We discuss the strengths and weaknesses of the fiscal consolidation package adopted by Italy in 2011. Estimated at 3.3% of GDP, the tax measures were introduced to reduce public deficits without weakening the prospects of economic recovery or producing adverse redistributive outcomes. The tax...

The increasing political concern about fiscal competition across European countries induced Italy to implement a wide-ranging reform of capital income and business taxation. We describe the reform, briefly discuss its links with other relevant international experiences and reform proposals, and...