The technocratic government of Mario Monti has made significant progress towards overhauling Italy’s economy since it came to office last year, but has not done enough to combat tax evasion and the country’s size-able black economy, an EU finding to be released this week has determined.
The European Commission report, which is still in draft form and was obtained by the Financial Times ahead of its publication on Wednesday, carries significant weight under new EU rules that give Brussels the right to fine and sanction eurozone countries that do not follow its recommendations.
Officials warned that the 29-page analysis and accompanying six pages of policy recommendations could still be changed, particularly after the full 27-member commission reviews the findings.