paris-based organization also recommends that Italy "make early retirement more difficult in order to strengthen labor market participation and ensure the sustainability of the pension system." There is also a need to reduce tax rates for second incoming family income and improve public services to increase women's labor market participation. The OECD also identified shortcomings in Italy regarding outdated legal regulations in some sectors, the "pervasiveness of the informal economy" and the lack of incentives for micro-enterprises to grow and improve productivity.

OECD also recommends "promoting labor market participation among recipients of social benefits, including civilian income, by making the withdrawal of benefits a phase-out conclusion." In general, in the context of the issues of "Inclusion, Social Protection and Ageing", the Paris-based organization identified deficiencies in Italy related to the proportion of the population living in poverty, which is increasing despite a high level of redistribution through taxation and social benefits. "For those who need it most, a review of benefit eligibility requirements is needed," says the OECD. The Paris-based organization also warns Italy about deficiencies in digital literacy, as well as the spread of broadband access and the use of digital services. Data sharing between government agencies is limited, "which negatively affects the ability to monitor and evaluate the public".