6  Walter Bagehot (1905), Lombard Street – Il mercato monetario inglese (translation by Prof. L. Einaudi), Utet, Turin. 7  Bank of Italy (1947), Relazione Annuale, “Considerazioni Finali”, 255.
To restore competitiveness and remove the imbalances, a dual agenda needs to be concurrently implemented: first, a multi-year program of fiscal consolidation, which can reduce risk premia and crowd-in private investment, raising the growth potential of the economy; second, bold and wide-ranging institutional reforms in the public sector and structural reforms in product and labor markets, which can enhance productivity and raise the employment rate.