Italy experienced a double-dip Great Recession: after the start of the global financial crisis, Italy had a second serious recession in 2011 as a result of the sovereign debt crisis. The reaction of Italian governments was minimal at the beginning but more serious action has been taken to address Italy's fiscal problems since the start of the sovereign debt crisis in 2011. The policies adopted have helped to move the public finances to a more sustainable position, but household real incomes decreased by 13 per cent, with this reduction being quite unevenly felt across the household income distribution. The medium-term outlook is still uncertain: a great deal depends on the capacity of the Italian economy to reduce the level of public debt and to return to sustained economic growth, which has been very weak for more than a decade.
Authors
Carlo V. Fiorio Fiorio
Francesco Figari
Journal article details
- DOI
- 10.1111/j.1475-5890.2015.12074
- Publisher
- Wiley
- Issue
- December 2015
Suggested citation
Figari, F and Fiorio, C. (2015). 'Fiscal Consolidation Policies in the Context of Italy's Two Recessions' (2015)
More from IFS
Understand this issue
Public investment: what you need to know
25 April 2024
The £600 billion problem awaiting the next government
25 April 2024
Should we worry about government debt?
11 April 2024
Policy analysis
Oil and gas make Scotland’s underlying public finances particularly volatile and uncertain
27 March 2024
Recent trends in and the outlook for health-related benefits
19 April 2024
4.2 million working-age people now claiming health-related benefits, could rise by 30% by the end of the decade
19 April 2024
Academic research
6th World Bank/IFS/ODI Public Finance Conference | Driving Progress: Public Finance and Structural Transformation
Call for papers: 5th World Bank/IFS/ODI Research Conference
3 April 2023
Do work search requirements work? Evidence from a UK reform targeting single parents
1 February 2023