what economic system is it in italy?

The Italian economy has moved strongly in line with the Maastricht convergence parameters, but at a slower pace than the rest of Europe. Even though the Italian economy's growth rate is still below those of the other European economies, our country's growth is getting close to the Euroland average.

The 1999 national accounts data show an Italian GDP value (at current prices) of approximately E1,099bn, reaching a real increase of 1.4 per cent (0.1 per cent less than growth rate registered in the previous year), compared to an EU-I I GDP increase of 2.3 per cent. The corresponding value of the GDP per-capita is of little more than E19,000. The cyclical recovery, which started in the second half of 1999, should gain strength in 2000, in line with the international recovery. According to the recent documents presented by the Treasury, a 2.5 per cent real increase in GDP is expected for the year 2000. Last year deceleration was due to the bad performance of the net foreign demand, which cut GDP growth by one percentage point, while domestic demand and stocks have contributed respectively for 2.0 and 0.4 percentage points.

Concerning the employment figures, the data released by ISTAT, following the revision of labour statistics last July, show that, during 1999, the unemployment rate decreased for the first time since 1993, to 11.4 per cent. Improvement is remarkable, but lower than in the euro area, where the unemployment rate, equal to 10.9 per cent in 1998, dropped to 10 per cent in 1999. The increase of employment was entirely due to the growth registered in the service sector (+2.4 per cent). The number of employees in the public sector declined again, where labour turnover has been blocked for several years now. Employment decreased by 0.2 per cent in the industry sector. As the economic recovery gains strength, employment will continue to grow in 2000, at about 1 per cent, due to an increase of labour demand in the manufacturing industry.

The average inflation rate relative to 1999 was 1.7 per cent, in comparison with the 1.8 per cent of 1998 and a forecast of 1.3 per cent. The reduced inflation was due to the rise of oil prices recorded in the months of 1999.

Following monetary policy of the European Central Bank, the Italian Official Discount Rate has increased of one percentage point from 2.5 per cent in 1999 to 3.75 per cent in May 2000. On 1st of April 2000 the Prime Rate pointed out by ABI (Italian Banking Association) was 6.75 per cent.

In the first months of this year, the Italian market registered a progressive growth in the returns on government bonds. With regard to the performance of short-term government Bonds (BOT), at the auction held in April 2000, those at 12 months yield, reached 4.27 per cent. The average return on BTP at 3 years yield (17 April auction) was fixed at 4.78 per cent.

Low economic growth did not compromise the improvement in public accounts in

1999. Thanks to higher than expected revenues, the general government's deficit

dropped from 2.8 per cent in 1998 to 1.9 per cent of GDP in 1999, below the official forecast pointed out by the government in March 1999 (2.4 per cent of GDP). The budget deficit for 1999 was approximately E20.9bn, a decrease of 30.6 per cent compared to 1998. The general government deficit should continue to drop in 2000, to 1.5 per cent of GDP, following the government measures included in the budget law.

The fiscal burden in 1999 has slightly increased from 43.0 per cent of GDP in 1998 to 43.3 per cent in 1999.

a shit market one

open market one

a bad one.....eh eh